Individual Steering Committee members may also be involved in specific project being funded and if they are their vote will not be considered when deciding on their Worker Proposals.
Community members interested in being an official member, may submit their candidacy to the Steering Committee for consideration and presentation to the Board. Candidates qualifications include:
Experience with managing budgets via Key Performance Indicators
Experience with blockchain and Decentralized Autonomous Organizations
Familiarity with the FIO Protocol
The Steering Committee sets monthly budget for all Worker Proposals and ensures each Worker Proposal Lead adheres to this budget. It may modify the monthly budget based on the value of treasury holdings, anticipated Foundation income, market conditions, and other factors. If a change of budget is required, the Steering Committee works with Worker Proposal Leads to adjust it in a least disruptive way. Ultimately Worker Proposal Leads are responsible for how to allocate the budget.
What it contains?
Must deliver a complete project without any dependencies not in control of the Worker Proposal Lead.
The Worker Proposal Lead is responsible for all elements required for success including Product Management, Design, Development, Hosting, Marketing, etc. It may, in turn hire additional resources to fulfill those needs. As a results the Worker Proposal includes enough funds to cover all required resources.
The Worker Proposal Lead acts as the CEO of their Worker Proposal and makes all decisions that help them achieve the KPIs. Specifically, the Steering Committee does not direct or act as a stakeholder to the projects executed as part of the Worker Proposal, other than KPI accountability and budget. If Steering Committee members are critical to the success of the projects, their time and compensation should be secured directly with the individual.
Some initiatives may intentionally be funded only for initial development with the idea of them becoming self-funding businesses. Others may contain recurring payment provisions for operations.
Must include specific KPIs which will be monitored and used as basis to determine if it will continue to be funded.
KPIs should state some expectations of what would be considered success, or failure, e.g. “Success: >1000 registered domains” and not “Domain registrations going up.”
Must include requested budget.
The budget can be for the entire project or monthly. If not monthly payment milestones must be specified.
What criteria is used to determine if it will be approved?
The Steering Committee is going to evaluate each Worker Proposal based on the following criteria.
Does it contain all required information?
How well does it align with the Strategic Objectives and Focus Areas?
How experienced is the Worker Proposal Lead and Team?
How competitive is the proposed budget and does it fit within overall budget set by the Foundation?
The Foundation has a higher FIO budget than USDC budget and therefore will be more likely to approve FIO Token compensation than USDC compensation.
The Foundation may ask for detailed budget breakdown, especially for projects which will require multiple resources and/or payments to other vendors.
How is progress reviewed and payment made?
Every Worker Proposal Lead will be asked to present to the Steering Committee at least monthly. The presentation should include:
KPIs at last review
Major activities and/or accomplishments since last review
Major activities planned for immediate future
Major issues and/or learnings since last review
Adherence to budget
Budget changes (if any)
The Foundation may ask for detailed actual budget breakdown, especially for large projects.
Unless specifically stated in the Worker Proposal budget milestones, payment is facilitated by the Steering Committee as described in the Budget, irrespective of the KPIs achieved. In other words, the KPIs are used to determine if the project should be funded in the future, not if the payment for elapsed period should be made.
What are approved payment methods?
The Worker Proposal payments can be made in any combination of the following:
USDC. It has replaced previously used and no longer available USDT.
Liquid FIO - denominated in USD, but paid in FIO Tokens.
Locked FIO - denominated in USD, but paid in FIO Tokens, which are locked for a period of 2 years with 4% unlocking every 30 days. This payment also comes with 100% premium, meaning if this payment method is selected, the payment amount is doubled. For example if Worker Proposal has been approved for 1,000 USD and Worker Proposal Lead changes it 1,000 USD worth of locked FIO, when the payment is made 2,000 USD worth of locked FIO will be paid out.
BTC or ETH (requires prior Foundation approval).
Anytime the denominated amount is converted to FIO Tokens, the USD/FIO rate of exchange is taken from http://coinmarketcap.com as the closing price for the 3rd day before end of the month (for monthly payments), or for the day before payment is made (for one-time payments).
How are budget deviations handled?
Worker Proposal Lead is responsible for coordinating expenses in order to avoid exceeding the approved budget.
If there is a good reason to exceed the budget in any particular month, the Worker Proposal Lead must first obtain Steering Committee approval by submitting WP Change Request.
Payments to some vendors may often vary based on a variety of factors such as time spent on project, cost of 3rd party services, etc. If that is the case:
The Worker Proposal Lead should make reasonable estimate and then include the actual amount spent in their Payment Request, meaning unspent budget should not be assumed to automatically be paid to the Worker Proposal Lead, unless it was reallocated to other needs and benefits the KPIs.
If certain spent occurs on a different frequency than payment frequency, the Worker Proposal Lead would still need obtain Steering Committee approval by submitting WP Change Request, but the justification would be obvious, e.g. “Requesting approval to exceed this months budget by $10,000 as vendor bills quarterly and spend reflected in budgeted amount”.
If the budget is changed as a result of converting some payments between payment methods such that the budget USDT amount is increasing, Steering Committee needs to approve it, otherwise no approval is necessary.