As a followup to the DXdao Expenses Update last month, squad leads estimated their next 6 months of expenditures to prepare a budget to be presented to REP holders. This is an important step to greater autonomy for squads and for more accountability for DXdao governance on resource allocation.
I’ve combined the squad budgets and reconciled them into a single excel spreadsheet (download here) that gives a line item budget for the next 6 months.
This should be familiar to those who’ve seen DXdao expenses spreadsheets in the past. All expenses are divided into “Contributor Costs” and “Other Costs”. The contributor costs can be further divided into work by squad as well as what worker level and % of full time. The Other Costs are divided into recurring and fixed costs.
Here’s a snapshot with all of the squad info put together:
These numbers correspond to line items on the Other Costs sheet as well as on the Contributor Costs sheet, where there’s a % breakdown of contributor time across squads (as from before, this was taken from individual proposals as well as my own assessment).
You can look more granularly at the squad level by clicking on each Squad’s sheet. For instance, here is DXvoice’s:
And here’s DXgov’s
In terms of how this budget differs from past expenses. The breakdown below compares the upcoming budget with the expenses over the previous six months (Dec ‘21-May ‘22).
You can see here that the budget increases the overall monthly spend by $34k. Looking at the specific squads:
- DXgov decreases despite a growth of contributors over the last few months plus an additional hire budgeted in. Decline is primarily attributed to much lower auditing costs expected
- Swapr increases 27% from previous expenses. Most of this was expected because the team expanded in March/April but there was a ramp up period. There are also new hires included in the budget for Swapr.
- Governance stays flat. Legal costs were higher in the first half of the year due to DevX costs. This is still budgeted for the second half but at a lower amount. There is also a budget request for a new governance collaborator to aid Dave and I.
- Carrot increases by a lot! Mostly because of some late worker proposals distorted the expenses. Still a small portion of the overall budget
- ContributorX increases by 35%. This is almost entirely explained by the $25k allocation for DXbogota retreat, which was not in previous 6 months expenses (Coordinape is in both)
- Treasury - a very small increase, some for treasury tracking tools and other for new governance collaborator who would also help treasury operations
- DXbiz - a decline, but this is primarily bc Denver happy hour and other dinners from previous expenses were not included. Perhaps more DXvoice
- DXvoice would see a 20% decline in its previous 6 months expenditures, despite growing the team to four full-time contributors. The decline comes from an expected drop in sponsorships. The Copenhagen Flames $100k sponsorship was a big expenditure in 1H2022.
- Ecosystem Development & Security - a big increase that is also the result of missing worker proposals for 1H2022. The increase also includes two new QA’s under the squad as well as a $20k additional budget for Infinite Hackathon.
- The overall monthly burn of $295,872 yields a total DXdao 6 month budget of $1,775,232 and a year burn of $3,550,464. The latest calculation of stables in the treasury is $11.8m, which would yield almost 40 months of runway or 3.3 years.
- Do these overall numbers and line items match with the priorities and interests of DXdao governance? Once settled, I think we should move to an on-chain proposal.
- Squad leads can track their expenditures and reflect after the six months is complete on whether the squad was under budget or whether expenditures were worth it.
- All full-time contributors are allocated 5% to governance. This is an important part of being a contributor at DXdao and I think we should recognize that it takes time and resources. This is a decrease for every squad and leads to a $12k a month expenditure on contributor compensation for Governance (in addition to dlabs & Caney Fork’s allocation).
- I folded some categories together. DXventures is under DXbiz, and DXdocs under DXvoice. I think it’s still a good idea to get this granular in proposals, but for accounting it’s easier to consolidate.
- All squads are responsible for the event stipends of full-time contributors on their squad. This is under Fixed costs on each squad’s sheet.
- In the spreadsheet, all formulas are highlighted in blue and everything hardcoded is white
Let me know if there are any questions, feedback or corrections. Check out the squad specific budget posts: