BIP-74: Infrastructure Funding Extension and Cap Adjustment for October 2024 - March 2025

Intro

For several 6-month cycles the Beethoven X DAO treasury has maintained a capped infrastructure cost funding model (BIP-23, BIP-36, BIP-41 and BIP -65) for the protocol. Through this the treasury covers the infrastructure costs associated with the operation of beets.fi. This proposal seeks to continue this funding arrangement. The funding for infrastructure will be capped at $4500 USDC per month, allowing us to be prepared even if increased demand arises in conjunction with the Sonic launch.

Motivation

Infrastructure is critical for the availability of the beets.fi services and costs are directly related to the amount of trading, traffic and requests needed to be served.

Looking back previous 6 month period from April 2024 - September 2024:

With the market slow down and consolidation experienced in Q2 2024 infrastructure costs also decreased compared to the levels with the heightened activity of late 2023 and early 2024. The increase in July 2024 was associated with the launch of the Beethoven X Fantom Validator node. Furthermore the increased activity, especially due to the Galxe quests, saw a further increase of costs into September. With heightened activity around the launch of Sonic we expect the infrastructure costs to rise accordingly as well, therefore, justifying a cost cap at $4500 per month.

Looking back previous 6 month period from October 2023 - March 2024:

The market being slow through the summer of 2023 and into Q4, is visible on the graph below and reflects less requests needing to be served. The momentum shift into 2024 and increased activity on Fantom and Optimism is also reflected. While we remained well below the infrastructure cap, we proposed the increase of the the cap to $4.5k which covered higher loads on our infrastructure plus additional cost incurred by The Graph’s decentralized network no longer being free. In addition, our caching provider Stellate raised their prices by 50% starting from May.

Risks

Potential risks of cost inflation due to unpredictable factors like surges in user traffic continue to exist. In case of such overspends, separate proposals will be presented for community approval.

Impacts and Specification

Treasury: Will fund the monthly infrastructure costs up to $4500 under this agreement. Should the costs exceed this, an amendment or revised version of this BIP will have to be submitted to a further vote.

Impact on Previous BIPs: This BIP serves as an extension and modification of the most recent BIP that concluded in March 2024.

Team: No impact.

Tokenomics: None.

Other Committees Recognized by the DAO: None.

Execution Plan

The DAO treasury will cover the infrastructure costs up to a maximum of $4500 per month for the next six months, starting in October 2024 and ending in March 2025. This represents a potential maximum expenditure of $27,000 for this period.