<h1>
<a name="head-of-legal-and-general-counsel-proposal-1" href="#head-of-legal-and-general-counsel-proposal-1"></a>Head of Legal and General Counsel Proposal</h1>
<h2>
<a name="summary-2" href="#summary-2"></a><strong>Summary</strong>
</h2>
<p>A proposal to engage a Head of Legal and General Counsel for Lido, including proposed duties, compensation, and incentive awards.</p>
<h2>
<a name="motivation-3" href="#motivation-3"></a><strong>Motivation</strong>
</h2>
<p>The value in this role is time, cost, speed, and risk avoidance.</p>
<p>What was the legal landscape before is not now. The scope of Lido projects has broadened. The timing and criticality of the evolving legal landscape needs to be managed to avoid legal pitfalls and to establish sound operational strategies going forward. It will help make or break Lido’s long-term success by helping to see around corners from business and legal perspectives.</p>
<p>Having our own in-house contributor in this role will source all the best resources in the fastest time frame. No learning curve in finding the resources because the lawyer is embedded in operations, and a reduction in the cost of outside counsel. Under the compensation scheme this person will have vested interest in our success.</p>
<h2>
<a name="objectives-responsibilities-4" href="#objectives-responsibilities-4"></a><strong>Objectives &amp; Responsibilities</strong>
</h2>
<ul>
<li>Monitor and advise on areas that could have an impact on our business or legal strategy</li>
<li>Monitor and advise on disruptions in our industry that present opportunities or threats, and advise as to on how we should address them pro-actively</li>
<li>Advise as to how will we integrate what is new, into what we already have</li>
<li>Advise on approaches to meet our short and long-term objectives in the case of a dispute</li>
<li>Advise on what unintended consequences can result from our range of possible strategies and how could they affect us</li>
<li>Advise if there a better way to get to the right answer</li>
<li>Advise on what risks or implications Lido transactions create</li>
<li>Advise as to what failures are possible and how likely are they to happen</li>
<li>Advise generally on legal and business pitfalls</li>
<li>Lead and create opportunities for Lido</li>
<li>Play an active role in operational strategies</li>
<li>Build and maintain global relationships in commercial matters, corporate governance, employment, litigation, tax, intellectual property, compensation, structuring, regulation, compliance, and risk management</li>
<li>Build relationships and networks in the community, including visible influences in the DeFi space.</li>
<li>Be a thought leader in the legal domain to promote Lido.</li>
<li>Educate and work with project teams to maximize project outcomes.</li>
</ul>
<h2>
<a name="compensation-5" href="#compensation-5"></a><strong>Compensation</strong>
</h2>
<p>The proposed compensation for Head of Legal and General Counsel has two components:</p>
<ol>
<li>Cash compensation of $20,833.33 per month, payable in DAI from the Lido DAO.</li>
<li>Token options payable in LDO from the Lido DAO, structured to vest over three years. The option calculation is, as follows:</li>
</ol>
<p><strong>(Annual wage*k)/(120d LDO TWAP), where:</strong></p>
<ul>
<li>“k” - set at 2.5</li>
<li>120-day LDO TWAP is $1.75 at time of writing</li>
</ul>
<p>1/3 LDO will be vested on the 12-month anniversary of continuous service to the Lido DAO; and 1/36 LDO will be vested upon completion of each subsequent month of continuous service to the Lido DAO.</p>
<p>The service-based vesting outlined above represents a contingency for each of the described periods; thus, if the individual quits or is terminated before completing the first 12 months of service, they would have earned no LDO. If they quit or terminated during month 13, they would have earned 1/3rd of the total possible LDO but would not have earned the rest of their potential LDO grant. There are no further lockups on fully vested LDO (i.e., once they vest in some # of LDO, they can sell that # of LDO at any time).</p>
<h2>
<a name="probation-period-6" href="#probation-period-6"></a>Probation Period</h2>
<p>The probation period is <strong>3 month</strong> starting from the date of proposal acceptance.</p>

Head of Legal and General Counsel Proposal 
  Head of Legal and General Counsel Proposal 
 
   Summary

Head of Legal and General Counsel Proposal

<h1>
<a name="lido-dao-core-contributors-provisional-budget-1" href="#lido-dao-core-contributors-provisional-budget-1"></a>Lido DAO Core Contributors Provisional Budget</h1>
