Now that we’ve had a chance to analyze the numbers, I’d like to give the community an overview of Orb Collective’s spending over its first 3 months of operations (Aug- Oct 2022), compared to its budget.
As the largest service provider to Balancer DAO with the most areas of responsibility and team members, Orb accounts for the highest cost on the DAO’s balance sheet. In light of the DAO’s deficit between revenue and expenses and the bear market we find ourselves in, Orb Collective has been taking the following measures to reduce its financial footprint, and improve efficiency in the Balancer ecosystem beyond Orb, without losing its ability to drive growth for the Balancer protocol.
- Reducing existing headcount
- Revising hiring plans
- Slashing the marketing budget
- Cutting team expenses wherever possible
- Taking a conservative approach to all team spending
- Finding inefficiencies in the ecosystem and developing cost-saving solutions
Through these efforts, we’ve managed to cut almost 1/3 of our budget, underspending our allotted budget by 31% during our first 3 months of operations, saving $350,865. We’re taking this opportunity to bolster the treasury by voluntarily forgoing our December funding ($291,238) that is due from the Balancer OpCo. We will also revise our budget forecast for Q1 2023 based on the cost reductions we have made and our revised growth plans.
3 month budget: $1,123,271 USDC
3 month spend: $790,993 USDC
% under budget: 31%
Money saved: $350,865
- Orb Collective is coordinating with the Balancer OpCo to cancel its December 2022 funding payment
- We will use the cash we’ve saved to cover our expenses for the next month
- Once we can analyze the numbers for November, we will develop a revised budget forecast for Q1 2023 that reduces Balancer’s financial load and keeps more stable funds in the treasury
There are also notable recent cost reductions that are not yet reflected in this report:
- Net headcount reduction of 2 (1 addition, 3 subtractions)
- Halting of recruiting activity
Thank you to the community for trusting us to be good stewards of capital.