Description

As DAOs mature, we expect to see more sophisticated financial frameworks emerge in the operations of DAOs. The three pieces of this are historical financial statements, a near-term budget, and a long-term forecast. These are three things that TradFi companies have entire teams dedicated to building and maintaining. They form the basis for key operating decisions that companies make around revenue, expenses, cash management, etc. and also serve as a helpful launch point when making key strategic decisions around partnerships, fundraising, and M&A. MakerDAO is a DAO that has detailed financial reporting in place and they use it inform a variety of these operating decisions: https://drive.google.com/file/u/1/d/14U-3xlXC59zmFCd2u42CAFc7uw-NSKaJ/view Putting together these three things is a material undertaking, so we would propose as a starting point to put together monthly financial statements for January - May of 2022, and a strawman of a short-term budget and a long-term financial forecast. Upon completing that, we would share our report with the DAOs, and would then propose a subsequent grant to build out all years of historical financial statements, in addition to a detailed budget and long-range forecast. The financial statements and forecast would sit in google sheets, but ultimately we would drive towards having a presentation with visuals so that the community would be able to get monthly / quarterly reports on financial performance and the implications on the long-term financial forecast for Decentraland. Currently, Jordan and I are charging $500 / hour to do similar FP&A work for web2 companies. Even the initial step of this exercise is a material undertaking, and for $20k, our hourly rate will come out out well below that. We are proposing this initial step because we believe strongly that once the community sees an initial output, they will see the value in what we are doing and be supportive of further grant work for Jordan and I to continue supporting the Decentraland community. Ultimately, we want to drive towards having a sophisticated FP&A function for Decentraland, and this grant is the first step we would take towards getting there.