Introduction
Why?
Providing a holistic overview of all proposals to help voters make an informed decision on Team Budget Request proposals.
What?
This post will go over the Q2-2023 Team Budget Requests. By looking at the proposed funding we get a higher-level look at spending. We also revisit Q1-2023 budgets and evaluate outcomes based on reported carryover amounts.
All the data presented in the following post can be viewed in [this presentation ](https://www.canva.com/design/DAFd8zd7vzM/T21l8UyvsvW9ocXXml2L5Q/view?utm_content=DAFd8zd7vzM&utm_campaign=designshare&utm_medium=link2&utm_source=sharebutton.
The calculations performed to get the numbers shown can also be reviewed in [this sheet ](2023 Q2 Budget Proposals - Google Sheets
Special thanks to my friend @BRONDER for preparing these reports
Summary
A reduction in the number of teams proposed, from 9 to 7. With The Protocol Team and Client Team being consolidated to PT Inc and a new proposed Team of Poolers. The 7 teams this quarter are requesting a total of $501k in funding. After accounting for carryover and returned funds we see -$487k net to treasury and a $1mm spendable budget. Number of contributors down from 24 in Q1 to 22.
The PT Inc Team inherits a large carryover with a healthy budget for audits, adding compensated full-time roles that require more funding. The newly proposed Poolers team (but well-known contributors) asks $49k for the quarter. Exec Team, Finance Team, Community Team, and Grants operations remain relatively the same in funding requests with grants reporting a healthy carryover of POOL and returning 14k POOL to treasury.
After accounting for the Grants POOL returned we can see the net to treasury.
Spendable Budget
In order to understand the available funds for each team, we need to take into account the budget requested + carryover reported - carryover returned (note that non-spendable delegation is excluded in this accounting). Prize liquidity has been separated from the Executive-Team.
The 3 biggest spendable budgets are:
- 55% - PT Inc
- 7% - Grants
- 7% - Community
Delegation
Delegation funding is all carried over from Q1-2023 (no new requests). Delegation is custodied by Executive-Team and represented by Growth, Grants, and Community Teams.
Prize Liquidity
Current Prize Liquidity reserves show $156k in total as of 3/21/23. It’s relevant to note that $100k in prize liquidity previously funded to the exec-team has been returned earlier today. All accounting in this report reflects that transaction as complete.
Impact to Treasury
PoolTogether Treasury currently holds around 4.15M POOL and 2.6M USDC for a total of $7.4M with POOL priced at $1.02 as per Council Q2-2023
Spendable Budgets
Taking into account the previously shown data, a maximum total of 4.3% of POOL and 27% USDC will be available as spendable budget from the Treasury. This can be calculated to projected a runway of 2 years. Other specific breakdowns of runways are provided in the table.
Net to Treasury
The proposals, if all executed, would result in a net to treasury of -3% in POOL and -14% in USDC (-13% USDC & DAI). This can be calculated to project a runway of 3.8 years.
Runway
Using the average between spendable budgets and net to treasury calculations we can project a runway of 2.9 years. A breakdown of assets is provided in the table. Noting that stablecoin spending is, as a percentage of holdings, higher than POOL. Thus runways differ.
Teams
The teams that have been included in the analysis are the following:
| PT Inc | TBR-Q2-2023 - PT Inc Team | |||
|---|---|---|---|---|
| Exec Team | TBR-Q2-2023 - Executive Team | |||
| Community Team | TBR-Q2-2023 - Community Team | |||
| Grants Team | TBR-Q2-2023 - Grants Team | |||
| Finance Team | TBR-Q2-2023 - Renewal Finance Team | |||
| Growth Team | [RFC] TBR-Q2-2023 - Growth Team | |||
| Poolers Team | TBR-Q2-2023 - Poolers Team |
Compensation Budgets
Looking exclusively at the compensation for team members, and excluding community Coordinape, the top 3 teams are:
- 50% - PT Inc
- 11% - Poolers Team
- 10% - Growth Team
Contributors
24 contributors are proposed across 7 teams. The below table shows contributor total compensation in total dollars across proposals.
Q1-2023 Reflections
Here we see the Q1 2023 Spendable Budget numbers and teams recent quarter ending carryover reported.
Subtracting the carryover from the budget we calculate expenses, or funds spent. The sheet shows individual team spending and a total for all teams of $224k for Q1-2023. For reference the previous quarter, Q4-2022, was higher at $254k
Using actualized Q1 spending we project a runway of 8 years.
Closing
While this report provides many different runway figures we can assume none of them paint an accurate picture of the future. They are provided as context of movement of funds relative to treasury.
Please feel free to ask any questions of us at the Finance Team here in the thread or on Discord.