# MIP40c3-SP67: Modify Core Unit Budget - Strategic Happiness (SH-001)

## Preamble

```
MIP40c3-SP#: 67
Author(s): Andrew Burban (@Saint.Burban)
Contributors: Dawson & like fifteen others
tags: core-unit, cu-sh-001, budget, mkr-budget, dai-budget
Status: Obsolete
Date Proposed: 2022-03-09
Date Ratified: 2022-05-23
Forum URL: https://forum.makerdao.com/t/mip40c3-sp67-modify-core-unit-budget-strategic-happiness-sh-001/13805
Ratification Poll URL: https://vote.makerdao.com/polling/QmQkxx16
Extra: Extra: SH-001 has been offboarded via [MIP39c2-SP3](https://github.com/makerdao/mips/blob/master/MIP39/MIP39c3-Subproposals/MIP39c3-SP3.md).
```

## Sentence Summary

MIP40c3-SP67 updates the budget for the Strategic Happiness Core Unit, SH-001.

## Paragraph Summary

MIP40c3-SP67 updates the budget to expand the Strategic Happiness Core Unit, SH-001. It proposes an updated budget breakdown for DAI and MKR. In total, 770,000 DAI is requested (230,000 DAI up-front). Additionally, a 250 MKR vest is requested, streamed over 4 years with an 18-month cliff.  A pro-rated offboarding term is also proposed for 2 months of funding if, after funding this Core Unit until March 15, 2023, the community decides not to renew a further budget. 

## Specification

### Motivation

* Community Building
    * Promote group cohesion and internal morale throughout MakerDAO.
    * Grow our community and attract talent via targeted Swag Airdrops and genuine interactions.
* Brand Awareness
    * Maintain a presence at external events & conferences to support MakerDAO.
    * Participate in curating events hosted by MakerDAO.
    * Fulfill custom swag requests.
    * Generally promote and defend the Maker brand and its image in the space.
* Project Growth
    * Support the Growth Core Unit in building client relationships, as requested.
    * Take advantage of serendipitous in-person interactions to achieve these goals.

#### Swag Airdrops

SHCU Swag Airdrops focus on several kinds of recipients:
- MakerDAO Core Unit & Community Members
- Potential New Hires
- Partner projects & potential collaborators
- Anyone that might be interested in MakerDAO, both inside and outside the crypto space.

Since its inception, the SHCU has delivered over 100+ airdrops, and many satisfied recipients have shared on social media, increasing its total reach.

In past years, MakerDAO would sponsor events to promote its image. However, recently, Maker opted out of an ETH Denver sponsorship.
- The SHCU stepped in and applied its budget.
    - 2000 beanies for DAIVinity & conference attendees.
    - 100+ Socks, T-Shirts, and Hoodies for other Maker fans.
    - Backpacks and North Faces for MakerDAO members.
- The final result:
    - Better visibility than a sponsorship with ETH Denver.
    - Lasting appreciation by swag recipients.
    - Significant savings compared to an ETH Denver sponsorship fee.

The SHCU desires to recreate these results on an ongoing basis, aiming for one to three events and 25-50+ airdrops per quarter. The requested budget modifications will allow the SHCU to continue operating at the professional level MakerDAO requires.

---

#### Going Forward

- Integrate AccountAble for accounting & expense tracking.
- Create a secure multi-sig for the SHCU's budget.
- Hire part-time employees for assistance with:
    - Coordination, design, swag distribution, budgeting, and general assistance.
- Scale-up production of high-quality, creative swag.
    - Distribute curated swag at events where MakerDAO would have a presence.
    - Resume Swag Airdrops!
- Set up a *new* Official Maker Swag Shop! \*
    - If successful, its revenue could offset many of the SHCU's expenditures.
    - The shop will feature items people can order at any time.
        - Limited edition items will not really be available there. If you want that *reallyyy* unique thing, you'll have to get it from me directly. : )
    - **SaaS:** Swag as a Service
        - @elProgreso's suggestion to model SwaggerDAO could be pretty lucrative.
    - **\* Note:** 
        - Excluding this item from the budget for now.
        - The SHCU may still take over the existing Swag Shop and revamp it.
        - Will submit a separate proposal later.

#### Personal Note

Personally, I am incredibly bullish on Maker, its future, and the future of DAI. Maker and its community have truly become my second family. In my darkest times, you have all been there for me. You've all shown me that you genuinely care for me and each other. That is rare in this world!

