MIP40c3-SP4: Core Unit Budget, GRO-001

MIP40c3-SP4: Core Unit Budget, GRO-001

Preamble

MIP40c3-SP#: 4
Author(s): Nadia Alvarez
Contributors: Jennifer Senhaji, Gustav Arentoft, Matt Cooper, Doo Wan Nam, Mariano DiPietrantonio.
Status: Formal Submission
Date Applied: 2021-02-24
Date Ratified: <yyyy-mm-dd>

Specification

Motivation

As the Growth Core Unit, our focus is to bring more distribution channels to the Maker Protocol. In that sense, we will need a quarterly budget for paying for: salaries, incentives for the Growth team, and any initiative that we plan with our partners to foster Dai demand and absorb the capacity generated by the organic growth of the protocol.

At the moment, there are 2B Dai in the market, and we are expecting 300M Dai at the end of this year from RWA. From those 2B Dai, more than 50% are inside DeFi protocols, and we think that if the market keeps its bullish sentiment, we can expect this behavior could continue. If not, we have to find other distribution channels for the Dai in the market.

Core Unit Name

Growth

Quarterly Focus - May, June, July 2021

LatAm

For LatAm, due to the financial crisis in different countries of the region, we want to propose Dai as a savings currency. During this quarter, we will focus our efforts on Colombia. Colombia’s crypto sandbox will allow us to work with different financial players in the country, creating new services powered by Dai: credit cards, loans, point of sales in various merchants.

We also will be focused on expanding the merchants’ network to accept Dai to prepare Colombia for Devcon. This is an ongoing effort with the Ethereum Foundation.

Asia

Financial companies are starting to accept crypto into their systems, which gives us the signal to start conversations with them, pushing Dai into the traditional world. In this region, we continuously see the development and growth of different DeFi projects and other Blockchains to position Dai.

Africa

In this region, we will focus on developing infrastructure, finding foundational integrations that help us make Dai available in that market.

Nigeria has increased the usage of crypto because of the difficulty they have with their local currency. It’s a similar case of what we experienced in Argentina and Venezuela. Our goal here is to replicate the strategy we implemented in LatAm and grow Dai demand in Nigeria.

Europe

We will maintain the work we are doing with different DeFi protocols, CeFi solutions, and other blockchains. We also want to propose Dai as the currency for donations in the NGOs, and we are working on a model that any NGO could adopt and start managing their treasury with a multisig with the only decentralized and censorship-resistant stablecoin: Dai.

North America

We want to focus our efforts on getting more RWA collateral types and also maintain the work we are doing with different DeFi protocols, CeFi solutions, other blockchains, and the NFT space.

Team Members

The Growth Core Unit will consist of the following members in the May/June/July budget period.

Quarterly Budget

Team remuneration

The Business Development contributors should feel persuaded toward behaviors that will support the Maker Protocol strategy. That’s why besides a base pay, each one of our BD persons will be under a compensation structure, a proactive process that forms goals around the account planning process, and accounts for past performance/growth.

The compensation structure follows these rules:

  1. Two-quarters of goal achievement constitutes a 10% raise in base pay.

  2. Not meeting goals results in base pay stagnation.

  3. Less than 50% of goal number achieved results in 0 bonus for the quarter.

  4. Bonus pay is determined as a percentage of base pay and is relative to the goal number’s achievement.

  5. Bonus is capped at 100% of base pay.

Budget for Integrations.

When we are working with a future partner, part of our job is to create a way to help that partner give more visibility to the new solution supported by the Maker Protocol. Sometimes the execution of that idea requires a budget for different purposes:

  • Educational purposes: When a partner wants to explain to their user/customer base about the new product, usually this is for creating content in a particular language oriented to a defined audience.

  • Marketing purposes: Budget for the execution of a marketing campaign to help our partner expose the usage of the new solution.

  • Technical purposes: Some partners who are not part of the crypto ecosystem need specialized help to integrate the Maker protocol with their systems.

Operations.

Once we start our core unit, we have to think about:

  • Enabling support systems, such as business productivity and collaboration tools and a CRM

  • Hiring a legal advisor to create an LLC

  • Admin expenses

  • Travels

Opportunities.

This line of the budget is in case of any contingency or opportunity that could appear, like a tier one partner looking to execute a strategic action.

Budget Breakdown.

May, June, July 2021
Amount in Dai
Total 378,350.00
Team remuneration 253,350.00
Base salaries 180,900.00
Incentives 72,450.00
Integrations 75,000.00
Operations 30,000.00
Opportunities 20,000.00

Budget Implementation

Budget implementation: Manual
Payment per month: 126,117.00 Dai per month
Asset type: DAI
Payment Frequency: First 10 days of each month
Growth Multisig Wallet: 0x7800C137A645c07132886539217ce192b9F0528e

16 Likes

Are you able to provide a wallet / multi-sig address for payments at this stage? Ideally it should be publicly communicated by the Core Unit so that people aren’t relying on me / smart contracts to communicate it honestly when the first payment is distributed via executive.

2 Likes

Can I recommend looking at real estate in N America? Bitcoin has been creeping into both transactions and — after yesterday’s announcement — paying rent. DAI would appear really well-placed to move into this market as people don’t want to part with their BTC but may want to access their value. I think this has the least friction for N Am growth, as it’s users who are already familiar with crypto and also high net worth and able to spend on these large transactions (so things like dust and gas aren’t an issue).

Perhaps approach the actual realtors or real estate companies that already deal with BTC and let them do the educating of clients?

1 Like

Edited to add the Growth multisig

1 Like