Title: Seasonal Budget, Project Review and Budget Tracking Framework
Author: Marcus
Date: April 1, 2023
Background and Motivation
- DAO needed a way to create and manage budgets so that they could operate efficiently and effectively.DAO members needed tools to control budgets.
- DAO projects that receive funding need guidelines and processes.
- DAO has a process to assign budgets to projects and workgroups to help with future budget processes, and we should align our budgets and expense tracking.
- DAO needs to account for its expenses, profits, losses and assets
- The governance group has the responsibility and ability to help other teams and DAO members with accounting, auditing, budgeting
Description
The Governance group will count the expenses and revenues generated within the DAO each month and make a budget plan based on the available projects and workgroups
With respect to project groups and workgroups, the size of each allocation shall be considered with the help of the Panel and the Governance Team after all requests have been submitted and the project plan has been publicly posted in the forum, and the proposed allocation will be voted on by the DAO. The proposal should be submitted two weeks prior to the start of the formal proposal and voted on in the snapshot.
Project teams and workgroups will need to submit budget requests two weeks prior to the start of the season for review by the expert panel and governance group. And make a quarterly budget plan
It is recommended that the DAO include the budget needed for the guild and program in the season’s specification. The specification may also include other budget allocations, such as contributor compensation or salaries, which will be decided in the DAO.
The purpose of this process is to avoid funding too many projects, which can lead to little quality delivery and frustration. However, it is more important to forecast and allocate the appropriate budget to all important projects for the quarter.
Funded projects must show their progress through KPIs or milestones, and in the case of large projects or grants, The rules on auditing should be stricter. It is also important to have a high level of transparency on expenditures, and expenditure reporting should be considered critical.
DAO Projects and Working Groups Program
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Projects and workgroups receiving funds must show progress against KPIs or milestones, and it is also important to have a high level of transparency in spending, and the focus of all projects should be on the fully transparent use of DAO funds
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Funded projects and workgroups need to update their plans to the accounting department of the governance group on a monthly basis according to the cost statement
For salary distribution, 2 approaches are suggested
- A fixed payroll, designed to follow a fixed weekly work schedule
- A milestone progression, e.g. once the public website reaches 4K followers, all those who create content about the article will be rewarded with xx U. This approach ensures that the DAO does not continue to fund projects that are not progressing and that they should propose a new plan if the project deviates from the plan.
It is recommended that all projects and workgroups have a spreadsheet and reports for monthly payroll and transparency
If a project or workgroup decides to deviate or change the plan and this results in milestones not being met, the project can request more funding from the DAO and explain why they are not on track to meet their goals. We are all new and it will and can happen, but we have to make sure the funds are spent the way they were voted.
Next Steps
The governance team will calculate the monthly DAO expenses and revenues, make an overall budget plan, and recommend the establishment of an appropriation committee to approve the movement of funds after the budget plan is made