---
# System prepended metadata

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

---

---
tags: Budget statement
---

# RWF-001: July 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 -- July 2022

| Budget Category         |       Forecast |        Actuals |     Difference |       Payments | Reason(s)                          |
| ----------------------- | --------------:| --------------:| --------------:| --------------:| ---------------------------------- |
|                         |                |                |                |     124,669.80 |                                    |
| Compensation\*          |     153,450.00 |     112,108.31 |      41,341.69 |             \- | Grantees onboarding in progress    |
| Professional Services\* |      75,000.00 |           0.00 |      75,000.00 |             \- | Variable legal costs postponed     |
| Real-world structures   |           0.00 |           0.00 |           0.00 |             \- | \-                                 |
| Payment fees            |      11,158.05 |       6,267.99 |       4,890.06 |             \- | AccountAble fees in different tier |
| Gas Fees                |           0.00 |         500.00 |       \-500.00 |             \- | Top up of multisig                 |
| Software Costs          |       5,000.00 |       2,320.00 |       2,680.00 |             \- | Data budget coming next month      |
| Travel Costs\*          |       2,000.00 |           0.00 |       2,000.00 |             \- | Actual travel costs not spent      |
| Due Diligence Costs\*   |       4,500.00 |       1,452.00 |       3,048.00 |                | DD visits actuals below forecast   |
| Contingency Buffer      |           0.00 |       1,918.00 |     \-1,918.00 |             \- | Admin expense                      |
| **Total**               | **251,108.05** | **124,566.30** | **126,541.75** | **124,669.80** |                                    |

Notes:

*Contractor fees: New grantees onboarded. New contractors being onboarded in August. Personnel expenses includes one-off training fee.

*Professional services: No external lawfirm cost incurred. Retainer fee on grantees and contractors agency expected in August.

*Gas Fees: Gas fees backpaid from previous months where top up was not required.

*Travel costs: No travel costs incurred for July.

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

*Contingency: Includes admin expense to team membership to relevant professional association.

*Payments and actuals difference:  There is a required minimum balance of 2.5K DAI at the account processor. Current balance:     **4,711.14 DAI**.


## 2. Budget Forecast -- July 2022

### Overview

| August 2022 | September 2022 | October 2022 | 3-Months   | Mthly Budget Cap | Qtly Budget Cap | Annual Budget Cap + Buffer |
| ----------- | -------------- | ------------ | ---------- | ---------------- | --------------- | -------------------------- |
| 217,808.10  | 204,405.00     | 200,768.50   | 622,981.60 | 685,000.00       | 2,055,000.00    | 8,220,000.00               |

*Based on budget approved at March month end. 

### Breakdown

| Forecast                 |    August 2022 | September 2022 |   October 2022 |       3-Months | MIP Budget Forecast/ CAP\*\* |
| ------------------------ | --------------:| --------------:| --------------:| --------------:| ----------------------------:|
| Compensation\*           |     147,000.00 |     135,000.00 |     135,000.00 |     417,000.00 |                     $465,000 |
| Professional Services\*  |      50,000.00 |      50,000.00 |      50,000.00 |     150,000.00 |                   $1,500,000 |
| Real-world structures    |           0.00 |           0.00 |           0.00 |           0.00 |                      $12,000 |
| Payment fees\*           |       9,908.10 |       9,405.00 |       9,268.50 |      28,581.60 |                      $25,500 |
| Gas Fees                 |           0.00 |           0.00 |           0.00 |           0.00 |                       $1,500 |
| Software Costs\*         |       5,000.00 |       5,000.00 |       5,000.00 |      15,000.00 |                      $15,000 |
| Travel Costs             |       2,000.00 |           0.00 |           0.00 |       2,000.00 |                       $6,000 |
| Due Diligence Costs\*    |       1,500.00 |       5,000.00 |       1,500.00 |       8,000.00 |                            0 |
| Admin Expense            |       2,400.00 |           0.00 |           0.00 |       2,400.00 |                         0.00 |
| **Total**                | **217,808.10** | **204,405.00** | **200,768.50** | **622,981.60** |             **2,025,000.00** |
| (+) Contingency Buffer   |             \- |             \- |             \- |             \- |                       30,000 |
| **Total Budget Cap\*\*** |             \- |             \- |             \- |             \- |             **2,055,000.00** |


Notes:

*Compensation: Forecast increase reflects additional headcount in the team from August.

