Finance Squad Proposal

Finance Squad Proposal

Proposal Summary

The proposal is a request to Executive Sub DAO to fund $42,000.00 for Season 1 (April 1st - July 31st) for forming and running the Finance Squad. During Season 0 the base has been built with the principle of paying on time and the beginning of research on a more efficient way of distributing value to the DAO as a whole, this has been done through research Coordinape, yield farming , and Gnosis safes. It has allowed efficient payment of holders in single transactions. The next step of this squad is taking the identified focus points in practice / to the next level, including seeding squads focused on Yield management, token economics and accounting.

DAO Finance Guild

During Season 0 we attracted a number of talented individuals to join Aragon and work on bounties around Core Operations. The finance guild will follow the proposal set out below for reward distribution.

  • Core Contributor(s) – Someone who will take on a first POC within the squad. The person in core contributor role will have the ability to play activating roles within the squads.
  • Pool: A reward pool to be allocated via coordinape for the completion of important and ongoing tasks
  • Bounties: A pre-defined allocation towards currently undefined bounties that will allow ops to be nimble and attract talent or fund action that supports effective operations of the AN DAO

Proposal Rationale:

Today we fund individual projects or working groups, which pushes significant operational and financial overhead to these teams and the executive sub DAO to organize payments. Moving into S1 we seek to create and empower and well-staffed Finance Guild to drive the operational efficiency for our community working groups and enable teams to focus on deliverables and free up the ESDs time to work on funding proposals.

The finance guild identifies the following hick-ups:

  • No clear structure (repeating date) when teams have to provide their monthly reports with KPIs and proposed payments (will provide a streamlined format for this)
  • No clear structure (fixed amount of time) for the ESD and Treasury squad to process the received reports
  • No clear structure (repeating date) for the contributors when to expect their payments
  • No clear structure on the payment distribution and calculations of ANT
  • Inefficient payment and transaction signing process

Expected duration or delivery date (if applicable):

This funding request is for Season 1 of the AN DAO. This will run from 1 April to 31 July.

Deliverables/Milestones (re-designing the payment process)

In order to achieve a decent payment process we will propose a resolution of each aforementioned hick-up in the paragraphs below:

A clear structure on monthly reporting
In order to provide structure in monthly reporting, we would like to propose a fixed repeating date for every squad / guild to to propose their KPIs and Payments. Squad / Guild leaders should monitor their KPIs and proposed payments continuously and share the results of a particular month, early in the following month. We propose that the 4th of each month as a fixed date for squad / guild leaders to provide their monthly report.

A clear structure on assessing reports and preparing transactions
The ESD is in charge of capturing the (amount of) imbursements of each month for each squad / guild. After receiving the monthly reports from each squad / guild, including proposed payments and substantiation (e.g. this is what we have done, these are our goals in the form of KPIs), the ESD assesses the request. After assessing, the ESD can accept, adjust or decline the requested payments and will communicate this with the stakeholders (the particular squad / guild & treasury team).

We propose that the ESD fixed time period to assess the monthly reports and instruct the treasury team, namely the 5th till the 11th of each month.

After receiving instructions from the ESD, the treasury squad will compile all payments that are approved and will prepare the transaction. We propose that the Treasury squad has a fixed time period for this, namely the 12th till the 14th of each month.

A fixed monthly pay day
As AN DAO is moving towards monthly payment cycles for their contributors, we would like to propose the 15th of each month as a fixed pay day.

A fixed payment distribution and ANT price calculation
As proposed in Season 0 we would like to implement a fixed payment distribution and ANT price calculation for Season 1, which is a 70%USDC / 30%ANT ratio. As the ANT price is volatile, we would like to provide clarity on the imbursement calculation. We propose a fixed calculation date and method, namely a 14-day average of ANT on the 4th of each month (for the ANT imbursements of that particular month).

