DAObnb funding proposal

PROPOSAL BACKGROUND: Last month, DAObnb took over the leases for the 2 units that were previously managed by Bryce and Michael. Forlane was able to provide an infusion of money to get the 2 units up and running, however we have a budget shortfall that needs to be addressed through a DAO vote.

"UNITY" is our Louisville property (Airbnb listing: https://www.airbnb.com/rooms/808648797995993011). Forlane estimates that UNITY's fixed expenses (e.g. rent, internet, etc.) plus variable expenses (e.g. electricity, water, etc.) total approximately $2500 per month.

"MULBERRY" is our Cincinnati property (Airbnb listing: https://www.airbnb.com/rooms/810774984319000212). Forlane estimates MULBERRY's monthly expenses at approximately $3500.

Forlane has also posted the projected gross revenue from bookings for UNITY in the #members-lounge channel of the DAObnb discord (https://cdn.discordapp.com/attachments/945810891868360754/1073631179745529936/image.png). Based on this, UNITY is projected to only produce about $1000 in gross revenue in February and March (combined), and about $2500 in April. Beyond April, the projections are low, but need to be taken with a grain of salt since people may not be booking their travel yet. Regardless, based on February and March projections, we will be negative $2100 in February, negative $2100 in March, while April would be approximately -$500 after paying the property mgmt fee (-$4700 total).

MULBERRY Airbnb listing shows as $142/night. On the Airbnb "check availability" calendar, the following dates are greyed out (ostensibly this means they're booked): 2/13, 2/14, 2/18, 3/4, 3/11, 4/26, 4/27, and 4/28. 8 nights x $142 = $1136 currently booked. If mulberry's expenses are indeed $3500/mo, then Feb+Mar+Apr = $10,500 ($1136-$10,500 = -$9364 ROI)

According to information provided by Bryce and Michael (take this also, with a grain of salt), last year, from June 2022-December 2022, UNITY made $50,909 before expenses, while MULBERRY made $68,397 before expenses. If Forlane's estimates of expenses ($2500 & $3500, respectively) prove to be accurate in 2023, AND IF the 2 properties make the same from June to December in 2023 as they did in 2022, then UNITY would have NET PROFIT of $33,409 from June through December, while MULBERRY would have NET PROFIT of $43,897 from June through December. Still, these are a couple of "IF's".

DAOBNB FUNDING PROPOSAL: With a projected negative ROI in February, March, and April (combined for UNITY and MULBERRY) of -$14,100, the project needs to raise funding of at least $15,000 if we are to not break our leases and sustain the 2 properties over the next 3 months.

The following options have been proposed to fund that $15,000:

OPTION 1: "Sell DAObnb NFTs to current DAObnb members" PRO's:

• Offers DAObnb members an opportunity to purchase more NFTs.
• Members have intimate knowledge of the history and current situation of the project.
• Funding stays "in-house" CON's:

• may have insufficient funding if DAObnb members don't buy enough NFTs.

OPTION 2: "Sell DAObnb NFTs to public" PRO's:

• Larger buyer pool may result in more DAObnb NFT sales = more funding.
• DAObnb members can still participate in buying more NFTs. CON's:

• Market sentiment is still risk averse.
• DAObnb doesn't have enough time to market the project thoroughly to the public, which will result on less publicity by the time the sale takes place.

OPTION 3: "Use credit card(s) to cover the $15,000" PRO's:

• in total, DAObnb controls 2 credit cards, with a combined credit limit of about $36,000.
• immediate access to funding without needing to sell NFTs. CON's:

• high interest rate could put project in a worse financial situation if bookings of the 2 units don't pick up in late spring/early summer.

OPTION "n": it is likely other funding options are "out there", each with their own pro's and con's.