Introduction
LXDAO As a DAO with a core focus on developing products LXDAO is committed to advancing the development and popularity of blockchain technology through the development of valuable Web3 products. At the same time, the sustainability of LXDAO is at the core of its operations, and therefore focuses on long-term planning and financial soundness in its budget program to ensure the continued development and operation of the project.
LXDAO’s budget program framework includes elements such as objectives, budget types, budget amounts, budget allocations, budget execution, budget audits, budget adjustments and regulatory compliance. Of these, budget allocation is a very critical component, which LXDAO divides into three categories: product development, operating costs, and community development. Of these, product development is the core mission of LXDAO and includes the development of Web3 products with utility and value, and the associated development, testing and deployment costs. Operational costs include the costs of organizational management, marketing and promotion, customer service and technical support. Community development, on the other hand, includes costs for promoting community collaboration and consensus, organizing community events and meetings, and supporting community contributors.
Objectives
Based on the principles of the new quarterly proposal, LXDAO’s new mission is to welcome one billion users to Web3 by bringing together builders who can continue to build and support Web3 projects with a conscience.
In the next one to two years, LXDAO will focus on the following three directions:
- LXDAO: Decentralized DAO governance, DAO tools and smart contracts for more efficient operations, including Buidler management, onboarding, public event management, fair voting, new R&D PoW system, fair reward sharing, etc. We will provide clear guidance for participation, contributing to LXDAO, and achieving our mission. We will also design tokenomics that support Buidlers and Web3, striving for sustainability. In addition, we will register legal entities.
- Education: Our education program will include the MyFirst series, EIPs Fun, online tutorials for Buidlers and school students, open source books, workshops, and more. Our primary focus will be on onboarding builders first and then users.
- Building and supporting public products and open source: We will create Web3 native projects for technology innovation, provide builders with the right soil to grow, and support basic Web3 projects with funding or development power.
Budget Principles
In developing the budget, the following three aspects need to be considered: DAO, Builders and community sustainability, based on the three aspects, the following principles are derived.
Contribution value as the core: As a DAO with R&D as the core, LXDAO structure is run by working groups and project teams, issuing rewards should be based on contribution value as the core indicator, according to the POW principle for backtracking, contribution value rewards include U and LXP.
Dynamic Adjustment: Adopt the principle of dynamic adjustment, each quarter according to the issuance of the previous quarter’s issuance amount to go for dynamic adjustment.
POW: Proof-of-work, both workload proof, contribution should be recorded retroactively, and rewarded according to the record.
Fixed Ratio: U and LXP are issued to the working group according to a fixed ratio, the working group has a high degree of freedom to adjust the ratio of U and LXP issued to specific staff internally, in order to promote stability and efficiency, please follow the following principle: the U ratio of fixed members will be higher than the U ratio of Bounty.
Strategy Meeting: At the end of each quarter, we will hold a strategy meeting, which will include but not limited to: strategic direction, last quarter’s summary, next quarter’s plan, budget issues, allocation system, etc.
Budget amount
According to the final confirmation, the maximum amount of U issued per month will not exceed 20000 U, while LXP can be issued as a supplement with adjustable range and should not be over-issued.
At the same time, the contribution value represented by 1 LXP is heavier than 1 U, and in the Token airdrop later, the airdrop will be based on the contribution value.
Based on U’s maximum quarterly budget of 60000 U cap rule, In the first quarter, we have determined the total amount of distribution to be 99600, of which the maximum amount of U distribution is 60,000 and LXP is 39,600.
According to the communication with each group in advance, the amount of the following groups will be publicized.
- Governance Working Group 25800
- Expert Working Group 19200
- DAO Tools Working Group 18600
- Operation Working Group 18000
- SteadyForce Working Group 18000
At the same time, due to the change of the actual operation effect, the quarterly distribution of LXP is not capped at 39,600, if the actual contribution value is greater than the total budget of 99,600, the distribution of LXP can be increased appropriately, but follow the core of contribution value and POW principle.
Budget allocation
Based on LXDAO’s previous runs and early meeting communication, determine the basic working groups: Governance, Operations, Experts, DAO Tools, SteadyForce.
Fixed payout ratio of 6:4 for U and LXP based on fixed ratio principle and statistical results
The specific awarding of rewards follows the flexible allocation of PMs, but PMs should follow the principle that the fixed member’s U share will be higher than the Bounty’s U share.
For example, take the Governance Team as an example:
The budget of the governance team is 25800, according to the principle of U and LXP = 6:4, then the U limit allocated to the governance team for the whole quarter is 15480, PM has the flexibility to allocate, but the allocation of each award should follow the POW principle.
Budget execution
When the proposal is approved, it will be settled monthly, at the end of each month, the PM will retrace and count according to the POW record, and then apply on the LXP official website at the beginning of next month according to the proposal content and POW record, at the same time, there will be a 7-day public period, any Buidler can raise questions about the specific POW record during the public period, if there is no objection, it will be automatically approved after 7 days, and the specific amount will be issued around the 10th of each month.
If you don’t have time to apply for the budget at the beginning of the month, then it will be automatically extended to the next month.
The entire release record is open and transparent, and at the beginning of each month, the accounting team will remind the community to monitor and audit during the public period.
At the same time, each working group must compile a budget report at the end of the season and put together a proposal for the next season.
Budget Audit
The budget audit will be monitored by the entire DAO community, and the accounting team shall compile a monthly report that is open and transparent.
Budget Adjustment
The budget is run quarterly + dynamic adjustment principle.
Quarterly run: each working group will run quarterly, and the budget within the group should be summarized at the end of the quarter and presented at the strategy meeting.
Dynamic adjustment: Dynamic adjustment includes the quarterly budget amount, the actual amount of Bounty issued within the group, the ratio of U and LXP issued for specific tasks within the group, and the upper limit of LXP per quarter (which can be increased according to the POW principle)
Regulatory Compliance
Supervised by the community, the amount of each distribution will be posted on the official website in accordance with DAO’s transparency principles, and the accounting team will periodically review the financial status and issue a report to the community.
If you have doubts about certain budget aspects, please express your opinion and reply to this post.