With core unit onboarding and funding ramping up, the RWF CU wanted to provide visibility to cash flows being distributed and actual expenses vs budgets so the DAO has more confidence in allocating capital with understanding the true burn rate.
As most have likely seen, the man himself @makerburn has linked up the on chain transactions from the protocol to the core units. These are not reflective of actual expenses incurred by the core units, but of the approved budgets and associated cash flows. Some of the distributions include emergency/continuous operations wallets (estimated at $2.6M) which I’ve separated out in the ‘Emergency’ column in the below snapshot. Since these wallets require multiple DAO facilitators to move funds, we believe these should be considered ‘protocol-owned.’
I’ve worked with the Core Units to publish the below consolidation of actual expenses incurred. As you can see, our true burn rate is much lower than what is reflected on chain (which as mentioned tracks cash flows), as well as the budgets posted on the forums. Extrapolating September’s expenses, our current annual cash burn rate is $17.3M (note - this excludes the DAI Foundation reserve transfer of $2M). The annualized burn rate will increase for October as DUX, CES, SH, and SNE budgets have been approved ($4.8M in additional spend) and will continue increasing as more Core Units are onboarded.
As you can see in the above reconciliation, we were actually $0.9M less profitable than reported in the month of September and $1.4M more profitable on a YTD basis.
Next month, I will partner with the Core Units to begin forecasting the subsequent three months of expenses so the DAO has more visibility to upcoming expenses and the community can more confidently review proposals and allocate capital. Additionally, I will work with Core Units to provide vesting schedules so the DAO has visibility to the non-cash expenses being incurred. Lastly, I am working with GovAlpha to standardize the budget return process they’ve pioneered .
Note - Oracle expenses are currently listed as cash flows, as is SES for September