An efficient payment and signing process
Aiming for a more efficient payment process, we would like to propose for Season 1 that the ESD holds the requested funds on a multi-sig escrow instead of Aragon Govern. We would like to change the three step process into a two step process, where the Main DAO directly send their funds towards the ESD multi-sig.

The signing process will change as well in that regard, as we propose a 3 out of 5 approval multi-sig for the ESD. The signers would be Ivan (ESD), Renee (ESD), Daniel (ESD), Alex (Treasury) and Rick (Treasury). In this regard the ESD still has “a veto” but we can experiment if this increases efficiency.

Summary
24th till 30/31th → slot for guild leaders to compose their reports and share with ESD + Finance guild

1st till 11th → ESD assessing the squad / guild reports and instructing the treasury squad

4th → the 14 day average of the ANT payment will be calculated

12th till 14th → Finance guild compiles all payments and prepares the transaction

15th → ESD signs the transaction and contributors are payed

Monthly deliverables

  • 100% timeliness to compile all payments, prepare, sign and execute routine financial transactions by the 15th of the month 2100 UTC +0
  • 100% timeliness of monthly income / expense report posted to forum by the 15th of the Month 2100 UTC +0

Discrete deliverables

  • 1st of May, define contributor reward payment and reporting process
  • 1st of May, deliver visualisation of token flow to aid transparency into the grants funding rated 8/10 or higher by community polling
  • 15th of June (2nd payment cycle), start initiating the first payments via the Polygon chain
  • Prepare an overview of all contributors per guild (and their addresses) within a week after the guild is approved for funding by ESD (to get contributors paid in time)
  • 1st June, Deliver the Finance notion page, that will be rated by the community on: transparency, easy to understand, helpful (aim for 8/10 at community polling)
  • 1 July, Initiate the necessary change in the Charter, to increase efficiency in the payment process
  • 15th of August (after last payment cycle), deliver an overarching AN DAO S1 Finacne Report, which provides an overview of the financial status of AN DAO, a look back on S1 and an outlook to S2 (will be rated by the community and aim for 8/10)

Strategic Alignment

Finance is seen listed as a priority for the Executive Sub DAO to support the development of financial transparency. DAO Ops will support financial transparency, operational finance as well as undertaking research to provide advice on productivity of treasury such as yield on unallocated funding. Finance is not expected to be the experts on yield management on day one but can effectively facilitate and support experts to make proposals that deliver on financial priorities

Some additional key points of alignment for the coming months:

  1. Work with ESD to remove any of there operational overhead eg payments

  2. Align and Communicate clearly with all teams on payments (e.g. reporting and payment process)

Team Information

  • Core Contributor: ricktik6#0196 (Full time 40-45 Hours) - Rick was the treasury and accounting bounty holder during season 0 and worked closely with Alex. He functioned as a POC on the payments for the bounty holders. In addition, he helped identifying improvements such as payment mechanisms (e.g. coordinape), how to optimize the treasury (e.g. yield farming and creating more transparency), and payment infrastructures (e.g. Gnosis safes, DeWork, and Polygon chain). He is motivated to take these improvements to the next level in Season 1.
  • Anukriti acted as an Ops Coordinator during Season 0 and worked closely with all contributors to capture their needs along with identifying the KPIs and making sure any blockers were removed. She also did a proof of concept of DeWork along with MDLawyer and Spectra. She is also working on a DAO Governance Hub project funded by Metagov and DAO Research Collective. (https://twitter.com/bebaakbeyou)

Funding Information

The finance guild requests funding of $10,500/month with following distribution -

  • ricktik6#0196 - $5000, split 70:30 with USD:ANT (40-45 hours)
    • 0xDacf1065b12849298dc5B47EcE9553094000074F
  • Alex (steward) - 0, (0-10 hours)
    • 0x580e5E54055d087D7F012dD43e54cceaE9ce4265
  • Anukriti (ops) - 0, (0-10 hours)
    • 0xae8b5f6638a8f3c76e2f4656cfd2b0b523307302
  • Additional bounties - $5500 (35-40 Hours)

Adding the per month distribution, the total disbursement requested for Season 1 is $42,000.

