[AIP-61] Proposal for Aura Foundation Funding 2024

Proposals
1

Author

0xsmtg

Summary

Aura Foundation (Cayman Islands) and its subsidiary Endpoint Limited (BVI) were established for the purpose of, among other things, fostering the research, development, extension, use and adoption of Aura Finance Protocol. This support involves carrying out off-chain operations such as engaging service providers (i.e. auditing firms and business and software development service providers) who require traditional contracts.

As an independent non-profit foundation, the Aura Foundation’s stated objective is to foster the research & development of the Aura Finance Protocol, and to provide assistance as mandated by Aura DAO resolutions.

The Foundation was originally funded with 300k AURA to cover 2022 & 2023 - more specifics on the funding and detail about the Foundation can be found on the original funding resolution.

This proposal requests a further grant to cover the estimated costs of operations for 2024.

Aura Foundation Overview

Overview, Change of Director and proposed Budget 2024-2025

Aura Foundation helps with development, maintenance, education, and other necessary activities on behalf of the Aura Protocol, as mandated by Aura DAO resolutions. Aura Foundation does so by also engaging service providers off-chain (such as auditing firms and software development companies).

Over the past 18 months, the Foundation has managed the original grant frugally, accordingly with budget, and with ~$4,508 USDC and ~12,100 AURA remaining.

This proposal seeks to sufficiently fund the Aura Foundation to allow it to fulfill its purpose. Actual costs in 2023 summed to be $295,527 (inclusive of fiat payment to traditional off chain contractors). The budget below provides an estimation of core costs for 2024, exclusive of any further developments (distinct engagements that may require off-chain fiat payments can be funded through individual AIPs).

Foundation’s personnel changes

Aura Foundation is looking to improve and decentralize. As such, it is proposed that Michael Robinson of Horizons Global step in as the Foundation’s new director. Mike has 10 years of experience working in the digital asset field in the Cayman Islands as a senior attorney. Current corporate & directorship service provider Zedra shall retain its remaining roles including as Supervisor and Secretary.

Mike’s specialized knowledge in the fast evolving landscape of digital assets regulation would allow the Aura ecosystem to continue to expand in an optimally compliant manner. In addition to improving corporate governance by separating the Supervisor and Director roles, Mike’s firm Horizon’s Global works closely with Aura’s U.S. legal counsel Horizons Law & Consulting Group. This will help streamline procedures related to the Aura Foundation.

Finally, the Foundation has amended and restated it’s memorandum and articles of association such that the Advisory Committee has ceased to exist, and instead the Foundation shall be managed by DAO resolutions in accordance with its amended and restated it’s memorandum and articles of association

Foundation Expenses

The current estimated expenses for Aura Foundation and its BVI Subsidiary include costs through the end of 2024 and include ongoing compliance and regulatory fees, legal costs, and hosting & development expenses, among other costs.

Aura Foundation 2023 Actual 2024 Est
Operational Expenses (Foundation & Subsidiary - Director, Supervisor, Secretary & Office) $49,148 $52,146
Legal $45,318 $42,300
Protocol Development (Contractors, Software Subscriptions, Maintenance and Admininstrative Service Provision) $179,249 $89,200
Payment Provider Fee $21,809 $19,892
Buffer/Unexpected Costs $22,962
Total $295,524 $226,500

Specification

The Aura Foundation is requesting 100k USDC and 175k AURA to cover the expenses stated above for 2024. The Foundation will convert its funds to USD on an ad hoc basis to meet its payment obligations as outlined above, with any remaining funds being included in the following year’s budget. To ensure a transparent process, any further costs or fees incurred and out of budget shall be approved by Aura DAO.

ETH Address to Receive Funds

0xba3A09D60abBe3fD0b8e16f49f1e4b47E6CbeDa6

Voting

This forum post will be live for a few days before it moves to the “AIP” stage, then Snapshot proposal. Replies to this post should be used for an open discussion on the subject.

This vote will be a single-choice vote. You may vote “For” or “Against” this proposal, or choose to abstain from the vote.

7 Likes
2

0xsmtg and the Foundation directors have done a fantastic job over the past year, with great attention to detail and prompt service to the Aura community. We strongly support this funding proposal and look forward to working more w/ them in the coming years.

2 Likes
3

At a high-level, without a granular look at numbers, this seems like a pretty good proposal and expenditure forecast. It looks like a lean irl framework (not considering protocol dev), so kudos for managing savings on that front and keeping spendings to a minimal.

Also highly appreciate Aura Finance will to continue doing business in Cayman/BVI. That certainly favors substance for the Balancer Foundation and its subsidiary in these jurisdictions for any potential overreach.

2 Likes
4

The Foundation has done an exemplary job of deploying the original grant to engage service providers and in acting as an agent of the DAO.

1 Like
5

I also wanted to signal support for this proposal and agree on the points raised by @0xDanko - we have had so far a very positive and smooth experience with our setup in Cayman/BVI. The outlined budget is actually on the lower side and would entail funding of a lean foundation setup which, in the case of Aura, seems to make sense.

2 Likes
6

Quite comprehensive and very well outlined proposal. In favour for the continuous operations of Aura Foundation to this level of excellence.

2 Likes
7

It is good to see that the changes were made to improve the overall efficiency and the Foundation was able to reduce part of the yearly expenses.

1 Like
8

https://vote.aura.finance/#/proposal/0xf6e4ff06ecc720a47fa9b0cc637e461fdd29bd996dd2023bc46f051099f7d4e3

9

Have the Foundation’s docs ever been shared anywhere? I’ve looked, and looked before, but I can’t seem to find them.

