# \[DAO:e4b5eb9\] Proposal for a Finance Committee **URL:** \ **Category:** Governance\ **Created:** [February 9, 2023, 11:50pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024 "2023-02-09T23:50:26Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![dao](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/dao/32/386_2.png) [@dao](https://forum.decentraland.org/u/dao)\ **Post date:** [February 9, 2023, 11:50pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/1 "2023-02-09T23:50:26Z")
> by 0x247e0896706bb09245549e476257a0a1129db418 (LordLike) This is a proposal for a committee of subject matter experts responsible for DAO financial management, which will include treasury diversification, MANA valuation analysis, monitoring of protocol expenses and treasury assets, and DAO financial model and strategy. According to the outcome and report of this passed grant, it has been suggested that the DAO form a Finance Committee. > **[Preparing detailed financial statements, budget, and long-range forecast](https://governance.decentraland.org/proposal/?id=a31bfa40-ed02-11ec-aa01-87bd234b340d)** > > Should the following Tier 4: up to $60,000 USD, 6 months vesting (1 month cliff) grant in the Community category be approved? > [@External Image](https://avatars.discourse-cdn.com/v4/letter/s/f04885/48.png): > > Following grant approval, we have spent the last month digging through Decentraland’s treasury and financial history and produced [this report](https://drive.google.com/file/d/1BAgtIdWtWklzDjD3IeO48wAcSCFIo2Jk/view?usp=sharing). We encourage members of the DAO to go through it, but a few TL;DR takeaways below: Decentraland Operations The October 2021 Facebook rebrand to Meta fundamentally changed the operations and financial profile of the DAO. As such, every metric we viewed and projected was analyzed through a pre- and post-Facebook rebrand lens. In general, revenue has desc… The committee will be responsible for analyzing all aspects of the DAO’s financial management, including treasury diversification, MANA valuation analysis, monitoring of protocol expenses and treasury assets, and developing a financial strategy for the DAO. The purpose of this committee is to provide a clear picture of the DAO’s financial strength and ability to meet its obligations. To achieve this, the committee may need to gather and analyze various financial data, such as financial statements, budgets, and other reports. Having a detailed financial model would benefit Decentraland as it would serve as a reference for operating decisions, such as revenue, expenses etc. This committee is crucial to driving forward important strategic initiatives, such as treasury diversification, data and analytics transparency, and expense reporting and management. The tasks of the finance committee may include: - Treasury diversification to ensure that the DAO has enough stablecoins to fund operations in the event of a MANA price drop - Providing a financial model and strategy, and making relevant recommendations to the DAO - Providing reports on DAO’s financial performance, including platform financial statistics, treasury performance, expenses details, and implications on the long-term financial forecast - Maintaining, evaluating, and updating a living business operating model and financial projections to inform and drive strategic decision-making, such as expense management, treasury diversification, token swaps, and organic growth initiatives - Leading conversations and negotiations in financial transactions engaged in by the DAO, such as grants and token swaps - Approving and periodically reviewing the DAO’s annual budget and ensuring that funds are being expended for their intended purpose - Leading efforts and serving as the team liaison with the community regarding treasury management and diversification and risk management - Conducting ad-hoc financial analysis at the request of committees, squads, and the community to assist in financial decision-making - Conducting a financial audit at the request of committees, squads, and the community - Monitoring financial risk exposures and taking steps to control them, and flagging potential financial problems. This proposal aims to provide a starting point for the community to come together and reach consensus on the need for this committee, its name, structure and exact responsibilities. Yes: DAO should have a Finance Committee. No: Leave as is. - Yes - No - Invalid question/options **[Vote on this proposal on the Decentraland DAO](https://governance.decentraland.org/proposal/?id=84bd3940-a8d4-11ed-8dfe-4ff0ad4dfd32)** **[View this proposal on Snapshot](https://snapshot.org/#/snapshot.dcl.eth/proposal/0xd28d40bbc3f1b3417d83e183519c740cf27aa3072f7230c52fc70cc4ae4b5eb9)** ---