<p>A discussion has been ongoing since the beginning of June 2022 for the Lido DAO to diversify its treasury to secure runway for 1-2 years in the form of stablecoins so that the project’s current R&amp;D and business functions can continue to operate regardless of macroeconomic conditions. This post aims to inform the Lido DAO and community on the overall compensation &amp; operational cost of Lido’s core contributors across its total of 20 core contributor workstreams, not just the 3 currently funded by the <a href="https://research.lido.fi/t/proposal-to-form-resourcing-and-compensation-committee-rcc/1767">RCC <span>35</span></a>.</p>
<p>Workstreams will be consolidated together to form core units, underpinned by a to-be-developed core unit framework.</p>
<h3>
<a name="call-to-action-2" href="#call-to-action-2"></a>Call to Action</h3>
<ul>
<li>Discuss treasury diversification, then based on feedback, proceed with appropriate proposal</li>
<li>Work with community to develop holistic financial model for Lido DAO</li>
</ul>
<h2>
<a name="context-3" href="#context-3"></a>Context</h2>
<p>As a Decentralized Autonomous Organization (DAO), the Lido DAO is a sprawling, unusual, yet new kind of organization that faces its own set of complications that needs to be solved to make sure Lido maintains its position as a market leader in the Liquid Staking (LS) market.</p>
<p>There are currently about 75 full-time contributors contributing to the Lido DAO.</p>
<p>While the Lido DAO has been directly funding compensation and operational expenditure for 4 out of 20 core contributor contributor workstreams (Business Development, Node Operator Management, Marketing, and 1 Advisor when cliff/vesting permits) currently compensating the workload and operational expenditure for 11 full-time contributors via the Resourcing and Compensation Committee (RCC) formed in the beginning of Q2 2022, the Lido DAO has not had to realize the cost of 16 out of 20 total workstreams actively contributing to the Lido DAO as core contributors.</p>
<p>*3 workstreams (Finance, InfoSec, and Product Management) are being formed and currently have no active personnel; in this budget, InfoSec and Product Management will hire no personnel.</p>
<h2>
<a name="budget-4" href="#budget-4"></a>Budget</h2>
<p>The table below gives a provisional depiction of the total cost of each workstream (WS), headcounts, and operational expenditure for the entire set of Lido core full-time contributors (FTCs) at our current headcount plus those being onboarded, and general trajectory.</p>
<p></p><div><a href="https://europe1.discourse-cdn.com/business20/uploads/lido/original/2X/d/d55310b11662936e66ec994f68227064b37016e3.png"><div>
<span>image</span><span>693×638 19.6 KB</span>
</div></a></div><p></p>
<p><em>Static Google sheet found <a href="https://docs.google.com/spreadsheets/d/1dSFTSxWAPHz48jMMd1yqlcMZsdPHSFwd1_m9CwXHRSQ/edit?usp=sharing">here <span>179</span></a>.</em></p>
<p>We’re still pending a few potential inputs and checks from teams, so there may be slight updates by the end of the week, though it is expected that they will not be significant. Any updates/edits will be clearly noted in a response, with the original post edited.</p>
<h3>
<a name="ldo-long-term-incentive-lti-calculation-5" href="#ldo-long-term-incentive-lti-calculation-5"></a>LDO Long-Term Incentive (LTI) Calculation</h3>
<ul>
<li>
<strong>[ [ (Base ANNUAL Compensation) * (K-COEFFICIENT) ] / LDO 30D TWAP PRICE ] / LDO VESTING PERIOD (YRS)</strong>
<ul>
<li>Founding team members/developers opt out of LDO LTI in this budget; this is for those onboarded after genesis, so calculation can’t be applied straight to department base comps per se.</li>
<li>LDO 30D TWAP on 07/10/2022 was $0.588681</li>
<li>K-COEFFICIENT for engineering teams is set at 2, for business teams at 1 with some given up to 1.75.</li>
<li>LDO VESTING PERIOD is a 1 year cliff with 3 year total sequential monthly vesting.</li>
</ul>
</li>
<li>LDO LTI has begun for those under the RCC now from workstreams in lines 1, 2, and 3, though a separate change to some of those LTI schemes will be included in the RCC-2 proposal for Q3-2022 coming soon; for the rest, they will begin after the budget is enacted into motion via Core Unit Framework.</li>
</ul>
<h3>
<a name="ws-node-operator-management-6" href="#ws-node-operator-management-6"></a>WS: Node Operator Management</h3>
