The Communications and Marketing multi-sig

For some time now a need has been recognized within the Communications and Marketing squad for a quicker turnaround surrounding opportunities. The current process of external parties creating a proposal can be intimidating and costly, especially for smaller amounts. As an added clause, DXdao is presently unable to send money to multi-sig wallets without the use of a relayer - perpetuating the need for a readily available marketing budget. When you take into account the general time-sensitivity of Communications and Marketing initiatives, the need to introduce a process becomes apparent. This proposal aims to collect feedback and eventually authorize a Communications and Marketing Squad multi-sig.

What is it?

The Communications and Marketing squad multi-sig wallet is a multi-signature wallet on mainnet Ethereum that will hold a portion of funds designated for squad use. Essentially, the funding proposal for this wallet allows the squad to utilize the requested funds as it sees fit in order to operate. The initial funding proposal will account for a variety of initiatives and allocate a percentage of budget accordingly. Multi-sig signers are to remain respectful to these earmarked funds but may agree on alterations provided reasonable factors exist, such as time sensitivity. Allocations would be “reset” upon each subsequent funding proposal.

Branding and design expenses - Up to $25,000
These include any initiatives directly related to the brand and identity of DXdao or any of its products. It also includes design related expenses until DXdao onboards a design focused contributor, which would remove these costs.

  • Landing pages
  • Product videos
  • Brand exploration and refinements
  • Collateral for pull strategy
    • Social media visuals
    • Announcement visuals
    • Any other design requirements related to ongoing marketing strategy

Events and public face - Up to $10,000
These include any costs associated with DXdao or its products having a presence at events or live initiatives that give direct exposure. This does NOT include covering the costs of individual contributor attendance, this initiative is separate and can be found here.

  • Hackathons
  • ETH events
  • Podcasts
  • Articles and publications

Marketing and community expenses - Up to $25,000
These expenses relate to public outreach surrounding launches, releases, or other time sensitive initiatives we want to reach as many people as feasible. This can also include regular marketing expenses without time constraints, and initiatives with a community focus.

  • Advertisements
  • Community events/incentives
  • Influencer advertisement
  • Push strategy
    • Global marketing outreach
    • Targeted marketing outreach
  • Pull strategy expenses
    • Websites
    • Blog
    • Social media
  • X-community promotions
  • PR agency (P)
  • Advertising agency (P)

Squad operation expenses - Up to $1,000
This would be utilized in the event that the squad has increased in size as such that a suite of tools is necessary to coordinate. It is not expected to be utilized right off the bat, especially not for smaller expenses considering mainnet gas costs.

  • Airtable
  • Calendars
  • Community tools

Market research - Up to $15,000
These expenses surround any research concerning the users of our products, our investors, research and surveys. A similar roll-out of utilization is expected to the above.

  • Customer research
  • Surveys
  • Market research teams
  • Data analysis

Contingency - Up to $5,000
This allocation accounts for variables not reasonably identifiable without the benefit of hindsight. This can be used to supplement any category provided reasonable circumstances require additional funds.

Total initial allocation - $75,000

Context for the initial funding
Since marketing expenditure is incredibly low currently, it is not expected that these numbers are utilized immediately. It is expected that the squad rolls into this initial allocation within the first few months of use, and prepares a consistent budget to be requested for the following funding proposal. Regardless of this, there are some potential short term needs (1-4 weeks) of the Communications and Marketing squad multi-sig. These include:

  • Omen landing page - ~$20,000 (Pre-negotiation, some of payment could be in OMN token)
  • Omen marketing video - $12,020 (Bypassing the multi-sig due to time constraint, will instead be requested from the DAO directly).
  • Swapr landing page - $8,500
  • DXdao branding work and landing page - $10,000 ($5,000 already paid by the DAO).
  • Week in Ethereum advertisement - $345
  • Bigcoin Vietnam - Up to $10,000.
  • XZcrypto China - Up to $8,000
  • Influencer campaign - Up to $5,000

Who?

This multi-sig will be made available to Communications and Marketing squad members or supports with a full-time engagement who hold at least 0.5% REP. No transaction will come as a surprise; discussions, decisions, and the signing process will be held in the usual squad channels. This process will require 3/5 signers.

Currently eligible include (but isn’t limited to):

  • Keenan Luke
  • Tammy
  • Sky
  • Chris P
  • Zett

There are other contributors who fit the profile that have not yet been invited in an effort to avoid detracting from busy schedules. This group will be satisfactory for the time being and can be expanded upon or altered as the squad grows into the future.

How much?

