Proposal “DCG-Comp-Jun22-Supp“ (Completed)Back
| Title: | Dash Core Group Compensation Supplemental July |
| Owner: | glennaustin |
| One-time payment: | 703 DASH (39829 USD) |
| Completed payments: | 1 totaling in 703 DASH (0 month remaining) |
| Payment start/end: | 2022-06-12 / 2022-07-12 (added on 2022-06-17) |
| Votes: | 609 Yes / 9 No / 4 Abstain |
Proposal description
Dash Core Group June 26th Supplemental Funding Proposals
DCG already submitted 2 funding proposals for the budget cycle that pays out June 26th. This is a supplemental proposal that will fund Dash Core Group with an additional 703 Dash:
1) DCG Compensation: 2,296 Dash per month (currently in month 1/3)
2) DCG Security Audit: 459 Dash (currently in month 1/1)
3) DCG Compensation Supplemental: 703 Dash
What does this specific proposal fund?
Assuming DCG’s current compensation proposal passes, with the price of Dash at $43, our funding for compensation will represent a significant gap from our actual compensation expense (current break even price is ~$120/Dash). This proposal will look to reduce some of the gap between our compensation revenue and our compensation expense.
In addition to attempting to bring in additional revenue for compensation purposes, DCG believes it to be prudent to reduce our compensation run-rate given the size of the gap between our revenue and expenses. With that in mind, we made the painful decision this week to reduce our compensated team size from 43 to 37 individuals. This brings our compensation expense break even price to approximately $103/Dash. It also extends our compensation reserve to almost 9 months of reserve which will prove helpful in the event of a longer than expected bear market.
The extra influx of Dash from this proposal will have a real and tangible benefit to DCG. Specifically, it will allow DCG to retain one additional valuable contributor in the tech department with the balance going to the reserve.
Didn’t DCG previously communicate they wouldn’t request over 60% of the total proposal system budget?
Yes. In the past Ryan Taylor, previously CEO of Dash Core Group, made a commitment to the Dash network that DCG’s monthly ask would never exceed 60% of the total budget. This was stated after there was significant backlash against DCG requesting funding for tax related expenses in late 2018 which caused competing proposals to be pushed off the funding list. In this cycle the same situation is not present; no other proposals would be negatively affected by this request for supplemental funds. It therefore seems to be in the best interest of the project to remove the self imposed 60% limit as not doing so would effectively hurt us by having to let go of people that are providing value to the project.
Samuel Westrich (Quantum Explorer) has reached out to the Dash Trust Protectors and asked whether they would support DCG making a proposal for the rest of the available treasury this month. So far all responses from the Trust Protectors (3 so far) have come back with support for the supplemental proposal. Given this indication of support, we decided to move forward and have masternode owners vote on this proposal.
Do you anticipate laying off any other staff in the near term?
The answer is no. Dash Core Group is now mostly a technical organization with most of our business development and marketing staff exiting the project. The remaining staff is essential to us functioning at a high level. There isn’t any “fat left to cut”. We have no plans to revisit further reducing our staffing until the second half of Q4 2022, regardless of what happens with the price of Dash.
We will continue making such supplemental proposals in the case of unused treasury funds - waiting around one week before the end of each cycle to leave time for other submissions.
If you have any questions, please direct them to @glennaustin at dashcentral to ensure we are notified of your request.
Requested funding is as follows for the June 26th superblock:
DCG already submitted 2 funding proposals for the budget cycle that pays out June 26th. This is a supplemental proposal that will fund Dash Core Group with an additional 703 Dash:
1) DCG Compensation: 2,296 Dash per month (currently in month 1/3)
2) DCG Security Audit: 459 Dash (currently in month 1/1)
3) DCG Compensation Supplemental: 703 Dash
What does this specific proposal fund?
Assuming DCG’s current compensation proposal passes, with the price of Dash at $43, our funding for compensation will represent a significant gap from our actual compensation expense (current break even price is ~$120/Dash). This proposal will look to reduce some of the gap between our compensation revenue and our compensation expense.