This is a rough estimation of the first deliverables that we are picking up (of course new deliverables can be added and priority can switch during the season).

image

**Lower value due to work completed during pre-season

In terms of transparency, we would like to propose: if a deliverable takes actually more or less time (and costs), we will report this to the ESD including argumentation.

Happy to answer any questions / concerns and as always open to feedback.

4 Likes

This is Awesome Rick!

Providing some much-needed structure around our reporting and payment schedules. Thank you for taking this on and creating such an excellent proposal.

1 Like

Hello @Ricktik6,

This is very important as it will tackle the sense of uncertainty in the DAO, it will provide a more sustainable economic framework and a sense of belonging.

Best of luck!

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ESD has already outlined a process for reporting requesting reporting by the 1st of the following month. However, this process was developed on the basis that S1 proposals would be posted and decided early in the month of April.

It will now be at least the 18th before the first funding proposals decisions are finalised and requesting reporting 12 days into a month fails to serve a purpose. It already appears that fixed dates lack the flexibility we need.

Should we consider changing the reporting so that it falls due 28 days following approval of funding? As this would better align reporting with the ESD General Meeting cadence? I would still however expect we retain the fixed payments date as the 15th of the month

ESD assess deliverables and approved funding based on reporting here in the forum. Monthly reporting template here. We have requested

It would not seem reasonable though to expect the Finance team to trawl the forum for this information so a simple process whereby the teams report funding directly to Finance would be good.

These are very good processes that help set realistic contributor reward payments. Thank you

Edit to Aragon Govern

Not quite sure what this is saying but from what I can gather, I agree one multi-sig will significantly improve the three step process. However, ESD funding from Main DAO was approved on the basis that

In order to change a process formally established via on-chain voting we would need to vote on a Main DAO proposal. The ESD can not approve a change to an on-chain Main DAO agreement. Would the Finance team expect to make this proposal S1? You will have my vote in favour and the development of standards to support clarification around the Charter attracts fixed $500 additional funding

Woohooo

Can you clarify please why Anukriti is listed as an unpaid contributor to this proposal? Or can you clarify please how ops involvement with this guild is delineated from work within the DAOOps Guild. Maybe an idea of time and contribution to the financial objectives and deliverables.

Edits are required to this proposal. Rather than determining here all needed processes perhaps list this as a deliverable. I look forward to working closely with this team, excited to see monthly financial reports and more transparency around the value flow within the AN DAO.

Although this proposal was not posted with seven days lead time it is a listed priority and we will look to provide either a decision on funding or request further clarification following the ESD General Meeting scheduled for Monday 18 April UTC 1900

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Understand your point on reporting in April is maybe not that useful, however lets interpret the first round of reports regarding April as a training to get familiar. As stated, I talk this process through with the several guilds and will provide them with a standardised report. In my opinion, it would be great to use the April payment cycle as rehearsal for the remaining Season.

I have edited the proposal (including time line) and I will provide the different guilds with a standardized report format, so they can briefly report about their first month, under the motto: bureaucracy out & simplicity in

Definitely agree as well that the teams should share their reports also with the finance team!

During Season 1 I will work out a proposal to disintermediate ESD Govern and make it more efficient.

To elaborate on Anukriti’s part, the Finance guild aims to stay integrated with the OPS guild as this is critical. We expect that it is not necessary to allocate hours but if in afterwards it turns out to be necessary, we already include her into the proposal.

Thank you for providing priority and feedback, really appreciate it!

Can we clarify what standardised report you refer to please. In terms of ESD mothly reporting we have an intentionally, very simple template

This is linked from the ESD S1 Funding Reporting Process

Can you please also drop a link here to you pre-season bounty I’m interestrd to compare the bounty to better understand the transition from bounty to full-time role.

