As a relatively new participant in the governance forum, we may have missed prior discussions that address some of the questions below. We’d appreciate if the proposal could be updated with relevant references for completeness and ease of comparison.
Budget Granularity
The budget is broken down into broad categories with a split between G&A and R&D. However, additional granularity on specific budget items (e.g., activities within R&D and Support, legal and compliance, audits, outsourcing, training, etc.) would provide better benchmarking and comparative analysis.
- How does this budget compare to other (staking) providers?
- What are the key increases or decreases compared to previous years?
- Are there specific cost drivers that have led to significant budget changes?
Outcome Measurement
The proposal outlines broad objectives—such as Lido v3 implementation, dual governance, security improvements, and research—but many of the KPIs are open-ended and lack clear, measurable success metrics.
For instance:
- How will the success of validator set expansion be measured? Will it be based on the number of new operators onboarded or decentralization metrics?
- What specific milestones or benchmarks will be used to track progress?
- Consider rewriting KPIs into a OKR format at least into a impact and measurable format
Greater clarity on these KPIs would improve accountability and help assess the proposal’s impact over time.
Sustainability & Forecasting
Has the budget factored in recent market conditions? Treasury assets and revenue have declined significantly with the market cooldown over the past month. While many initiatives aim to enhance long-term sustainability, understanding how budget allocations were prioritized and whether the plan is financially viable under current conditions would be helpful.
- How does this budget compare to prior years’ requests?
- How much of last year’s budget was utilized, and were there unspent funds?
- Has contingency planning been considered? For example, if market conditions worsen, would this budget constrain other initiatives?
Incentives & Accountability
It may be worth considering performance-based spending unlocks on a quarterly basis. This approach would:
- Ensure funds are allocated to high-impact initiatives.
- Allow for adjustments based on delays or evolving market conditions.
- Hold contributors accountable for progress, timeliness, and stakeholder engagement.