In addition to attempting to bring in additional revenue for compensation purposes, DCG believes it to be prudent to reduce our compensation run-rate given the size of the gap between our revenue and expenses. With that in mind, we made the painful decision this week to reduce our compensated team size from 43 to 37 individuals. This brings our compensation expense break even price to approximately $103/Dash. It also extends our compensation reserve to almost 9 months of reserve which will prove helpful in the event of a longer than expected bear market.
The extra influx of Dash from this proposal will have a real and tangible benefit to DCG. Specifically, it will allow DCG to retain one additional valuable contributor in the tech department with the balance going to the reserve.
Didn’t DCG previously communicate they wouldn’t request over 60% of the total proposal system budget?
Yes. In the past Ryan Taylor, previously CEO of Dash Core Group, made a commitment to the Dash network that DCG’s monthly ask would never exceed 60% of the total budget. This was stated after there was significant backlash against DCG requesting funding for tax related expenses in late 2018 which caused competing proposals to be pushed off the funding list. In this cycle the same situation is not present; no other proposals would be negatively affected by this request for supplemental funds. It therefore seems to be in the best interest of the project to remove the self imposed 60% limit as not doing so would effectively hurt us by having to let go of people that are providing value to the project.
Samuel Westrich (Quantum Explorer) has reached out to the Dash Trust Protectors and asked whether they would support DCG making a proposal for the rest of the available treasury this month. So far all responses from the Trust Protectors (3 so far) have come back with support for the supplemental proposal. Given this indication of support, we decided to move forward and have masternode owners vote on this proposal.
Do you anticipate laying off any other staff in the near term?
The answer is no. Dash Core Group is now mostly a technical organization with most of our business development and marketing staff exiting the project. The remaining staff is essential to us functioning at a high level. There isn’t any “fat left to cut”. We have no plans to revisit further reducing our staffing until the second half of Q4 2022, regardless of what happens with the price of Dash.
We will continue making such supplemental proposals in the case of unused treasury funds - waiting around one week before the end of each cycle to leave time for other submissions.
If you have any questions, please direct them to @glennaustin at dashcentral to ensure we are notified of your request.
Requested funding is as follows for the June 26th superblock:
- 698 Dash ($30,000 USD @ $43 per Dash)
- 5 Dash Proposal fee reimbursement
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Discussion: Should we fund this proposal?
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I guess even the team should be realizing that now with Dash prices crashing so low?
I still think all the legal constructs and admin etc. should be dropped in favor of just paying developers straight from the block chain.
I hate to say this but something is going very wrong in the planning if DCG still does not manage to get enough funding for both security audits (both equally essential in my eyes), specially in a situation when they are already asking for funding above their limit of 60% per month.....
Is there really totally absolutely nothing that can be done to fund the Dash Platform security audit and reveret the cancellation ? Can this DCG supplemental July proposal not be used to cover those costs and create a new DCG supplemental proposal in Aug again ?
Not having a security audit in place for Dash Platform, when halve of future masternode rewards will start flowing through Dash Platform in the form of claimable credits does not bode well, Dash Platform really does need to be audited in my opinion and should be prioritized for that in my view.
Or is this as usual "strictly confidential information" the MNO are not supposed to know.
The MNO need more transparency and less secrecy from DCG.
But thats probably asked too much, right?
Can somebody please RING THE ALARM BELLS on all our Socials (Discord, Telegram, Twitter, Reddit, Signal etc.) to urge the masternodes to vote and soon?
In a couple of days it may be too late ! Is DCG sleeping? Time to take action is now !!!!
Solarguy
This specific budget proposal has my approval, but understand that my support drops if these budget proposals still emerge after Dash price recovers to a price range where DCG can keep operating financially ($103 with the planned reduction of DCG personal) and can rely more easily on its reserves.