RWF-001: June 2022 Budget Statement

--- tags: Budget statement --- # RWF-001: June 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 -- June 2022 | Budget Category | Forecast | Actuals | Difference | Payments | Reason(s) | | ----------------------- | ----------:| ----------:| ----------:| ----------:| ---------------------------------- | | | | | | 146,551.36 | | | Compensation\* | 183,450.00 | 116,475.96 | 66,974.04 | \- | Grantees onboarding in progress | | Professional Services\* | 50,000.00 | 22,642.00 | 27,358.00 | \- | Variable legal costs postponed | | Real-world structures | 0.00 | 0.00 | 0.00 | \- | \- | | Payment fees | 11,431.05 | 7,229.83 | 4,201.22 | \- | 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 packages | | Travel Costs\* | 2,000.00 | 0.00 | 2,000.00 | \- | Actual travel costs not spent | | Due Diligence Costs\* | 6,500.00 | 200.00 | 6,300.00 | | DD visits actuals below forecast | | Contingency Buffer | 0.00 | 0.00 | 0.00 | \- | \- | | **Total** | **258,381.05** | **146,547.79** | **111,833.26** | **146,551.36** | | Notes: *Contractor fees: Grantee onboarded. Further grantee onboardings going through July. *Professional services: SocGen and HVB (Ogier retainer) costs incurred in June for legal review and documentation drafting. Retainer fee on grantees agency. *Travel costs: No travel costs incurred for June. *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: 4,607.64 DAI. ## 2. Budget Forecast -- June 2022 ### Overview | July 2022 | August 2022 | September 2022 | 3-Months | Mthly Budget Cap | Qtly Budget Cap | Annual Budget Cap + Buffer | | ---------- | ----------- | -------------- | ---------- | ---------------- | --------------- | -------------------------- | | 251,108.05 | 274,966.05 | 277,083.05 | 803,157.15 | 685,000.00 | 2,055,000.00 | 8,220,000.00 | *Based on budget approved at March month end. ### Breakdown | Forecast | July 2022 | August 2022 | September 2022 | 3-Months | MIP Budget Forecast/ CAP\*\* | | ----------------------- | ----------:| -----------:| --------------:| ----------:| ----------------------------:| | Compensation\* | 153,450.00 | 153,450.00 | 153,450.00 | 460,350.00 | $465,000 | | Professional Services\* | 75,000.00 | 100,000.00 | 100,000.00 | 275,000.00 | $1,500,000 | | Real-world structures | 0.00 | 0.00 | 0.00 | 0.00 | $12,000 | | Payment fees\* | 11,158.05 | 12,016.05 | 12,133.05 | 35,307.15 | $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 | 2,000.00 | 2,000.00 | 0.00 | 4,000.00 | $6,000 | | Due Diligence Costs\* | 4,500.00 | 1,500.00 | 6,500.00 | 12,500.00 | 0 | | **Total** | **251,108.05** | **274,966.05** | **277,083.05** | **803,157.15** | **2,025,000.00** | | **(+) Contingency Buffer** | \- | \- | \- | \- | 30,000 | | **Total Budget Cap\*\*** | \- | \- | \- | \- | **2,055,000.00** | Notes: *Compensation: Forecast increase reflects additional FTEs (grantees) 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 reflect 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 for second half of 2022. *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 | 178 MKR | 0 MKR | N/A | | | October 2022 | 134 MKR | 134 MKR | 0 MKR | N/A | | | January 2023 | 174 MKR | 174 MKR | 0 MKR | N/A | | | April 2023 | 154 MKR | 154 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** | **1,096 MKR** | **1,096 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. *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** | Notes: *Senior consultants at 91% and 96% FTE equivalent, respectively, in June. *Grantee onboarded for first assignment. FTE is the max usable FTE per month. *Grantee: two new grantees to be onboarded in July. --- ## 4. Transfers ### DAI Transfers -- June 2022 | Wallet | 3-month Estimate | Current Balance | Transfer | Multi-sig Address | | ------ | ----------------:| ---------------:| ------------:| -------------------------------------------------------------------------------------------------------------------------------------------- | | RWF CU | 803,157.15 | 1,547,889.89 | \-744,732.74 | [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) |