<p>The Node Operator Management team guides Lido’s strategy and operations regarding validators and node operators. It facilitates the processes of operator onboarding, evaluation, and continuous monitoring, and regularly updates the DAO on the performance of Lido’s operator sets. From a protocol evolution perspective, it works together with the technical Lido teams identify and implement the path for Lido to grow into a maximally decentralized, trustless, and permissionless state across various proof-of-stake protocols.</p>
<h3>
<a name="ws-business-development-7" href="#ws-business-development-7"></a>WS: Business Development</h3>
<p>The Business Development unit works to expand the penetration of Lido’s staked assets across the Decentralized Finance ecosystem through integrations business development, tactical initiatives that increase Lido’s network effects and increase Lido’s staked capital base, protocol expansion, tradfi/CEX integrations, and generally maintaining relationships with partners and community stakeholders on an ongoing basis.</p>
<h3>
<a name="ws-marketing-8" href="#ws-marketing-8"></a>WS: Marketing</h3>
<p>The Marketing unit works across the entire spectrum of Lido’s marketing, community, and public relations presence. This includes organizing and delivering on event / conference participation and themes (i.e., ETH Amsterdam, ETH Barcelona, EthCC), sponsorships that expand awareness and usage of Lido’s products, management of Lido’s community, general public relations with crypto, traditional, financial, and technology press, marketing agencies, and overall big picture strategic marketing projects aimed at supporting the execution of Lido staked asset penetration and staked capital base growth accordingly in the fast, rapidly moving crypto space.</p>
<h3>
<a name="ws-lido-on-ethereum-protocol-engineering-9" href="#ws-lido-on-ethereum-protocol-engineering-9"></a>WS: Lido on Ethereum Protocol Engineering</h3>
<p>Lido on Ethereum Protocol Engineering is a team that develops Ethereum liquid staking protocol and focuses primarily on specs and smart contracts development. The unit consists of solidity/vyper devs and full-stack devs with a frontend/solidity focus.</p>
<h3>
<a name="ws-on-chain-operations-10" href="#ws-on-chain-operations-10"></a>WS: On-Chain Operations</h3>
<p>The team’s role is handling DAO on-chain operations: preparing, launching, and coordinating on-chain and snapshot votings, developing requirements for new governance primitives, multi-sigs management, due diligence of smart contracts related to Lido DAO operations, and coordinating protocol upgrades.</p>
<h3>
<a name="ws-ui-11" href="#ws-ui-11"></a>WS: UI</h3>
<p>The UI team builds user interfaces for staking with Lido and helps different protocol teams with widget development. The UI team is also in charge of UI Kit, Wallet Kit, and all the Lido landing pages.</p>
<h3>
<a name="ws-tooling-12" href="#ws-tooling-12"></a>WS: Tooling</h3>
<p>The tooling team focuses on developing oracles, bots, and APIs for Lido on Ethereum protocol. On top of that, the team is launching and maintaining Lido ethereum testnet deployments which are used as an environment for app testing and node operator onboarding.</p>
<h3>
<a name="ws-qa-testing-13" href="#ws-qa-testing-13"></a>WS: QA Testing</h3>
<p>The QA team is responsible for assessing UI apps to ensure quality standards are met. The team works on new features alongside devs, starting from reviewing requirements to building automated acceptance tests. At Lido, the QA team also owns the release management lifecycle, which includes coordination of devs, product managers and DevOps.</p>
<h3>
<a name="ws-integrations-14" href="#ws-integrations-14"></a>WS: Integrations</h3>
<p>The team focus is stETH token integration to DeFi protocols, technical support of the liquidity mining program, and maintaining the integration guide for protocols, wallets, and exchanges.</p>
<h3>
<a name="ws-devops-15" href="#ws-devops-15"></a>WS: DevOps</h3>
<p>DevOps team is responsible for delivering off-chain apps and updates, ensuring uptime for all services (such as staking widgets, oracles, and APIs), perform infrastructure management and incident handling.</p>
<h3>
<a name="ws-automation-16" href="#ws-automation-16"></a>WS: Automation</h3>
<p>The automation team is wearing two hats: SDET with a focus on oracle and bot automated testing in favor of different Lido-on-X teams and automation engineers with on-chain monitoring, alerting, and anomaly detection focus.</p>
<h3>
<a name="ws-analytics-17" href="#ws-analytics-17"></a>WS: Analytics</h3>
