[IGP-0002/SGP-0007] Tangle Community Treasury for 2024 to 2025 Term
This proposal has gone through an initial proposal, an updated version containing clarifications and implements community feedback, and is now presented to you in this Phase 2 Poll to determine if it should be voted in a Phase 3 Firefly vote amongst all Shimmer token holders.
This Poll will be open for seven days and close on Monday, 4 March, at 3 pm CET.
Only forum members with Trust Level 1 (To see how to get Trust Level 1 click this link (basic user) or above are eligible to vote in this Poll.
- Yes - I approve the TCT for the 2024 to 2025 term
- No - I do not approve the TCT for the 2024 to 2025 term
Simple Summary
Phase 2 - Grant Proposal
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 previous year’s operations of the Tangle Community Treasury.
- Tangle Community Treasury “Year in Review” — Part 1: Fiscal Analysis
- Tangle Community Treasury “Year in Review” — Part 2: Governance Update
- Tangle Community Treasury “Year in Review” — Part 3: Success Metrics
- Tangle Community Treasury “Year in Review” — Part 4: An Active Treasury
Four updates to the current framework (which was revised in October 2023) are proposed below.
- Treasury Token Disbursement for 2024 to 2025 term.
- Purpose Bound Disbursement (SMR Token disbursement 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 $555,421 (SMR @ 0.025). The Shimmer network needs more support to create its own identity. As it has proven itself with the ShimmerEVM implementation, it will now be hosting the cutting-edge technology of the Tangle 2.0 until it is ported to the IOTA Mainnet. This is the time to focus on growth while the light is on the release of the most innovative consensus model and the true establishment of a decentralized Shimmer Tangle.
Note: This only includes the Shimmer treasury. The TCT was also approved to manage 10,000,000 IOTAs back in October 2023 through a governance vote. To date, the current IOTA holdings for present through the 2024 to 2025 term is around 8,885,000 IOTAs.
The combined value would be at current price $2.85 million dollars worth of assets.
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 (USD 79,345) to be dedicated to creating a Quadratic Funding governance implementation on the Shimmer network. This would total 40%, leaving 38,086,019 SMR left in the community treasury. Some articles that go into detail about quadratic funding (QF) can be found at the below links.
Also, 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
Organizational Structure Upgrade
The Treasury committee proposes to update the current organizational structure so that the Treasury can scale it to include managing the IOTA treasury along with the Shimmer Treasury. The basic overview 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.
Proposed Budget
The Treasury committee proposes to increase the Tangle Community Treasury budget. The original budget proposed 2022 during the weekly governance groups was $330,000.
In the first term, the committee was able to 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 total allowed budget but instead coming in below once again. The proposed budget of ($361,136) is slightly higher than the original estimated budget of ($330,330). The entire budget breakdown being proposed for the 2024 to 2025 term is defined below:
Note: The proposed budget is shared between the IOTA and Shimmer treasuires. With $2.85 million in total treasury value, the operating budget of $361,136 equates to about 12% leaving about $2.5 million for grant funding.
-
Committee Salary Expense: $301,600 (Annual Salary Expense) up from $249,600. This increase is due to each team lead adding 10 hrs per week.
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Administrative Expenses
* Administrative Costs - ($111,536) (Annual Admin Expense) up from ($80,400)
* Website Hosting: ($3,480) (SoftR & Airtables)
* Calendly ($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 month)
* 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 year’s budget but also the increased proposed annual budget for the next term.
- Just because there is a budget allowance 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 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 committee has shown it prioritizes the community and the ecosystem above all else. Our community needs a voice, and the Treasury can be just 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 positively supports the ecosystem’s growth and manages the Treasury funds to last throughout the year despite being based on a very volatile asset within a highly 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 into an evergreen organization.
Our community needs a Treasury that can support and represent them. The Tangle Community Treasury has shown it can successfully do just 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 supported 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; however, overall the projects funded have resulted in 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 detail within the article Part 4 - What Can an Active Treasury Do?!? The Future Ahead!
