FWB Q4 2025 Proposal

Q4 2025 Operational Budget

YTD Recap

2025 has been a transformative year for FWB:

• We returned to profitability after narrowing losses in FY24 and absorbing heavy burn in FY23.

• We secured FEST’s future with a multi-year licensing model (FWB retains IP, earns 15% profit share, zero production & budget risk).

• We shipped multiple flagship initiatives: a full rebrand FEST25, World Build 1 & 2, FWBuilders Alpha, Base migration with TWAMM, and the launch of $Benefits.

Q4 is about locking in durability: finishing World Build 2 at the highest standard, scaling and converting one or more of the strategic revenue opportunities (licensing, JVs, protocol ecosystem, fund evolution) into signed agreements.

Q4 Budget

What we’re funding (Oct–Dec):

1. World Build 2 execution to completion (on-time, quality delivery).

2. Business development sprints on four strategic options (licensing/JVs, protocol ecosystem layer, knowledge commercialization, fund evolution).

Guardrails we adopt with this approval:

• Lean OpEx cap: Maintain ~$46K/month operating baseline.

• Reporting cadence: Updates posted to Discord + 2 October progress memos; mid-November decision presented to Snapshot.

• Runway trigger:

1. By December 1, Greg tol bring any viable path to the DAO for a vote.

2. If we identify a sustainable path forward, we will continue the DAO in its next iteration.

3. Review organizational structure to ensure appropriate resourcing.

4. By January 1, 2026:

5. C-Corp will complete all remaining project commitments and operational responsibilities.

6. If no sustainable path forward is found, C-corp evaluates closure with Simple Closure.

• Deliverable trigger: World Build 2 contributors remain fully compensated through completion in early December to protect delivery quality.

Financials

FEST25 P&L

FEST 2025 was delivered with less than a 10% variance on the overall budget — a strong result for an event of this scale. We managed to keep the production very tight despite challenges on the sponsorship side and a last-minute unavoidable insurance expense of ~$20K.

The final P&L shows a ~$47K shortfall, which we had anticipated given the market environment for sponsorships. Importantly, this variance is small relative to the total budget, and we feel good about how contained the delta was.

Overall, this year demonstrates that even with tougher conditions, we were able to execute a complex festival responsibly and stay well within a narrow margin of variance.

Total Revenue

$885,551

Total Expense

$932,577

P/L

(47,026)

Top line & gross profit

FY2023 → FY2024: Revenue $1.36M → $2.16M (+59%); Gross Profit $1.36M → $2.14M.

FY2024 → FY2025: Revenue $2.16M → $1.75M (–19%); Gross Profit $2.14M → $1.75M.

Bottom line (net income)

• FY2023: –$2.08M

• FY2024: –$53.5K

• FY2025: ≈ +$104K

Operating discipline

Core monthly OpEx trending ~$46K in Q4; continued quarter-over-quarter reductions maintain flexibility while we convert near-term opportunities.

Takeaway

FWB has moved from steep losses (2023), to near break-even (2024), to profitability (2025). Sustainability now depends on securing FEST continuity and developing additional durable revenue streams.

Future of FEST

For additional context on the FEST licensing partnership, see the Future of FEST presentation.

FWB FEST has proven itself as a defining cultural moment and onchain go-to-market for the past four years. But FEST’s financial model has yet to reach sustainability.

To ensure FEST continues without overextending the DAO, two longtime attendees and community-adjacent operators — Kish (House of Paper, producer, 3x FEST attendee) and Will (Yours Truly, experiential studio founder, 2x FEST attendee) — have stepped forward with a plan to carry FEST forward.

The Deal

• Structure: 3-year licensing agreement (2026–2028)

• IP: FWB retains FEST IP ownership

• Risk: Will & Kish bear all production and promotion risk

• Revenue: FWB DAO receives 15% profit share

Why Licensing?

• Speed: Enables immediate partnership/sponsorship sales for 2026

• IP Integrity: Keeps FEST IP within the DAO, protecting long-term brand equity

• Flexibility: Allows FWB to revisit or adapt if the experiment doesn’t reach equilibrium

Strategic Priorities for FEST26+

• Increase ticket sales by targeting new audience segments

• Re-establish FEST as the nexus of crypto, culture, and emerging tech

• Produce internet-ready content to extend FEST’s reach beyond Idyllwild

• Reduce costs through multi-year vendor/venue deals and fresh contract negotiations

This model ensures FEST remains alive and evolving as a cultural cornerstone while allowing the DAO to focus on sustaining its core projects and future.