<p>Analytics is a team that helps DAO to make data-driven decisions. The team primarily focuses on collecting and analyzing on-chain data to uncover product and operational insights.</p>
<h3>
<a name="ws-ecosystem-support-18" href="#ws-ecosystem-support-18"></a>WS: Ecosystem Support</h3>
<p>The team focuses on supporting contributors who help improve Lido and the surrounding staking ecosystem by providing grants and enhancing communication between different Lido-on-X teams.</p>
<h3>
<a name="ws-hr-19" href="#ws-hr-19"></a>WS: HR</h3>
<p>The HR unit manages all aspects of contributor relationship management / well-being / satisfaction, onboarding/offboarding procedures, hiring &amp; layoffs, and generally supporting and empowering Lido’s most valuable asset - its human capital.</p>
<h3>
<a name="ws-legal-operations-20" href="#ws-legal-operations-20"></a>WS: Legal &amp; Operations</h3>
<p>The Legal &amp; Operations unit focuses on developing suitable structure that can shape-shift and conform to Lido’s nature as a sprawling DAO, building out suitable, effective internal procedures that ensure efficiency and delivery of complex projects, and supporting all other units in execution of their objectives and key results.</p>
<h3>
<a name="ws-infosec-21" href="#ws-infosec-21"></a>WS: InfoSec</h3>
<p>The Information Security workstream will protect sensitive Lido internal contributor information and accounts from unauthorized activities, including inspection, modification, recording, and any disruption or destruction. The goal is to ensure the safety and privacy of critical data such as customer account details, financial data or intellectual property. InfoSec will own the process of account onboard/offboarding end-to-end and ensure safe and secure use at all times.</p>
<h3>
<a name="ws-product-management-22" href="#ws-product-management-22"></a>WS: Product Management</h3>
<p>The Lido Product Management workstream will work on the business process of planning, developing, launching, and managing Lido products and services, with the aim of facilitating between business and technical workstreams to improve user experience, build a more robust product workflow and user story, as the Lido protocol and brand expands the penetration of stAssets across DeFi and launches the Lido protocol on new blockchains.</p>
<h3>
<a name="ws-finance-23" href="#ws-finance-23"></a>WS: Finance</h3>
<p>The Finance unit, currently without any personnel and actively seeking out a Head of Finance to source the Lido community’s existing established talent, will work to actively analyze and report on Lido’s overall finances, including all grants, operational expenditure, and more, and reconcile that with Lido’s incomes to develop sustainable financing plans for the project at large.</p>
<h3>
<a name="opex-general-24" href="#opex-general-24"></a>OpEx: General</h3>
<p>A team of 80 requires a healthy amount of Operational Expenditure annually to account for expenses taking into account the nature of the contributors working on Lido. This includes: Legal advice on working for a DAO for contributors, anticipated legal costs, reimbursements for multisig executions &amp; other gas costs, recruiting/referral/sign-on bonus (only applicable in the optimistic scenario), contingency, SaaS / Cloud / etc, travel / team offsites (an important one to maintain team morale amidst volatility, and english studies to ensure integration of pristine local talent with our global contributor base. The OpEx is generally the same as that passed in the RCC proposal, but covers a greater magnitude of contributors.</p>
<h3>
<a name="opex-emergency-relief-25" href="#opex-emergency-relief-25"></a>OpEx: Emergency Relief</h3>
<p>The Emergency Relief Fund will be used to support Lido contributors who face financial hardships due to natural disasters, federal emergencies, or personal hardships.</p>
<h3>
<a name="opex-eth-audits-26" href="#opex-eth-audits-26"></a>OpEx: Eth Audits</h3>
<p>All Lido protocol upgrades and new releases should be audited by the industry-leaders in blockchain security. Lido team is constantly working on improving the protocol, so at least one audit every month is required, and in the case of significant releases, two or three are required.</p>
<h3>
<a name="opex-eth-bug-bounties-27" href="#opex-eth-bug-bounties-27"></a>OpEx: Eth Bug Bounties</h3>
