Following the successful launch of Junior/Senior Best Yield Vaults, and the consequent synergetic relationship infused with the entire product suite, this post seeks to formalize and validate the transition to the Idle DAO for funding the future development and deployment of Idle DAO product suite by Idle Labs.
This proposal aims to formalize and validate that, starting from February 2023, the Idle DAO and Leagues will fund the efforts and external involvement of Idle Labs in the decentralized development of the DAO and its product suite, with the goal of pushing important new features to the forefront of the product suite and contributing to the overall success and strength of the Idle DAO ecosystem.
Idle Labs has been contributing, following the Team Policy and Governance Participation posted at the inception of the Idle DAO, for the last ~2 years without requiring any funding. With this merge, the different entities that are contributing to Idle DAO will be funded by the DAO itself.
It is imperative that the Idle DAO ecosystem remains as decentralized as possible. This is why contributors to the Idle DAO product suite such as Idle Labs, Idle Leagues, and IGP partecipants have been able to build sustainable businesses within the Idle DAO ecosystem. By working on the product suite, interacting with governance, and collaborating, all these different contributors add value to the decentralized space.
Each part of this symbiotic contribution is integral to the whole DAO. Contributors help develop the product suite and ensure that Idle DAO continues to grow sustainably. Innovations and contributions help attract more users by improving user experience and developing new products and services.
The DAO has the ability to fund contributors within the ecosystem, spurring further innovation and ensuring that contributors can operate successfully in this environment. This incentivizes groups to continue to build, in turn contributing efforts that benefit the Idle DAO community and the contribution continues.
Therefore, for the Idle DAO to continue to develop, contributors need to be able to build and sustain successful businesses through decentralized funding methods within the ecosystem.
With request, permission, and support granted by the Idle DAO, Leagues have been an essential contributor to the ecosystem, alongside Idle Labs and IGP participants. We’re now setting the foundation for an ecosystem and product suite development completely funded by the DAO and its treasury.
With the merge with Labs and Leagues, the overall Leagues structure won’t be impacted and will maintain multiple functions collected into Treasury, Development and Communication Leauges, as illustrated below:
The only component that will be modified is the expected budget for M1-2023 (and for the future Mandates as well).
From the previous budget, reported at the beginning of Jan 2023:
The Idle Leagues will assume a new expected budget and cost structure for M1, as shown below:
The new Leagues monthly burn rate becomes $43’300 in stablecoins or equivalents and 19’897.96 in $IDLE (with a 20-day rolling average price).
Taking into account that Jan 2023 won’t be covered via the Treasury League multisig, at the current time there’s no need to move additional funds to the Treasury League multisig to fund M1’s new cost structure.
This new budget and cost structure aim to reduce the burden on the DAO’s stablecoin reserves by diversifying the requested compensation to include other assets from the DAO treasury.
As part of this new budget, we gave significant consideration to the continued economic health of the DAO and the variety of tokens requested, consequently cutting Idle Labs’ burn rate by 25%. If the treasury health and diversification will improve and take place, we will reserve the possibility of reviewing the cost structure via another proposal.
With these budget and cost structure amendments, this proposal will go to Snapshot for a vote by the Idle DAO.
To conclude, this proposal outlines a request for the Idle DAO to provide feedback and validation for granting Labs+Leagues merge in terms of funding for creating and developing the Idle DAO product suite.
Idle DAO product suite emphasizes yield aggregation, automation, security, and risk management. It is a reflection of both the current and future success of the community.
This post is open for feedback and will be voted on via Temperature Check early next week. If positive, the Leagues+Labs merge will be officially approved.