*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)\* | MKR Actuals | Budget Cap on 7 FTE |
|:------------ | -------------:| -------------:| ---------:| ----------- | -----------:| -------------------:|
| April 2022   |       236 MKR |       236 MKR |     0 MKR | N/A         |     152 MKR |                     |
| July 2022    |       178 MKR |       178 MKR |     0 MKR | N/A         |      \- MKR |                     |
| October 2022 |       134 MKR |       134 MKR |     0 MKR | N/A         |      \- MKR |                     |
| January 2023 |       174 MKR |       174 MKR |     0 MKR | N/A         |      \- MKR |                     |
| April 2023   |       154 MKR |       154 MKR |     0 MKR | N/A         |      \- MKR |                     |
| July 2023    |       114 MKR |       114 MKR |     0 MKR | N/A         |      \- MKR |                     |
| October 2023 |       114 MKR |       114 MKR |     0 MKR | N/A         |      \- MKR |                     |
| January 2024 |       114 MKR |       114 MKR |     0 MKR | N/A         |      \- MKR |                     |
| April 2024   |       114 MKR |       114 MKR |     0 MKR | N/A         |      \- MKR |                     |
| **Total**    | **1,096 MKR** | **1,096 MKR** | **0 MKR** |             | **152 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.

*Actuals: Auditor wallet received 152MKR on 1 July 2022. It was paid out to contributors.

*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 |                      1.25 |
| Consultants          |         1 |                         1 |
| Grantees\*           |         3 |                       1.5 |
| Total                |         7 |                      4.75 |


Notes:

*Senior consultants at 53% and 72% FTE equivalent, respectively, in July.

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

*Grantee: two new grantees onboarded in July.

---

## 4. Transfers

### DAI Transfers -- July 2022

| Wallet | 3-month Estimate | Current Balance |    Transfer | Multi-sig Address                                                                                                                            |
| ------ | ----------------:| ---------------:| -----------:| -------------------------------------------------------------------------------------------------------------------------------------------- |
| RWF CU |       622,981.60 |      678,487.35 | \-55,505.75 | [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 |   4,872,681.49 | [0x96d7b01Cc25B141520C717fa369844d34FF116ec](https://gnosis-safe.io/app/eth:0x96d7b01Cc25B141520C717fa369844d34FF116ec/balances)             |
| Received from former RWF wallet        |     274,399.47 | 0x9e1585d9ca64243ce43d42f7dd7333190f66ca09                                                                                                   |
| Returned excess from RWF Ops Wallet    |     744,732.74 | [0xd1505ee500791490de8642353ba6a5b92e3550f7](https://gnosis-safe.io/app/eth:0xD1505ee500791490DE8642353BA6A5b92e3550F7/transactions/history) |
| Received RWF Ops Wallet Test trx.      |           2.00 | [0xd1505ee500791490de8642353ba6a5b92e3550f7](https://gnosis-safe.io/app/eth:0xD1505ee500791490DE8642353BA6A5b92e3550F7/transactions/history) |
| **Total Received**                         |   **5,891,815.69** | [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) |
| **Returned excess to Protocol**            | **\-1,995,106.60** | [0x96d7b01Cc25B141520C717fa369844d34FF116ec](https://gnosis-safe.io/app/eth:0x96d7b01Cc25B141520C717fa369844d34FF116ec/balances)             |
| **Auditor wallet current balance**         |   **1,370,000.02** | [0x96d7b01Cc25B141520C717fa369844d34FF116ec](https://gnosis-safe.io/app/eth:0x96d7b01Cc25B141520C717fa369844d34FF116ec/balances)             |