I am infinitely grateful to all of you. You've opened doors for me that I never imagined existed. Just being part of the MakerDAO community has brought me untold opportunities.

I originally started the Strategic Happiness Core Unit as a bit of a meme, but it's grown into so much more since then! Given how long I've been with Maker, I didn't request a salary or a vest. I genuinely wanted to see our project do well and be part of its success.

I'm fully aware that lately, I've been participating less regularly. Sadly, the number went down, and it took a toll on me. Still, I do my best to stick to my original mandate! Make everyone happy! :)

That said, I believe our community is starting to see the value that I bring  : )

---

## Team Membership

The Strategic Happiness Core Unit team will include:

- **@Saint.Burban:** Shitpost Facilitator Chief Happiness Officer
- **Part-Time Assistant(s):** Design, Curation, Vendor Sourcing, Logistics, Cost-Tracking, Budgeting, General Assitance

### Facilitator

As the Facilitator of the Strategic Happiness Core Unit, it's been my job to raise the morale of our community and get others outside our community excited about Maker and DAI.

Initially, I proposed a salary of 0 DAI for myself. It was a unique way to get involved, and I know everyone got a kick out of it too : )

I would like to continue doing what I do. It's fun, and doing it for free was cool. However, over the past six months, I've seen a lot of ways I can take on more responsibilities and invest more time to deliver greater value to MakerDAO.

I will be delivering and creating more swag while helping to bring additional value to various Maker teams and coordinate great events. Much of what I've been doing has received overwhelmingly positive feedback, and many have urged me to get paid for my efforts. 

I'm including budget revisions based on recent community feedback on spending and SHCU direction.

---

### SHCU | Credentials & Past Successes

#### Swag Airdrops

![](https://github.com/makerdao/mips/blob/master/MIP40/MIP40c3-Subproposals/supporting_materials/MIP40c3-SP67/swag_airdrops.png)

*Designed, packaged, and shipped with love <3*

**Twitter Posts**

![](https://github.com/makerdao/mips/blob/master/MIP40/MIP40c3-Subproposals/supporting_materials/MIP40c3-SP67/twitter_posts.png)

**Some Recipients:**
- DeFi Saver Team
    - [Nikola Jankovic](https://twitter.com/_nikolajankovic/status/1450056125164888065) | [Nikola Milli](https://twitter.com/miliboii/status/1449105239353737218)
- MakerDAO Internal:
    - [Felipe](https://twitter.com/fmorisan/status/1454085371126497282) | [Corina](https://twitter.com/0xCorina/status/1455489306555043840) | [Scottreprenuer](https://twitter.com/iamTWB_/status/1448051414198935555) | [Talba](https://twitter.com/talba49369151/status/1432639263099822081?s=20&t=b7FyLEh6BYiTxKNBIkVc4Q) | [Kurt](https://twitter.com/Kurt_M_Barry/status/1428096277343088648)
    - Tadeo
        - Stayed with MakerDAO because of an airdrop : )
        - “The act of kindness from a stranger sending me a jumper and a handwritten note made me realize there was a real community behind the forum, made me want to push to be part of it.” - Tadeo
- Outside Supporters
    - [David Hoffman](https://twitter.com/TrustlessState/status/1451692488582787075) | [xDai Punks](https://twitter.com/xDaiPunks/status/1445675594750910468) | [Káyọ̀dé Babárìndé](https://twitter.com/KPBabarinde/status/1394677516137283589)
    
#### ETH Denver | DAIVinity

![](https://github.com/makerdao/mips/blob/master/MIP40/MIP40c3-Subproposals/supporting_materials/MIP40c3-SP67/daivinity.png)

> ["Maker is cool again!"](https://twitter.com/degenwizard/status/1498747858031415301?s=20&t=EQwqRB_C4O37MO-L-ZSOIg)
> \- David Hoffman, Bankless

#### Beanies!

![](https://github.com/makerdao/mips/blob/master/MIP40/MIP40c3-Subproposals/supporting_materials/MIP40c3-SP67/beanies.png)

#### Memes : )

![](https://github.com/makerdao/mips/blob/master/MIP40/MIP40c3-Subproposals/supporting_materials/MIP40c3-SP67/memes.png)
[**Frens having fun with Dai :)**](https://opensea.io/assets/0x495f947276749ce646f68ac8c248420045cb7b5e/67552884404108052006095399007888694400526049665834063109564037653612113952769) | **AAVE <> MakerDAO D3M by Pepecasso**
**Featured In:** [The Defiant: MakerDAO’s Update is a Pure Expression of DeFi 2.0](https://thedefiant.io/makerdao-mkt-aave-defi-2-0/) 