<p>Lido works with <a href="http://immunefi.com/">immunefi.com <span>4</span></a> as a bug bounty platform. The bug bounty is an important part of Lido security which incentivize security researchers to submit vulnerabilities to Lido instead of black market. The program covers its smart contracts and apps and focuses on preventing loss of user funds, denial of service, governance hijacks, data breaches, and data leaks.</p>
<h3>
<a name="opex-marketing-expenditure-28" href="#opex-marketing-expenditure-28"></a>OpEx: Marketing Expenditure</h3>
<p>Lido needs to lean hard into its early mover advantage by investing heavily in brand strategy and development, content creation and event sponsorship opportunities. At the same time as standing up an expanded marketing function, we will be looking to improve our efficiency of spend and find scalable repeatable actions that drive measurable results. This figure is slightly reduced from the $1.8M budgeted in the RCC, taking into account market conditions.</p>

Lido DAO Core Contributors Provisional Budget 
  Lido DAO Core Contributors Provisional Budget 
 A discussion has

Lido DAO Core Contributors Provisional Budget

<h1>
<a name="introduction-1" href="#introduction-1"></a>Introduction</h1>
<p>The Resourcing and Compensation Committee (RCC) was formed during the month of March after a successful vote for the RCC completed by the <a href="https://snapshot.org/#/lido-snapshot.eth/proposal/0x008ce8f95382c70216820a39d717c6b494348aa474917b6351819af527bc2a54">Lido DAO via Snapshot <span>18</span></a>. The RCC shall operationally consist of a multi-signature wallet with signers, thresholds, and future plans for the wallet outlined in the successful RCC budget proposal document found <a href="https://research.lido.fi/t/proposal-to-form-resourcing-and-compensation-committee-rcc/1767">here <span>29</span></a>.</p>
<p>The three main departments that the RCC shall comprise of and exist to fund, to start, includes the <strong>Node Operator Management (NOM) department</strong> led by the DAO’s official Master of Validators, the <strong>Business Development (BD) department</strong> led by the DAO’s official Head of Business Development, and the <strong>Marketing and Community (MKTNG) department</strong> led by the DAO’s official Head of Marketing and Community. The RCC shall exist to offer these department heads relief of blockers that have slowed down and in some ways prohibited them from executing upon their Objectives and Key Results (OKRs) for 2022. These departments shall make requests to multisignature signers and overseers to the RCC (which will expand and grow in due course).</p>
<h3>
<a name="budget-considerations-2" href="#budget-considerations-2"></a>Budget Considerations</h3>
<p>This budget was designed to ask for too much budget and not spend it, rather than ask for too little and need constant topping up. This budget makes consideration towards resourcing and compensation for an anticipated total of 15 full-time employees (FTEs), however, currently, we sit at 3 official FTEs across our three departments; four persons have joined the BD unit and one will soon be joining the NOM unit. All of these incoming, confirmed FTEs are awaiting the successful implementation of the RCC to come on payroll and begin work on an official basis.</p>
<p>At the current stage of growth for the Lido protocol, being blocked by a lack of capital would be a careless and unnecessary mistake. There is a limited time-window to execute on the opportunities at hand before the market becomes crowded with well-capitalized competitors. Given the amount of time it will take to hire the right people and set up internal processes, it is unlikely that the RCC will spend all of the proposed budget in its first year. Any budget not spent would either be rolled forward into the next budget period, or returned to the DAO treasury if no further budgets are approved. Subsequent budget requests will have much better calibration with actual expenses incurred.</p>
<p>The following considerations have been taken into account when building the proposed budget:</p>
<ul>
<li>A competitive salary in-line with industry standards.</li>
<li>A competitive benefits package in-line with industry standards.</li>
<li>The RCC will need to find and hire exceptional talent rapidly in order to scale quickly enough to meet the needs of its mandate. To this end, a large pool of capital has been allocated for recruiting, referrals, and sign-on bonuses.</li>
<li>A high travel budget, in order to fund attending crypto conferences and team off-sites which are critical for remote teams to build interpersonal relationships, which are vital for collaboration and retention.</li>
