ENS Labs 2022 Financials

Greetings frENS!

Over the last several months we’ve worked on getting our books up to date, completing catch-up bookkeeping for 2020, 2021, and now we’re working on completing and then auditing 2022. We’ve engaged an accounting firm in Singapore to help us stay current from here on out.

Please receive this update on CY 2022 actuals for ENS Labs.
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The line I’d like to highlight is Legal. Legal expenses were well beyond what we anticipated last year (and continue to be significant this year). We are working on strategies at Labs and with Meta-Gov stewards to address the legal needs of the ENS DAO.

We started receiving this stream from the DAO in July of 2022, so you’ll notice a surplus as we didn’t staff up or start new initiatives at 2nd half of last year.

Please let me know if you have any questions.

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The legal fee’s are astronomical why does ENS need Counsel would ENS labs care to elaborate on that?

Can you break down the 500k costs? I work with one of the best Chambers in the UK and half a million pounds would be fee’s to save me 100x that. Put it this way, last time I spent over £13k with my Counsel we saved around £2m, maybe ENS labs should seek a different legal team?

Also, what is the compensation? $2.2m :eyes:

$3.3m expenditure and not even 10% on development, am I reading that right, or is compensation Dev’s wages?

Regards

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Hi @khori.eth, thankyou for sharing this.

Is it possible to provide more of a breakdown for Legal and Compensation?

Many thanks.

Thanks Khori for sharing!

I think a breakdown would be helpful, in a very general and non-specific way to undwerstand, not only the legal aspect, but also things like “MarCom” that are out of my lingo of knowledge.

Looking forward to it.

Re: Legal - These are not costs related to operating ENS Labs but relate to ongoing litigation to protect/defend ENS DAO assets. Litigation is costly and sensitive so we cannot provide a breakdown of the fees at this time. We handle much of the “real world” issues facing the protocol/DAO so those costs show up in our financials.

Re: Compensation - Yes, most of this is wages for the devs!

Compensation - this line includes compensation/wages during calendar year 2022 for all ENS Labs core team members and contractors.

Reimbursements - refunds for operational costs paid by core team members. Some amounts in this line will get further categorized into other lines like tech stack, travel, general office.

Tech stack - We’ve started to “centralize” much of the operational costs and tech stack payments that were “decentralized” among team members. Everything from Front, to Notion, to Cloudflare and Google Cloud… That’s what this line represents.

Bugs/Audits - Cash payments to code auditors and some of you awesome bug hunters out there.

Legal - Can’t go into details on the costs but we have firms representing the ENS ecosystem based in Singapore, Cayman, and the United States.

Dues - We support efforts to promote good crypto/web3 legislation.

PR - Public relations work.

MarCom - Marketing and communications expenditures.

Travel & Conferences - self explanatory.

General office - self explanatory.

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PSA that @khori.eth will be joining next week’s Meta-Gov meeting for those who may want to tune in live and ask any questions. Thank you Khori in advance for your time!

☎️ MetaGov Working Group – Weekly Meeting: 11am ET, Tuesday - #37 by katherine.eth

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Thanks for the reply that makes a lot more sense. Sorry to hear that ENS has needed so much legal advice, I am sure most of us can guess its about US regulation, sigh! With luck everything is in order and the ship will not be rocked.

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legal is the lawsuit with godaddy et al over the eth .link domain.