# MIP40c3-SP66: Events Core Unit DAI Budget (EVENTS-001)

## Preamble

```
MIP40c3-SP#: 66
Author(s): @Pon Jerry, @Leggevents
Contributors: @hexonaut, @nadia
Tags: core-unit, cu-events-001, budget, dai-budget
Status: Obsolete
Date Proposed: 2022-03-09
Date Ratified: 2022-04-25
Forum URL: https://forum.makerdao.com/t/mip40c3-sp66-events-core-unit-dai-budget-events-001/13777
Ratification Poll URL: https://vote.makerdao.com/polling/QmSVzGcm
Extra: EVENTS-001 has been offboarded via [MIP39c2-SP4](https://github.com/makerdao/mips/blob/master/MIP39/MIP39c3-Subproposals/MIP39c3-SP4.md).
```

## Sentence Summary

MIP40c3-SP66 adds the DAI budget for the Core Unit EVENTS-001: Events. The Events CU will plan and execute MakerDAO branded events within it's specified mandate.

## Paragraph Summary

MIP40c3-SP66 adds the DAI budget for the Core Unit EVENTS-001: Events. This budget will allocate DAI to the CU.  The one-off seed transfer will be 149,692 DAI with the monthly transfers being 62,371.50 (12 transfers total).  The total CU budget amounts to 898,150 DAI annually.

## Specification

### Motivation
To establish the annual operating budget for the Events CU so the team can plan, create and execute the best-branded events for MakerDAO.

## Core Unit ID

EVENTS-001

## Budget Implementation

This budget implementation is a “Simple Budget Implementation” under [MIP40c4](https://mips.makerdao.com/mips/details/MIP40#simple-budget-implementations).
Core Unit multisig wallet address: "0x3D274fbAc29C92D2F624483495C0113B44dBE7d2"

### Keyholders:

* @PonJerry - “0x9A214CE4c8D490C78bF083939f0e0f3D9e523A56”
* @hexonaut - “0x18CaE82909C31b60Fe0A9656D76406345C9cb9FB”

### One-off Seed

149,692 DAI will be transferred to “0x3D274fbAc29C92D2F624483495C0113B44dBE7d2” on May 1, 2022
2 months operating budget to cover initial startup of financial, upcoming event costs, workshop rental and visual artist retainer

### Monthly Transfers

748,458 DAI will be streamed to “0x3D274fbAc29C92D2F624483495C0113B44dBE7d2” starting 2022-05-01 and ending 2023-04-30 at a rate of 62,371.50 DAI per month

## Budget Breakdown

The yearly budget cap request for the Events Core Unit is 898,150 DAI to support the team's mandate.

This budget cap secures a team of 2 full-time employees (FTE), Event costs, Visual/Design/Lighting Artists retainers, and covers all other operational costs and contingency listed in the table below.  The mandate of the Events CU will be to execute 3 Major events and 2 Minor events per fiscal year.

The budget proposed is a worst-case scenario.  At times based on Maker community feedback, event partnerships with other protocols may be arranged for the event.  During the planning phase, it would be determined how much shared expenses would be passed on to the event partner.  The passed-on expense would be reduced from the event budget cap (Major: 110,000 DAI, Minor: 48,000 DAI) and returned to the Maker protocol.

At the end of the calendar year, all unused funds will be returned to the Maker protocol.  Should the Events Core Unit shut down, all unused funds will be returned to the DAO immediately.

## Budget Details

| Budgeted Item | Annually | Quarterly | Monthly |
| -------- | -------- | -------- | -------- |
|FTE Compensation    | $265,000.00    | $66,250.00    | $22,083.33
|Major Event 1 (1200-1400 attendees)    | $110,000.00   | $27,500.00    | $9,166.67
|Major Event 2 (1200-1400 attendees)    | $110,000.00   | $27,500.00    | $9,166.67
|Major Event 3 (1200-1400 attendees)    | $110,000.00   | $27,500.00    | $9,166.67
|Minor Event 1 (300-400 attendees)    | $48,000.00   | $12,000.00    | $4,000.00|
|Minor Event 2 (300-400 attendees)    | $48,000.00   | $12,000.00    | $4,000.00
|Visual/Design/Lighting Artist Retainer    | $50,000.00  | $12,500.00    | $4,166.67
|Overhead & Operation Costs    | $40,000.00  | $10,000.00    | $3,333.33
|||
|**Total**    | **$781,000.00**  |**$195,250.00**  | **$65,083.33**
|||
|Contingency (15% of budget)    | $117,150.00  | $29,287.50   | $9,762.50
|||
|**Total w/ Contingency**|**$898,150.00**|**$224,537.50**|**$74,845.83**|



The structure below presents a prospective team structure built around the mission of providing event management to the MakerDAO Ecosystem.

| Role | People |
| -------- | -------- |
| Facilitator/Event Coordinator/Mechanical Engineer   | 1     |
| Event Manager   | 1     |
|**Total**|**2**|



### FTE Compensation

The total people cost includes compensation and other people costs such as benefits, including healthcare and any taxes and fees relating to compensating people for their work.

