# MIP40c3-SP16: The Strategic Happiness Core Unit Budget, SH-001

## Preamble

```
MIP40c3-SP#: 16
Author(s): Andrew Burban (@Saint.Burban)
Contributors: @juanjuan, @TomDeMichele, @Nadia, @prose11
tags: core-unit, cu-sh-001, budget, dai-budget, mkr-budget
Status: Obsolete
Date Proposed: 2021-05-11
Date Ratified: 2021-09-27
Ratification Poll URL: https://vote.makerdao.com/polling/Qme27ywB?network=mainnet#poll-detail
Forum URL: https://forum.makerdao.com/t/mip40c3-sp16-the-strategic-happiness-core-unit-budget-sh-001/8007
```

## Sentence Summary

MIP40c3-SP16 adds the budget for the Strategic Happiness Core Unit, SH-001.

## Paragraph Summary

MIP40c3-SP16 adds the budget for the Strategic Happiness Core Unit, SH-001.
It includes the budget breakdown for Dai and MKR.

## Specification

### Motivation

To fulfill the mandate of the Strategic Happiness Core Unit.

> Due to foreseeable circumstances, I have largely blown up my personal trading account.
> 
> I would like to avoid selling my precious MKR, so it is unlikely I can continue to fund everything from my personal funds. Still, I would love and be honored to continue shipping out the Happiness Airdrops uninterrupted.
> 
> As such, I am making minor amendments to my budget proposal.

**I am proposing a budget that will allow the freedom and flexibility to grow operations.**

I know everyone got a good laugh out of the budget I initially proposed :)

However, I quickly started noticing just how much interest everyone had in seeing me scale. After bouncing ideas off of others, examining my expenses, and considering my love for Maker, I realized that I would be much more effective with an appropriately sized ongoing budget.

- Until recently, I only loosely tracked my expenses and airdrop recipients.
- As interest grew over time, I’ve scaled my efforts.
- Going forward, I will need to invest in a system to help me stay organized and track my operations.
- I don’t anticipate depleting the entire balance in the first quarter, but I would like to leave a buffer to scale.

### Core Unit Name | ID

* Name: The Strategic Happiness Core Unit
* ID: SH-001

### Team Membership

The Strategic Happiness Core Unit team will include:

- **@Saint.Burban:** Random-Time, Shitpost Facilitator, Chief Happiness Officer

## Quarterly Budget Implementation

*Based on actual expenses, I will propose a more comprehensive budget for the next quarter.*

| Item | Amount |
| :--- | ---: |
| **Dai Compensation** |
|Facilitator | 0 DAI |
|Shitposting | 0 DAI |
|Swag | 15,000 DAI |
|Shipping | 10,000 DAI |
|Ongoing Operations |25,000 DAI|
|Travel |8,000 DAI|
|||
|**Total**| 58,000 DAI|

### Facilitator

The Strategic Happiness team should be incentivized toward behaviors that support raising the morale of the MakerDAO Community. In addition to base pay, each SHCU member will operate under a strict compensation structure, a proactive process that aligns incentives with those of MakerDAO.

The compensation structure follows these rules:

- Base pay will be 0 DAI.
- Two-quarters of goal achievement constitutes a 0% rise in base pay.
- Not meeting goals results in base pay stagnation.
- Bonus pay is determined by MakerDAO Governance.

> As might be clear by now, I'm not requesting a salary at this time. I'm only looking to have my expenses covered and the creative liberty to try out fun new things.
> 
> Although I am not seeking a salary, I would be honored to be vested in MKR.
> I will leave this decision to the DAO.
> 
> *Note: If members of the community and the DAO insist that I accept a salary in the future, I would be open to it. For now, I'm more than happy to spend my time working on this. I'm just glad to be part of the reason the Maker community thrives :)*

### Shitposting

- Free.99

> As part of the SHCU mandate, I will continue shitposting uninterrupted and free of charge. I will revise accordingly if I expand this CU in the future and hire people to help me. 

### Swag & Shipping

Bespoke Happiness Airdrops will typically contain:

- Greeting Cards
- Random Gifts
- Custom Surprises
- Official MakerDAO Swag
- Unofficial Custom MakerDAO Swag

#### Cost Breakdown | A Typical Airdrop

Based on experience, these are my expenses for a typical Airdrop:

| Item | Domestic | International |
| --- | :---: | :---: |
| Swag | 50-350 DAI | 50-350 DAI |
| Shipping | 25-150 DAI | 50-300 DAI |
| Customs | 0 DAI | 🤷‍ |
| Delivery | 2-14 Days | 1-16 weeks |
| **Total** | 75-500 DAI| 100-650+ DAI|

After accounting for all expenses:
- A typical Airdrop will usually cost several hundred dollars.
- Some run much higher, especially when shipping internationally.
    - *Every additional ounce counts!*

**I can expect to reach about 30-50 people through Airdrops per quarter.**

### Ongoing Operations

- CRM Software
- Bookkeeping
- Accounting
- Legal
- Travel
- Miscellaneous Costs

### Travel

I am requesting a quarterly budget of 8,000 Dai for travel.
- This will allow me to attend Maker, ETH, and other worldwide crypto events.
- The budget will cover flights, lodging, food, etc.
- There should be enough funds to cover one to two events per quarter.
- Unused funds will be credited towards the next quarter's budget.