SMART deliverables
You’ve provided some very specific deliverables for S1 Rik can you please add metrics and time to all those to be considered for funding

For example

Monthly

  • 100% timeliness to compile all payments, prepare, sign and execute routine financial transactions by the 15th of the month 2100 UTC +0

  • 100% timeliness of monthly income / expense report posted to forum by +the 10th of the Month 2100 UTC +0

Discrete deliverables

  • 1 May deliver visualisation of token flow to aid transparency into the grants funding rated 8/10 or higher by community polling

  • 15 June start initiating the first payments via the Polygon chain

I’m keen to see people setting high performance targets. ESD do not intend to penalise people for unavoidable delays and changes to best laid plans but we do want to understand why delays happen and what questions and solutions issues raise.

ESD General Meeting Monday 18 April UTC 1900: We are keen to see this team continue to deliver impact for AN DAO especially as financial transparency is a priority for us.

However, we would consider it a failure of an effective and efficient process if ongoing financial requirements in S1 are more than10 hours per week. We do also see that there could be 80 -120 hours required within the first month to get the systems and process’ in place.

We would like to try to make a final funding decision async within the next seven days cc @fartunov @daniel-ospina

Can we clarify what standardised report you refer to please. In terms of ESD mothly reporting we have an intentionally, very simple template

Edited the standardized report and I will also talk the new payment / reporting process through with the guilds that are provided with funds for S1.

Can you please also drop a link here to you pre-season bounty I’m interestrd to compare the bounty to better understand the transition from bounty to full-time role.

This was the bounty in pre-season for 8-10 hours

  • Preparing a list of all past know payments and paying the pending payments.
  • Automate tagging and link payments to proposals.
  • Prepare a weekly and monthly account report with respect to bounties.
  • Initiate payments for projects funded by AN DAO (Bounties Included).
  • Help to set up source-cred for new contributors.

As always in DAOs the role changed (in discussion with Ben and Alex) more towards exploring the hick-ups in the current processes and prepare to change them in the next Season(s)

SMART deliverables
You’ve provided some very specific deliverables for S1 Rik can you please add metrics and time to all those to be considered for funding

I definitely like the SMART way of defining KPI’s, so I will give it a try:

Monthly deliverables

  • 100% timeliness to compile all payments, prepare, sign and execute routine financial transactions by the 15th of the month 2100 UTC +0

  • 100% timeliness of monthly income / expense report posted to forum by the 15th of the Month 2100 UTC +0

Discrete deliverables

  • 1st of May, define contributor reward payment and reporting process

  • 1st of May, deliver visualisation of token flow to aid transparency into the grants funding rated 8/10 or higher by community polling

  • 15th of June (2nd payment cycle), start initiating the first payments via the Polygon chain

  • Prepare an overview of all contributors per guild (and their addresses) within a week after the guild is approved for funding by ESD (to get contributors paid in time)

  • 1st June, Deliver the Finance notion page, that will be rated by the community on: transparency, easy to understand, helpful (aim for 8/10 at community polling)

  • 1 July, Initiate the necessary change in the Charter, to increase efficiency in the payment process

  • 15th of August (after last payment cycle), deliver an overarching AN DAO S1 Finacne Report, which provides an overview of the financial status of AN DAO, a look back on S1 and an outlook to S2 (will be rated by the community and aim for 8/10)

No thanks, I’ve restored the version that the ESD require for reporting. We do not need a breakdown by contributor. Here again, please do note our reporting requirements which I would expect to be different from Finance

I will note again that imo the forum will NOT be the most effective and efficient means to collect contributor reward information. Due to some confusion here as to the different processes required please let me clarify

  1. ESD will define/refine and document strategy and processes’ relating to ESD
  2. Finance S1 is expected to define/refine and document processes’ relating to transparent and timely financial information

I would like to see “define contributor reward payment and reporting process by DDMMYY” as a deliverable here. Example here

Thanks for the bounty summary, as requested can you share a LINK to the bounty information as I am looking for transparency about the role. I’m wondering how it has gone from 10 hours to 45 hours per week, and why in a DAO we would even want to model the 40-hour workweek.

