IIP-139 - Season 1 Budget Approval

Governance Proposal
1

IIP: 139
Title: Season 1 - Nests Budget Approval
Status: Proposed
Author(s): @Finance.Nest @ElliottWatts @Matthew_Graham
Gov Review: @asira
Created on: 9th March 2022

Simple Summary

This IIP is to approve the budgeting for Season 1 (Feb 1st to June 30th) operations of the Index Coop. Given the gravity of the proposal, we feel it appropriate to take this through IIP cementing the direction to progressively move towards a more refined and efficient business model. The budgets for each Nest have been approved by both Finance Nest and the Index Council. During Season 1 there is an overall 10.72% reduction on Actual Q4 average monthly spend. We believe this to be a positive move towards a leaner business model that is both able to grow and deliver results for the community.

Operations Account: ‘0xFafd604d1CC8b6B3B6CC859cF80Fd902972371C1’

Treasury Account: ‘0x9467cfADC9DE245010dF95Ec6a585A506A8ad5FC’

Abstract

The Season 1 budget being requested is $3,627,852.27 for a 5 month period. This is equivalent to $725,570.45 per month and includes the funding for priority hires detailed in IIP-128. The funding will be provided from the Treasury account to the Operations Account and will be distributed/managed by Finance Nest in line with the approved budgets here within.

The budget being requested for approval is summarised along with the objectives of each nest are detailed below. For feedback specific to each Nest’s proposal, please do comment on the respective Nest forum post linked below:

A summary of funding is detailed here -
INDEX_-_2022_Budget.pdf (88.8 KB)

Specification

The Season 1 Spend including Core Hire but excluding DSM, is shown below:

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The Season 1 Core Hire Cost, excluding DSM, is shown below:

1026×306 43.3 KB

The distribution across the Nests, excluding DSM, is shown below.

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USDC payment is reserved for contributors that are hired full time and are part of the core hires for S1. All other contributors are to be paid in INDEX. The quantity of INDEX each contributor receives will be determined in line with the current methodology for how monthly Contributor Rewards are determined. For the purposes of requesting this budget, we have assumed an INDEX price at the point of payment for the February rewards distribution this is $6.60

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Note: Equity from vested Full Time packages and DSM are not included in these estimates.

Season 1 Budget Approval
  • APPROVE the funding of $3,627,852.27 for the operational expenses of the 5 nests for season 1 (1st February to 30th of June)
  • DO NOT approve the funding of the 5 nests for season 1 (1st February to 30th of June)

0 voters

Copyright

Copyright and related rights waived via CC0.

7 Likes
2

@mel.eth @sixtykeys can we queue this up for snapshot tomorrow? Thanks

2 Likes
3

Handing this over to @asira to handle the IIP process for this proposal.

4

I have spoken with @mel.eth and this will be queued up for a vote on Wednesday this week 6pm UTC. Thanks

4 Likes
5

This IIP will go live at 6 PM UTC on Wednesday, March 16th. Snapshot here

1 Like
6

Reading this and just thinking through it a bit, I need to quickly echo similar sentiments to what Felix shared here.

  • The primary thing that Index Coop needs continued focus on, above all else, is making a turnaround happen. As of now, $INDEX price remains in the single-digits because we’re not launching profitable products. *I get that it’s difficult for an organization as complex as us to maintain a single focus - and historically we’ve not shown an ability or willingness to do so, but now is the time!
  • Set supports resource allocation to product creation, product growth, product maintenance.

This seems like another emmittence of $INDEX tokens in an unsustainable manner – Season 1 proposals make it clear that these funds are not wholly focused on create / grow / maintain activities.

4 Likes
7

If you compare Q4 actuals to Season 1 budget, you’ll notice there’s a large shift in resources towards Product Nest, and a lower per-month Growth Nest spend. In my opinion, the budget reflects a commitment towards product creation, growth, and maintenance.

I’ve also pointed out many times now that our product growth is directly hampered by Set’s slowness to provide the functionality we need for us to build our highest conviction products.

8 Likes
8

IIP-139 has been approved by the community with a total FOR vote count of 249,000 Index, 100% voting FOR.
Snapshot here

2 Likes