---
# System prepended metadata

title: 'RWF-001: May 2022 Budget Statement'
tags: [Budget statement]

---

---
tags: Budget statement
---

# RWF-001: May 2022 Budget Statement

**Status:** Reviewed

Link to RWF-001 MIP Budget*: https://forum.makerdao.com/t/mip40c3-sp61-modify-core-unit-budget-real-world-finance-rwf-001/13152

Link to RWF-001 MIP MKR Compensation (RWF-001): https://forum.makerdao.com/t/mip40c3-sp38-real-world-finance-core-unit-mkr-compensation-rwf-001/10447

Link to new RWF-001 Multisig ledger [here](https://docs.google.com/spreadsheets/d/19tIncBWQdRQSHPF_271R1LrFMmj6dQe8/edit?usp=sharing&ouid=114529981085695499641&rtpof=true&sd=true)

*MIP budget approved in March.

---

## 1. Actuals -- May 2022

| Budget Category         |   Forecast |    Actuals | Difference |   Payments | Reason(s)                          |
| ----------------------- | ----------:| ----------:| ----------:| ----------:| ---------------------------------- |
|                         |            |            |            | 125,295.24 |                                    |
| Compensation\*          | 183,450.00 | 115,700.00 |  67,750.00 |         \- | Grantees onboarding in progress    |
| Professional Services\* | 430,000.00 |       0.00 | 430,000.00 |         \- | Variable legal costs postponed     |
| Real-world structures   |       0.00 |       0.00 |       0.00 |         \- | \-                                 |
| Payment fees            |  26,426.55 |   6,346.56 |  20,079.99 |         \- | AccountAble fees in different tier |
| Gas Fees                |   1,000.00 |       0.00 |   1,000.00 |         \- |                                    |
| Software Costs          |   5,000.00 |       0.00 |   5,000.00 |         \- | Budget not deployed to data infra  |
| Travel Costs\*          |   3,000.00 |     501.71 |   2,498.29 |         \- | Actual travel costs below forecast |
| Due Diligence Costs\*   |  10,000.00 |   2,658.00 |   7,342.00 |            | DD visits actuals below forecast   |
| Contingency Buffer      |       0.00 |       0.00 |       0.00 |         \- | \-                                 |
| Total                   | **658,876.55** | **125,206.27** | **533,670.28** | **125,295.24** |                                    |

Notes:

*Contractor fees: Grantee onboarded. Further grantee onboardings going through June and July cycles.

*Professional services: No legal costs incurred in May. Expectation that SocGen and HVB costs will be incurred in June and July after legal review and documentation drafting.

*Travel costs: Permissionless conference participation for 1 team member.

*Due Diligence Costs: DD costs are directly related to applications going through due diligence requiring e.g. physical visit to counterparty premisses. 

*Payments and actuals difference:  There is a required minimum balance of 2.5K DAI at the account processor. Current balance: **4,604.07 DAI**.

## 2. Budget Forecast -- May 2022

### Overview

|  June 2022 |  July 2022 | August 2022 |   3-Months | Mthly Budget Cap | Qtly Budget Cap | Annual Budget Cap + Buffer |
| ----------:| ----------:| -----------:| ----------:| ----------------:| ---------------:| --------------------------:|
| 258,381.05 | 310,331.05 |  306,136.05 | 874,848.15 |       685,000.00 |    2,055,000.00 |               8,220,000.00 |

*Based on budget approved at March month end. 

### Breakdown

| Forecast                |  June 2022 |  July 2022 | August 2022 |   3-Months | MIP Budget Forecast/ CAP\*\* |
| ----------------------- | ----------:| ----------:| -----------:| ----------:| ----------------------------:|
| Compensation\*          | 183,450.00 | 183,450.00 |  183,450.00 | 550,350.00 |                     $465,000 |
| Professional Services\* |  50,000.00 | 100,000.00 |  100,000.00 | 250,000.00 |                   $1,500,000 |
| Real-world structures   |       0.00 |       0.00 |        0.00 |       0.00 |                      $12,000 |
| Payment fees\*          |  11,431.05 |  13,381.05 |   13,186.05 |  37,998.15 |                      $25,500 |
| Gas Fees                |       0.00 |       0.00 |    1,000.00 |   1,000.00 |                       $1,500 |
| Software Costs\*        |   5,000.00 |   5,000.00 |    5,000.00 |  15,000.00 |                      $15,000 |
| Travel Costs            |   2,000.00 |   2,000.00 |    2,000.00 |   6,000.00 |                       $6,000 |
| Due Diligence Costs\*   |   6,500.00 |   6,500.00 |    1,500.00 |  14,500.00 |                            0 |
| Total                   | **258,381.05** | **310,331.05** |  **306,136.05** | **874,848.15** |                 2,025,000.00 |
| (+) Contingency Buffer  |         \- |         \- |          \- |         \- |                       **30,000** |
| Total Budget Cap\*\*    |         \- |         \- |          \- |         \- |                 **2,055,000.00** |

Notes:

*Compensation: Forecast increase reflects additional FTEs in the team from June.

*Professional services: Legal services for lender review of borrower structures/contracts are budgetted according to complexity of review and engagement with high-quality external lawfirms.

*Professional services forecast has been updated to last couple of months actuals cost of legal review. Actuals are only incurred if services used.

*Payment fees are variable costs. It increases linearly with expenses increase, legal primarily.