I can assure anyone reading this imo ESD funding is not here to secure employment type roles. I prefer to fund deliverables based on impact as opposed to time. Financial transparency and timeliness I expect to have a significant positive impact.

Nice work on the SMART deliverables @Ricktik6 some of these I consider simply requirements of the the role and even if the list was 20 items long it is the monthly deliverables that I’m looking to fund a focus on, so I would focus on those and leave opportunity for “additional deliverables”

What do you consider a reasonable budget allocation per month to ensure delivery of transparent and timely

  1. monthly supplier and contributor reward payments and contributor reward reporting
  2. monthly income/expense report
  3. S1 financial report

I would advise pricing these differently and per deliverable price as opposed to based on hours

I will note again that imo the forum will NOT be the most effective and efficient means to collect contributor reward information. Due to some confusion here as to the different processes required please let me clarify

We understand that you prefer two different documents from the guilds, ESD report and Finance (reward report) report. We will come up with a standardized finance report and process before the 1st of May.

I would like to see “define contributor reward payment and reporting process by DDMMYY” as a deliverable here. Example here

Added to discrete deliverables: 1st of May, define contributor reward payment and reporting process

Thanks for the bounty summary, as requested can you share a LINK to the bounty information as I am looking for transparency about the role.

FYI, 2 separate bounties of 500 dollar and 8-10 hours (1 Treasury bounty and 1 accounting bounty) were merged at the start of Pre-Season into this bounty. During Pre-Season, I worked closely with Alex and Ben on the which tasks to pick up next as there was a lot to pick up.

I’m wondering how it has gone from 10 hours to 45 hours per week, and why in a DAO we would even want to model the 40-hour workweek.

We didn’t take a 40 hour workweek into account but did an estimation on time that is required to deliver the tasks. Let us elaborate on our estimation:

**Lower value due to work completed during pre-season

This is a rough estimation of the first deliverables that we are picking up (of course deliverables can be added and priority can switch during the season).

In terms of transparency, we would like to propose: if a deliverable takes actually more or less time (and costs), we will report this to the ESD including argumentation.

2 Likes

I will start by saying that I have not followed the discussion too deeply. I only want to note that some of the guilds are suffocating without funding.

dTech has never received payment on time for one reason or another. Mainly due to govern issues or waiting on a signature. This finance guild will create a role that can focus on solving these issues.

Currently it is the 20th of April and dTech has not been compensated for March, nor has any of the bounty contributors. This is the same with onboarding and ops. Some of this compensation is from the beginning of March. This has led to disappearing contributors and lack of interest in taking up new bounties. If compensation is not executed properly progress stops, interest and participation goes dormant and Aragon stagnantes.

I strongly urge to get this proposal resolved so guilds can focus on executing tasks and not worrying about compensation.

1 Like

Do I understand correctly those issues will be resolved?
These sound a lot like process and operational issues rather than financial. As the proposal is almost double recommended length, I sincerely apologize for not going over all the details. However, for us to decide, we would ideally want to see the impact of the guild over the season.

We identified a major pain point for the ESD at the beginning of Season 0: the lack of transparency around current financial standing, which is still unresolved. Yet we are committing on other things.

Ideally, the outcome of this season should be a streamlined set-up that does not require someone working full time on preparing reports…it’s mostly on-chain data so a script should resolve this (maybe there is an existing tool to resolve some of this.

2 Likes

100% agree on the issue. I am not seing how the proposal is adressing the pain point. It’s a combination of tasks and symptom treatments, but doesn’t seem to be a solution to the underlying problems

Please adhere to the 750 word limit on funding requests

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These are all issues that are being resolved in the proposal. Rick has pulled together the prioritisation on bounties/tasks for the season to try and make it clearer what is being achieved. Solving the pain points and creating a robust process is a priority 1 for the season. Automating the reporting has been set as a priority 2.

