hOHMwardbound First of all thanks for all the help and support you have provided us over the past few months, and looking forward to our future cooperation.
As Mark already stated above, the proposed $3mm is not compounding. It is a quarterly allocation we can count on. What we do not spend stays in the treasury. Our primary goal is to bring added value to Olympus and Ohmies, not to burn through allocation. Our Due Diligence process is not only robust but also very restrictive which resulted in less than 4% of Applicants Incubated, and another 7% went to community vote as Launch Partners during Pilot.
It is important to emphasize that applicants that pass our due diligence process are not immediately eligible for investment. Those are handed over for the vote to the 7 member Committee in which majority are non-incubator contributors, and heavy hitters known to ask tough questions (JaLa, Tex, Indigo, Unbanksy). Launch Partners are on the other hand required to pass Community vote.
I hope this gives you confidence that we do not invest lightly.
On the other hand we should bear in mind that we have just started. Although Pilot was a success, the fair conclusion is that the wider crypto community is not aware of us. We are expecting to ramp up both our communication and presence in the investment community in Q2-Q3. On top of it our Incubatees and Launch Partners will be our best ambassadors - we are already seeing project referrals from them. Only thing holding us back is the market downturn. When those wheels get into motion the number of applicants, and subsequently investments will increase. Worst thing that we could do is stop ourselves from capturing those opportunities, especially when Pilot results show double digit multiples for every $1 invested.
On top of it we are suggesting widening the net with the Sporos program which by itself should mean a higher number of applicants, as well as additional full time team members.
We have already started tracking costs, as well as launched project performance. We are aiming at having more robust reports ready for Q1 report, and will share the initial table today during AMA.
Given above, it is safe to conclude that the risk for DAO is minimal because resources are allocated not transferred, the Incubator team has proven to handle given resources responsibly, and ROI so far is very attractive.
Would it be possible to stipulate at which market conditions Incubator budget would be unprofitable, and predefine the cuts? We could add those parameters to new OIP and all be clear on the conditions.