RWF-001: March 2022 Budget Statement

--- tags: Budget statement --- # RWF-001: March 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 -- March 2022 | Budget Category | Forecast | Actuals | Difference | Payments | Reason(s) | | ----------------------- | --------------:| --------------:| --------------:| --------------:| ---------------------------------- | | | | | | 147,489.33 | | | Compensation\* | 153,450.00 | 119,400.00 | 34,050.00 | \- | Grantees onboarding pending. | | Professional Services\* | 350,000.00 | 18,300.00 | 331,700.00 | \- | Variable legal costs postponed | | Real-world structures | 0.00 | 0.00 | 0.00 | \- | \- | | Payment fees | 21,629.55 | 7,226.96 | 14,402.59 | \- | AccountAble fees in different tier | | Gas Fees | 0.00 | 0.00 | 0.00 | \- | | | Software Costs | 5,000.00 | 0.00 | 5,000.00 | \- | Budget not deployed to data infra | | Travel Costs\* | 0.00 | 2,520.72 | \-2,520.72 | \- | Travel costs backpaid | | Contingency Buffer | 0.00 | 0.00 | 0.00 | \- | \- | | **Total** | **530,079.55** | **147,447.68** | **382,631.87** | **147,489.33** | | Notes: *Contractor fees: Backpayments from Feb included in March compensation. Grantees going through onboarding for April cycle. *Professional services: A number of legal reviews were postponed either due to the WIP of applications or borrowers covering lender costs. Only SocGen and Centrifuge costs were incurred. *Travel costs: Budgetted costs from EthDenver invoice (Feb) backpaid. HBS participation for 1 team member. *Payments and actuals difference: There is a required minimum balance of 2.5K DAI at the account processor. Current balance: **4,621.30 DAI**. --- ## 2. Budget Forecast -- March 2022 ### Overview | April 2022 | May 2022 | June 2022 | 3-Months | Mthly Budget Cap | Qtly Budget Cap | Annual Budget Cap + Buffer | | ----------:| ----------:| ----------:| ------------:| ----------------:| ---------------:| --------------------------:| | 608,004.55 | 667,708.05 | 717,099.55 | 1,992,812.15 | 685,000.00 | 2,055,000.00 | 8,220,000.00 | *Based on budget approved at March month end. ### Breakdown | Forecast | April 2022 | May 2022 | June 2022 | 3-Months | MIP Budget Forecast/ CAP\*\* | | -------------------------- | --------------:| --------------:| --------------:| ----------------:| ----------------------------:| | Compensation\* | 168,450.00 | 183,450.00 | 183,450.00 | 535,350.00 | $465,000 | | Professional Services\* | 400,000.00 | 450,000.00 | 500,000.00 | 1,350,000.00 | $1,500,000 | | Real-world structures | 0.00 | 0.00 | 0.00 | 0.00 | $12,000 | | Payment fees\* | 24,554.55 | 26,758.05 | 28,649.55 | 79,962.15 | $25,500 | | Gas Fees | 0.00 | 1,000.00 | 0.00 | 1,000.00 | $1,500 | | Software Costs | 5,000.00 | 5,000.00 | 5,000.00 | 15,000.00 | $15,000 | | Travel Costs | 0.00 | 1,500.00 | 0.00 | 1,500.00 | $6,000 | | Due Diligence Costs | 10,000.00 | 0.00 | 0.00 | 0.00 | 0 | | **Total** | **608,004.55** | **667,708.05** | **717,099.55** | **1,992,812.15** | **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 April onwards. *Professional services: Legal services for lender review of borrower structures/contracts were previously under-budgetted given complexity and cost of high-quality firms to assess deals. *Professional services forecast has been updated to reflect 250K/transaction cost of legal review. Forecasted rump up will be 1.5x transactions in March followed by a staged increase in subsequent months. *Payment fees are variable costs. It increases linearly with expenses increase, legal primarily. *DD costs: Includes previously unforecasted physical visit 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 Total FTE: 5.7 (est. April 2022). Total Part Time: 4 (50% capacity). 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 | | ------------ | -------------:| -------------:| ---------:| --------- | -------------------:| | April 2022 | 243 MKR | 243 MKR | 0 MKR | N/A | | | July 2022 | 205 MKR | 205 MKR | 0 MKR | N/A | | | October 2022 | 161 MKR | 161 MKR | 0 MKR | N/A | | | January 2023 | 201 MKR | 201 MKR | 0 MKR | N/A | | | April 2023 | 114 MKR | 114 MKR | 0 MKR | N/A | | | 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** | **1,379 MKR** | **1,379 MKR** | **0 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. *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 90% and 80% FTE equivalent, respectively, in March. *Grantee going through onboarding for first assignment. FTE is the max usable FTE per month. --- ## 4. Transfers ### DAI Transfers -- March 2022 | Wallet | 3-month Estimate | Current Balance | Transfer | Multi-sig Address | | ------ | ----------------:| ---------------:| ----------:| -------------------------------------------------------------------------------------------------------------------------------------------- | | RWF CU | 1,992,812.15 | 1,803,801.82 | 189,010.33 | [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** | **\-2,337,696.75** | [0xD1505ee500791490DE8642353BA6A5b92e3550F7](https://gnosis-safe.io/app/eth:0xD1505ee500791490DE8642353BA6A5b92e3550F7/transactions/history) | | **Auditor wallet current balance** | **210,380.56** | [0x96d7b01Cc25B141520C717fa369844d34FF116ec](https://gnosis-safe.io/app/eth:0x96d7b01Cc25B141520C717fa369844d34FF116ec/balances) |