After this forum post has been discussed, a proposal will be made requesting $75,000 to the Communications and Marketing multi-sig. This was deemed to be an appropriate amount to kickstart the initiative and should cover an initial batch of costs. Looking to the future, Keenan Luke will coordinate with the squad to develop a Communications and Marketing budget based on DXdao expenditure. This should be requested as a quarterly top-up. (EG. With a hypothetical yearly budget of $1m USD, a quarterly request to bring the multi-sig balance to $250k USD will be made). This of course will be another separate proposal, while this one focuses solely on the establishment of the multi-sig.

Please, if you have any feedback on this initiative let us know here. Passage of the initial smaller funding would be considered an authorization of multi-sig operation. A proposal failure would be interpreted as a severe unaddressed variable and a reassessment of the multi-sig before moving forward with another proposal.

8 Likes

Great initiative @KeenanL I think dxDao definitely needs to spend more money and resources in marketing and that this can work out great! I think 50k makes sense.

My only concern is that costs should be rationed in advance on what will the money be spent on and if sums are appropriate for the given tasks. For example in post you mentioned Omen and Swapr videos, Hackathons,Advertisments etc… I think we should put dollar amount that will be allocated to each task and In my opinion costs should be researched and given some approximation if we don’t know.

Also is this budget that will be spent over the course of one month or?

4 Likes

Hola keenan,

Can you provide clear rules on what the multisig would be used for? No ETC. If the dao is going to be delegating funds to a group of workers it should have very clear rules and requirements on where the money will be spent since the beginning and it should not change without the dao approval. (IMO).

You are giving few days (including weekend) for others to check this proposal for 50k usd, I would encourage you to give at least a week to make sure that everyone had time here to express their opinion.

Also, The addresses that you will use for the multisig should be the same one where you have your REP, so we can check on chain that the multisig users hold more than 0.5% rep.

4 Likes

In my opinion it would be insane to spend 50k usd in a month on marketing.

How long do you expect the 50k usd to last @KeenanL ?

1 Like

Hola!

Regarding rules:

The idea of the multi-sig is to delegate a budget to the squad to use as it sees fit to operate. I understand having very clear rules, however etc was used to indicate that there are many options for squad expenditure that making a large list would be redundant. The two rules that I believe apply are: “no malicious expenditure for personal gain of any multi-sig member” and “obtain consensus throughout the squad before using funds.” Both of these problems are solved by a 0.5 percent minimum REP requirement, 3/5 signers, and the inclusion of squad supports.

In my eyes (considering that I am biased) we should be entrusting that the long-term full-time contributors are capable of making decisions within their verticle that are in the best interest of DXdao. For example, I would entrust Geronimo and the Omen Squad to make the best decisions on behalf of Omen provided they were operating within a budget delegated by the dao. The budget is the most important part IMO.

Maybe this needs to be refined further? Only a small portion of a potential budget being utilized in this fashion? Curious to hear a few voices on this.

Regarding proposal submission:

I mentioned that we wanted to expedite this initiative, leaving a forum post up for 2.5 days before a proposal is definitely on the short end. I also said

Depending on the discussion (or lack thereof) the initial funding proposal will be submitted EOW, or early next week.

Since we have some constructive feedback, definitely won’t be submitting until conclusion! Also, since this would be a mainnet proposal there would be a full workable week of voting with a boost.

Regarding budget:

This is something I have been meaning to bring up for a while. I would consider marketing at DXdao to be “bare minimum” expense currently. I have been operating as the only full-time marketing member for some time now; considering that I am also focusing on the Community and a handful of projects, marketing expenditure is ludicrously low. Obviously, there is nuance here, but considering my time commitment + support members, marketing expenditure is roughly 3.5% - actually less when considering that the most recent treasury report did not include outstanding contributor proposals (to the best of my knowledge). I would say it’s actually around the 2% - 2.5% area, excluding larger expenditures. (Take this with a grain of salt, numbers would be cemented once working on the budget directly).

For reference, traditional financial marketing expenditure is on average between 6% - 15% of total budget depending on the industry. Crypto on the other hand, the range is much wider with a higher floor at 8% - 40%(!). Marketing and community are incredibly important in this space, in fact, seriously underdeveloped projects see moderate to serious success as a result of putting the focus on marketing. (I do think that the high end of this is unreasonable and attributed to ICO’s though). My question would be, do you seriously think that DXdao doesn’t need additional marketing? I personally think that as our product suite rolls out, there is a serious need for a marketing-focused member, or even a team, for each of our products - as well as consistent outward-facing expenditure via events, hackathons, advertisements, PR, etc. Marketing is how a project grows a userbase, and we have to worry about DXdao as a dao, potential DXdao GAAS, Swapr as a leading multi-chain AMM, Omen as leading prediction market platform, and Mesa once ready - all of which are separate entities with their own marketing strategies.

