This summary outlines our financial performance for August 2024, emphasizing critical metrics and providing insights into our budgetary status.
Operational Expenses:
- Total for August: $469,706
- Change: This marks a significant decrease of $456,345, or 49.28%, compared to July.
Key Contributors to the Decrease:
- Passport Separation: The recent spin-off of Passport into its own corporation has led to a reduction in our overall expenses.
- DAO Adjustments: Modifications within the DAO (fka Ecosystem Collective) have also played a role in lowering operational costs.
Treasury Holdings:
- Current Month: $24,924,563
- Last Month: $28,588,135
- Variance: Decrease of $3,663,572 (12.82%)
- This change is primarily due to fluctuations in token prices and our monthly operating expenses, including the execution of grants from the Treasury for the Grants Lab Contributor Token (3M GTC).
Runway Projection:
- Current Runway: Estimated at 49 months (approximately 4 years).
- The decline in the value of our GTC holdings has impacted our runway.
GTC Holdings:
- Our DAO’s treasury currently holds $16,634,453 in GTC tokens, accounting for 66.74% of our total treasury. This highlights the significant influence of GTC’s performance on our overall financial stability.
Current Treasury
- Figures ran on September 24, 2024
Key Financial Insights August
Total Contributor Costs
- Total personnel costs, including full-time team members, part-time support, and external consultants, amounted to $448,490. This represents a decrease of $399,013, or 47.08%, compared to the previous month. The decline is primarily attributed to the spin-off of Passport Business Unit and the restructuring of the DAO, formerly known as the Ecosystem Collective.
Other Notable Operating Expenses
- Software & Subscriptions: $21,113
- Travel, Lodging, and Meals: $103 (immaterial)
Budget vs. Actuals
In August, we reflected an unspent amount of $40,845 from the budgeted figures, which is a positive indicator of our financial position. However, we still need to focus on effective resource management and community engagement. Strengthening our budget controls by using the approved proposal as a foundation is essential to maintain our position. Additionally, with the restructuring of the DAO, enhancing community engagement will allow us to gather valuable feedback, leading to more informed decisions.
Monthly Breakdown
August
| Actuals | Budget | $ Variance | % Variance | |
|---|---|---|---|---|
| Headcount | $310,351 | $318,111 | -$7,760 | -2.44% |
| Other Consultants | $138,139 | $160,014 | -$21,875 | -13.67% |
| Software & Subscriptions | $21,113 | $19,676 | $1,437 | 7.31% |
| Travel, Lodging and Meals | $103 | $2,000 | -$1,897 | -94.84% |
| General and Administrative | $0 | $0 | $0 | 0.00% |
| Miscellaneous | $0 | $10,750 | -$10,750 | -100.00% |
| Total Consolidated OpEx | $469,706 | $510,551 | -$40,845 | -8.00% |
Breakdown by business unit / workstream:
The restructuring of the DAO (fka Ecosystem Collective) led to forming a small team focused on delivering results. With minimal spending and a broad scope of responsibilities, this team will serve as the liaison between the community and Gitcoin.
- January and February represent MMM workstream performance.
With the new budget in place, the Grants Lab business unit’s expenses totaled $451,258 this month, out of which the main costs are related to:
Headcount Expenses: $298,872 (66%)
Consultant Expenses: $136,439 (30%) (significantly impacted by outsourcing services from Wonderland)
- January represents Grants Stack workstream performance. There is no budget for May and June.