[PLP#0006] - Budget allocation

[defidax]

This Budget Proposal lays out the costs associated with the Lucidao project and the first dApp - the marketplace for luxury collectibles.

The team has been working for the past one and half year with the goal to build and deliver Lucidao protocol to the community. This included an extensive analysis with MME legal and a massive effort by the core team to deploy Lucidao Governance structure and smart contracts.

With the aim of lowering the costs during the start-up phase, the Executive Team and the Project Management did not receive any compensation for their work.

After a successful initial launch, and with the upcoming release of the first dApp it is important to define a budget that can allow to build and engage the team and that allows to interact with the necessary partners to be able to build, communicate and push Lucidao, and its dApps, in the best possible way.

Costs have been listed in the proposed budget below. We have also provided justification for each cost element.

If you have any questions related to this Budget Proposal, please don’t hesitate to interact here below:

• In Favor: Budget Allocation
• Against

[nomadeocc]

In principle, I agree to have a budget that also includes the salaries of the team members: work, effort and passion must be paid!
moreover, for better actions, it is good to have a budget availability baseline as a point of reference, to be monitored periodically with respect to the efficiency of the actions themselves and the availability of the general budget. so the budget for the new period can be increased or decreased according to the available funds and the result achieved.

to give my personal opinion on the proposal, I would like to know:
-the budget for 6 months of about 1 million by which funds is it covered?
-the estimate of costs per budget line is based on the previous period (apart from the salaries which, as you specified, have never been paid so far and for this my sincere appreciation towards the team) or on projections of expenses based on prices of the products and services to buy?
-How are wages positioned in relation to the reference market? are they medium, high, low?
-what positions is the team composed of?
-Do the lines dedicated to marketing activities have quantitative objectives to be achieved in order to verify their efficiency, at the end of these 6 months?
-what outputs are expected at the end of the six months?
-at the end of the six months, will we be able to have a report of the budgetary consumption against the results achieved, for a possible new budget to be approved?

[Icarus]

Hi Nomadeocc, I’d be happy to answer this and provide some clarity for you.

Where are the funds coming from?

The funds are coming from our recent financing round, a total of $2.25M, raised from Polygon, Arcanum and Sandeep Nailwal. Additionally, the core team has also contributed almost one million USDt, which has not been reimbursed or rewarded to any team members for their contributions. For more info: A new FLP on allocation for institutional contributors | by Lucidao | Apr, 2022 | Medium

Is the budget based on previous or expected projections?

There are some fixed costs that we have determined from our daily operations that will help shape the expected budget projections. We know marketing will play an essential role in the project’s growth, and collectively we have allocated a significant budget for this. Once the marketplace is functional and oracle’s collectibles are uploaded, we can execute our marketing plan. It’s also important to note that we have not spent a single dollar on marketing LUCIDAO to date, but have managed to develop relationships with world-class oracles, secure investment and increase LCD community holders.

• The budget is based both on existing costs:

  • Legal fees;
  • Software;
  • Accounting;
  • External design agency;
  • IT team salaries.

• And on expected projections:

  • Team salaries;
  • Marketing PR;
  • Marketing events and advertising;
  • Marketing digital (SEO, SEM activities):

How are wages positioned in relation to the reference market? Are they medium, high, or low?

• The wages we envision are in line with the market rates for the sector. We also know that crypto is a highly competitive industry, and we would like to provide value to our team for long term development and growth.

What positions is the team composed of?

• Chief strategy x 2
• Development team/Tech x 4
• Operations x 2
• Community and Oracles relations x 2
• Marketing x 2

Do the marketing activities have quantitative objectives to be achieved to verify their efficiency at the end of these six months? What are outputs expected at the end of the six months?

Marketing will play a significant role in the future growth of LCD, once the first marketplace has been launched we will focus our energy on growth. We understand the return on advertising spend can often be difficult to identify accurately, but our primary goal will be to achieve the following:

• Continued business development with world-class brands & businesses with the goal of onboarding Oracle partners.
• Increase LCD holders and our community
• Increase exposure to high-quality contributors, who will continue to support the protocol, and its Dapps.
• Generate global press that identifies Lucidao as one of the leading protocols in our category.

After this period, we will be able to have a report of the budgetary consumption against the results achieved for a possible new budget to be approved?

• After six months, we will provide some clarity on the results that were driven by expenses. Marketing expenses and ROAS for events and awareness will be monitored to make sure they meet our projected milestones. This will allow us to adjust and scale our budget accordingly.

[nomadeocc]

Hi Icarus,

am glad for your answer that makes the picture clearer and contributes much more to knowing our beloved project Lucidao.
I think is a great step to define resources and expected output and I will be happy to know at the end of the 6 months the result of the actions that the team is planning, to reinforce my participation in the project.
I noticed that for now the objectives are qualitative and I understand the difficulty to define quantities at this stage. The current six months will help to define what has been possible to do with the available resources and to identify actions to increase efficiency, as you also have stated at the end. Monitoring is key and seeing that it’s part of your approach enhances my personal trust in the project and in the team.
My best support to you all and to our community.