<li>A healthy contingency in case budget estimates are significantly off.</li>
</ul>
<h3>
<a name="budget-3" href="#budget-3"></a>Budget</h3>
<p>The yearly budget request for the RCC is $5,368,568.84*, comprised of both USD OpEx/compensation/marketing expense as well as LDO token grants. This equates to a $447,380.74 monthly expense to support the teams.</p>
<p>This budget secures a team of 15 full-time employees as well as covers all operational costs listed below.</p>
<p>At the end of the calendar year, any budget not spent would either be rolled forward into the next budget period, or returned to the DAO treasury if no further budgets are approved. Should the RCC shut down, all unused funds will be returned to the DAO immediately.</p>
<p>*The commission structure for BD is not included in the budget as it is highly variable and will be handled separately. We will be detailing the process for tracking prior to the first commission payout. The scope of the Business Development commission process is outside that of the RCC and this proposal.</p>
<h3>
<a name="operational-procedure-4" href="#operational-procedure-4"></a>Operational Procedure</h3>
<p>The figures provided in the table below factor in token grants that are provided as part of compensation packages to employees. However, due to the 1-year cliff incorporated into token vesting schedules, within this 3-month budget period there will be 0 LDO vesting, so the RCC will not be asking for any LDO and the total amount requested will be lower.</p>
<p>The RCC will need $1,057,755.00 to fulfill its need within this 3-month budget period. Of this, $22,500 will be used to cover gas costs related to multisig signature transactions and currency swaps. We propose that the Lido DAO withdraws the equivalent of $1,057,755.00 in stETH held in the Lido DAO treasury to the RCC multisig wallet, and that the RCC multisig wallet sells this stETH for DAI to secure the RCC’s 3-month budget. For the remaining $22,500 required for gas reimbursements, the RCC shall instead swap this equivalent amount in stETH to ETH and store the ETH as-is as a gas reimbursement reserve.</p>
<p>If this proposal is passed via Snapshot, a proposal to withdraw an amount of stETH shall be made via Aragon with a 5% premium to account for potential slippage and/or price fluctuations.</p>
<h3>
<a name="annual-budget-5" href="#annual-budget-5"></a><strong>Annual Budget</strong>
</h3>
<div>
<table>
<thead>
<tr>
<th></th>
<th>Annual</th>
<th>Monthly</th>
<th>Quarterly (Budget Period)</th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Total budget (USD)</strong></td>
<td><strong>5,368,568.84</strong></td>
<td><strong>447,380.74</strong></td>
<td><strong>1,342,142.21</strong></td>
</tr>
<tr>
<td>Anticipated Number of FTEs</td>
<td>15.00</td>
<td></td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><strong>Base comp (USD)</strong></td>
<td><strong>1,811,520.00</strong></td>
<td><strong>150,960.00</strong></td>
<td><strong>452,880.00</strong></td>
</tr>
<tr>
<td><em>NOM (USD)</em></td>
<td><em>566,520.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>BD (USD)</em></td>
<td><em>795,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>MKTNG (USD)</em></td>
<td><em>450,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><strong>Token comp, normalized (LDO)</strong></td>
<td><strong>362,865.38</strong></td>
<td><strong>30,238.78</strong></td>
<td><strong>90,716.35</strong></td>
</tr>
<tr>
<td><em>NOM (LDO)</em></td>
<td><em>111,217.45</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>BD (LDO)</em></td>
<td><em>156,761.32</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>MKTNG (LDO)</em></td>
<td><em>94,886.61</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><strong>15 FTEs Total OpEx (USD)</strong></td>
<td><strong>232,500.00</strong></td>
<td><strong>19,375.00</strong></td>
<td><strong>58,125.00</strong></td>
</tr>
<tr>
<td><em>Hardware; laptops, phones, etc; one-time (USD)</em></td>
<td><em>45,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Software / Subscriptions (USD)</em></td>
<td><em>22,500.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Continuous Education (USD)</em></td>
<td><em>37,500.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Travel &amp; Expenses; ~2-3 trips / yr (USD)</em></td>
<td><em>75,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Gas reimbursements (USD)</em></td>
<td><em>7,500.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Legal costs / reimbursements (USD)</em></td>
<td><em>37,500.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Miscellaneous (USD)</em></td>
