# MIP40c3-SP12: Modify Core Unit Budget - Real-World Finance (RWF-001)

## Preamble

```
MIP40c3-SP#: 12
Author(s): Sébastien Derivaux (@SebVentures)
Contributors:
Tags: core-unit, cu-rwf-001, budget, dai-budget
Status: Obsolete
Date Proposed: 2021-05-11
Date Ratified: 2021-06-28
Ratification Poll URL: https://vote.makerdao.com/polling/QmcVDjiz?network=mainnet
Forum URL: https://forum.makerdao.com/t/mip40c3-sp12-modify-core-unit-budget-rwf-001/7985
````

## Sentence Summary

MIP40c3-SP12 adds the budget for Core Unit RWF-001: Real-World Finance.

## Paragraph Summary

With [MIP40c3-SP1](https://forum.makerdao.com/t/mip40c3-sp1-modify-core-unit-budget-real-world-finance/6225) the Real-World Finance team was able to onboard the first Real-World Asset and provide some financials for MakerDAO. Nevertheless, as no Legal Core Unit is expected in the short term, we need to increase the budget for legal expenses. We also need to solidify the data analytics part, which is currently limited, to integrate MakerDAO and RWA data to provide transparency and insights to stakeholders.

## Specification

## Motivation

* Scaling the Real-World Finance Core Unit after a few months of [documented work](https://forum.makerdao.com/t/real-world-finance-core-unit-report-2021-04/7798) (see [our forum section](https://forum.makerdao.com/c/core-units/real-world-finance/33) as well) to tackle the challenges of MakerDAO in the area of Real-World Assets and Finance. Our current budget is [MIP40c2-SP1](https://forum.makerdao.com/t/mip40c2-sp1-modify-core-unit-budget-real-world-finance/6225).

## Core Unit Name

* Real-World Finance

## List of Budget Implementations

* This budget implementation uses the Manual Budget Implementation with payment being ideally done before the 10th of each month. This can be changed if needed to any method achieving similar objectives.
* This budget will be in place from July 2021 to December 2021 included (this way Governance doesn't have to take action to get rid of RWF)
* Dai per month: 155,000
* The destination wallet is: 0x9e1585d9CA64243CE43D42f7dD7333190F66Ca09 [RWF Core Unit Multisig](https://forum.makerdao.com/t/mip40c1-adding-rwf-core-unit-multisig/7476)

## List of Budget Breakdowns

|Type|Monthly Total|
| --- | --- |
|Contributors (7 FTEs + grants)|$105,000|
|Legal consultations|$20,000|
|Real-world structures|$10,000|
|Data-infrastructure|$10,000|
|Buffer|$10,000|
|**Monthly budget**|**$155,000**|

### Contributors

At the time of writing, the team is quite small (~2.3 FTE + grants) and we can't tackle all tasks. The target is to onboard mainly full-time contributors as the knowledge needed is quite large. All contributors are/will be business and are/will be invoicing MakerDAO (and paid by the RWF CU Multisig). They bear accounting costs, healthcare, and all other expenses. Roles are mainly senior positions.

**Facilitator**: Ability to manage and take over the work of any member of the team.

**RWA Analyst (x3)**: Dealing with Asset Originators/Manager from the negotiation phase, due diligence phase, up to the monitoring phase. This is kind of a key account manager as well. Competencies in structured finance, risk assessment, modeling, spreadsheets, and basic legal knowledge. Specializations: Law, Solidity, Data, Python

**Financial/Data Analyst**: Ability to understand and maintain the MakerDAO financials and budgets. Ability to use SQL and on-chain data.

**Accountant/Finance Analyst**: Ability to understand and maintain the MakerDAO financials and budgets. Following expenses of the DAO and coordinating with other Core Units to work on the forecast.

**Data Engineer/Data Analyst**: Ability to bridge the gap between the blockchain and a structured data warehouse to study on-chain, and off-chain, information. Knowledge from `fold`, `fold` to Snowflake.

The grants are used for community contributors/experts. Examples are @jameskmccall work on Peoples Company proposal, @christiancdpetersen on SolarX/legal, and @Aes on the budgeting/forecasting side. MakerDAO being community-driven, we intend to continue to leverage and involve our amazing community.

### Legal consultations

Initially, the legal aspect of RWA was to be outsourced to a Legal Core Unit. While waiting, we have onboarded a law firm to help us audit the RWA structures and guide us through legal solutions/issues.

### Real-world structures

Following the trust model for RWA, we are working on legal entities for MakerDAO RWA.

### Data-infrastructure

As discussed in our previous reporting we want to solve our data problems and stop being reliant on third parties in order to build a scalable architecture.

### Buffer

Extra safety in case we forgot something unexpected and for small stuff like gas, minor SaaS subscriptions, ...

We expect legal to be more costly at the beginning for instance.

## MKR compensation

We plan to propose MKR vesting for members. We plan to follow a MakerDAO-wide framework if one is adopted by MakerDAO Governance. We will propose something if nothing is adopted. Ideally, vesting schedules would be implemented retroactively from the time members have started.

## Resources

Not saying we are following those comparable but we want to provide data to MakerDAO Governance to assess the proposal.
[Compensantion scales in the FP&A space](https://www.mergersandinquisitions.com/corporate-finance-career-path/)
Compensation in investment banking in [UK](https://docs.google.com/document/d/14QZ6Zgd9EwjaShrQ470Vlz3LZ5cWsWLoPZcDSSKjfLQ/edit?usp=sharing) and [US](https://www.mergersandinquisitions.com/investment-banker-salary/) ([another source](https://corporatefinanceinstitute.com/resources/careers/compensation/investment-banker-salary/))
![Table](https://github.com/makerdao/mips/blob/master/MIP40/MIP40c3-Subproposals/supporting_materials/MIP40c3-SP12/table.png)