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 even faster and still does so legally. The Treasury has proven that the community treasury is a success and a valuable asset to the ecosystem, and more importantly, it always operates in the community’s best interest. The ecosystem would lose a lot without the Treasury.
We must be active; we must participate in voting. If we genuinely support decentralization, we need to participate in decentralized governance. We may be a global community, but we can have one voice!
Specification
Note: The full specification can be found in the following pull request.
Pull Request: Deep sea 888 version 2 by Deep-Sea-888 · Pull Request #7 · Tangle-Community-Treasury-DAO/Operation-Agreement · GitHub
Implementation
Once this proposal has successfully passed Phase 3 (Firefly vote) in the Shimmer and IOTA network, the following measures need to be taken:
- The framework will be updated in the Tangle DAO LLC Github
- TEA will transfer 25,390,678 SMR to the TCT Shimmer Gnosis Wallet (0xcC67fBceB647D7161f649b2CC5ABCB401ccAEeEF)
Vote Name, question and answers, and optionally additional information
Question:
- Do you vote to continue the Tangle Community Treasury with a revised framework for the 2024 to 2025 term?
Answer 1:
- Yes, I approve the TCT for the 2024 to 2025 term
Answer 2:
- No, I do not approve the TCT for the 2024 to 2025 term
Additional:
Read the full proposal: [IGP-0002/SGP-0007] Tangle Community Treasury for 2024 to 2025 Term
IOTA Network Participation event of the proposal
{
"name": "[IGP-0002] Tangle Community Treasury Term 2024 to 2025",
"milestoneIndexCommence": 10246965,
"milestoneIndexStart": 10367927,
"milestoneIndexEnd": 10488887,
"payload": {
"type": 0,
"questions": [
{
"text": "Do you vote to continue the Tangle Community Treasury with a revised framework for the 2024 to 2025 term?",
"answers": [
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"value": 1,
"text": "Yes",
"additionalInfo": "Yes, I approve the TCT for the 2024 to 2025 term"
},
{
"value": 2,
"text": "No",
"additionalInfo": "No, I do not approve the TCT for the 2024 to 2025 term"
}
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},
"additionalInfo": "Read the full proposal here: [https://govern.iota.org/t/igp-0002-sgp-0007-tangle-community-treasury-for-2024-to-2025-term](https://govern.iota.org/t/igp-0002-sgp-0007-tangle-community-treasury-for-2024-to-2025-term/1713)"
}
Milestones will be adjusted for the final participation event json files to adhere to the correct milestone timings.
Shimmer Network Participation event of the proposal
{
"name": "[SGP-0007] Tangle Community Treasury Term 2024 to 2025",
"milestoneIndexCommence": 8822507,
"milestoneIndexStart": 8943467,
"milestoneIndexEnd": 9064427,
"payload": {
"type": 0,
"questions": [
{
"text": "Do you vote to continue the Tangle Community Treasury with a revised framework for the 2024 to 2025 term?",
"answers": [
{
"value": 1,
"text": "Yes",
"additionalInfo": "Yes, I approve the TCT for the 2024 to 2025 term"
},
{
"value": 2,
"text": "No",
"additionalInfo": "No, I do not approve the TCT for the 2024 to 2025 term"
}
],
"additionalInfo": "The Shimmer voters agree to allocate 22,216,844 million SMR Tokens through a donation to the TCT Grant Committee for grant funding. Also, the voters agree to donate an additional 3,173,834 SMR to the TCT Grant Committee for Quadratic Funding. The Shimmer voters accept the operation specification in the following proposal [IGP-0002-SGP-0007-Tangle-Community-Treasury-for-2024-to-2025-term](https://govern.iota.org/t/igp-0002-sgp-0007-tangle-community-treasury-for-2024-to-2025-term/1713a"
}
]
},
"additionalInfo": "Read the full proposal here: [https://govern.iota.org/t/igp-0002-sgp-0007-tangle-community-treasury-for-2024-to-2025-term](https://govern.iota.org/t/igp-0002-sgp-0007-tangle-community-treasury-for-2024-to-2025-term/1713)"
}