Specifically, AIP-61 mentions: an amended and restated memorandum and articles of association, along with reference to an Advisory Committee. I don’t believe we’ve ever seen an original memorandum and articles of association, let alone amended and restated versions of these docs.

Can also confirm that Mike Robinson is a solid choice for director.

10

Can you direct us to where these documents are held for Beets, Balancer, Uniswap, Base, or any other project/protocol?

11

I’ve gathered these in the last 10 minutes on my phone. More to follow.

[BIP-14] Funding Proposal for the Balancer Foundation - Funding Proposals - Balancer (no direct link but a lot of information on how it generally works)

ENS -

And more ENS info in links here: The ENS Foundation - ENS Documentation

Nouns - Nouns Builder | Prop 2 - Builder DAO Launch and UNA Formation Proposal

More to follow.

1 Like
12

Feel free to do some more research, let us know what you find. I’m genuinely curious whether this is an exception rather than the standard. My hypothesis is that it’s an exception, I’d guess that 9 out of 10 protocols, particularly in DeFi, do not post these types of docs.

13

9 out of 10 of what, tho? Rug protocols?

Even if we are looking at 9 out of 10 of “legit” protocols that have actual entities set up - Who cares? Do we want to just follow the pack? Or do we want to do what we think is the best practice that makes the most sense?

These are easy to find. I have a ton saved. Just have to get to my bookmarks.

And IMO, best practices are to share the same things that we are asking the DAO to authorize.

14

I’m just here to challenge you, that’s all. If you were making a push for not posting docs, I’d take the other side of the argument by default, just to see if it’s a well reasoned request. As long as it’s standard practice, I see no reason why it can’t be done. But if it’s non-standard practice, you stating that it’s best practice is just a subjective value call that doesn’t really hold much weight, and doesn’t fall within the definition of best practice. Best practices are set by industry standards and competitors, not minority actors.

15

Best practices are set initially by minority actors. The rest of the market then catches up

16

Lol, that’s not correct, you just made it up. The first page of Google for that phrase are all about black actors on TV.

I don’t think disclosure is indicative of anything. There are reasons for “legit” protocols not to disclose and I’m sure there are “rugs” that do disclose. To frame it as “good protocols” and disclosure on one side vs. “rug protocols” and non-disclosure on the other is just disingenuous. Even categorizing protocols as rug or legit is very subjective, and not for us to determine.

I do think there are good reasons to disclose–arguments for transparency, for example, would be much better received. I just don’t think that it’s required. This is something that’s simply “nice to do.” If your original request had also mentioned something regarding why you’d like to see these documents, I don’t think we’d be having this conversation today. If it’s just for the purposes of trying to find smoking guns to feed more Discord conspiracy theories though, you’re just not going to find them here.

1 Like
17

LOL!

No Discord conspiracies here - pretty sure you know that.

At the moment, I’m popping back here to share more links to docs of other protocols.

The point, again, is to share information and documents that DAO governance is being asked to authorize and to explain a bit more about what the Foundation does and how it operates.

Here is a link to a comment on the Balancer forum sharing Foundation docs: [BIP-14] Funding Proposal for the Balancer Foundation - #7 by Tristan345 - Funding Proposals - Balancer

Uniswap has a webpage dedicated to its foundation, which is a Delaware corporation that is a 501(c)(4): https://www.uniswapfoundation.org/; analysis of its 2022 tax return is available here: Uniswap Foundation - Nonprofit Explorer - ProPublica.

1 Like
18

Thanks for the info, brother!

Listen, I’m really not trying to get into a big thing with you here. It’s just concerning to me that you seem to have joined the Cheesy contingent of public Aura fudders, when you of all people should know better, having seen how our processes work quite in-depth. There are many things that you can do to advance Aura forward either externally or even internally again, if you’re so inclined. Having massive debates with us about doc retention and being our designated document nanny, however, aren’t one of them. These side battles that you’ve chosen to fight are just distracting people from doing real work. Is documentation really the hill that you’ve chosen to die on?

Feel free to ping me on Telegram anytime, you have my info. You were only offboarded because you ghosted us for a few months, but your contributions were valuable while you were active. There’s a lot of work to be done, AIP-42 is coming up for renewal, new expansion plans–we’re entering a very bullish time for Aura and crypto in general–don’t get stuck on the other side.

1 Like
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I again doff my cap. You frame these things with the best of 'em.

Here, I simply asked if copies of docs are available. You, and I’m quoting you, were “just here to challenge [me], that’s all.” For you to challenge my basic inquiry and then, a few posts later, frame me not just as a fudder but also as an obstructionist who managed to somehow waste everyone’s time by clogging up Aura’s workings - bro, that is just masterful.

Seriously.

I’ll take you up on that offer. It’s also a two-way street and my DMs are always open, though it may take me a little longer to respond these days. As an added benefit, my social handles are at least easier to keep track of. :wink:

Ahhhktually, one more before I go…
The sum total of these engagements was what - 60 to 120 minutes of collective time, tops?

Goddamn youre good.

1 Like
20

Haha, flattery will get you everywhere, brother, as the saying goes. I think it might have been me that just received a masterclass from you. I just sent you a DM on TG–let’s get you wrapped back into the fold. We can work on the documentation and other community issues directly.

Wait, don’t tell me you’re going to bill us for this.

1 Like