The above report is split over two pages as follows:
First page - Overview and specific insights into spending activities
Second page - Summary table of operating expenses by working group
At the end of October, the Index Coop’s actual total spend for the month was $550,581, with the forecast total spend being $789,998. However, when compared to September there has been a +14.69% increase in operational costs overall.
September saw a variance of -30.31% between forecast spend and actual spend
Contributor rewards accounted for 86% of overall costs
When reviewing at a working groups level all were within their total allocated budget
In isolation when just reviewing contributor spend, Asia Pacific, Metagov committee, and ‘Other’ category were over budget
Other spending (all else bar contributor rewards) in relation to working groups was significantly under budget. A large proportion of this was a result of limited event activity within the month. Institutional Business, Business Development, Growth & Marketing have an events budget of $137,000 combined however only spent $58,451. Representing a 57.3% underspend. As more crypto events appear on the calendars, this cost is expected to rise in the coming months
Impression mining also saw a significant underspend as a direct result of lower impression mining submissions for October. The payments in relation to IM have also moved to a 2 week cadence to try and cut down on gas costs. So it is likely some of the Octobers submissions will be paid in November
Overall there has been a general upward trend in $ spend which has been largely offset in $ terms by the depreciating $INDEX price causing a 24.49% reduction in fixed contributor rewards
We plan next month to do a deeper analysis on a WG by WG basis. But please do drop a comment below and let us know what you think.
Yes It was just a delay in adding PennBlockchain into the budgeted amount for MetaGov. This will be added in for next time so then as you say the budgeted amount would be $7.5k. Hope that clarifies your question!
These insights are fantastic. Great job on the first report.
On the IB front, we’re under budget by a decent amount for two main reasons: 1) we have contributor stipends based on fixed INDEX (and INDEX went down a lot during the month - oh well), but also 2) the legal work for the security opinion is not paid neatly on a monthly basis. Rather, the bill will likely come in January. From an accounting standpoint, that amount would of course be amortized across the actual time during the quarter when the work was done. In other words, after accounting for the legal work, we’re much closer to budget.
Great stuff Mike - thanks for providing details. Once the bill comes in we can account for it and spread this out over the months covered, aligning the spend on a monthly basis.
Would you be able to provide a rough estimate of the cost so that I can account for this in next month’s budget vs actual post. We can then do a true-up for any discrepancies. Feel free to drop me a DM
DM dropped, but for everyone’s benefit, we budgeted $75k for the quarter for this effort. We are aiming to come in under that figure, so we can assume $25k monthly for now, but we’ll likely adjust it down further as we learn more in the next 1-2 weeks.