# IIP-162: Season 2 Budget

**URL:** <https://gov.indexcoop.com/t/iip-162-season-2-budget/4345>\
**Category:** Finance\
**Created:** [21 July 2022 07:45 UTC](https://gov.indexcoop.com/t/iip-162-season-2-budget/4345 "2022-07-21T07:45:55Z")\
**Posts on this page:** 1\
**Showing post:** 7

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**Author:** ![ElliottWatts](https://yyz1.discourse-cdn.com/flex027/user_avatar/gov.indexcoop.com/elliottwatts/32/878_2.png) [@ElliottWatts](https://gov.indexcoop.com/u/ElliottWatts)\
**Post date:** [27 July 2022 16:10 UTC](https://gov.indexcoop.com/t/iip-162-season-2-budget/4345/7 "2022-07-27T16:10:09Z")

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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](https://twitter.com/tallyxyz/status/1551599363583102978?s=20&t=sKJImBgdy2eHUIzA1h_MAg).
> 
> | 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](https://gov.indexcoop.com/t/finance-nest-a-thread-of-monthly-financial-report-publications/3661/35) is our latest Quarterly Financial report for your perusal.

> [@mel.eth](#):
>
> Given the [raise from VCs](https://gov.indexcoop.com/t/iip-32-index-sale/1214) 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.

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_[View the full topic](https://gov.indexcoop.com/t/iip-162-season-2-budget/4345)._