Marketing quarterly run-rate for Gro marketing activities

Background and Summary

  • The Q1’22 marketing budget approved by Vote 7 has enabled Gro DAO to engage with various partners to spread the word about Gro protocol on social media and various outlets as laid out in the Q1 marketing spend summary.

  • Having gone through the product upgrades in Q1’22, Gro now has very competitive offers in the market (stablecoin yields at Vault are among the highest in DeFi on Ethereum mainnet). This lays a good foundation to drive top-of-funnel growth and increase marketing efficiency as measured by TVL growth.

  • This proposal suggests Gro DAO continue funding marketing spend to build brand awareness and acquire new users, while streamlining the budgeting process under DAO governance.

Vote 015: Allocate a Marketing quarterly run-rate for Gro marketing activities (131,000 Vesting GRO + 18,750 Liquid GRO + 192,250 USDC)

This vote proposes that Gro DAO allocates a quarterly run-rate of 131,000 Vesting GRO, 18,750 Liquid GRO, and 192,250 USDC to fund Gro’s marketing activities. These activities include Media/PR, content creation, sponsorship, community engagement (including OG), merch production, influencers, and partnership/referral bonus. This run-rate excludes funding for PWRD3CRV Curve gauge that has been covered in Vote 013.

Our proposed first quarterly marketing budget is each of:

  • 131,000 vesting (locked) GRO (~0.1% of community incentives)
  • 18,750 liquid (unlocked) GRO (~1% of treasury GRO currently available), and
  • 192,250 USDC (<1% of treasury)

The proposed amount in this vote is similar to what was requested by Vote 7 but skews away from USDC allocation to vesting GRO. This is driven by the learning that most DAO-to-DAO partnerships (e.g., LobsterDAO) are amenable to taking GRO rather than stablecoins.

In terms of implementation, Q1’22 marketing budget surplus also indicates that streamlining the process could reduce overhead while retaining transparency in the use of funds. This vote suggests the following:

  • Adopt a budget run-rate instead of a time-bound budget, where:
    • Budget is approved on a quarterly run-rate
    • Spend is reported to the DAO every 3 months (every quarter)
    • If spend is at the same level or below the level approved by the DAO i.e. there is no need for additional funding above the run-rate, the DAO will automatically fund the next quarters; DAO vote is only required in the case where additional funding above the run-rate is required
  • Separate the DAO Treasury and Marketing Operational wallets to clearly identify which spend items come from this budget
    • The approved run-rate will be transferred to the Marketing Operational wallet every quarter. All marketing spend will come out from that wallet (instead of directly from the DAO Treasury as in Q1)
    • Governance of this wallet will be under DAO contributor in marketing (currently Grwth Lbs) with a 2 out of 3 multi-sig structure for security purpose
    • At any point, the wallet would only have the equivalent of 2 quarters’ run-rate to control how much the Marketing Operational wallet would hold
    • Note that Vesting GRO will not be visible in the wallet and would instead be airdropped to recipients; this means that the Marketing Operational wallet would have 384,500 USDC and 37,500 liquid GRO at maximum
  • If funds in the Marketing Operational wallet runs out, DAO governance will be required to approve additional funds if they fall under these spend categories.

Risks of approving the proposal and steps to mitigate

Risk that there is insufficient funds in the Gro DAO Treasury due to other commitments

There are currently >$20mn assets in Gro Treasury; the quarterly run-rate amount accounts for <1% of all stablecoin and GRO assets. Gro tokenomics also allows for up to an additional 8mn Gro DAO tokens to be minted by the treasury if required. Combining the above, it is unlikely that other near term commitments would render it impossible to afford the quarterly marketing run-rate. In the event that there are not enough tokens of a particular type, the multi-sig can swap for or deposit to mint the required tokens.

Risk that the marketing run-rate is not spent according to the activities outlined above

Mitigated by the ability to clearly track movement of funds in a separate Marketing Operational wallet and the requirements to submit a quarterly spend report. The 2-out-of-3 multi-sig structure also helps safeguard DAO funds from any individual carelessness or malicious intent.

Next steps

After 7 days in the community forum, if there are no major unresolved objections or comments then the proposal will be posted as a vote at where it will remain live for a further 7 days.

We will use dedicated discord channels and the bi-monthly community call to discuss the proposal so that all DAO members are aware of the proposed changes and have the opportunity to consider and discuss ahead of voting.

Should we allocate a quarterly run-rate of 131,000 Vesting GRO + 18,750 Liquid GRO + 192,250 USDC from the DAO to fund marketing activities?

  • Yes
  • No

0 voters

Update: the proposal is put on hold while we work through Vault losses incurred due to UST depeg.