2 Likes

These issues will be resolved as we re-organize the payment process (which I am currently working on this week to outline on Notion)

As you stated it is indeed more a process and operation issue than a financial one.
In order to be transparent on the reward payments it is necessary to have a process where every stakeholder (Guilds, ESD, and Finance Guild) is aware of their role (respectively: report to ESD & Finance in time, Assess the reports in time, prepare the payments in time).

It is also not our goal to work full time on reports, but focus right now on getting these reports properly (and therefore provide transparency). If the new reporting processes are working then we will look into automating that process, as indeed that is the ideal situation.

2 Likes

Hey, do you need any help on the accounting side of the finance guild proposal? I may be able to help with some of the work. I’m a Ph.D. In accounting and statistics with 7 years of experience in Big 4 and 3 more years of experience in public companies reporting to SEC. I worked with both US GAAP and IFRS standards, SOX compliance, etc. if this is helpful here in any way. Please let me know if I can get involved:)

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Hey!
Thanks for reaching out!
Lets have a chat, could you contact me via Discord: ricktik6#0196

Hey @Ricktik6 after reviewing the proposal again the value adds are starting to pop up. While the proposal is overly wordy and makes our job as ESD substantially more difficult than it should be I hope you would be able to submit a better one next time. That being said, let’s try to boil down the main deliverables into bullets that can help me @lee0007 and @daniel-ospina more accurately understand what will be achieved during the season:

  • Design and “enforce” a consistent reporting/approval/payment cadence across guilds through a well-organized process (well-organized means someone can quickly orient themselves on what’s going on and follow/execute the process, not lengthy wordy explanations - it should be clear who can schedule payments from which wallet, on what basis, etc.)
  • Have functional contributor payments for USDC denominated payments on Polygon

Are the two bullets above an accurate representation of the scope because if it is, it’s something I can get on board with?

NB: @AlexClay we have the umbrella proposal and the EVM crisper proposals approved. How/when are we initiating payments?

Comment below on the other discrete deliverables

  • 1st of May, deliver visualisation of token flow to aid transparency into the grants funding rated 8/10 or higher by community polling - not sure what this one is. If it’s about the pictogram PDFs, they were more confusing than helpful.
  • Prepare an overview of all contributors per guild (and their addresses) within a week after the guild is approved for funding by ESD (to get contributors paid in time) - sounds reasonable
  • 1st June, Deliver the Finance notion page, that will be rated by the community on: transparency, easy to understand, helpful (aim for 8/10 at community polling) - So far it is looking really good but just want to clarify something. The payment process should be in the main wiki somewhere - consult with @lion917 but the “how do I get paid” bit should be relatively easy to find, not somewhere deep in the finance guild space. Finance guild space can link in there as “one of our outputs”
  • 1 July, Initiate the necessary change in the Charter, to increase efficiency in the payment process - this basically means remove the payment process from the charter, or am I missing something?
  • 15th of August (after last payment cycle), deliver an overarching AN DAO S1 Finacne Report, which provides an overview of the financial status of AN DAO, a look back on S1 and an outlook to S2 (will be rated by the community and aim for 8/10)
  • The really basic transparency request by the ESD is still pending as per my last message - would be great to get a commitment on that being completed in the beginning of May

Looking forward to getting this out of the gate ASAP and apologies for the late response.

3 Likes

Hi Ivan,

First of all, thank you for your feedback.

The two bullets that you mentioned are indeed the main scope for S1.

Great to hear that the ESD has approved already 2 initiatives!
I will also discuss the new payment & reporting process with the guilds.
If they have worked on / finished deliverables (in April) that are approved by the ESD, they should receive payments for that.

In terms of the basic transparency request by ESD, I already made a first draft on the ESD & Main DAO financial position which you can find here: Financial Position - Google Sheets

Lets align on this as well later today during the ESD office hours

In addition, I will also align with Lion regarding the Notion board.

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