---
# System prepended metadata

title: 'RWF-001: March 2022 Budget Statement'
tags: [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)             |