<td><em>7,500.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><strong>Departments Total OpEx (USD)</strong></td>
<td><strong>327,000.00</strong></td>
<td><strong>27,250.00</strong></td>
<td><strong>81,750.00</strong></td>
</tr>
<tr>
<td><em>Legal costs (USD)</em></td>
<td><em>47,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Operations &amp; Gas Costs (USD)</em></td>
<td><em>15,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Recruiting/Referral/Sign-On Bonus (USD)</em></td>
<td><em>150,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Contingency (USD)</em></td>
<td><em>45,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Team off-site (USD)</em></td>
<td><em>70,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td><strong>Marketing Expenditure (USD)</strong></td>
<td><strong>1,860,000.00</strong></td>
<td><strong>155,000.00</strong></td>
<td><strong>465,000.00</strong></td>
</tr>
<tr>
<td><em>Sponsorships and Advertising (USD)</em></td>
<td><em>1,000,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Events (USD)</em></td>
<td><em>400,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Marketing Agency Support (USD)</em></td>
<td><em>200,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>PR Agency (USD)</em></td>
<td><em>180,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>NOM &amp; BD Department Marketing (USD)</em></td>
<td><em>10,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Merchandise Production (USD)</em></td>
<td><em>50,000.00</em></td>
<td></td>
<td></td>
</tr>
<tr>
<td><em>Localization (USD)</em></td>
<td><em>20,000.00</em></td>
<td></td>
<td></td>
</tr>
</tbody>
</table>
</div><p>A more detailed budget breakdown is maintained internally by Lido contributors.</p>
<h3>
<a name="budget-details-6" href="#budget-details-6"></a>Budget Details</h3>
<p><strong>Compensation</strong><br />
The node operator, business development and marketing team are seeking to grow by 3 members  (8 unofficial) to 15 total to meet the growing needs of Lido.</p>
<p>*For purposes of forecasting a budget only, token grants assume an LDO 30d TWAP of $3.13 ****as of 04/04/2022. No token grants will be needed within the 3mo budget period, and actual token grants required within budgets will be higher than the normalized LDO amount outlined in the budget to account for prior LDO token cliffs for longer-time employees. Many contributors Token grant calculation formula is outlined in other hiring proposals for the DAO; for certain employees who have joined recently, the LDO TWAP used in their token grant calculation will differ slightly from the number used in this document.</p>
<p><strong>Recruiting/Referral/Sign-On Bonus</strong><br />
Recruiters are going to be critical for discovering talent, and commission for successful hires is often high, especially for more senior roles. We also want to have flexibility with offering significant sign-on bonuses to top candidates. Keep in mind many of these are one-time costs. We will also be looking to the Lido community for self selecting candidates.</p>
<p><strong>Travel</strong><br />
Conferences and team off sites are going to be critical for Lido in fostering relationships and generating trust in the community. These are vital qualities in a culture that improves collaboration, productivity, and retention.</p>
<p>Conferences in particular also serve a multitude of purposes. DAO members are educated about new developments in the industry, and can apply that knowledge within the RCC and the rest of the DAO. They also are a way for the members to present seminars, giving visibility to potential customers and attracting new talent. Additionally, they serve as hotspots which can be used to connect with potential clients in a much more personal (read effective) manner.</p>
<p>This budget would cover logistics, travel, room, board, team-activities, and conference passes.</p>
<p><strong>Legal</strong><br />
Coverage for legal costs including entity creation, legal officer/company insurance, as well as monthly and annual financial reporting. This will be highly variable depending on a member’s legal jurisdiction.</p>
<p><strong>Operations and Expenses</strong><br />
General operational overhead including reimbursement for expenses related to the role. This will include things such as gas costs for transaction signing and for currency swaps as different third-parties have different requirements.</p>
<p><strong>Tools/Services/Devices/Software</strong><br />
