@wadelance

Determine operating cost health by comparing burn rate to runway, revenue streams, and treasury reserves. High operational expenditure is acceptable when matched by scalable growth or clear monetization; it’s problematic when costs rapidly deplete runway without proportional user or revenue gains. Scrutinize payroll, marketing, infrastructure, and auditors/consultants spending. On-chain transparency of treasury outflows and periodic financial disclosures reveal spending patterns. High CAC (customer acquisition cost) with poor retention signals inefficient operations. Also assess capital efficiency: are grants, partnerships, or community programs being leveraged effectively? Projects should demonstrate disciplined spending tied to KPI milestones; otherwise over-spending risks dilution, hurried token sales, or stalled product development.

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