#### Potential Partnerships

- DeFi Saver
    - Generally maintaining a relationship.
    - Their top beta-tester.
    - Push them to collaborate w/ us more.
- QiDAO
    - Integrations w/ DFS.
    - Generally seeing where we can partner and letting the Growth CU do the rest.
    - Maintaining relations.
- StakeDAO
    - Custom strategies may or may not be coming soon.
- Gains Network
    - Talks in progress of cross-promotion 
    - They feature our flagship, Dai, as their sole collateral type.
    - Recently, they added "Powered by Maker" to their landing page.
    - The GNS founders are also seeking to integrate with our lending.

![](https://github.com/makerdao/mips/blob/master/MIP40/MIP40c3-Subproposals/supporting_materials/MIP40c3-SP67/gtrade.png)

---

### Core Unit ID

SH-001 (the Strategic Happiness Core Unit)

## Budget Implementations
 
The implementation follows best practices and is described below for transparency.

### Budget Breakdown

| Item | Amount |
| :--- | ---: |
| **Dai Compensation** |
|Facilitator | 17,500 DAI |
|Part-Time Assistance | 15,000 DAI |
|Swag | 80,000 DAI |
|Shipping | 10,000 DAI |
|Travel | 12,500 DAI |
|Ongoing Operations | 20,000 DAI |
|Contingency Buffer | 25,000 DAI |
|**Total Quarterly** | 180,000 DAI |

### Restock Swag Inventory [Single-Payment]

| Item | Amount |
| :--- | ---: |
| Restock Inventory | 50,000 DAI |
| **Total** | 50,000 DAI |

### Budget Line Items

#### Compensation

The SHCU team will have:
- One Facilitator 
- Part-Time Assistance

#### Salaries

Annual compensation will be:

- **Andrew Burban:** 70,000 DAI
- **Part-Time Assistance:** 60,000 DAI

**Note I:** These figures are well below market rates to demonstrate a long-term commitment to MakerDAO and this core unit. The compensation I’m requesting can be viewed as a stipend.

- As a long-term member of the Maker community, if Maker does well, we all do well. If the community is happy with the SHCU’s performance and sees the value it brings, the figures may be revised later if appropriate.

**Note II:** The part-time budget is an allowance figure. Scaling the SHCU is not feasible alone, but, at the same time, hiring a full-time employee does not make sense right now either. The 60,000 DAI is intended for assistance with small tasks. Unused funds would be credited towards future quarters. However, this figure may be revised if more consistent assistance is required.

**Note III:** I’ve removed healthcare from the budget to reduce costs. For now, I am covered under a personal plan, and part-time employees would not be eligible.

#### Travel

I anticipate travel to be a significant part of this core unit's expenditures. I am requesting a quarterly budget of 12,500 Dai for travel covering all team members.

- One of the primary goals for this core unit is to promote our brand's image.
    - This requires attending major events worldwide, where Maker plans to have a presence.
    - This core unit will curate, produce, and distribute unique swag for each event.
        - This may require renting larger vehicles, flying, and lodging more frequently.
    - Currently, there are plans for:
        - ETH Amsterdam (late April 2022).
        - Several more in the coming months.
        - Also, special swag was made for ETH Denver and the Harvard Event in Boston, which just passed.
- Some quarters may be slower or more active than others.
    - Unspent travel funds will carry over into the next quarter during quieter periods.
    - The contingency buffer would be available for busier quarters.

#### Ongoing Operations:

- Operational Overhead
- AccountAble: $10,000
- TokenTax
- Software
- Grammarly
- Other Subscriptions
- Miscellaneous Costs

#### Swag

Our goal is to produce high-quality, durable swag to promote MakerDAO’s image.
- People should be proud to wear, use, and show off their gear.
- Cutting corners and producing sub-par quality items hurts our image.
    - Also, those items typically end up in the trash. Money is wasted, and pollution is created.
- Making higher quality merchandise is more expensive but worth the cost.
    - At scale and with further planning, costs per item would come down but still won’t be cheap.

