Economic Committee Budget Proposal

Governance Community Fund
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Context
The Economic Committee (EC) was established on September 18th, 2022, after Proposal 15 passed and is now fully operational.

As of today, the following was completed:

  • Soft launch conditions: minimum 7 days duration and debt limit capped at $500k, at which point debt limit will be increased to $5M (status: done) with a simultaneous start of AMM incentives;
  • PSM launch: assessed and selected assets (USDC, USDT), bridges (Axelar, Gravity Bridge) and their respective weights;
  • Training on the current user interface to manage the Parity Stability Module (PSM);
  • Preliminary review on potential additions to PSM (DAI) and upcoming vaults.

In the short term, the EC’s key next steps are:

  • Analyze PSM early data points and adjust parameters to ensure a successful soft launch;
  • React to any threat or attack on the IST peg by taking the appropriate measures;
  • Propose new stable tokens to the PSM;
  • Develop vaults framework:
    • Preferred assets & their debt limit;
    • Collateralization ratio per whitelisted asset;
    • Liquidation;
    • Stability fees
  • Develop framework around Protocol Owned Value

Compensation details
The EC asks for a total yearly compensation of $388k to be funded by the DCF.
The amount covers the headcount of the EC six members ($338k) and their operational expenses ($50k).

We suggest a quarterly compensation of $12.5k for each regular EC member at the exception of the Secretary who will earn $22k on a quarterly basis. The Secretary, in addition to being a regular EC member, will have the following responsibilities:

  • Manage relationships with: Inter Protocol stakeholders (governance proposals and community calls), traditional media, social media;
  • Administrative: EC internal coordination, documentation & payroll;
  • Intermediate between EC and legal liability provisions

Multisig
The funds will be managed by a multisig that includes all 6 EC members.

FAQ
Q.What are the responsibilities of the EC?
A. You can read the following document that details the responsibilities of the EC.

Q. Will new stablecoins be added to the PSM?
A. The EC is considering adding new stablecoins that complement the current offering and make the PSM more resilient. Any additional stablecoin would be subject to a vote by the BLD DAO. There is a current discussion around adding DAI. The EC has expressed its support.

Q. When will vaults be launched and what assets will be added?
A. Vaults will be added once we have confirmation the PSM works as intended.
The addition of whitelisted assets will follow a framework developed by the EC. They will be submitted to governance once selected.

Q. When will IST be available on AMMs?
A. The onboarding of IST into AMMs has started and the IST/OSMO pool is live. IST is also present on Crescent DEX

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DCF is supportive of this, and willing to take on the burden of providing the budget requested. We think the compensation proposed is reasonable, particularly in light of the seniority and qualifications of the individuals involved. The other budget request is minimal and in line with a conservative approach to EC operational finances.

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the compensation proposed is reasonable, particularly in light of the seniority and qualifications of the individuals involved

I second this, the EC will be critical to the success of IST.

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Hi BLD community, we would love to get more feedback on this proposal before we move ahead with the suggested budget.

The scheduled date for the fist quarterly disbursement is set for December 19th, 2022.

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Hey there, Overall we support this and the Economic Committee

Would you consider adding some community members to be part of the multisig? maybe 3 EC members and 3 other community members?

Also would you receive all this funding at once or would you get it on a monthly basis?

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Hello @DelRey and thank you for your comment.
So under the DCF model, we won’t need a multisig. The EC members will invoice the DCF on a quarterly basis for compensation. On the expenditure side (ie: travel if any), invoicing will happen ad hoc.

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That’s correct. Plus there is a small operations budget built in, so things like travel, for example, would be handled directly by the EC

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As to the membership of the committee, it’s decided by the BLD stakers, not the committee itself.

See questions such as Q: Who will be in the EC? and Q: How long is membership? in the discussion thread leading up to proposal 15 Sep 2022.

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I propose that the compensation is funded by the DCF only for the first year and that this proposal be executed by the DCF at their earliest convenience.