Proposal: DAO Budget, Compensation, and Revenue Sharing Models

Authors: Roberto Talamas, Megan Murray, Ryan Harvey

Key Takeaways

1. ATX DAO’s treasury and operating accounts have a total of $177k equivalent in ETH, USDT and USDC.
2. To bring the community together more often during the last quarter of the year, we propose to use $30,000 of the DAO’s treasury towards members only events for the remainder of 2022.
3. We proposed a revenue sharing model for individuals raising funds for ATX DAO events. The individuals raising funds for events will be entitled to 15% of net event profits as commission.
4. The DAO’s membership application review process is intensive. We proposed to pay an hourly income of $30/hr to the DAO members involved in the review process of each minting round.
5. Event planning and social media management are two critical roles necessary to continue the operations of ATX DAO. As such, we propose to compensate Mason Lee Lynaugh with a $1,500/month salary starting September 1st, amounting to $6,000 in 2022.
6. After all expenses, we estimate to have a remaining treasury balance of at least $141k at the end of 2022.

ATX DAO Budget

Below is a snapshot of the DAO’s current financial balances

Based on the above figures, this proposal outlines the following for the remaining of 2022:

1. Events Budget
2. Compensation Packages
3. Revenue Sharing Models

Events Budget

For clarity, let's define the three types of events ATX DAO organizes:

Community Events: Events organized to bring together all crypto communities in Austin. Free for anyone to join. Member-only Events: Event organized for official ATX DAO NFT holders. Free for members and ticketed for everyone else. Main Events: Events organized around big social events (SXSW, Consensus, F1). Free for NFT holders, ticketed for everyone else.

The events budget in this proposal is for the planning and execution of member-only events.

Events are the bread and butter of ATX DAO. They are the most efficient way to build relationships, encourage networking and bring together the community IRL. Therefore, we believe it is important to allocate a portion of the DAO’s annual budget to curated experiences for our members.

We propose to allocate $30,000 of the DAO’s treasury toward member-only Events (ticketed for non-members) for the remainder of 2022. 83% of this money is sourced from the profit made during Keep Austin Web3, ATX DAO’s Consensus event. The Events committee will be able to use the money at their discretion to curate experiences for the ATX DAO community.

Compensation

As the DAO grows the need for continual day-to-day work from specific areas of the organization has skyrocketed. Such areas include community management, operations, and marketing. Below we propose a compensation plan for marketing/event planning matching what we have done previously with the Operations Committee.

Member-Event Planning and Social Media Management

Member-only events will become a focal point for the DAO in the second half of 2022. Historically, planning member-only events requires the following tasks:

1. Brainstorming and implementing event concepts and themes
2. Researching and booking venues
3. Organizing suppliers, caterers, staff and entertainers
4. Managing set-up, tear-down, and clean-up operations
5. Anticipating attendee needs and making preparations against potential problems.

In addition to member-event planning work, it is of utmost importance to produce high quality, engaging, original content that can be used across social media, community channels and publishing platforms (Twitter, Instagram, LinkedIn, etc) in order to engage our followers and community.

Given the DAO’s emphasis on creating a strong network of NFT holders and the work associated with event planning + social media management, we propose to pay Mason Lee Lynaugh an income of $1,500/months starting September 1st, amounting to a total of $6,000 in 2022. $6,000 is in line with the 15-20% event planning charge associated with the job.

Profit / Revenue Sharing Models

Currently, the DAO’s primary sources of revenue include sponsored events and mint revenue. Both tasks require a tremendous amount of work from groups of individual members. Given the sporadic nature of these activities, we proposed a revenue sharing model for the teams carrying out the work.

Sponsored Events

Sponsored events such as SXSW or Consensus generate revenue from company sponsorships. As is commonly the case for this revenue model, after all event expenses are cleared, the DAO keeps the remaining cash as payment for organizing the event. The process generally goes as follows:

1. Contacting potential sponsors to establish rapport and arrange meetings.
2. Research organizations and individuals to find new sponsorship opportunities
3. Develop quotes and proposals for potential sponsors
4. Negotiate sponsorship packages and pricing

Given the amount of work required to carry out the above, we propose a commissions based revenue sharing model for this workflow. The Partnerships committee will receive 15% of the funds raised after all event expenses are paid. This model aligns the incentives of the organization with the individuals directly involved in raising funds for ATX DAO branded events.

Membership

The membership team (or membership pod) is responsible for carrying out the end-to-end application process for new minting rounds. During a new minting round, a team of members assembles to do the following tasks:

1. Asses the qualities the community is looking for in the next group of members
2. Review all new member applications
3. Grade and filter our applications for top candidates
4. Interview the top candidates of each new minting round
5. Onboard new members into ATX DAO

In total, it takes an estimated ~30hr commitment for the membership pod to carry out the steps above for each minting round. Given the amount of time required and the importance of the tasks, we propose an income of $30/hr for the members involved in the membership application process. The membership team will be capped at 6 individuals to keep the team small and nimble. The Head of Membership will be in charge of assembling the team during each minting round.

Additional Notes

Any compensation will be considered reported income. Any individual receiving income in excess of $600 (whether as salary, commission, or bonus) can expect to receive a 1099 tax form reflecting their compensation received for the calendar year. ATX DAO will not be withholding taxes and individuals will be expected to ensure their own tax liabilities are met.