Phase I Proposal - Approve the Tangle Community Treasury (Tangle DAO LLC) with Revisions for the 2024 to 2025 Term.

Phase I Proposal - Approve the Tangle Community Treasury (Tangle DAO LLC) with Revisions for the 2024 to 2025 Term.

  • Yes - Approve the Tangle Community Treasury with Revisions for the 2024 to 2025 Term
  • No - Do Not Approve the Tangle Community Treasury for the 2024 to 2025 Term
0 voters

Simple Summary


Phase 1- Tangle Community Treasury for 2024 to 2025 Term

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.

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.

  • 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!

16 Likes

Also, we alway welcome discussion. If anyone in our community wants to bring up any discussion points, positive or negative, let’s have an open forum!

5 Likes

what has been achieved to justify a salary? any tldr?

what kind of position is it, for example?
Treasury Social Marketing ($6,240) ($480 monthly salary for 12 to 15 hrs a week)
What kind of marketing was done? 12 hours a week is a lot of time

1 Like

Actually I realize a typo.

Annual: $6,420 year for 52 weeks ($6,420/52) = $120 / ($40 per hr) which is 3 hrs per week. I meant to write 12 to 15 hrs per week. I’ll edit that right now.

What we see is that to have governance participation people need to know what is going on. That would be the marketing. Managing the Treasury Twitter account, Discord (IOTA & Discord), doing updates, Medium articles, etc. Basically keeping the community up-to-date with the Treasury and community governance of our space.

The reviewers don’t get paid for that and honestly I don’t have a lot of time. I’ve been doing 60 to 70 hrs a week to keep up lately. I didn’t spend those extra hours in October and then a lot of people said they weren’t informed and the vote had a negative turnout.

We have had a MUCH better turn out… but also I am non-stop communicating it as much as I can.

3 Likes

To justify the salaries I think the 4 part articles show that. The TLDR:

The committee has:

  • Come under budget by 32%. This was done by building an efficient time tracking management system for remote workers and the program lead. Creating the Content creator Airdrop program to offload time consuming reviews of direct funding content proposals.

  • Created revenue streams and assets for the Treasury which builds the beginning of an Evergreen Treasury.

    • Farm rewards while supporting DEFI liquidity
    • Token holdings from funding project such as: $Audit, $Bloom, $Soon, $Peppy and $Build
    • Equity holdings such as Bloom and Demia
  • Integrated Shimmer and IOTA with tax support solutions and DEFI portfolio management Dapps.

  • Our metrics were for grants, 50%+ success, 30% pending, 20% not fully a success. This is pretty good comparing VC firms generally only have successes on 5% to 15% of projects funded.

  • We are running with the lowest DAO operating costs compared to other DAOs. Our salaries are about 1/3rd of industry standard for DAOs.

2 Likes

I am favor of using 35% of the treasury’s supply. However please help me to understand the numbers. Due to the decreased SMR price the planned budget is roughly 550.00$. The annual cost are planned roughly with 360.000$. This leads us with a budget of roughly 200.000$ to fund projects within the shimmer ecosystem. To put it bluntly, that’s very little to nothing. I assume that the annual cost will be reduced significantly to increase budget. The program lead can work full time. But all others variable expenses must be questioned. I would love to see a plan or an idea scribble of how we can make the most of it. For iota treasury it looks much brighter.

1 Like

It’s a great point, and I should have added the number for clarity.

On October 2023, the community voted for the Tangle Community Treasury to manage 10,000,000 IOTAs of the IOTA community treasury.

There is still currently, I think, about 8,500,000 IOTA’s.

Ultimately the ‘total treasury’ is (IOTA included) would be about $2.8 million.

What is truly unique is what we have achieved with only a Treasury valuation of only $900k. With $2,8 million and two EVM networks, we can really make a big change for the ecosystem and the community!

I can pull up the exact numbers if you like as well. I will just need to be at my desktop then.

2 Likes

Hi Matteo,

I did edit the post and simply added the missing information. It does not change any intention of the original proposal at all.

The missing informaiton is roughly estimated as follows.

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.

As the committee came about 32% under budget this year it is pretty much assured they will come under budget again if re-elected. This would most likely show data points as the operating budget being 10% of the total $2.85 million leaving 90% earmarked for grant funding.

2 Likes

In the only image you attached, the team lead of shimmer treasury should “vet grant submission specific to the Shimmer treasury, not the IOTA treasury”

Thank you! I see that, made a copy/paste error. I will fix this tomorrow. Much appreciated.

Good work good Worll

1 Like

Great job on this @Deep_Sea, glad to see it moved up to Phase II.

2 Likes

Thank you for your efforts

1 Like