Please treat below draft proposal as an invitation to discussion and brainstorming.
Note. Concerns about negative impact on GRC exchange rate regarding use of foundation fund. These concerns are exaggerated.
- First, part of the payments would be sent directly in GRC and developers etc. who have faith in the project would not dump all coins on exchanges.
- Second and more important - wisely spent funds by team investors have faith in on clearly defined projects have POSITIVE impact on exchange rate. Examples: Stellar, Neo and Dash each have reached market capitalization close to $10B USD.
- Third, markets love to know future and would receive this knowledge in the form of budget planning - they would accept and adapt immediately.
Blockchain territory is a very dynamic area and nothing can be taken for granted. Today’s outsider can become tomorrows leader and vice-versa. There are several projects in distributed computing realm that have in disposal dozens of millions of dollars allocated to blockchain development and marketing. If we start a serious discussion now and prepare proper policies, we could start the first proper budget year in April 2018.
I have created a simulation in a spreadsheet with budget based on the following assumptions.
Budget year starts on 6th April.
- Current fund = 37 M GRC
- First year budget = 7.2 M GRC
- Next year budget = 20 per cent of the GRC value held on 1st April.
- Additional 5 % possible to spend in case of emergency (i.e. exchange rate dives during the year)
- Fund income: interest = 1.5% + 1 million from tax
- 2018 average exchange rate 1GRC = 0.2USD
- GRC is rising 20% a year (this is rather unrealistic, but used for general feel of the coming years in this draft)
Budget is divided between:
- development fund (30%)
- science support fund (40%)
- miscellaneous – marketing, legal, side projects … (30%)
Where possible, payments would be in GRC.
With the above assumptions total budget for this year would allow to pay at least 5 full time developers (at the rate of $50 USD / h - in total close to half a million USD) and around $0.5M could be spent on each of the other two sub-funds (science and miscellaneous). After 10 years foundation fund would still held ~10 million GRC, thus proposed model is sustainable.