[Social] Routine DAO treasury management

[nick.eth]

@MakerMan

My point with presenting the above is that without a public expense report there is no way to track expenditure growth relative to product sales/support. I think before decisions are made about (1-6 above) such a report should be generated (with monthly bins of information if possible). Most real companies have to report such things quarterly and I would encourage ENS DAO to seek to generate such reports.

We do not have expense reports, but we do have working group budgets and the ENS Labs grant, which give us a good approximation of our run rate. The idea is that this would be adjusted over time, but it’s obviously not a good idea to wait and do nothing for now.

@MakerMan

Next point is that the above reports like to state ETH revenues converted into $$ but unless these are actually converted into $$ this revenue is effectively left invested in ETH which according to (5) above will be sold to do which

• satisfy $16M cash equivalents in the treasury OR
• to add $16M to treasury.

The way (5) is written this is entirely unclear whether this sale will satisfy (1,2) or is now setting a fixed amount of $16M to be raised by the ETH sale and added to the existing treasury.

I’m sorry, I don’t understand what you’re asking here.

@MakerMan

I first heard that ENS expenses were running 4M/yr and now with the above this looks to be projected to be 8M/yr. To satisfy the 2yr runway in cash wouldn’t it be prudent to actually provide actual expense numbers?

ENS Labs has a $4.2M/yr grant, and the working groups have an estimated run rate of a further $3.8M/yr.

@MakerMan

Final points. I think each of the points above (1-6) should be discussed AFTER a financial report is produced including expenses, earned and unearned income and have the DAO decide how many years of runway (or how many millions) to try to provide for based on expenses and ecosystem growth.

The DAO presently has about $2.5M in USDC as its only stablecoin exposure; about 3 months worth at our projected run rate. It’s not rational to do nothing while we wait for more information to be available; instead we should act based on our best understanding, which can be refined and adjusted as more information is available.

@MakerMan

Given that ENS has actually allowed sales of ENS domains FAR into the future one could look upon these as actual ‘contracts of obligation’. Meaning the ‘unearned income’ actually has ETH slated to pay for operating expenses to satisfy customers with product service FAR into the future. Highly unlikely ENS has set aside sufficient funds to guarantee operations 5 years from now, much less 100yrs, so some consideration as to length of registrations should be thought about in this light of ‘unearned revenues’.

That is what the unearned income is - the ETH paid for registrations in the future - and that is why it’s treated as not able to be spent.