PR with Payload
Summary
This proposal is for the funding of the Balancer Foundation for year two. The year one Foundation budget started in FY22 Q2 to account for its earlier incorporation, as a result the renewal falls earlier than most other funding cycles.
As a recap, the Foundation provides the DAO with an additional mechanism for executing work in a decentralized environment, and supports resilience across the Balancer Ecosystem.
The Balancer Foundation is a traditional legal entity that is directed by the DAO. It helps create a sustainable environment where many groups of people can participate
It allows the DAO to operate at a larger scale and engage with service providers who require formal contracts.
The Foundation and its operating subsidiary act as facilitators of the Balancer Ecosystem. This governance structure, at the direction of the DAO, can leverage other teams to execute work that can further the adoption of the Balancer Protocol – for example, the front-end team or other technology providers.
In short, the Balancer Foundation acts as an agent for the DAO and part of the DAO’s governance within the structure of the traditional business world. The Balancer Foundation operates within a formal environment (The Foundation Companies Act) in the Cayman Islands and thus brings protection and certainty that comes with formal organizations.
As we are all aware, running a Foundation Company comes with certain real-world costs and financial reserve requirements. These are laid out below. For more detail, please refer to the initial funding proposal for the Foundation.
The budget identified for the Foundation is line-item specific and includes very few estimates. The Foundation has, however, assisted in achieving meaningful savings elsewhere in the ecosystem, as shared with the community here.
The Foundation’s independent Cayman director reviewed these projections in comparison with a number of foundations similar in nature to the Balancer Foundation, and sees the Balancer Foundation achieving a material cost saving overall with its proposed figures.
Specification - Foundation expenses and reserves
This proposal is created to seek funding for the Balancer Foundation for four quarters, effective April 2023 running through March 2024. This proposal does not request any change to the self-insurance reserve, currently covered by the approval of BIP-198.
Foundation Expenses
The summary below reflects the proposed budget for these four quarters, if approved, we propose that FY23 Q2 be funded from funds already held by Balancer OpCo due to savings achieved there, rather than additional funding from the DAO. Thereafter, to be sent in quarterly payments from the DAO. If budget changes are requested they will go to a snapshot vote. If no changes are requested, this proposal will serve as the governing decision.
The Foundation’s fiscal year runs January to December, and one will see annual fees due around December/January that lead to higher funding needs in those quarters. This is the first funding cycle where four full quarters are budgeted. The other proposed changes from the previous budget are: timing of Cayman director fees aligning with the full calendar year per contract terms - this is a reset year and should only happen once; and a slight increase in allowance for legal counsel to deal with certain corporate administration matters and from a budgetary prudence perspective. The Foundation has no BAL requirements.
- Q2 FY23 - USDC 99,094 - we propose this quarter is funded from existing reserves due to savings at the operating subsidiary.
- Q3 FY23 - USDC 59,219 - for transfer 25 June 2023
- Q4 FY23 - USDC 69,634 - for transfer 25 September 2023
- Q1 FY24 - USDC 105,344 - for transfer 15 December 2023
The table below shows the applicable expense line items by quarter.
ETH Address to Receive Funds:
0x3B8910F378034FD6E103Df958863e5c684072693