[BIP-94] Contributor Funding Q1 2026

Total Cost: $148,500 per month

(Decrease of $28,350 or 16% from last proposal)

This budget requests approval for future contributor funding covering work scheduled for the months of February to April 2026. This covers the last two months of financial quarter Q1 2026, and the first of Q2.

Background

2025 was a difficult year for DeFi. Volatile macroeconomic conditions, a mismatch of policy expectations and outcomes, and increasing consolidation in blue-chip assets and low-risk DeFi all contributed to a weaker performance for Beefy. Until truly bullish conditions resume, we must be prepared to weather more stormy conditions.

After many difficult discussions, Beefy’s core contributor team has agreed internally to propose a series of cost cuts across the business to ensure the prudent management of our finances. Though we have a bountiful and well-managed treasury, we are conscious of burning through reserves and protecting tokenholder value. Contributor funding is the largest of the affected areas, but other previous expenses will also not be renewed in the short-term.

A balance must be struck between preserving performance and preserving value. These were not easy decisions to make.

Changes from Previous Proposal

1. Core Team Reductions

Almost every member of the contributor team has agreed to some level of reduction, in line with recent performance and ongoing commitments. The level of cuts varies substantially, with several exceeding 25%. The extent of cuts was calculated relative to the treasury’s current deficit in Adjusted Net Income (including Q4 2025).

For clarity, we note that the increase in Business Development budget relative to the previous quarter is entirely a function of the Moderation Changes described below.

For the avoidance of doubt, the cuts we are proposing are intended as a temporary measure to stabilise the treasury in the short term. As conditions improve, we will seek to resume our normal programs of compensation.

2. Moderation Changes

In line with the core team reductions, we propose to reduce the total cost for moderation, as well as change the way that moderation works.

Until now, all moderators (including some members of the core team who have been moderators for many years) were treated equally based on responses given. Over time, the core team have assumed more and more of this work, leaving only a handful of non-core moderators, with most contributing only a small amount.

With this proposed change, moderators will instead be compensated purely as part of the core team budget, with no separate moderator budget. Instead the external moderators now sit within the Business Development budget, which is the reason for this budget’s increase. The outcome includes significant net cuts to both core and non-core moderators.

Departmental Breakdown

Development - $105,750

Marketing & Design - $20,000

Business Development - $22,750

TOTAL BUDGET - $148,500 per month