*Software Costs: Data and software package costs planned to be incurred from June.

*DD costs: Includes previously unforecasted physical visits to borrower facilities as part of DD. Contigency buffer is used to cover such costs.

**MIP budget approved. From March new budget under MIP40 is reported. Professional services (legal) account for highest share of budget.

---

## 3. MKR Vesting Overview

This overview is based on the approval of [MIP40c3-SP#38](https://forum.makerdao.com/t/mip40c3-sp38-real-world-finance-core-unit-mkr-compensation-rwf-001/10447), RWF-001 current MKR Incentive Proposal.

| Vesting Date | MKR Amount | Last Month |   Change | Reason(s)\* | Budget Cap on 7 FTE |
| ------------ | ----------:| ----------:| --------:| ----------- | ------------------- |
| July 2022    |    178 MKR |    198 MKR | \-20 MKR | FTE changes |                     |
| October 2022 |    134 MKR |    154 MKR | \-20 MKR | FTE changes |                     |
| January 2023 |    174 MKR |    194 MKR | \-20 MKR | FTE changes |                     |
| April 2023   |    154 MKR |    114 MKR |   40 MKR | FTE changes |                     |
| July 2023    |    114 MKR |    114 MKR |    0 MKR | N/A         |                     |
| October 2023 |    114 MKR |    114 MKR |    0 MKR | N/A         |                     |
| January 2024 |    114 MKR |    114 MKR |    0 MKR | N/A         |                     |
| April 2024   |    114 MKR |    114 MKR |    0 MKR | N/A         |                     |
| Total        |  **1,096 MKR** |  **1,116 MKR** | **\-20 MKR** |             | **1,680 MKR**           |

The _Change_ column indicates any changes in the MKR vesting amounts compared to last month, with the _Reason(s)_ column indicating why the amounts changed. Reasons may include: New hires, FTE changes, Promotions, or Terminations.

*Reasons: forecasted FTEs (grantees) not yet onboarded reflected in vesting changes.

*Budget cap is estimated on 7 FTE at 80 MKR/FTE. Current estimate FTE calculation is based on 5.7 FTE.

### FTE

| Team members         | Headcount | FTE(Full-Time Equivalent) |
| -------------------- | ---------:| -------------------------:|
| Facilitator          |         1 |                         1 |
| Senior Consultants\* |         2 |                       1.7 |
| Consultants          |         1 |                         1 |
| Grantees\*           |         1 |                       0.5 |
| Total                |         **5** |                       **4.2** |

*Senior consultants at 80% and 90% FTE equivalent, respectively, in May.

*Grantee onboarded for first assignment. FTE is the max usable FTE per month.

---

## 4. Transfers

### DAI Transfers -- May 2022

| Wallet | 3-month Estimate | Current Balance |     Transfer | Multi-sig Address                                                                                                                            |
| ------ | ----------------:| ---------------:| ------------:| -------------------------------------------------------------------------------------------------------------------------------------------- |
| RWF CU |       874,848.15 |    1,694,441.25 | \-819,593.10 | [0xD1505ee500791490DE8642353BA6A5b92e3550F7](https://gnosis-safe.io/app/eth:0xD1505ee500791490DE8642353BA6A5b92e3550F7/transactions/history) |

To see multisig transactions: [RWF-001 Multisig](https://etherscan.io/address/0xD1505ee500791490DE8642353BA6A5b92e3550F7#tokentxns) and
[Auditor Wallet](https://etherscan.io/address/0x96d7b01Cc25B141520C717fa369844d34FF116ec#tokentxns)

| RWF Auditor wallet                     |          Value | Multi-sig Address                                                                                                                            |
| -------------------------------------- | --------------:| -------------------------------------------------------------------------------------------------------------------------------------------- |
| Received from Protocol since inception |   2,273,677.84 | [0x96d7b01Cc25B141520C717fa369844d34FF116ec](https://gnosis-safe.io/app/eth:0x96d7b01Cc25B141520C717fa369844d34FF116ec/balances)             |
| Received from former RWF wallet        |     274,399.47 | 0x9e1585d9ca64243ce43d42f7dd7333190f66ca09                                                                                                   |
| Received RWF Ops Wallet Test trx.      |           2.00 | [0xd1505ee500791490de8642353ba6a5b92e3550f7](https://gnosis-safe.io/app/eth:0xD1505ee500791490DE8642353BA6A5b92e3550F7/transactions/history) |
| **Total Received**                         |   **2,548,079.31** | [0x96d7b01Cc25B141520C717fa369844d34FF116ec](https://gnosis-safe.io/app/eth:0x96d7b01Cc25B141520C717fa369844d34FF116ec/balances)             |
| **Test trx. to 0x2c6...31efb25**           |         **\-2.00** | 0x2c647bdc8259a82b0d0842207aed98c5331efb25                                                                                                   |
| **Lifetime transfer to RWF Ops Wallet**    | **\-2,526,707.08** | [0xD1505ee500791490DE8642353BA6A5b92e3550F7](https://gnosis-safe.io/app/eth:0xD1505ee500791490DE8642353BA6A5b92e3550F7/transactions/history) |
| **Auditor wallet current balance**         |      **21,370.23** | [0x96d7b01Cc25B141520C717fa369844d34FF116ec](https://gnosis-safe.io/app/eth:0x96d7b01Cc25B141520C717fa369844d34FF116ec/balances)             |