Building on the learnings from INDEX 2.0 and Future of Finance, we are expanding the remit of the Treasury Working Group (TWG) and rebranding it to the Finance Nest (F.Nest).
This proposal requests $60,920 per month or $182,760 per quarter spanning the 3 months from 1st October to 1st January. (INDEX @$35)
DeFi is a highly competitive landscape which iterates and adapts quickly. The Index Community has established itself as a leader within DeFi, for this reality to be maintained the Index Coop needs to enable the community to make informed forward looking financial decisions. How we financially structure the DAO, will directly shape the future of the DAO’s success.
Without a dedicated finance team supporting Index Coop growth, we will likely face challenges around:
- Lack of clarity and accountability on spend
- Index Coop needs to ensure key financial information is clearly reported and allow the community to allocate capital most efficiently to provide data and challenge to ensure the correct initiatives are funded to maximise the growth of Index Coop and/or its products.
- Ineffective management of Operations Account and payroll
- It is critical for the smooth operation of Index Coop that we have the ability to pay contributors and other expenses in a timely manner and manage Index Coop cash flow, multisig structure and operational expenditure in a risk free and responsible manner.
- Lack of strategic asset allocation and diversity in our Treasury
- Failure to manage our Treasury represents a major lost opportunity to use our funds productively to generate yields and also protect Index Coop from major financial perili n a market downturn
- “[TWG] leaders will carry Index Coop successfully through the next 9 month
- 90% Very High Confidence
- “[TWG] is providing the right level of transparency”
- 63% Very High Confidence
- “Rate the value provided by [TWG]”
- 23% Very High Value, 65% High Value, 12% Some value / No Value / Neutral
Other key success from Q3 include:
- Consistent short form and long for article publications
- First Quarterly report was generated
- Backend transaction mapping, cost centres, financial structures all defined and maintenance OPEX reductions realised.
- Onboard Quantitative Finance competency
- Various IIPs covering revenue re-routing, wallet signer amendments and funding of Operations Account
- Defined Diversified Asset allocation strategy for the Investment Account
To date, a broad range of Financial activity has been undertaken via the Funding Council, POC and TWG. With the changes proposed by the Future of Finance, the Funding Council will be dissolved and Treasury WG will transition to be the Finance WG.
Reflecting this expanded role, the Treasury Working Group structure was changed to reflect the emergence of clear domain specialists within the Finance Working Group (F.Nest). Thus, going forward activities will be split into three distinct verticals which will operate semi-autonomously and be accountable to deliver against their respective objectives and initiatives.
- Operational Funding & Payroll (Operations account multi-sig)
- Treasury (Investment account multi-sig)
Within the F.Nest we allocate owners of specific deliverables who are responsible for ensuring the quality and published in line with expectations. All deliverables produced by the F.Nest are peer reviewed within the working group and discussed during weekly team meetings. A detailed review is performed during team meetings, talking through the specific intricate details of a given topic may take several hours. F.Nest weekly meetings are more deep dive analytical meetings that facilitate the deliverables being drafted. The F.Nest will be co-led by Matthew Graham and Elliott Watts.
A detailed breakdown of the monthly spend is shown below:
The total F.Nest spend, using an INDEX price of $35, is equivalent to $60,920 per month or $182,760 per quarter.
In addition to supporting the efforts detailed with the core areas of the F.Nest, each co-lead is expected to be accountable for the following:
- Financial Working Group vision
- Challenging the forum regarding spend and being a steward of the DAO’s finances
- Representing F.Nest at community calls
- Hosting AMA sessions with the broader community
- Front running and removing blockers enabling work to be performed by F.Nest member
- Providing connections to other communities and internal folks as required
- Managing the progress of Financial Working Group deliverables to the community ie: cadence
- Co-ordinates the F.Nest weekly team meeting
- Co-ordinates the group day to day activities and various initiatives
- Actively contribute and review all Financial Working Group proposals
- Governance Forum Posts
- Weekly Presentation during Org Work Session Meeting
- Monthly Community call (AMA style)
- Quarter Financial Update/Presentation
- Index Coop account publications
- #Treasury channel in Discord