**Author:** ![HPrivakos](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/hprivakos/32/20568_2.png) [@HPrivakos](https://forum.decentraland.org/u/HPrivakos)\ **Post date:** [February 10, 2023, 12:55am UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/2 "2023-02-10T00:55:53Z")
The same persons who did that proposal also asked for a grant to setup a plan and enact it, twice, but it was rejected both time: > [@\[DAO:jhxdyk4\] Strategy & Finance Squad](https://forum.decentraland.org/t/dao-jhxdyk4-strategy-finance-squad/14507): > > by 0x11cbb078596e5100f4cbb999c5c9b69ca2ff6477 (Bronstein) Should the following Tier 5: up to $120,000 USD, 6 months vesting (1 month cliff) grant in the Community category be approved? Abstract Alastor wrapped up our initial grant preparing revenue, expense, and treasury exhibits for the community. You can find that grant and our report here [[DAO: QmUrSmT] Preparing detailed financial statements, budget, and long-range forecast](https://forum.decentraland.org/t/dao-qmursmt-preparing-detailed-financial-statements-budget-and-long-range-forecast/12514) Following our work, we propose the creation of a Strategy & Fin… > [@\[DAO:c39b19f\] $12MM Treasury Diversification](https://forum.decentraland.org/t/dao-c39b19f-12mm-treasury-diversification/16660): > > by 0x11cbb078596e5100f4cbb999c5c9b69ca2ff6477 (Bronstein) Should the following Tier 5: up to $120,000 USD, 6 months vesting (1 month cliff) grant in the Community category be approved? Abstract Alastor proposes to lead a treasury diversification effort for Decentraland to diversify $12M of MANA into stables. $12M represents a 12-24 month runway for the DAO at $500k - $1M per month of grant expenditure (DCL has averaged $640k per month over the last six months, with a high of $1.1M). Grant … ---
**Author:** ![web3nit](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/web3nit/32/27357_2.png) [@web3nit](https://forum.decentraland.org/u/web3nit)\ **Post date:** [February 10, 2023, 12:59am UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/3 "2023-02-10T00:59:58Z")
[https://multis.com/post/nail-your-dao-a-guide-to-dao-treasury-management](https://multis.com/post/nail-your-dao-a-guide-to-dao-treasury-management) [https://aragon.org/how-to/how-to-manage-a-dao-treasury](https://aragon.org/how-to/how-to-manage-a-dao-treasury) [https://vitalik.ca/general/2022/09/20/daos.html](https://vitalik.ca/general/2022/09/20/daos.html) ![image](https://europe1.discourse-cdn.com/flex013/uploads/decentraland/original/3X/9/6/964d661278e79348c8a1a7ce89abd7173c9f499a.jpeg) ---
**Author:** ![web3nit](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/web3nit/32/27357_2.png) [@web3nit](https://forum.decentraland.org/u/web3nit)\ **Post date:** [February 10, 2023, 1:06am UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/4 "2023-02-10T01:06:54Z")
I think it was very large budget for such small amount of time, also i doubt grants is the best solution. Financial planning is so vital,those who do not have it are doomed to failure. ---
**Author:** ![ckbubbles](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/ckbubbles/32/15895_2.png) [@ckbubbles](https://forum.decentraland.org/u/ckbubbles)\ **Post date:** [February 10, 2023, 2:53am UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/5 "2023-02-10T02:53:02Z")
Are ppl not already doing this in some way? ---
**Author:** ![Zino](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/zino/32/18016_2.png) [@Zino](https://forum.decentraland.org/u/Zino)\ **Post date:** [February 10, 2023, 11:24am UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/6 "2023-02-10T11:24:53Z")
IMO, this should be requested through a Grant with a reasonable budget. @web3nit in the new grant program a grantee could choose that their project will have more than 6 months of duration. this will give them the opportunity for example to propose a project with a 1-year project of duration giving them vital time to plan financial recommendations. ---
**Author:** ![web3nit](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/web3nit/32/27357_2.png) [@web3nit](https://forum.decentraland.org/u/web3nit)\ **Post date:** [February 10, 2023, 11:36am UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/7 "2023-02-10T11:36:31Z")
Why it cant be done by forming committee ? For example - wearable curations committee, dao committee were also formed not through grants. I think grants is not best decision because its ongoing process that should not be canceled if grant not pass, especially that for such short period as 6 months, concerning vital financial health of DAO ---
**Author:** ![web3nit](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/web3nit/32/27357_2.png) [@web3nit](https://forum.decentraland.org/u/web3nit)\ **Post date:** [February 10, 2023, 11:43am UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/8 "2023-02-10T11:43:10Z")
Didnt understood your question, what ppl ? ---
**Author:** ![Zino](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/zino/32/18016_2.png) [@Zino](https://forum.decentraland.org/u/Zino)\ **Post date:** [February 10, 2023, 12:44pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/9 "2023-02-10T12:44:31Z")
> [@web3nit](#): > > oncerning vital financial health of Yes, but in the new grant program, the project could have 12 months duration and a vesting contract that matches (12 months). So, the period will not be a problem. Why not should it be canceled if after one period of duration is not necessary for the DAO? I got your point and is really interesting. Thank you for sharing it! ---
**Author:** ![HPrivakos](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/hprivakos/32/20568_2.png) [@HPrivakos](https://forum.decentraland.org/u/HPrivakos)\ **Post date:** [February 10, 2023, 1:12pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/10 "2023-02-10T13:12:37Z")
No, we just sell MANA to pay for grants right now. ---
**Author:** ![web3nit](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/web3nit/32/27357_2.png) [@web3nit](https://forum.decentraland.org/u/web3nit)\ **Post date:** [February 10, 2023, 1:14pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/11 "2023-02-10T13:14:59Z")
Got you, maybe you are right, anyway its first stage to understand what community think. ---