### Clarifications

#### Unused Funds

- Unused funds will be credited towards the next quarter's budget.

#### Future Growth

If the SHCU continues to be successful, I may seek to expand my team in the future, and I will propose an adjusted budget to the DAO.

#### Swag Quality

- To date, my airdrops have been relatively inexpensive, but in the future, if the DAO approves, I would like to send higher-quality airdrops.
    - *Manufacturing and shipping costs for these may be much higher.*
- For the first quarter, I will work out of my existing budget.

#### Common Issues

##### Lost Packages

When you're sending dozens of packages, the unfortunate reality is that some are bound to get lost or stolen, especially in these post-pandemic times.
- **Domestic:** Very few, if any, packages go missing.
- **International:** The rate is low but notably higher. 

##### Shipping Insurance

Shipping insurance is not expensive, but it often causes issues at customs if the declared amount exceeds some arbitrary value. Also, insurance claims tend to be more expensive (in terms of mental bandwidth) than whatever value I may recoup. The real loss is the TLC that went into putting the package together in the first place.

##### Customs

Some countries with questionable customs standards have confiscated my shipments without notice or explanation (Venezuela). Others have demanded extortionary customs fees, sometimes into the thousands, before releasing a package to the recipient (South Africa). Other times, packages go missing with no explanation (France).

##### Remedies

I’m open to suggestions from anyone with experience in this field. For now, I’ve just accepted that some will get lost, and I just eat the loss and send it again. It’s unfortunate when I don’t know whether or not my package even arrives since not everyone reaches out to me to confirm that they got it.

## MKR Vesting

The Strategic Happiness Core Unit proposes to vest its members with MKR to further align incentives.

The MKR will be vested over a four-year vesting period, with a one-year cliff, subject to review based on performance.

Vesting is proposed as follows:

**I hope that the Community will help me establish a fair amount during the RFC phase of this sub-proposal.**

## Budget Request Up-Front

On day one, I am requesting funding up-front, as follows:

| Description | Amount |
| --- | ---:
|Quarterly Budget| 58,000 DAI |
|Past Expenditures * | 27,000 DAI |
|Other Expenditures ** | 16,500 DAI |
|Projected Expenditures *** | 5,000 DAI |
| **Total** | **106,500 DAI** |
|||

> \* The 27,000 DAI covers my past expenditures since the dissolution of Comm-Dev.
> \** The 16,500 DAI covers a swag order placed towards the end of August.
> \*** The 5,000 DAI should cover expenditures until the next monthly Core Unit Cycle.

### Transfers

#### Core Unit Wallet Address

- **Address:**  0x955993Df48b0458A01cfB5fd7DF5F5DCa6443550
- **Keyholder:** @aburban90

#### Initial Transfer

- **Transfer:** 106,500 DAI transferred to 0x955993Df48b0458A01cfB5fd7DF5F5DCa6443550 on 2021-10-05.
- **Description:** Up-front payment for the first quarter's budget and reimbursement for past expenses.

#### Streaming

- **Transfer:** 58,000 DAI streamed to 0x955993Df48b0458A01cfB5fd7DF5F5DCa6443550 starting on October 2021-10-01 to 2021-12-31.
- **Note:** Based on community interest and actual expenses, I will revise this budget going forward.

## The Show Must Go On!

- Whether or not this proposal is ratified, the Happiness Airdrops will continue!
    - I've been with Maker since 2015, and I'm grateful to be part of this community.
    - All I want is to see us thrive!
- Still, as this CU scales, compensation from the DAO would be appreciated.
    - Otherwise, Airdrops might only go out when number only go up!

### Related Subproposals

- [MIP39c2-SP11: Strategic Happiness Core Unit](https://github.com/makerdao/mips/blob/master/MIP39/MIP39c2-Subproposals/MIP39c2-SP11.md)
- [MIP41c4-SP11: Shitpost Facilitator Onboarding, Strategic Happiness Core Unit, SH-001](https://github.com/makerdao/mips/blob/master/MIP41/MIP41c4-Subproposals/MIP41c4-SP11.md)