--- tags: Budget statement --- # RWF-001: February 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 in implementation stage. --- ## 1. Actuals -- February 2022 | Budget Category | Forecast | Actuals | Difference | Payments | Reason(s) | | ----------------------- | ---------- | ---------- | ----------- | ---------- | ---------------------------------- | | | | | | 167,829.41 | | | Compensation\* | 83,499.00 | 77,862.87 | 5,636.13 | \- | Grantees onboarding pending. | | Professional Services\* | 50,000.00 | 78,064.00 | \-28,064.00 | \- | Unbudgetted legal fees | | Real-world structures | 0.00 | 0.00 | 0.00 | \- | \- | | Data-infrastructure | 0.00 | 0.00 | 0.00 | \- | \- | | Payment fees | 7,376.96 | 8,144.43 | \-767.47 | \- | AccountAble fees in different tier | | Gas Fees | 1,000.00 | 0.00 | 1,000.00 | \- | No purchase of ETH | | Software Costs | 5,000.00 | 0.00 | 5,000.00 | \- | Budget not deployed to data infra | | Travel Costs\* | 4,500.00 | 1,568.56 | 2,931.44 | \- | Travel costs submission postponed | | Contingency Buffer | 0.00 | 0.00 | 0.00 | \- | \- | | **Total** | **151,375.96** | **165,639.86** | **\-14,263.90** | **167,829.41** | Notes: *Contractor fees: Backpayments to ex-grantee included in Feb compensation. Forecasted grantees going through onboarding. *Professional services: Previous budget for legal services was insufficient to deal with lender review of SocGen structure. Other reviews were postponed due to budget shortfall. *Travel costs: Only 1 out of 3 budgetted costs for EthDenver actually invoiced in Feb. Others will be incurred in March. *Payments and actuals difference: There is a required minimum balance of 2.5K DAI at the account processor. Current balance: 4,579.65 DAI. --- ## 2. Budget Forecast -- February 2022 ### Overview | March 2022 | April 2022 | May 2022 | 3-Months | Old Mthly Budget Cap | Old Qtly Budget Cap | Old Annual Budget Cap + Buffer | | ---------- | ---------- | ---------- | ------------ | -------------------- | ------------------- | ------------------------------ | | 530,079.55 | 701,514.55 | 719,697.05 | 1,951,291.15 | 155,000.00 | 465,000.00 | 1,860,000.00 | *Based on existing budget approved at Feb month end. ### Breakdown | Forecast | March 2022 | April 2022 | May 2022 | 3-Months | Old Qtly Budget Cap | MIP Budget Forecast/ CAP\*\* | | ----------------------- | ---------- | ---------- | ---------- | ------------ | ------------------- | ---------------------------- | | Compensation\* | 153,450.00 | 168,450.00 | 183,450.00 | 505,350.00 | 315,000.00 | $465,000 | | Professional Services\* | 350,000.00 | 500,000.00 | 500,000.00 | 1,350,000.00 | 60,000.00 | $1,500,000 | | Real-world structures | 0.00 | 0.00 | 0.00 | 0.00 | 30,000.00 | $12,000 | | Data-infrastructure | 0.00 | 0.00 | 0.00 | 0.00 | 30,000.00 | $0 | | Payment fees\* | 21,629.55 | 28,064.55 | 28,747.05 | 78,441.15 | 0.00 | $25,500 | | Gas Fees | 0.00 | 0.00 | 1,000.00 | 1,000.00 | 0.00 | $1,500 | | Software Costs | 5,000.00 | 5,000.00 | 5,000.00 | 15,000.00 | 0.00 | $15,000 | | Travel Costs\* | 0.00 | 0.00 | 1,500.00 | 1,500.00 | 0.00 | $6,000 | | Contingency Buffer | 0.00 | 0.00 | 0.00 | 0.00 | 30,000.00 | $30,000 | | **Total** | **530,079.55** | **701,514.55** | **719,697.05** | **1,951,291.15** | **465,000.00** | **2,055,000.00** | Notes: *Compensation: Forecast increase reflects additional FTEs in the team from March 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 2x transactions/month subsequently. *Payment fees increase linearly with cost increase, legal primarily. *Travel Costs: EthDenver participation for 3 team members. Only 1 reflect in Feb actuals. **MIP budget in Poll Ratification stage. Professional services costs from external legal consultations account for most of the change in the budget. From March new budget under MIP40 to be reported. **Budget forecast for MIP increase to reflect legal cost estimates. --- ## 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 | | **Total** | **4** | **3.7** | *Senior consultants at 90% and 80% FTE equivalent, respectively, in February. --- ## 4. Transfers ### DAI Transfers -- February 2022 | Wallet | 3-month Estimate | Current Balance | Transfer | Multi-sig Address | | ------ | ---------------- | --------------- | ------------ | -------------------------------------------------------------------------------------------------------------------------------------------- | | RWF CU | 1,951,291.15 | 106,671.71 | 1,844,619.44 | [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 | 218,677.84 | [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** | **493,079.31** | [0x96d7b01Cc25B141520C717fa369844d34FF116ec](https://gnosis-safe.io/app/eth:0x96d7b01Cc25B141520C717fa369844d34FF116ec/balances) | | **Test trx. to 0x2c6...31efb25** | **\-2.00** | 0x2c647bdc8259a82b0d0842207aed98c5331efb25 | | **Lifetime transfer to RWF Ops Wallet** | **\-493,077.31** | [0xD1505ee500791490DE8642353BA6A5b92e3550F7](https://gnosis-safe.io/app/eth:0xD1505ee500791490DE8642353BA6A5b92e3550F7/transactions/history) | | **Auditor wallet current balance** | **0.00** | [0x96d7b01Cc25B141520C717fa369844d34FF116ec](https://gnosis-safe.io/app/eth:0x96d7b01Cc25B141520C717fa369844d34FF116ec/balances) |