So to answer the question, yes, I do see a world where DXdao expends $50,000 a month or even more as we continue to scale. I’d like to work with @fluidDrop to refine a budget based on accurate data, but the initial funding ($50,000) would be used until a formal budget is solidified and requested. (Thinking 2-4 months, but there is a bit of a backlog). I personally would like to have an initial budget pushing expenditure to 10%, but believe that a dao of our caliber would seriously benefit from 15%, possibly even more, as our product suite comes online.

Looking forward to continuing discussion surrounding the above!

4 Likes

Regarding rules:
I meant to have a clear finite list on what the funds are gong to be used for. If the multisig wants to use the funds for something it is not in the list it should ask the dao for allowance in a signal proposal in xdai, and update the “allowed actions” that can be taken by the multiisig. The etc in the list leaves an open question mark to what else can the multisig do. I agree with the list you shared above, and if that is all we have in mind for marketing expenses in the next months I think the list should stop there.

For example, the multisig wont be used to pay for worker contibutions/salaries, right?

Regarding Budget:

I agree that marketing is important, but in my opinion relying too much on marketing is a bad business decision in the long run for crypto projects, I think our products to growth the user base and usage in the most natural way possible.

I prefer to keep marketing efforts at the minimum possible level, and put our energy and money on building awesome dapps that will need as less marketing as possible.

Maybe not the most popular opinion :sweat_smile:, the dao will decide anyway.

3 Likes

Great conversations this topic is bringing up.

I think all are great points and concerns across the board.

The idea of this Comms and Mkting MS is an experiment on whether DXdao has the ability to fractalize and distribute decision making power (in a controlled manner) to proven Squads within DXdao around a specific initiative or vertical.

So far, we haven’t really tried this. As stated, I don’t think any of the actions this Squad takes will come as a surprise to anyone. In fact, the Squad will likely over communicate to the community.

But it will allow smaller decisions delegated to the Squad to be made much quicker and effectively.

I don’t think every individual decision and monetary spend should be made via a formal proposal to DXdao. DXdao needs to learn how to get really good at delegating decision making power and capital appropriately.

You might think of DXdao as the CEO - the best CEO’s are really good a delegation.

I support this initiative.

6 Likes

:slightly_smiling_face:I like that Augusto is voicing his concerns. Perhaps others feel the same, but don’t have the courage to do it. I agree that buidling is our top priority. Nonetheless, I personally have absolutely no doubt in the integrity of the marketing squad, and moreover, it does not in any way clash with buidling. DXdao isn’t really ‘increasing’ its marketing spend, because such has been pretty much non-existent, and furthermore no mather the size of the marketing effort, it won’t eat up any resource needed to keep buidling, there’s enough for that, too. These activities are not mutually exlusive, rather complimentary. Also, it’s a 3/5 multi-sig, but I don’t see 3 long-term core contributors quitting their otherwise well-paid jobs and running away for a portion of $50k. I don’t see all 5 colluding to syphon petty money in concealed schemes either. Also, there are others attending the marketing meetings every week - Caden, me… For a while now DXD holders and non-contributors /no REP holders/ on social media channels have been asking to see notable marketing activities from DXdao, which we have thus far been lacking. For maximum security, and to eliminate any doubt, we can have the marketing squad plan for a decent budget in theory and have it siloed within the treasury, but only receive small tranches in the multi-sig on a month to month basis, with detailed reports for the expenditures at the end of each month, followed by a request to replenish the multi-sig upon approval from the dao. This way there will be full accountability and little to no risk. On top of that, perhaps Augusto could join the multi-sig as a watchdog? And lastly, circling back to the big need to attract more devs and keep developing our awesome products - proper marketing will certainly make DXdao more appealing among the countless other innovative companies in the space. /Also, there is currently an ongoing contributor compensation structure poll./ :wink: :heart: :four_leaf_clover: :rocket:

4 Likes

Hey everyone!

Due to some feedback and discussions, this post has been mostly rewritten. I implore you to read the post again (You could also check the edits directly in DAOtalk), but if you prefer TL,DR the important changes include:

  • Categories and their contents have been specified alongside upper range fund earmarking. This should give more clarity on the specific use of the funds, and where they are being delegated.

  • Short term costs are now denoted instead of implied, giving a snapshot of what is going on and how the wallet will be utilized following the initial funding.

  • The initial funding has been changed to $75,000 from $50,000. This is to account for short term costs that have been accumulating and gives a better initial snapshot. In the future, it’s mentioned that a budget will be formalized before any additional request of funds.

If I missed anything important or there is still a lack of clarity please let me know! This will be ratified to an initial funding proposal either EOW, or when Alchemy is usable again.

Preparation

The Communications and Marketing Squad multi-sig has been created and can be found here.

The address is: 0x35685398af991F43813475E189F791610ad0BE2b

The relayer required to send funds to this multi-sig has also been deployed, seen here.

6 Likes