Proposal: Core Team Compensation (August)

glennaustin

Member
Dash Core Team
Oct 10, 2017
70
97
58
120
This proposal is cross-posted at https://www.dashcentral.org/p/coreteamcomp0818

Background
We expect proposing a funding request related to compensation to the Dash network every month for the foreseeable future until DCG has a buffer in place equal to 2-3 months of compensation expense.

The team has 69 paid team members, and we have 3 critical open positions that will further expand this over the coming several months to ~72. The current run-rate is ~$445,000 monthly. This is an average of ~$6,500 / month / contributor.

As of end of June, the breakdown of the number of staff we have working in each department is as follows:
- Marketing / International Outreach - 11 staff - plans to expand to 12
- Development - 29 staff - plans to expand to 33
- Project Management - 4 staff - plans to expand to 5
- Infrastructure - 2 staff - no further expansion planned
- Support - 1 staff - no further expansion planned
- Quality Assurance - 4 staff - no further expansion planned
- Leadership and Admin - 9 staff - plans to expand to 10
- Strategy - 4 staff - no further expansion planned
- Human Resources - 1 staff - no further expansion planned
- Business Development - 4 staff - no further expansion planned

These numbers do not include an additional 11 freelancers that are also issued payments and/or stipends for work performed.

Last month we requested $600,000 and due to the fluctuation of Dash received only ~$475,000. We expect to be more exposed to currency fluctuation risk than in the past since we are now submitting our proposals at the beginning of the budget cycle (instead of the middle or latter half of a budget cycle) to provide the rest of the community earlier visibility into our funding requests. This month we are requesting $600,000 again. As previously communicated, the need for this specific amount is three-fold:

1) Our current run-rate including benefits is ~ $445,000 monthly.

2) One-time deposits to initiate conversion of international subcontractors to full-time status. The international professional employer organization (PEO) requires a first month and last month deposit of employee’s salary and benefits to initiate the conversion. We are asking for $80,000 to onboard the first handful of employees. This will provide the following professional management services to Dash core employees outside of the U.S.: employee benefits, payroll and workers' compensation, recruiting, risk/safety management, and training & development. We wanted to onboard the first handful of employees in July, but the sharp decrease in the price of Dash in June effectively eliminated the deposit requested for this purpose.

3) To rebuild a buffer in the Core Team Compensation budget to account for potential Dash volatility. This is the second month where we have requested additional Dash to rebuild the buffer. Similarly to our budget for the PEO, the buffer request from last month was completely eliminated by a sharp decrease in the price of Dash during the month of June. The current buffer requested is in the amount of $75,000.

What does this proposal fund?
This proposal funds Dash Core Group's ongoing compensation costs - including all developers, administrative, and support staff - at market rates for base pay, including some benefits which we are now beginning to roll out as certain contractors are converted to employee status. By extending employment and benefits to our key contributors, we aim to improve the sustainability of working for the Dash Core Group by providing compensation and benefits commensurate with the market. Providing these benefits greatly improves retention and provides a more stable workforce to the network.

The run-rate has increased in the past few months and we expect it to increase further due to a number of factors including:

a) Extending benefits to staff that are transitioning from contractors to permanent employees of Dash Core Group Inc. We temporarily ceased converting contractors to employees due to the recent decreases in the price of Dash.

b) Increase in the total number of employees/subcontractors as open positions are filled. Our rate of growth has slowed significantly recently as we seek to contain the expansion of our fixed costs. We currently have 7 open positions for DCG, however, as aforementioned,we have decided to only fill 3 critical positions in the near future. We will consider reopening our hiring plans if 2 conditions are met: 1) A fiat buffer at least equal to 1 month of expenses is present and 2) The price increases over the $300 / Dash level.

c) Targeted salary increases for employees and subcontractors to align with market rates including adjustments to account for blockchain experience (temporarily on hold).

d) New administrative deposits required by our global employment, payroll, and benefits provider for servicing employees (temporarily on hold due to lack of one-time transition funding).

If you have any questions, please direct them to @glennaustin in this Dash Forum post to ensure we are notified of your request.

Requested funding is as follows for the August 2nd budget cycle:
· 2,447.88 Dash for core team compensation ($600,000 USD @ $245.11 per Dash)
· 5.00 Dash proposal reimbursement
Total: 2,452.88 Dash

Note: Should any funding remain, we will apply it toward future compensation expenses.

Please note that as part of security improvements to our financial operations, we have changed the wallet address for Core Team Compensation. The new wallet address is: XuLHt4TN6CinfMM2zHfy7Rsb4terC1MRX5

Manually vote YES on this proposal:
dash-cli gobject vote-many 4f582810e490f8fe81528b2f1a311ab915f39027a6794eefa64f00ed6dad3219 funding yes
OR from the qt console:
gobject vote-many 4f582810e490f8fe81528b2f1a311ab915f39027a6794eefa64f00ed6dad3219 funding yes

Manually vote NO on this proposal:
dash-cli gobject vote-many 4f582810e490f8fe81528b2f1a311ab915f39027a6794eefa64f00ed6dad3219 funding no
OR from the qt console:
gobject vote-many 4f582810e490f8fe81528b2f1a311ab915f39027a6794eefa64f00ed6dad3219 funding no