Authors: Roberto Talamas, Megan Murray, Ryan Harvey
Key Takeaways
- ATX DAO’s treasury and operating accounts have a total of $116,418 in ETH, USDT and USDC. This does not include the proceeds from the most recent mint round, which is expected to bring an additional estimated 35ETH into the Treasury.
- To bring the community together more often during the second half of the year, we propose to use $10,000 of the DAO’s treasury towards members only events for the remainder of 2022.
- Community Management is one of the most demanding roles in the DAO in terms of recurring time commitment. As such, we propose to compensate the role with a $3,000/month salary starting September 1st, amounting to $12,000 in 2022.
- We proposed a revenue sharing model for individuals raising funds for ATX DAO events. The team raising funds for events will be entitled to 15% of the event profits as commission.
- The DAO’s membership application review process requires roughly 30 hrs to complete. We proposed to pay an hourly income of $30/hr to the DAO members involved in the review process of each minting round.
- After all expenses, we estimate to have a remaining treasury balance of at least $90,000 for 2022 (not including the additional 35ETH from mint revenue).
ATX DAO Budget
Below is a snapshot of the DAO’s current financial balances (not including funds from the most recent membership mint).
Based on the figures above, this proposal outlines the following for the remaining of 2022:
1) Events Budget
2) Compensation Packages
3) Revenue Sharing Models
Events Budget
For clarity, let's define the three types of events ATX DAO organizes:
1) Community Events: Events organized to bring together all crypto communities in Austin. Free for anyone to join.
2) Member-only Events: Event organized for official ATX DAO NFT holders. Free for members and ticketed for everyone else.
3) Main Events: Events organized around big social events (SXSW, Consensus, F1). Free for NFT holders, ticketed for everyone else.
The events budget in this proposal is for the planning and execution of member-only events.
Events are the bread and butter of ATX DAO. They are the most efficient way to build relationships, encourage networking and bring together the community IRL. Therefore, we believe it is important to allocate a portion of the DAO’s annual budget to curated experiences for our members.
We propose to allocate $10,000 of the DAO’s treasury toward two member-only Events (ticketed for non-members) for the remainder of 2022. The Event and DAO Relations committees will be able to use the money at their discretion to curate experiences for the ATX DAO community.
Compensation
As the DAO grows the need for continual day-to-day work from specific areas of the organization has skyrocketed. Such areas include community management, operations, and marketing. Below we propose a compensation plan for community management and marketing/event planning matching what we have done previously with the Operations Committee.
Community Manager
Community Management is one of the most demanding roles in the DAO in terms of recurring time commitment. From coordinating the DAO’s event calendar, planning IRL events and continually engaging members in Discord, the role requires a consistent amount of daily attention. The Community Manager is tasked with:
1) Managing the events calendar:
- Posting and updating events calendar
- Event promotion
- Arrangements with venues
- Attending/running the event
2) Managing the Discord:
- Engaging #introduce-yourself channel
- Prompting conversations and building a community experience through Discussions on the discord
- Hosting discord voice chats.
- Improving the discord with bots
Since the organization’s identity is directly tied to the quality and cohesiveness of our community, we propose to compensate the Community Manager role with an income of $3,000/month starting September 1st, 2022, amounting to a total of $12,000 in 2022.
Member-Event Planning
Member-only events will become a focal point for the DAO in the second half of 2022. Historically, planning member-only events requires the following tasks:
1) Brainstorming and implementing event concepts and themes
2) Researching and booking venues
3) Organizing suppliers, caterers, staff and entertainers
4) Managing set-up, tear-down, and clean-up operations
5) Anticipating attendee needs and making preparations against potential problems.
Given the DAO’s emphasis on creating a strong network of NFT holders and the work associated with event planning, we propose to pay event planners a flat fee of $1,500 per event organized. This payment ONLY applies to member-only events not including community or main events.
Profit / Revenue Sharing Models
Currently, the DAO’s primary sources of revenue include sponsored events and mint revenue. Both tasks require a tremendous amount of work from groups of individual members. Given the sporadic nature of these activities, we proposed a revenue sharing model for the teams carrying out the work.
Sponsored Events
Sponsored events such as SXSW or Consensus generate revenue from company sponsorships. As is commonly the case for this revenue model, after all event expenses are cleared, the DAO keeps the remaining cash as payment for organizing the event. The Partnerships and DAO relations committee heads are tasked with:
1) Contacting potential sponsors to establish rapport and arrange meetings.
2) Research organizations and individuals to find new sponsorship opportunities
3) Develop quotes and proposals for potential sponsors
4) Negotiate sponsorship packages and pricing
Given the amount of work required to carry out the above, we propose a commissions based revenue sharing model for this workflow. The Partnerships and DAO Relations committee will receive 15% of the funds raised after all event expenses are paid. This model aligns the incentives of the organization with the individuals directly involved in raising funds for ATX DAO branded events.
Membership
The membership team (or membership pod) is responsible for carrying out the end-to-end application process for new minting rounds. During a new minting round, a team of members assembles to do the following tasks:
1) Asses the qualities the community is looking for in the next group of members
2) Review all new member applications
3) Grade and filter our applications for top candidates
4) Interview the top candidates of each new miting round
5) Onboard new members into ATX DAO
In total, it takes an estimated 30 hour commitment for the membership pod to carry out the steps above for each minting round. Given the amount of time required and the importance of the tasks, we propose an income of $30/hr for the members involved in the membership application process. The membership team will be capped at 6 individuals to keep the team small and nimble. The Head of Membership will be in charge of assembling the team during each minting round.
Additional Notes
Any compensation will be considered reported income. Any individual receiving income in excess of $600 (whether as salary, commission, or bonus) can expect to receive a 1099 tax form reflecting their compensation received for the calendar year. ATX DAO will not be withholding taxes and individuals will be expected to ensure their own tax liabilities are met.