### Major Events

As the largest budgeted event item, the major events are to be held at major ETH conferences.  A major event aims to cater to 1200 to 1400 attendees.   Major events will introduce new themes, branded set dress and visuals to maintain a uniqueness from each other. Included in the major event sub budget are the following;

* Travel & food expenses related to FTEs
* Travel & food expenses for event contractors
* Wages of event contractors
* Event set dress
* 2 International artists including any related costs for management fees, artist fees, travel costs, food costs and any other contractual obligations
* Ground transportation cost for FTEs, contractors & artists
* Event venue rental
* Event open bar costs including overages
* Event lighting & visual equipment rental, including operator fees
* Material and 3rd party labour costs of the set dress
* Shipping of set dress
* Shipping and procurement of event-related tools and equipment
* Event photographer
* Event videographer (outputs to be 1x one minute clip and 2x 30 second clips of event recap)
* Event security
* Rigging & engineering approvals
* The following is a major event budget framework derived from the ETH Denver Maker event;

| Category | Amount (DAI) |
| -------- | -------- |
| Travel (2 FTE's & 3 Contractors)     | $9,600.00     |
| Accommodations/Food (2 FTE's & 3 Contractors)     | $10,900.00     |
| Set Dress (Venue Branding, LED Logos/Installations, DJ Equitment Rental, Lighting Rental, New Visual 3D & 2D Stock, Visual Renderfarm, Plugins/Software)    | $18,000.00     |
|Labor (3 Contractors & Translator)|$4,100.00|
|Venue/Hospitality|$28,000.00|
|Music/Photography/Videography|$23,500.00|
|Misc (Shipping, COVID Tests, Onsite Tools/Equipment, Overhead, Contingency|$15,900.00
|**Total**|**110,000.00**

### Minor Events

Minor events are to be held at major or minor ETH conferences.   A minor event aims to cater to 300 to 400 attendees.   Minor events will be a scaled scope and reuse set dress from other major events.  Included in the minor event sub budget are the following;
* Travel & food expenses related to FTEs
* Travel & food expenses for event contractors
* Wages of event contractors
* 1 local artist including any related costs for management fees, artist's fees, event day ground travel, event day food costs and any other contractual obligations
    *Artist optional depending on event theme and setup*
* Ground transportation cost for FTEs, contractors & artists
* Event venue rental
* Event open bar costs including overages
* Event lighting & visual equipment rental, including operator fees
* Material and 3rd party labour costs of the set dress
* Shipping of pre-made/prepared set dress
* Shipping event-related tools and equipment
* Event photographer
* Event security

The following is a minor event budget framework derived from the ETH Amsterdam Maker event;

| Category | Amount (DAI) |
| -------- | -------- |
| Travel (2 FTE's & 2 Contractors)     | $6,500.00     |
| Accommodations/Food (2 FTE's & 2 Contractors)     | $6,000.00    |
| Set Dress (Venue Branding, DJ Equitment Rental, Lighting Rental, Visual Renderfarm, Plugins/Software)     | $6,000.00    |
|Labor (2 Contractors & Translator)|$2,400.00|
|Venue/Hospitality|$15,000.00|
|Music/Photography|$2,800.00|
|Misc (Shipping, COVID Tests, Onsite Tools/Equipment, Overhead, Contingency|$9,300.00
|**Total**|**$48,000.00**


### Visual/Design/Lighting Artist Retainer

Major events will include new visual and lighting elements.  To facilitate the consistency of high-quality visual & lighting elements across all major events, the Events CU budget has included a retainer for a contract visual animator.  The goal is to provide the visual artist with a retainer so the commitment is locked into the entire series of major events for the fiscal year.  By doing so, the CU can ensure quality, consistency and delivery of visual elements for major events.  

The retainer has been calculated based on a daily rate of $555 provided by industry professionals with an estimated workload of 30 days per major event.

### Overhead and Operational cost
* Overhead and operation costs are include the following;
* Rental for workshop for set dress, lighting and visual building and testing
* Financial & accounting fees
* Social media & promotional digital content costs
* Packaging materials & cases for shipping set dress
* Rental of set dress storage space

### Contingency
The contingency acts as a safety buffer against any unknown or unexpected costs.  The contingency was calculated to be 15% of the entire budget.  Any unused funds would be returned to the Maker protocol.

## Partnerships

The Events CU plans to leverage partnerships with other protocols to offset the event costs.  Our goal for each event is to partner with other protocols to cost split.  As an example 50%-MakerDao, 25%-Partner 1, 25%-Partner 2.  MakerDao would always retain a 50% share minimum and have complete control over the creative direction and the event itself.

To demonstrate how this strategy applies to the requested budget, the following is a breakdown of how the budget would look if the team is successful at cost splitting at all the planned events at 50% MakerDao and 50% Partners.

**Note the following is only for demonstration purposes and not the requested budget for the CU.  We feel this accurately highlights the likely spend scenario of this CU.  We have only included foreseen expenses so have not included the contingency**

| Budgeted Item | Annually |
| -------- | -------- |
|FTE Compensation    | $265,000.00    |
|Major Event 1 (50% share of requested budget)    | $55,000.00   |
|Major Event 2 (50% share of requested budget)    | $55,000.00   |
|Major Event 3 (50% share of requested budget)    | $55,000.00   |
|Minor Event 1 (50% share of requested budget)    | $24,000.00   |
|Minor Event 2 (50% share of requested budget)    | $24,000.00   |
|Visual/Design/Lighting Artist Retainer    | $50,000.00  |
|Overhead & Operation Costs    | $40,000.00  |
|||
|**Total**    | **$568,000.00**  |
|||

Under this strategy, the sum of **$330,150.00** from the requested budget would be returned to the DAO.