The GSE recently used a portion of our budget to fund a workgroup whose task was to perform a financial analysis of the DAOs projects and guilds each season for the past 3 seasons. This is a post to share the results and offer ideas on how this can be used to make smarter funding decisions and stronger proposals.
Information must be transparent and readily available at all times. This is especially important in a DAO where every decision is made by the community with sometimes limited view and context. DAOs are an important step forward in giving those who build the ship a say in where the ship goes. The right to be a part of the decision-making process comes with great responsibility. We are all responsible for the outcome of BanklessDAO. If the DAO thrives, you are responsible. If the DAO dies, you are responsible. It is the leadership’s responsibility to provide you with the information you need to be confident that every vote you make is moving this ship in the right direction.
The GSE released the BanklessDAO Constitution and Community Handbook which acts as our current operating system. It’s a summary of our structure, our processes, our mission, vision, and values. This view of our organization is extremely helpful to understand our current state. Another important piece of information is the current state and trending direction of our financials.
One of the major threats identified in the strategic survey was overspending. It’s a valid concern. If all the funds in our treasury go to 0, our DAO dies. There seems to be a consensus that the flow of funds across units needs to be reassessed. If we were to reallocate today, we would be guessing how much each unit should have. The data has been limited leaving the answer to “how much” a mystery. With the financial analysis of guilds and projects, the GSE and anyone else who is interested will be able to make stronger recommendations based on data instead of speculation.
When creating recommendations for the reallocation of resources, profit/loss is only part of the equation. Brand recognition, community building, and others are important variables to consider. Any improvement proposal that is created as a result of the financial analysis should take these variables into account.
The full results are posted below. One thing is obvious - The community was right. We are overfunding. Almost every project and guild has a significant amount of BANK leftover season after season. This shows we can achieve our priorities with less funding. What’s interesting is that if we reduce funding to guilds and projects, or create more milestone-based funding mechanisms. We can allocate more funds towards things like in-person events to boost our exposure and impact, tackle our compensation problems, and attract strong talent. In fact, according to the data, if you add up all the left-over funds across all projects and guilds in season 3, we would have had an extra 8.5M BANK.
Calculating in the average BANK price in season 3 of $.0436, that’s
Calculating in the median BANK price in season 3 of $.0388, that’s
Someone check me on this cuz…whoa.
Average BANK prices were calculaed from CoinGecko.
First I’ll mention a disclaimer that I’m assuming this data is correct based on the findings of the Analytics Guild. If you held a leadership position in a guild or project, review the data and call out any discrepancies.
Assuming everything in the report is accurate, I invite you all to fork this and discover more insights and share them with the entire DAO.
We need a bit more information such as ending season 4 numbers. Analytics guild will be providing this.
Use these findings to help you make decisions on future funding proposals. If you’re a role holder or proposing a project, be honest with the amount you’re asking for in season 5. If you’re on the Grants Committee, use this historical data to help guide future decisions.
Let’s use this to reassess our funding processes, procedures, and criteria.
Let’s also use this to look at the roles guilds and projects play. Personally, I feel strongly that guilds should be strictly education and community building with funding used to create educational resources and grow the intelligence of our community. The assumed outcomes include a more skilled community → stronger project contributors → better execution → more successful projects → a more successful DAO.
Most importantly, this data needs to be kept current. I charge the Treasury Guild with this task.
Find the full report here. Please fork and share your own conclusions.