Below is an overview of DXdao expenses over the last 18 months. This data and subsequent discussion undergird the budget conversations that are beginning to take place in squads. As the market turns, the DXdao community will need to make sure resources are being allocated to the right places. You can download the underlying excel here.
To start, here is an overview of DXdao expenses over the last 18 months.
The headline figure is the $263k average monthly expenditures from on-chain transactions. This is likely an undercount because some worker proposals are delayed and trial periods for new workers suppress costs initially. A $300k burn rate is a safe estimate to fund DXdao’s current operations. This is about 3.7 years of runway accounting for just the stablecoins in the DXdao treasury.
All expenses have been categorized by 1. Squad 2. Type.
DXgov had the biggest increase, while Swapr and DXvoice both saw sizable increases as well. Part of this was offset by the decline in Aqua and Omen development.
Now, looking at some of the individual squads in terms of where funds were spent.
Swapr costs are mostly split between full-time contributors and a third-party dev shop (Space Inch). “Events” accounts for stipends of squad members during travel.
DXgov, meanwhile, has not had a third-party dev shop, but have spend a similar amount of funds on auditing, particularly the $160k audit with Sigma Prime.
And then for DXvoice, it has a lumpy distribution of funds, particularly around large sponsorships. In December, there was a $20k ETH Denver sponsorship, and then the $100k sponsorship of the Copenhagen Flames in January, and a $12k sponsorship for GGG in Amsterdam. DXvoice also has a good amount of expenses related to design, merch (swag) and other overhead.
Audit costs are one of the largest expenses for the product teams, but come in bunches. All new smart contracts will incur auditing costs, an important planning consideration for all new product.
Events, meanwhile are a big expense that has increased over the last few months as more and more DXdao contributors are attending ETH-related events
To reflect on:
- Do these expenses reflect DXdao’s priorities? Are they a good model for the future?
- Are squad expenses categorized correctly? Should some things (QA?) be reassigned?
- How to fund future product development and allocate resources?
- Agree to overall budget for DXdao of $1.8m for six months starting on August 1, 2022
- Each squad passes a 6 month budget proposal estimate
- In the future, these could be used to allocate funds to squad guilds
Some accounting things:
- All payment proposals come with a clear squad associated with it
- Worker proposals are all one month long, not counting the number of days. Some contributors did this, while others picked a number of days. So, some contributors are getting paid at a different rate.
- Disincentives to late proposals?
Feedback, comments and questions more than welcome. Here again is the full data download. ‘Contributor Payouts’ and ‘Other expenses’ have all of the underlying transactions, while ‘Combined Squads’ gives organizes the data by squad, and ‘Squad-contributors’ shows expense breakdowns within squads.
Next steps are squads coming up with a budget for the next 6 months, estimating different needs and opportunities with the goal of squad budget proposals by August 1. Here is a template for squad budgets.