IIP-162: Season 2 Budget

[ElliottWatts]

Thanks for your message. I will address the facts here regarding the numbers referenced.

cc: @0x_Dev @catjam @anthonyb.eth @edwardk @afromac

@mel.eth

Size of Overall Budget

The overall budget appears to deplete the remainder USDC and non-INDEX holdings in less than 1-year (absent revenue projections, which at present are unreliable). INDEX holdings are effectively useless given extremely low liquidity as described well here .

Account	USD Equivalent (excluding INDEX)
Investment	$3,167k
Operations	$496k
Treasury	$3k
Total	$3.67MM

Annualized Budget Requested: $4.12MM

The above statement is incorrect. The current makeup of the treasury is as follows. As at the end of June (Stablecoin holdings have not moved materially since then) the total holding is $7.8M

The below table shows stablecoin and stablecoin equivalents

Account	USD Value	Account
Balancer Boosted Aave USD pool	$4.1m	IA
DAI	$315k	OA
G-UNI-FEI<>USDC	$1.6m	IA
G-UNI-DAI<>FEI	$1.2m	IA
USDC	$588k	OA
Total	~$7.8M

This therefore provides a runway of ~1.89 Years.

@mel.eth

Investors should request that the DAO expand on how this is considered prudent management of the community treasury (investors by far comprise the largest tokenholder segment of the community) and demand something that at least looks like a financial statement or business plan.

As you are well aware the Index Coop provides transparent financial reporting monthly. Here is our latest Quarterly Financial report for your perusal.

@mel.eth

Given the raise from VCs was $10MM and only/approximately 0.5MM USDC remains (~$500,000) after 15-months, coupled with the extremely limited runway and ability to raise new funds for labor, how can investors be confident that the current leadership team at the DAO are best suited to be fiscally responsible going forward?

This is incorrect. As detailed above the Index Coop does not have $500k of stablecoins remaining from the $10m raise it infact has $7.8m.

@mel.eth

Perhaps an independent audit of capabilities and expenses would make sense, as self-reflection over the past 9-months has gotten the DAO down from nearly 120 contributors to 19 FTE without a commensurate savings (e.g. the cost/FTE appears to have ballooned while the network-effects of non-FT contribution have been lost).

This statement is not backed by any factual information or comparatives and is incorrect, so I will provide figures.

The DAO’s expenses over the last 6 month’s pre restructure (January to June 2022) totalled $3.8m, annualised is $7.6m. The DAO during that time had ~ 28 FTE (Core hire plus total hours listed on June rewards sheets/50) this represents a FTE cost of $271,428.

This budget implements a reduction of 18.3% per FTE not an increase as you suggest.

It should also be noted that included within this budget is the cost of hiring 2 Solidity Developers!
Given this and the fact the developers are not included in the FTE headcount of 19, the cost reduction has been significant.

The budget as presented enables the core team to build a successful organization, one that already has the buy-in from major investors. The restructure process was implemented with investor blessing and consideration.