Compiled DXdao H1 2023 Budget [Draft]

Check out Compiled DXdao H1 2023 budget spreadsheet for more.These numbers are in draft form

Following Phase 2 Restructuring and Refocus Proposal, DXdao is moving away from individual contributor submissions and into guild-based budgeting. So far, the 1H2023 budgets for the DXgov, Swapr and Voice Guilds have been presented and in the forum, and the Operations Guild budget has been presented and the on-chain proposal has been submitted.

The budgeting process has been driven from individual squads & guilds developing their own budget but to DXD & REP holders, it’s important to look at the overall budget and how DXdao’s resources are being allocated. The below is a first attempt to reconcile the guild budgets and begin to estimate DXdao’s 1H2023. Note this will surely change over the coming weeks with more discussion. Some may end up with a lower budget, while others may increase. This will be updated periodically as budgets are updated and approved.

Here’s a compiled snapshot from this sheet for the budget drafts that are out now (plus a Carrot estimate)


Note: DXD reference price of $523

Click on the full sheet for reconciled compensation and other costs, as well as regular & contingency breakdown. This does not include Nimi, which is due ~$25k for the last part of the DXventures grant.

What are “Max Monthly Costs” and “Contingency costs”? Contingency costs need additional approval from DXdao governance. These are mostly expansion costs (new contributors) as well as the event/sponsorship budget, which was just approved for $75k for 6 months. You can see the max contingency cost above ($783k for six months), but I would estimate that this would end up at about ~$150k (honestly, a lot depends on the costs of Gov 2.0 audits).

So quick summary:

  • Annualized 6 month budget for regular costs - $1.79m ($149k a month)
  • Annualized max contingency costs estimated - $1.56m
  • Estimated annualized budget - $2.15m

Again, just a preview and subject to change. In 2022, DXdao’s expenses were ~$3.6m. If you have questions or concerns about the guild budgets, leave a comment on their forum thread.

DXD Context

While the budgets have been created by guild leads, DXdao does have global guidance on its budget amount from the recently approved new DXD Token Model. That proposal states that 6% of the treasury should be used to support DXdao’s product & operations a year. The latest treasury calculation is just under $30m and 6% of that would be $1.8m, so just around where the regular costs budget resides.

This budget also requests vested DXD to be used as compensation for contributors. The three year vesting schedule strongly aligns contributors with DXD holders. It also makes all contributors more mindful of spending from DXdao’s treasury. The amount requested in these budgets is annualized to be ~2600 DXD, which would imply an issuance rate of ~7.5%. This would change if the price of DXD goes up (there’s a floor at $523). Also recall that there is no “pre-sale vested DXD” that will be released over the coming years. The DXD in circulation was either from the bonding curve or issued by DXdao to contributors and some for farming rewards last year.

Followup

Again, all of the information compiled here is in draft form and will surely change. This will be updated as budgets are approved. Please leave any questions/comments/suggestions below or on the individual guild budgets. Operations, DXgov, Voice, Swapr

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