New team members will be provided with licenses for essential productivity software as well as equipment, if necessary to complete their roles.</p>
<p><strong>Contingency</strong><br />
With the pace of change and many unknowns as a new protocol, it is important to account for unexpected costs that arise or prepare for estimates that are off in any particular category. The contingency represents 5% of the total budget and is there to act as a safety buffer.</p>
<p><strong>Marketing Expenditure</strong></p>
<p>Lido needs to lean hard into its early mover advantage by investing heavily in brand strategy and development, content creation and event sponsorship opportunities.   At the same time as standing up an expanded marketing function, we will be looking to improve our efficiency of spend and find scalable repeatable actions that drive measurable results.</p>
<h3>
<a name="budget-distribution-7" href="#budget-distribution-7"></a><strong>Budget Distribution</strong>
</h3>
<p>The budget is to be distributed on a quarterly (every 3 months) basis to the RCC, which will be an instance of a Gnosis Safe multi-sig. To start, the multisig has a 3/6 threshold (see below). This ensures that no rogue member is able to control the funds. The goal is to quickly expand with community members to a 4/7 to increase security.</p>
<p><strong>Details:</strong></p>
<ul>
<li>RCC Multisig - 0xDE06d17Db9295Fa8c4082D4f73Ff81592A3aC437</li>
<li>Designated Contact: TG - @<strong>jbeezy1</strong>
</li>
<li>Quorum - 3/6 to start, transition to a higher threshold with community oversight</li>
</ul>
<p><strong>Proposed initial signers</strong></p>
<ul>
<li>Jbeezy from Lido, Business Development Lead
<ul>
<li>address: 0x039bDD285d3eDb1D9B6001d3097067Aa2AF7d826</li>
</ul>
</li>
<li>Izzy from Lido, Master of Validators
<ul>
<li>address: 0x783EA934d543CD1ccfd920639A7539a0BD3895e2</li>
</ul>
</li>
<li>Kadmil from Lido, Technical manager for the DAO
<ul>
<li>address: 0x9A3f38AF97b791C85c043D46a64f56f87E0283D4</li>
</ul>
</li>
<li>Aurelius from Lido, Operational Manager Candidate
<ul>
<li>address: 0x7A29c1197962D1b42FcfA8095fA1dF66E489fCd6</li>
</ul>
</li>
<li>AD from Lido, Marketing Lead
<ul>
<li>address: 0x0d22e69ce47818c3524Fe952e8De7AF78cC3C43b</li>
</ul>
</li>
<li>Zuzu_eeka, DAO Ops Manager [NEW ADDITION]
<ul>
<li>address: 0x004812da927b5dcd07e7329609edd75e25d2d295</li>
</ul>
</li>
</ul>
<h3>
<a name="continuous-operation-8" href="#continuous-operation-8"></a>Continuous Operation</h3>
<p>The reasoning behind 3 month lump distributions is to ensure continuous operations in the event of any extreme circumstances as well as providing a level of guarantee to new members that barring performance issues they will be paid and on time.</p>
<p>Note that this multisig is not controlled by Lido Governance but rather exclusively by the committee managers and overseers. This is intentional to protect the funds in an event of a governance attack. Governance can use a failsafe option to claw these funds back through a consensus of the overseers.</p>
<h3>
<a name="defining-leadership-oversight-team-9" href="#defining-leadership-oversight-team-9"></a><strong>Defining Leadership &amp; Oversight Team</strong>
</h3>
<p>The RCC shall also define a leadership &amp; oversight team that participates in the process of voting and achieving social consensus on a token grant multiplier (k), as part of a new 3-year vested token grant option calculation that will be used in the compensation structure for future role proposals and contributor hires. The formula and details of the token grant multiplier will be detailed in role proposals themselves. The RCC’s Leadership &amp; Oversight Team shall consist of:</p>
<ul>
<li>Isidoros Passadis, Master of Validators</li>
<li>Jacob Blish, Business Development Lead</li>
<li>Vasiliy Shapovalov, founding member of Lido</li>
<li>Konstantin Lomashuk, founding member of Lido</li>
</ul>
<h3>
<a name="benefits-to-lido-10" href="#benefits-to-lido-10"></a>Benefits to Lido</h3>
<ul>
<li>Streamline the onboarding and operational process of bringing onboard new full time members</li>
<li>Increase transparency about efficiency of the hiring process and use of funds</li>
<li>Lower the operating overhead for initiating new teams in the future</li>
<li>Allow flexibility to try new decentralized governance methods</li>
<li>Increase community feedback</li>
</ul>

Head of Legal and General Counsel Proposal

Lido DAO Core Contributors Provisional Budget

[RCC-1] Apr 1, 2022 - June 30, 2022 Budget Request

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