The ACI would like to propose feedback & an adjusted budget that will allow AGD to achieve a cost cut while still supporting the growth and development of the Aave ecosystem.
Intro & Cost-cutting
First of all, I would like to congratulate Bill on his new role as the lead of Aave Grants DAO (AGD). I am confident that he will bring valuable experience, leadership, and community engagement to the program.
We all understand that the current bear market has made it challenging to operate as usual, with the market being down 70-90%. In light of this, it is essential for AGD to be strategic in its spending and to focus on what will have the greatest impact on the ecosystem.
The next semester is also highly strategic for Aave as it’ll see the bloom of V3 on mainnet, GHO release & portals release, among other innovations. That is why this feedback & recommendations of cost-cutting is a “tame” scrooge McDuck and is unwilling to sacrifice the essential budget points.
I agree with the proposal’s recommendation to prioritize events and swag as efficient marketing tools. While it may be necessary to scale back on their quantity in the current market, it is essential to maintain the quality of these efforts in order to make the most impact.
Grants
the ACI does not support cutting any grant budget, with the release of V3, GHO & Portal during the period, every $ count.
While not all grants have shown results, the AGD has done a good job so far and probably outperformed the results of most Crypto VCs in terms of quality produced by $ attributed. 100% success is impossible to reach, and AGD has ACI support in its mission.
Events
With regards to specific events, the ACI is supportive of skipping EthDenver, as it may not be worth the investment at this time the Aave brand is well known in that audience, and money is better spent elsewhere.
Consensus, is simply a terrible conference with low quality on every front and not worth the three main currencies we have to allocate: Time, focus & money. The ACI recommends skipping it this year & forever.
That said, I agree with the proposal that EthGlobal, Istanbul, and the GHO virtual hackathon are good events to prioritize, as they align with the goals of V3 and GHO and provide opportunities for adoption and engagement.
Concerning the rAAVEs, they are incredibly efficient ways to support the Aave brand, but they’re a luxury and not quite fit for current market conditions.
The ACI recommendation is to limit rAAVEs to only the three main events in 2023 (Devcon, Ethcc, and Ethglobal devconnect) as it allows AGD to focus on the most impactful events while still maintaining a solid presence.
All other rAAVE should be killed or paid for by the Aave companies.
Here’s an proposed updated list of events with Aave’s presence
| Event | Date | Location | Initial presence | Updated presence | Proposed Budget | Justification |
|---|---|---|---|---|---|---|
| ETHDenver | March 2-5 | Denver | X | Removed due to high cost and low return on investment as Aave brand is already strong in the US and audience overlap Devcon, EthCC & Devconnect | ||
| ETHGlobal Asia | April 14-16 | Tokyo | X | X | $175,000 | Kept due to strategic importance for GHO adoption and strong Asian developer community |
| Consensus | April 26-28 | Austin | X | Removed due to low relevance for GHO and Aave ecosystem, Consensus is too generalist and low ROI event, should be avoided completely | ||
| ETHIstanbul | May 26-28 | Istanbul | X | X | $175,000 | Kept due to strategic importance for GHO adoption and strong developer community (Turkey is a big market for stablecoins & have strong devs) |
| rAAVE | TBD | TBD | X | Removed due to high cost and prioritization on 3 main events | ||
| GHO Hackathon | TBD - upon launch of GHO | Virtual | X | $150,000 | Added to kickstart development and adoption of GHO/V3/Portals | |
| Event Buffer | $98,651 | Buffer to adjust budget for any events | ||||
| Total Budget | $598,651 |
Compensation
the ACI does not support cutting any compensation for AGD team members. Fair work deserves fair pay, and it is essential to value and retain the talented individuals who are driving AGD’s success.
Others budgets
While some form of optimization can exist, the ACI is not particularly keen to cost cut in other budgets and have no specific recommendation for change.
Proposed revised budget
To achieve a cost cut, I suggest the following adjustments to the budget:
- Maintain the current budget for grants at $1,800,000
- Reduce the budget for events, sponsorships, etc. from $1,348,651 to $598,651
- Reduce the budget for Digital Marketing from $500,000 to $300,000 (good content creators should be supported in bear, but they need to adjust what they ask for to market conditions)
- Maintain other budgets points
I believe that these adjustments will allow AGD to continue to support the growth and development of the Aave ecosystem, while being mindful of the current market conditions and budget constraints.
Below is a full budget table outlining the proposed budget for the next two quarters:
| Item | Current Budget | Adjusted Budget | Comments on Adjustments |
|---|---|---|---|
| Grants | $1,800,000 | $1,800,000 | No change |
| Events, Sponsorships, etc. | $1,348,651 | $598,651 | Reduced by $750,000 to reflect market conditions and budget & Raave cuts |
| Digital Marketing | $500,000 | $300,000 | Reduced by $200,000 (sorry bankless & frens but you’ll survive this) |
| Compensation | $240,000 | $240,000 | No change |
| Maintenance | $20,000 | $20,000 | No change |
| Legal Buffer | $90,000 | $90,000 | No change |
| Total | $3,998,651 | $3,048,651 | Reduced by $950,000 to reflect market conditions and budget cuts |
I believe that the AGD proposal, with these adjustments, is a well-thought-out plan that will allow AGD to continue to drive growth and development within the Aave ecosystem, while being mindful of the current market conditions and budget constraints.
The ACI will be supportive of voting YAE on an adjusted budget.