**Author:** ![web3nit](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/web3nit/32/27357_2.png) [@web3nit](https://forum.decentraland.org/u/web3nit)\ **Post date:** [February 10, 2023, 1:15pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/12 "2023-02-10T13:15:20Z")
Thank you also for your thoughts. ---
**Author:** ![DCLCurations](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/dclcurations/32/4715_2.png) [@DCLCurations](https://forum.decentraland.org/u/DCLCurations)\ **Post date:** [February 10, 2023, 3:55pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/13 "2023-02-10T15:55:07Z")
If there isn’t already a DAO team for this then I think there definitely should be. I’m pretty sure the DAO and the Foundation are both on 200million $MANA + vesting contracts and the Foundation definitely has a finance team. This makes sense in my opinion. Voting yes. ---
**Author:** ![ckbubbles](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/ckbubbles/32/15895_2.png) [@ckbubbles](https://forum.decentraland.org/u/ckbubbles)\ **Post date:** [February 10, 2023, 6:32pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/14 "2023-02-10T18:32:06Z")
Responding to this and @web3nit I thought there had people on town halls who had discussed how the funds are being diversified. I guess I’m wrong. I do remember at one point there was a grant of ppl who were putting together financials on the dao tho, right? ---
**Author:** ![web3nit](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/web3nit/32/27357_2.png) [@web3nit](https://forum.decentraland.org/u/web3nit)\ **Post date:** [February 10, 2023, 6:39pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/15 "2023-02-10T18:39:43Z")
Right, here it is [https://governance.decentraland.org/proposal/?id=a31bfa40-ed02-11ec-aa01-87bd234b340d](https://governance.decentraland.org/proposal/?id=a31bfa40-ed02-11ec-aa01-87bd234b340d) ---
**Author:** ![web3nit](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/web3nit/32/27357_2.png) [@web3nit](https://forum.decentraland.org/u/web3nit)\ **Post date:** [February 10, 2023, 7:41pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/16 "2023-02-10T19:41:52Z")
I hope someday DCL DAO will have such specialists, treasury without proper management can run dry very quickly. ---
**Author:** ![DCLCurations](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/dclcurations/32/4715_2.png) [@DCLCurations](https://forum.decentraland.org/u/DCLCurations)\ **Post date:** [February 11, 2023, 3:10pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/17 "2023-02-11T15:10:04Z")
Looks like this was approved but they missed all 6 of their grant updates. Did anything ever come of this? @Zino @HPrivakos ---
**Author:** ![web3nit](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/web3nit/32/27357_2.png) [@web3nit](https://forum.decentraland.org/u/web3nit)\ **Post date:** [February 11, 2023, 4:36pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/18 "2023-02-11T16:36:35Z")
Report available in this post with recommendations, one of them was to create Finance Committee [https://forum.decentraland.org/t/dao-qmursmt-preparing-detailed-financial-statements-budget-and-long-range-forecast/12514/7](https://forum.decentraland.org/t/dao-qmursmt-preparing-detailed-financial-statements-budget-and-long-range-forecast/12514/7) ---
**Author:** ![mattimus](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/mattimus/32/20109_2.png) [@mattimus](https://forum.decentraland.org/u/mattimus)\ **Post date:** [February 11, 2023, 7:39pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/19 "2023-02-11T19:39:40Z")
I like the idea of having a committee for this because it allows us to set the pay rates. The main thing I did not like about the previous proposal for diversification is that they were charging 100s of thousands of dollars to broker a few transactions and justifying it because it was at or below “market rate”. It would be nice to see someone who is more engaged with the community step up to do this for the community and not for the pay. We also need to consider who the large amounts of mana are going to go to. There was not enough information about the specific buyers of the MANA in the original diversification proposals. Offloading 10s of millions of mana to a single holder can have larger consequences in dao voting if that person was to then realize they could now vote for grants to receive the funds they just provided to the dao. I would like to see a team have already done the research to bring buyers to the table, make a proposal, and only receive the commissions if the community votes to engage with the buyer and execute the swap. ---
**Author:** ![Zino](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.decentraland.org/zino/32/18016_2.png) [@Zino](https://forum.decentraland.org/u/Zino)\ **Post date:** [February 11, 2023, 11:53pm UTC](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024/20 "2023-02-11T23:53:59Z")
Hi @DCLCurations ! Yes, of course. They finished the project and made this [report](https://drive.google.com/file/d/1BAgtIdWtWklzDjD3IeO48wAcSCFIo2Jk/view) (you can check it in their [proposal)](https://forum.decentraland.org/t/dao-qmursmt-preparing-detailed-financial-statements-budget-and-long-range-forecast/12514/7) After, they no longer made updates because it was not necessary. It is something that we must improve in the Grants Program: What happens if the grant ends before the project’s duration? Thank you for bringing it to the front! [Next page](https://forum.decentraland.org/t/dao-e4b5eb9-proposal-for-a-finance-committee/18024.md?page=2)