## Phase I Proposal - Approve the Tangle Community Treasury (Tangle DAO LLC) with Revisions for the 2024 to 2025 Term. [poll name=poll2 type=regular results=always chartType=bar] * Yes - Approve the Tangle Community Treasury with Revisions for 2024 to 2025 Term * No - Do Not Approve the Tangle Community Treasury for 2024 to 2025 Term [/poll] # Simple Summary ---- # Phase 1- Tangle Community Treasury for 2024 to 2025 Term ## The treasury committee proposes to approve the Tangle Community Treasury (Tangle DAO LLC) for the 2024 to 2025 Term with a total budget of 40% of the remaining 63+ million community SMR tokens. The current Treasury has successfully met many of the short and long-term goals that it sought to accomplish. A series of articles was written by JD Sutton reviewing the pervious years operations of the Tangle Community Treasury. * [Tangle Community Treasury “Year in Review” — Part 1: Fiscal Analysis](https://medium.com/@jamesjdsutton/tangle-community-treasury-year-in-review-part-1-fiscal-analysis-45a55f4b78cd) * [Tangle Community Treasury “Year in Review” — Part 2: Governance Update](https://medium.com/@jamesjdsutton/tangle-community-treasury-year-in-review-part-2-governance-update-d0bd987a24c8) * [Tangle Community Treasury "Year in Review" - Part 3: Success Metrics](https://medium.com/@jamesjdsutton/tangle-community-treasury-annual-review-part-3-success-metrics-718252195806) * [Tangle Community Treasury "Year in Review" - Part 4: Success Metrics](https://medium.com/@jamesjdsutton/tangle-community-treasury-annual-review-part-3-success-metrics-718252195806) There are four proposed updates to the current framework that was revised in October 2023 by the communmity. * Treasury Token Disbursement for 2024 to 2025 term. * Purpose Bound Disbursment (SMR Token disubursment specific for building a Quadratic Funding model for the Shimmer & IOTA Networks.) * Organization Structure Revision * Annual Proposed Budget Increase ## **Treasury Disbursement** The Treasury committee proposes to use 35% of the remaining community Shimmer tokens (63,476,697.81) which would be (22,216,844) SMR. This equates to a total present day value of $599,854 (SMR @ 0.027). The Shimmer network needs more support to create it's own identity. As it has proven itself with the ShimmerEVM implementation, it will not be hosting the cutting edge technology of the Tangle 2.0. ## **Purpose Bound Disbursment** The Treasury committee proposes to use 5% of the remaining community Shimmer tokens (63,476,697.81) which would be (3,173,834) SMR ($85,693 USD) to be dedicated for creating a Quadratic Funding governance implementation on the Shimmer network. A high overview of what a Quadratic Funding model on Shimmer can do for the ecosystem can be found in the article [Tangle Community Treasury "Year in Review" - Part 4: Success Metrics](https://medium.com/@jamesjdsutton/tangle-community-treasury-annual-review-part-3-success-metrics-718252195806) ## **Organizational Structure Upgrade** The Treasury committee proposes to update the current orginazational structure so that the Treasury can scale to include managing the IOTA treasury along with the Shimmer Treasury. The basic over view of the structure can be viewed in the below diagram. An in depth explanation of why this update is required can be found under the section *governance future* in [Tangle Community Treasury “Year in Review” — Part 2: Governance Update](https://medium.com/@jamesjdsutton/tangle-community-treasury-year-in-review-part-2-governance-update-d0bd987a24c8). ![image](https://hackmd.io/_uploads/Syzvb_-sT.png) ## **Proposed Budget** The Treasury committe proposes to increase the Tangle Community Treasury budget. The original budget was proposed in the weekly governance group of $330,000. In the first term the committee was able to what looks like close the year out while being 32% under the budget. The committee will most likely repeat this in the second term by not using the the allowed budget but rather coming in below that once again. The proposed budget of ($361,136) is slightly higher than the original estimated budget of ($330,330)/ The full budget breakdown being proposed for the 2024 to 2025 term is defined below: * Committee Salary Expense: $301,600 (Annual Salary Expense) up from $249,600. This increase is due to the added 10 hrs per week for each team lead. * Administrative Expenses * Administrative Costs - ($111,536) (Annual Admin Expense) up from ($80,400) * Website Hosting: ($3,480) (SoftR & Airtables) * Calenderly ($192) * Google Meets ($108) * Firefly.Ai tracker ($228) * Pandadoc ($588) * Legal ($5,000) * Entitty Registration ($5,000) * KYC Costs ($3,000) * Accountant/Bookkeeper ($1,000) * Treasury Social Marketing ($6,240) ($480 monthly salary for 12 to 15 hrs a week) * Akkodis ($31,200) (To conduct grant and milestone reviews) * Unknown or Unexpected Costs ($50,000) (For example when the Treasury funded a Gnosis QA/QC audit and funded the layer-zero front-end Zokyo hosting) There are two things to take into account when assessing not only the previous years budget but also the increased proposed annual budget. * Just because there is a budget allownace does not mean the committee will use it all. We saw this over the past term and if the current committee is voted again the community can be assured we will come in under budget again. * The increase in budget costs will be offset by revenue streams and assets the Treasury developed in the 2023 to 2024 term. These current revenue streams and assets are bulleted below. * Liquidity Pool Support Reward Harvesting * Project tokens dedicated to the treasury that will be released in the 2024 to 2025 term which include $Soon tokens, $Build tokens, $Audit tokens, $Peppy Tokens, and $Bloom Tokens. # Abstract ---- ## The Tangle Community Treasury establishes an independent organization that represents the community. Over the 2023 to 2024 term the Treasury commitee has shown it absolutely prioritizes the community and the ecosystem above all else. Our community needs a voice and the Treasury can be that. More so, the Treasury has shown that it can be managed and operated so that it can grow and scale. The committee has accomplished short-term goals such as grant funding that supports the growth of the ecosystem positively and managed the Treasury funds to last throughout the year despite being based on a very volatile asset within an extremely illiquid market. We have not only supported projects with grant funding and supported the DEFI network with liquidity, but we have achieved other goals of generating revenue and starting to build the foundation of an evergreen organization. Our community needs a Treasury that can support and represent them. The Tangle Community Treasury has shown it can successfully do juar that, and, it will improve and innovate over the next year if supported by the community. # Motivation ---- ## Our ecosystem and community will suffer without a Treasury DAO. The Treasury committee has been able to support infrastructure launches (ShimmerBridge), DEFI ecosystem needed liquidity, community needed tax solution integrations, project support through funding, DEFI portfolio management applications, and community empowerment reward programs. The Tangle Community Treasury has had positive and negative success results which are described in detail within the [Part 3 - Success Metrics](https://medium.com/@jamesjdsutton/tangle-community-treasury-annual-review-part-3-success-metrics-718252195806), however overall the projects funded have been great successes. As well, there are simply the positive actions that have been taken by a Treasury that is itself empowered when being able to be active. Those can be found in detailed within the article [Part 4 - What Can an Active Treasury Do?!? The Future Ahead!](https://medium.com/@jamesjdsutton/tangle-community-treasury-year-in-review-what-can-an-active-treasury-do-the-future-ahead-56b9ee0640bd) This also shows what will be missing if the Treasury isn't supported for another term. The Treasury has *proven* it can move quickly in a market that moves just as fast, and still do so legally. The Treasury has *proven* that the a community treasury is not only a success but a valuable asset to the ecosystem. The ecosystem would lose a lot without the Treasury.