Summary
Over the past month, our operational expenses amounted to $926,051, representing an increase of $119,306 or 14.79% compared to the previous month. This rise reflects a temporary deviation from our stability targets. The increase is primarily due to investments in product development (Wonderland) and costs related to the restructuring of the Ecosystem Collective team
This report provides a detailed analysis of our financial performance for July 2024, highlighting key metrics and budgetary insights.
Overview
- Last Month’s Treasury Holdings: $31,765,250
- Current Month Treasury Holdings: $28,588,135
- Variance (-$3,177,115), 10.00%): This change was mainly due to fluctuations in token prices, which fell last month. Additionally, our operating expenses across all workstreams totaled $926,051, which further influenced this variance.
Runway
The recent decline in the value of our GTC holdings has affected our Runway projection. Currently, our runway is estimated at 30 months (3 years). However, due to the spin-off of Passport and the restructuring of the DAO (formerly Ecosystem Collective), along with a monthly budget of approximately $496,777, our Runway extends to 58 months (5 years). This projection considers an anticipated expenditure of $496,777 across Grants Lab and the DAO - Ecosystem Collective.
Our DAO’s treasury currently holds $20,440,249 in GTC tokens, with each token valued at an average of $0.70. GTC tokens now represent 71.5% of our treasury, underscoring the significant impact of GTC’s performance on our financial stability. To mitigate risks from market fluctuations and enhance financial resilience, it is essential to monitor this closely and explore strategies for diversifying our treasury holdings.
Last Month’s Expenditure: Total expenditure for the month was $926,051, marking a substantial increase of 14.79% or $119,306 compared to the previous month’s total of $806,745. This overspend indicates challenges in resource allocation. To address this, we need to reassess our budgeting strategies to ensure more prudent spending and maintain sustainable financial health moving forward.
July*
- Figures ran on August 27, 2024
June*
- Figures ran on July 15 2024
Token spend in July
During July, our total expenditure in USD reached $926,051. This breakdown comprises $801,076 in USDC, 53,427 GTC valued at $42,805 and $82,170 in USDC on Rain.
Key Financial Insights July
Total Contributor Costs
- Total personnel costs, including full-time team members, part-time support, and external consultants, amounted to $847,503. This represents an increase of $140,606, or 19.89%, compared to the previous month. The rise is primarily due to the restructuring of the Ecosystem Collective team.
Other Notable Operating Expenses
- Software & Subscriptions: $16,448.
- Travel, Lodging, and Meals: $29,113, primarily driven by ETHCC.
- General and Administrative: $32,987, covering various payments related to marketing expenses.
Summary
Monthly Breakdown
July
| Actuals | Budget | $ Variance | % Difference | |
|---|---|---|---|---|
| Headcount | $789,850 | $782,196 | $7,653 | 0.98% |
| Other Consultants | $57,653 | $71,300 | -$13,647 | -19.14% |
| Software & Subscriptions | $16,448 | $19,105 | -$2,657 | -13.91% |
| Travel, Lodging and Meals | $29,113 | $54,300 | -$25,187 | -46.39% |
| General and Administrative | $1,168 | $7,471 | -$6,303 | -84.37% |
| Miscellaneous | $31,820 | $24,750 | $7,070 | 28.56% |
Breakdown by business unit / workstream:
The restructuring of the Ecosystem Collective resulted in a significant increase in expenses, primarily due to severance payments for nearly all departing contributors. With the team now streamlined to its essential components, we expect the group to operate more efficiently and cost-effectively moving forward.
- January and February represent MMM workstream performance.
With the new budget in place, the Grants Lab business unit’s expenses totaled $357,342, representing a decrease of $54,342 from the previous month.
- January represents Grants Stack workstream performance. There is no budget for July.
In the Passport business unit, $203,089 was spent out of the allocated budget of $244,208. Following the spin-off of Passport and the DAO’s support for the remaining portion of the year, no further expenses related to this product are expected going forward.
