---
# System prepended metadata

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