Team Budget Requests Analysis Q4-2022

Introduction

Why?

2 weeks ago, the concept of team budget request (TBR) was introduced to the PoolTogether community. From the first moment, the “to-be” Finance Team considered that each proposal on its own was significant, however, having a holistic overview of all proposals was necessary to be able to make an informed decision when voting on these teams.

What?

This post will try to give a holistic overview of all the TBRs presented in the governance forum for the Q4-2022. Specifically, it will focus on the financial aspect of the TBRs and the relationship to PoolTogether Treasury.

All the data presented in the following post can be viewed in this presentation.

The calculations performed to get the numbers shown can also be reviewed in this sheet.

Special thanks to @underthesea for the spreadsheet and presentation.

Summary

Taking into account all 7 TBRs posted, almost $500K is being requested in order to fund the teams operations and the 25 roles included. Note that $300K out of the total requested will be dedicated to delegations, and therefore will not be spent.

This would mean that around $115K will be coming out from the Treasury to the teams (this is less than the requested amount because carryover from previous quarters is being returned).

The maximum spendable budget is $925K assuming that all the available funds for the teams are spent (this is more than the requested amount because teams also have carryover funding from previous quarters). These expenses in relation with the total funds in the PoolTogether Treasury would give us a 2 years runway.

Budget

Budget Flows

A total of $135K POOL and $355K USDC is being requested by the teams. At first sight the Exec Team seems to be the main source of these flows, however, it is important to highlight that the Exec Team is in charge of the delegated funds and therefore $300K USDC is requested for non-spendable delegation.

Protocol Team and Grants Team have a surplus of funds from previous operations and will be returning a total of 175K POOL and 200K USDC to the 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).

The 3 biggest spendable budgets are:

  • 42.5% will be dedicated to the Protocol Team.
  • 24.6% will be dedicated to the Prize Team in order to subsidize prizes.
  • 16.1% will be dedicated to the Grants Team.

Delegation

From the 300K delegation budget, 100K will be represented by Grants Team, 100K by Community Team and 100K by SerHotMike as part of a non-official growth team.

Prize Liquidity

Starting Q4 - October 1st, prize liquidity held on the PoolTogether contracts is approximately 230K USDC. These funds can be used by the Prize Team to subsidize prizes for the Q4-2022 period.

Impact to Treasury

PoolTogether Treasury currently holds around 4.38M POOL and 2.5M USDC for a total of $6.42M (taking into account current POOL market price + other tokens held in the Treasury).

Taking into account the previously shown data, a maximum total of 4.6% of POOL and 21.1% USDC will be available as spendable budget from the Treasury. This means that the PoolTogether Treasury would have a runway of approximately 2 years (5.4 years for POOL and 1.4 years for stable assets).

Teams

The teams that have been included in the analysis are the following:

Community Team

Executive Team

Finance Team

Grants Team

PT Inc Client Team

PT Inc Prize Team

PT Inc Protocol Team

Compensation Budgets

Looking exclusively at the compensation for team members, the top 3 teams are:

  • 22% will be for PT Inc Client Team members.
  • 20.6% will be for PT Inc Protocol Team members.
  • 14.9% will be for Coordinape members.

Contributors

18 PoolTogether contributors are already included in the teams presented, while there are still 7 open roles looking for new members.

Appendix

Token Pricing

The prices used for the calculations are the same as the ones considered in the TBRs.

Token USD
ETH $1300
USDC $1
POOL 0.985298
12 Likes

Awesome analysis, thx a lot to @BRONDER and @underthesea ! :slight_smile:

1 Like

Hello :wave:t3: all, can we please :pray:t3: discuss this during the next community call or find some other time to discuss this preferably on a call. I would like as many people as people who are on Discord to be aware of these discussions and be able to listen to the proposal and provide feedback.

Thanks.

:blush:

4 Likes

Very interesting, thank you very much for your work @BRONDER and @underthesea!