SOSIP-19-Replenish Operational Wallet

The initial budget was created and approved in SOSIP-5 on 19 January 2022. $2M worth of SOS was transferred to the operational wallet. Since then, the team has continued to deliver value for our community members, but with the combination of crypto market experiencing a bearish cycle for a while and a decline in $SOS, the value of the initial deposit to the operational wallet has decreased to a point where it must be replenished.

The original replenishment was planned to happen 6 months after the initial deposit to the operational budget, however, an immediate reevaluation is required due to a low balance in the budget. In Web2 terms, it takes 3-4 years for startups to generate profit, until then, it requires a constant inflow of supporting funds.

The priority of the OpenDAO has always been expanding the ecosystem and building the infrastructures to support the web3/NFT space. To realize this goal, it is necessary to continue investing in the DAO.

Milestones

Up until now, a total of 42.41ETH (~$150,000) worth of revenue has been generated by Genesis Membership NFT collection and SOSMarket. As voted on in SOSIP-6, the 42.41ETH has been sent to the $veSOS staking pool to reward the stakers.

The team has launched the Genesis Membership NFT collection, SOSMarket and 721Starter. In development are, 20K Profile Picture NFT collection, Big Time P2E gaming guilds, 721Max, OpenDAO Academy, and 721Artist. The progress of development and deliveries are going smoothly according to the roadmap on the homepage. New projects are constantly being planned, there will be no end to the OpenDAO roadmap.

Please read the February and March milestone articles for more details.

Current balance of operational wallet

Though the chart below shows ample balances for each budget with which the OpenDAO can continue to operate for the planned duration of 6 months, the current balance that is presented does not reflect the current valuation of $SOS. In reality, the current value of the operational wallet is only going to last until May 1st, 2022.

To put that in perspective, after token price adjustment, the initial $2M deposit is equivalent to $1.18M at the time of writing.

The OpenDAO Operational Budget Spreadsheet

In accordance with SOSIP-5, five budgets have been set up. However, as the DAO begins to mature and grow, it has become clear that the original budgets are no longer suitable. For example, the previous breakdown of the budget capped the development expense budget at $0.2M and there are new budgets that are required.

Total budget:

$2.5M worth of $SOS and 600B $SOS for 6 months or until depletion. The long-term incentives budget is for contributor incentive that was passed in SOSIP-13

New budget breakdown

Talent Compensation $1.2M, Community Events $0.41M, Marketing $0.2M, Project Contingency $0.1M, Miscellaneous Expense $0.12M, Development Team $0.44M, Long-term Incentives 600B $SOS.