Proposal 1: Budget Requests for Workstreams Kickoff (Sep - Dec 2022)

Author(s):

arentweall#9198, 0x23#3969, Chris_uk#3541, helmass (ryan)#5725, joerg#3470

Date Proposed:

08/19/2022

Summary:

The goal of this proposal is to fund three (product management, integrations and product) workstreams through YE22. The outlined workstreams will help Goblin Sax transition from a NFT credit hedge fund into a product organization with product-market fit, without compromising profitability of the current business model.

For more organizational context on Goblin Sax, click here.

Motivation

Over the past 8 months we have primarily operated as a credit hedge fund supported by the community’s part-time / adhoc contributions. At this stage, it is crucial for us to make 2 transitions:

1. Have more dedicated team members focused on execution
2. Scale our total addressable market beyond the settlement layer by bringing NFT finance to end-users outside of NFTfi

These 2 transitions are crucial because:

1. There is increasing growth & competition in the NFT financialization space, so we should try to avoid losing our head start.
2. We have completed an operational raise from external investors, so we should be accountable and work towards achieving product-market fit.
3. A dedicated team of compensated contributors should create greater operational efficiency and accountability.

Scope of Work

Proposal details:

• Product management
• Integrations
• Product

Resource Needs and Estimates:

Our number one priority is to operate lean, extending our operational runway as much as possible. Under the assumptions outlined below, Goblin Sax should have 2 years of operational runway and will sell a little over 10% of the network to its community members, over the same timeframe.

Over the next four months (through YE22) we expect to spend:

USDC: $204,500 ($50,000/mo + $4,500 in one-time expenses)

SAX: 1,800,000 (450,000/mo), or ~1.75% of the network

Workstream	Monthly $USDC		Monthly $SAX
Portfolio Management	$20,000	40%	150,000	33%
Product	$21,000	42%	150,000	33%
Integrations / GTM	$9,000	18%	150,000	33%
Total	$50,000	100%	450,000	100%

Of note, the product and portfolio management budget assume additions to the current contributor base, thus burn is overstated until contributors are onboarded. The budget does not include revenue earned from interest, which should provide upside to our estimates.

Potential Impact:

At YE 2022, the workstreams should have achieved the following objectives (For a more detailed breakdown, please refer to each detailed proposal above).

#	Workstream	Lead	Objective	Full Proposal
1	Portfolio Management	chris_uk	Run core operations involving overall strategy, lending patterns, market analytics and day to day business to ensure sustainable yields and success for Goblin Sax.	Link
2	Product Development	Jorg	Bring risk adjusted returns with highest capital efficiency by delivering products (bots, frontends, SDK) in a secure way with 99% uptime.	Link
3	Integrations / GTM	arentweall	Enable 5 integrations by YE 2022, making up 20% of the total loan volume.	Link

During the course of the next 4 months, the 3 workstreams will be providing the following feedback loops for transparency.

1. Weekly progress updates on the community call (e.g. portfolio overview, profitability, integration progress)
2. Monthly written updates to investors and community members
3. Extensive workstream review with presentation by YE 2022.

By YE 2022, we will review the workstreams’ progress and learnings to refine our strategy, team resourcing, processes and governance in 2023.

Next Steps

The Snapshot voting process begins now and will end in 4 days.

• YES: Approve & proceed with the above proposal for the next 4 months
• NO: DO NOT approve & proceed with the above proposal for the next 4 months