Summary: Approve a convertible loan funding structure for Olympus Association for FY25.
Background: Following the successful completion of OIP-155: 2024 Budget Proposal, the Association seeks funding approval for the 2025 Fiscal year, which runs from February 2025 to February 2026. Budgeted spend is expected to be similar to that which was outlined in the 2024 Budget proposal, with the possibility to flex as needed for additional dev and association resource needs, within reason.
As with the 2024 proposal, variable expenses that are not included in the these projections, but are within the purview of the association are:
- Immunefi Bug Bounty Payouts + fees (fees are dependent on payouts)
- Unforeseen Legal Expenses
- Audits, given scope and development
For context, you can review the 2024 spend here:
Original 2024 Budget Proposal can be found here:
Proposal: Provide the Association with a credit line of up to 500,000 OHM during Fiscal Year 2025, with the option to purchase borrowed OHM at the greater of 12 USDS or liquid backing. OHM drawn must be repaid or purchased within 3 months of the time of borrow, with the exception of smart contract structures ensuring the tokens future repayment or purchase (i.e. if collateralizing an option that returns the OHM or strike proceeds to the treasury, with execution occurring programmatically).
On Use of Loan Proceeds: Tokens borrowed by the Association will be used for strategic over-the-counter (OTC) deals with funds, market makers, or exchanges, at the Associations discretion. Tokens may also be utilized to a lesser degree in employee option compensation packages.
The Association will only utilize tokens when strictly necessary from a funding perspective, or exceptionally advantageous from an alignment perspective. As seen in the 2024 budget recap, the Association has a long history of responsible spending, coming in well below budget for FY24. In the case of leftover funds at year end FY25, they are to be returned to the treasury or rolled over into FY26, at governances instruction.
Motivation: Provide the Olympus Association with backing-neutral funding for FY25 to allow it to continue development of the Olympus protocol.
References.
Olympus DAO Allocation Insights