Thanks for your quick response! I appreciate your thorough response to my questions. It provides greater insight into the projects alignment and also demonstrates areas that have been swept under the rug.
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Great job @ the rug team 
I love that youāre having a commitment to give back 10% to the DAO. Iām also very confident that you can be self-sustainable by the next bull run. Do you have plans to support the DAO once you donāt need seasonal funding anymore?
gm @Liquidiot, thank you for the proposal.
I want to add on @Sprinklesforwinners comment about the completion incentive. Is there any criteria for the distribution of this? If the project does not any KPI for example, do you still distribute the completion incentive?
And about returns to the DAO. Do you have any forecast on how many seasons it would take to find the model that would create significant returns? From previous and current proposals i made this simple table forecasting until season 10.
You have a good niche, quality content and you are getting some attention on the interwebs These are the good things about the project. But it does not look well as a monetary investment for the DAO with these returns.
Thanks for the comment. The ideal would be The Rug being able to pay back the DAO in full, for the seasonal funding, in addition to our 10% return per funded season. As for post seasonal funding, there would probably need to be a discussion about ongoing commitments and expectations for successful projects that no longer require funding, generally speaking and for individual projects. To my knowledge this has not happened yet. We are and will be forever grateful for the DAOs support and are open and eager to have the conversation and return value to the DAO in whichever form(s) that takes for the foreseeable future.
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The completion incentive is based on participation. We have two tiers of contributors, active and casual. If you are an active contributor (one with weekly submissions based on our list of recurring tasks) and submitting quality work and performing your duties, then you are eligible for the completion bonus. We donāt have specific, granular KPIs for this, but it is quite clear who is fulfilling their commitments, which are agreed upon at the beginning of each season.
As for forecasting āsignificant returnsā this is a hard question to answer. I use that in quotes because I would like to know how the DAO and GC would define significant? The only agreed upon, or honored standard that I am aware of, has been the 10% return. And, we are bringing in returns. Iām pretty sure not all projects can say that. Is there a clear example of another project that is blowing monetary minds that we can use as a case study?
To be honest, three month chunks (seasons) is quite a short period of time and when we start to write and submit seasonal proposals, we are only halfway through the current season. We are being asked for a retrospective moves that having even had a chance to play out. It feels like the expectation is to grow multiples in months.
Testing out revenue models is taking time for us. We are collabing with other entities (HQ, Decentralized Arts, Mirror, Paragraph) and, really, building along side of them. The two latter ones in particular we have been testing new features with, ways to generate income. This takes time for everyone to build. It takes patience, and to the point, it takes the capital that is in large part being provided by the DAO.
We are still in start-up mode, but we are continuing to move forward. Does the DAO have the long-term vision and desire to see us succeed? Do they feel we are bringing value to the space and to the DAO? Do we bring the funny and the vibes? We think the answer is yes.
To answer your original question
Do you have any forecast on how many seasons it would take to find the model that would create significant returns?
I donāt know.
But you can bet we are busting our butts (most of us in addition to full-time commitments as are many folks throughout the DAO) to figure this out, and believe me, we would love nothing more than to be standing on our own two feet. For season 8 we intend to be hyper focused on these concerns and hopefully cement some of these revenue opportunities and start to rotate in compensation from said revenue in lieu of BANK. On that note, we do have something that we are very excited to announce in the very near future, but unfortunately itās going to have to wait.
Also, not all value is monetary and easily measured. But given the general sentiment and comments in this proposal and seasons past, the support is there and itās clear that value is being found by our readooors and enjoyooors.
So again, what is āsignificant returnsā in the eyes of GC? What are the expectations, GC forecasts and timelines for projects? How long does a project get to be worth it as a monetary investment? Help us point our ship in that additional direction. I have been going through the GC notion and it is not clear to me. As far as I can tell, itās just 2 agreed upon KPIs and thatās it. We have gone above and beyond those required KPIs and are on track to meet them by seasonās end.
If there is something else in writing somewhere, apologies, but I am not aware of or possibly not remembering it. If what we ask is unreasonable, help us to understand why. How can we help you?
Thanks for your time and diligence in reviewing our proposal.
AB
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i feel you, i feel the same with some projects that iām in.
a significant return would be a return rate that at least has a breakeven point with the investment the DAO made. (This is not an official statement, just what i think as a member.) I see you are asking for more funds but the expected return in season 8 is the same with season 7, that widens the gap for example.
These are mostly left vague until now. We donāt have that information too. It is left to every GC members initiative. The 2 KPIs are there to keep the projects competitive and reporting to the DAO, they donāt mean the project will be automatically funded next season.
The Rug is at least 8 seasons old project, that makes 2 years. What is the long term in your mind? Does the project come to an end if the DAO rejects funding?
The Rug might be another good project to test out @links 's one time funding strategy.
Thanks for your reply. We will take these notes into S8 with us and work on ways to improve our forecasting and project reporting.
I would like to make a quick mention about the age of the project, as your statement about The Rug being a 2 year old project might be a little misleading to those reading. Though we have been around for a while, we have only been requesting GC funding since Season 5, not the entirety of our existence. I think that is important to point out.
The project would like to continue improving and creating with no end in sight. We want to be the de facto place for and synonymous with Web3 comedy. The long term is the forever term. If the DAO rejects all funding at this point in time, the project will not end, but it will put us in rougher waters to navigate towards that vision.
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I love the rug. I have been trying to support when I see it. And try to collect it.
We also distributed 10% of our more considerable S1-S4 ETH profits to the treasury before we took a single grant in $BANK. Somwthing to keep in mind about our attitude and who we are.