RRC-10: H2 2023 Budget

Proposals
#1

RRC-10: H2 2023 Rari Foundation Operational Budget

Submitted by: Fumbles

Abstract

This document proposes to allocate funds for the Rari Foundation operational budget for H2 2023 (6 months) in the amount of 611,800 USDC. This budget will ensure the continuity of the Rari Foundation team and operations and reflects the focus areas as identified by the community.

Motivation

The Rari Foundation represents the Rari DAO in the world. As such, it sustains operational costs that allow the Foundation to function and to facilitate the DAO in reaching the goal of Building a decentralized NFT infrastructure that will power future NFT use cases.

The operational budget will allow the Foundation to source legal services, compensate key contributors, and promote Rari DAO’s mission in order to drive the adoption of the Rarible Protocol.

The assumption is that Rari DAO will be working with the most skilled and professional contractors on the market, and it is necessary for the Foundation’s success to be able to offer compensation in stable coins or fiat money instead of $RARI in order to be competitive.

Rationale

The Rari DAO identified key goals to be focusing on in the short, mid, and long term. A dedicated team is required to deliver on these goals and to ensure the continuity of operations.

The budget will enable the core team to facilitate the DAO in growing and maturing to the point of being able to take over the Rarible Protocol’s governance while laying the groundwork for growing Rarible Protocol’s ecosystem growth.

Key Terms

N/A

Specifications

The H2 operational budget reflects growing DAO needs:

  • Improved governance (paid security council positions, a professional delegate)
  • Increased marketing demands (website redesign resources, more DAO/RF initiatives = more needs for promotional support, RF presence at industry events)
  • Improved compensation (pool for contributors rewards, $RARI vesting for the Foundation team)

Budget overview:

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Specifics:

  1. Foundation salaries

  2. The Foundation team includes Foundation Lead (Jana Bertram), Community Lead (Fumbles), Project Management Lead (Fumbles), Marketing Lead (Xenia Vyazemskaya), Engineering Lead (Cristian Covalli), Business Development Lead (to be hired), and Accountant (to be hired).

  3. The Foundation team headcount is 4 FT and 2 PT contributors.

  4. Freelance copy and design resources are intended for website redesign, branding update, and creation of promotional materials.

  5. DAO compensation

  6. Contributor rewards are intended to compensate DAO community contributors in delivering on asks identified by the Foundation and DAO. E.g. content writing, events organizing, research, and business development.

  7. Professional delegate services are compensation to StableLab, who commit to active voting participation, setting a leading example of how a delegate in RARI DAO should act, collaboratively aid proposal creation, contribute to community calls.

  8. Security council seats are compensated at 2,000 USD per month per seat. The council consists of 3 members.

  9. Vendor fees

  10. Legal fees are incurred for legal counsel in the Cayman Islands and in the United States. The legal councils prepare contracts, review core proposals and advise the Director of the Foundation, the Foundation team and the DAO on any potential legal risks or implications.

  11. Administration fees cover the Director of the Foundation and the Supervisor of the Foundation, both roles that are required for the set up of the Foundation under the Cayman law. The Director is ultimately responsible for the management and operation of the Foundation, in particular, approving and entering into contractual agreements on behalf of the Rari Foundation.

  12. Marketing

  13. The Foundation is mapping H2 2023 marketing activities and foresees costs related to sponsorship, promotions, and gas reimbursements. Tentative plans foresee ETH Global NY and Devconnect in Istanbul.

  14. Production costs related to print material, video, and or merchandise produced for presence at events and conferences.

  15. The travel budget covers travel fare, accommodation and local expenses for conferences or events outside of city of residence.

  16. Contingency

  17. Legal contingency is intended for an instance where the legal council would need to significantly increase their hours e.g. in case of an unexpected urgent legal matter.

  18. Miscellaneous covers small expenses such as office supplies, subscriptions and event tickets.

Notes:

  1. The Director of the Foundation is responsible for the the budget. They may opt to delegate day to day budget management tasks to the Foundation team.
  2. Budget spending shall be monitored by the Foundation’s appointed accountant.
  3. Periodic budget spending reports shall be shared with the community quarterly, no later than 30 days after the end of the quarter. The community may request budget updates at any point. In such event, the Foundation shall present the budget status no later than in 15 working days.
  4. If there are unspent funds at the end of the budget cycle, the Foundation may propose to keep the amount in an operational reserve. Otherwise, it shall be returned to DAO’s treasury within 90 days of the budget cycle’s end.
  5. The Foundation team shall respect the budget allocations as specified in the subtotals. It is understood that variations may occur. However, transfers between the budget groups should not exceed 30%. Budget reallocations larger than 30% will require DAO approval.
  6. Should $RARI price deviate from the assumed USDC conversation rate of 1 $RARI = 1.15 USDC, the Foundation shall either submit an additional proposal to request funds to cover the exchange loss or refund the excess funds to the Treasury.
  7. Any spending exceeding the budgeted amount shall be approved by token holders separately.

Payments disbursement:

  1. Contributors (Team) are to be paid once a month in USDC unless otherwise agreed in their contracts.
  2. Legal and Administrative costs are to be paid upon receiving invoices from the Foundation service providers as per engagement letters or agreements with such entities.

Notes:

  1. Contributors (Team) are to be paid once a month in USDC unless otherwise agreed in their contracts.
  2. Legal and Administrative costs are to be paid upon receiving invoices from the Foundation service providers as per engagement letters or agreements with such entities.
  3. All spending exceeding the budgeted amount shall be approved by token holders separately.
  4. Should $RARI price deviate from the assumed USDC conversation rate of 1 $RARI = 1.15 USDC, the Foundation shall either submit an additional proposal to request funds to cover the exchange loss or refund the excess funds to the Treasury.

Steps to implement

Upon the budget approval, the full corresponding $RARI amount will be transferred to the Foundation’s operational wallet (0x2a83d2891Ef3df6967E3C2e9b69cCc7aD029736B), the Foundation will convert it to USDC to reduce the exchange rate fluctuation risk and the exchanged amount wil be stored on the operational wallet 0x2a83d2891Ef3df6967E3C2e9b69cCc7aD029736B. The Foundation may opt to halt conversion to USDC, should the exchange rate start falling below the desired conversion rate, and resume when the desired rate is met or if a conversion must be made in order to meet Foundation’s payment obligations.

Payments within the approved budget in accordance with signed contracts are to be made by the Foundation leadership, who will be responsible for the budget.

Steps for tally submission:

  • Action #1
    • Transfer Tokens
    • Target Wallet Address: 0x2a83d2891Ef3df6967E3C2e9b69cCc7aD029736B
    • Value:
      • choose RARI from dropdown
      • Value 521,740
    • Click “Add Action”
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