TL;DR
- Allocate $500k to Q4 funding for ongoing development and operations
Background
The general direction the Treasury Council has taken in Q2 is to deprecate unprofitable products, minimize maintenance costs, and focus on building the new product.
The transition away from the Association is complete.
As a result, the DAO budget is now leaner by about 1/3 compared to Q2 2025 - and by about 2/3 compared to Q1 2024.
eBTC has been deprecated (only one user left with an open CDP), and sufficient liquidity has been provided for users to withdraw.
Regarding the new product development, the R&D phase is ongoing and will continue through Q4.
The goals for Q4 are:
- On the tech side: finish building & start testing the prototype for the critical protocol module that makes or breaks the product
- On the product & strategy side: complete the product proposal and improve the DAO’s capacity for building and launching new products
On the legal front, Cloudflare has filed a lawsuit against the DAO in Q3, resulting in higher legal expenses.
There is also a plan - contingent on token holder voting - to incorporate the DAO to streamline its legal standing moving forward.
Once we have a high degree of confidence in the new product direction, we can scale up the development capacity by hiring another Web3 developer, so there is a buffer in the budget to do that towards the end of the quarter.
Overall, the proposed budget has the lowest burn rate in the DAO’s history.
The budget may be reduced if the legal situation improves, but that depends on external factors.
Beyond this, I don’t see much room for further budget cuts without compromising on development capacity, decentralization, or the DAO’s legal protection.
I consider this rate of spending to be enough for R&D and building stage, but to launch the product we’ll need more funding eventually to pay for audits, scale up marketing, and hire a busdev.
Budget
The proposed budget for development & operations for Q4 is 500k:
And here’s the consolidated DAO budget for more visibility:
Vote
- Yes - Approve the Q4 budget as specified above
- No - There’s a better way
