BIP-23: Bean Sprout Q3 2022 Budget Proposal

[publiuss]

BIP-23: Bean Sprout Q3 2022 Budget Proposal

Proposer

Bean Sprout

Summary

• Mint 150,000 Beans to fund Bean Sprout to seed, grow and support various Beanstalk-related integrations, projects, and initiatives through the end of Q3 2022.

Links

• GitHub PR: BIP-23: Bean Sprout Q3 2022 Budget Proposal #79
• GitHub Commit Hash: 42ebfdc
• Gnosis Transaction: [insert Gnosis transaction details link here]

Goals

• Recruit world-class talent to build technologies and businesses that benefit and grow the Beanstalk ecosystem;
• Invest in and support committed builders with capital and necessary resources;
• Drive the development of a BDV economy, including necessary off-chain components; and
• Facilitate partnerships to seed pools and deepen liquidity trading against Beans in the Silo.

Post-Exploit Output

In the past few months since the Beanstalk governance exploit, Bean Sprout has remained unwavering in its commitment to revive Beanstalk and strengthen its position post-Replant. The primary achievement of Bean Sprout since the exploit has been the incubation of Root, which has already paid dividends for Beanstalk in the following ways:

• Capital - Onboarded institutional capital into Beanstalk and developed a network of interested funds;
• Talent - Attracted world-class engineers and product designers all now dedicating time to building on Beanstalk; and
• Security - Funded the Halborn retainer.

Anticipated Q3 Output

• Defi Ecosystem Growth - Begin ideation and preliminary designs with builders for new Beanstalk-related projects such as Greenhouse (more information forthcoming).

Q3 2022 Current Staffing & New Hires

Current Bean Sprout Core Staff

• mistermanifold (FT) - 20,000 Beans a month (paid twice per month) starting from the Unpause.

Anticipated Q3 2022 Bean Sprout Hires

• Operating Manager (FT)
  _
  _ Responsibilities will include: \

  • Project management across various internal and external Bean Sprout initiatives;
  • Sourcing and vetting new ideas for integrations or builders for Bean Sprout-funded projects; and
  • Underwriting deal flow and forming investable vehicles for BDV-based real world assets
  • Frequently updating the Beanstalk community about the project developments.

  Previous experience in traditional finance, on-chain finance, capital formation, and mergers and acquisitions is helpful.

Amounts

We propose a total of 150,000 Beans are minted to fund Bean Sprout through the end of Q3 2022. Bean Sprout custodied 691,800 Beans from the Q1 2022 budget that became 691,800 Unripe Beans at Replant. 300,000 Unripe Beans will be allocated for retroactive compensation for contributions post-exploit (see Incentive Alignment below).

In the event that Beanstalk Farms is not able to fully compensate contributors in Unripe Beans per the BFRPP outlined in BFP-81, Bean Sprout may use their remaining Unripe Beans to do so. Otherwise, Bean Sprout plans to utilize any remaining Unripe Beans towards its budget as the value of the Unripe Beans increases, as well as fund initiatives directly with Unripe Beans when possible.

Custody

In Q3, the funds for Bean Sprout will continue to be custodied by a multisig wallet with keys held by various community members and Publius. We propose the following signers for the Bean Sprout Multisig (BSM).

BSM Signers

• mistermanifold (current signer)
• austin (current signer)
• Bean Merchant (current signer)
• stolenhamburger (current signer)
• Publius (current signer)
• Publius (current signer)
• ereal (new signer)

One Publius wallet will be removed. We also propose that Brean (Brian) and mod323 serve as backups for the BSM wallet in case a key holder is compromised or unable to perform their duties.

Snapshot Processes

We will utilize the process for Bean Sprout Proposals (BSPs), as per BFP-81. For more information on BSPs, please refer to the Farmers’ Almanac here.

Incentive Alignment

Retroactive Payment

We propose that 300,000 of the 691,800 Unripe Beans in the BSM be used to compensate mistermanifold for contributions since the exploit. The achievements of Bean Sprout post-exploit outlined in Post-Exploit Output are primarily due to their efforts. Compensating them in Unripe Beans at an increased amount rewards them for their contributions since the exploit, has minimal impact on Beanstalk (given the Unripe Beans have no value at Replant), and significantly increases their alignment with the success of Beanstalk.

Future Compensation in Deposits

Before the passage of the Q2 2022 budget, the Beanstalk community decided to disallow contributors from receiving any portion of their compensation in Pods.

Given that Deposits are now transferrable, Bean Sprout can instead align contributors with the success of Beanstalk by Depositing allocated Beans in the Silo and paying contributors with Deposits that have accrued Beans, Stalk and Seeds.

Therefore, we propose that a contributor’s allocated quarterly Bean payment is Deposited in the Silo when their hiring proposal passes (which can be part of a BIP, BOP or BSP).

In order to simplify accounting, if a contributor is already hired at the beginning of a quarter and:

• Bean Sprout already has the budget to pay all active contributors for the remainder of the quarter, the contributors’ allocated quarterly Bean payments will be Deposited in the Silo at the beginning of the quarter; or
• Bean Sprout does not yet have the budget to pay all active contributors for the remainder of the quarter, the contributors’ allocated quarterly Bean payments will be Deposited in the Silo upon the passage of the quarterly budget BIP.

For example, if a contributor’s compensation is 10,000 Beans/month, 30,000 Beans will be Deposited in the Silo on their behalf at the beginning of the quarter (if permitted by the accounting structure above). For each bi-monthly payment, the contributor is paid 5,000 Beans in the form of a Deposit that includes the proportional accrued Beans, Stalk and Seeds.

If a contributor leaves or is dismissed from Bean Sprout while they still have unpaid Deposits allocated to them, the Beans will be Withdrawn, Claimed, and then allocated to the rest of the Bean Sprout budget.

For the sake of simplicity and experimentation, the BSM will have discretion over when and how often to execute mow() and plant(). We expect this cadence to be codified in a future budget BIP.

Competitive Pay

Bean Sprout recognizes that its ability to pay contributors competitive wages is essential to Beanstalk’s long-term success. This budget proposal ensures that it can meet or exceed market rates.

Effective

Immediately upon commit by the BCM, which will happen as soon as possible upon the passage of BIP-23.