Based loosely on previous events and depending on a given event's size:
- Approximate cost per event: $20,000-$35,000+ 
- Reach: 500-2000+ people
    - Plus, countless more when they share online : )

Assuming the SHCU produces swag for about three events per quarter:
- We can expect production to cost approximately $60,000-$120,000 quarterly.
- Some quarters may have fewer events, while others may have more.
- Based on demand, this number may be revised in the future.
    - **Note:** As with the previous SHCU budget, I vow to treat all funds streamed to the SHCU by the DAO with respect. I try to be honest with my spending and do my best to only spend when necessary. Any remaining funds will be credited towards the next quarter or sit idle until busier times.

#### Shipping

This budget includes 10,000 DAI for shipping.

This figure is a rough estimate of what it may cost to ship items to and from events and to any airdrop recipients. Shipping costs fluctuate wildly, especially when shipping internationally. This figure does not include much slack, but any unused funds would be set aside for other quarters.

#### Restocking the Swag Inventory

Lately, I’ve run through my entire inventory. I would like to invest in restocking generic branded items like T-Shits, Hoodies, Socks, Hats, etc.

I prefer to have swag on hand for grab & go events or for anyone I may meet on a whim. I’d also like to resume shipping individual swag airdrops. To do this, I need to invest in a small inventory, which I anticipate lasting a while. Depending on variety and quantity, restocking may cost around $35,000-$50,000.

The budget includes a one-time distribution of 50,000 DAI to meet this need.

#### Swag Budget Caveats

Above, I've listed the real numbers required to produce high-quality curated merch for our events. A typical larger event may reasonably cost around $25,000-$35,000. Creating swag for smaller events can probably cost approximately $15,000-$20,000.

- The SCHU can fund about two or three events per quarter with the proposed budget implementation.

If there are more events in a given quarter, I will be counting on other CU's interested in collaborating for our events to chip down and supplement some of these expenditures. We can work together to produce unique and special Maker Swag, custom-tailored to each occasion.

#### Contingency Buffer

The budget includes a buffer for incidentals.

---

## Clarifications

### Standard Unwind Term

To avoid burdening Maker governance, SHCU is proposing the following terms. The budget term ends March 15, 2023. At the end the budget term, if Maker governance decides not to renew the budget, the SHCU will default to unwind on a two-month term, pro-rated under the current budget. Any funds not used for salary and operations will be appropriately returned to the DAO.

## Budget Request Up-Front

For the next funding cycle, I am requesting funding up-front, as follows:

| Description | Amount |
| --- | ---:
|Quarterly Budget | 180,000 DAI |
|Restock Inventory | 50,000 DAI |
| **Total** | **230,000 DAI** |

### Transfers

#### Core Unit Wallet Address

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

> **Note:** Multi-sig is TBD.
> Likely co-signers will be Nadia, Juan, and/or Deniz.

#### Initial Transfer

- **Amount:** 230,000 DAI
- **Description:** Up-front payment for the new quarterly budget.

#### DssVest Stream

- **Amount:** 540,000 DAI
- **Description:** Ongoing Core Unit Expenses
- **Address:** 0x955993Df48b0458A01cfB5fd7DF5F5DCa6443550
- **Start Date:** June 1, 2022
- **End Date:** March 15, 2023

---

## MKR Vesting

The Strategic Happiness Core Unit seeks to vest its members with MKR to further align incentives. However, the SHCU would first like to demonstrate its value to MakerDAO governance.

- MKR vest will use a non-standard cliff of 18 months. 
- If Maker is dissatisfied with the SHCU, they can unwind the core unit without penalty using the unwind at the 12-month mark.
- This cliff reduces the risk of the MKR plan while still providing performance-based retention terms.

Vesting is proposed as follows:

- **Andrew Burban:** 250 MKR

#### MKR Payment Implementation

- **Amount:** 250 MKR
- **Cliff:** 18 Months from approval date (May 23, 2022)
- **Addresses:** 0x955993Df48b0458A01cfB5fd7DF5F5DCa6443550
- **Start Date:** June 1, 2022
- **End Date:** June 1, 2026

---

### Related MIPs

- [MIP39c2-SP11: Strategic Happiness Core Unit](https://forum.makerdao.com/t/mip39c2-sp11-strategic-happiness-core-unit/8006)
- [MIP40c3-SP14: The Strategic Happiness Core Unit Budget, SH-001](https://forum.makerdao.com/t/mip40c3-sp14-the-strategic-happiness-core-unit-budget-sh-001/8007)
- [MIP41c4-SP11: Shitpost Facilitator Onboarding, Strategic Happiness Core Unit, SH-001](https://forum.makerdao.com/t/mip41c4-sp11-shitpost-facilitator-onboarding-strategic-happiness-core-unit-sh-001/8008)