IMC Period 13 Budget

Full spreadsheet available at

A few things worth pointing out

  • Inflow lower than expected; see Intended vs actual budget mismatch in RPIP-10
  • The ratio is really kicking our butt - we’re burning reserves and would have about half a year of runway with no pDAO action and constant ratio
  • We’ve adopted a loose framework of “1.25 ETH/fortnight for up and coming L2s” - no particular schedule here, but we expect to add more over time.
    • :exclamation: If you have opinions here, we’d love to hear from the community. We struggled a couple of times on frameworks for deciding how much to give to different L2s. Part of the current thought is “for now, let’s give up-and-comers a smallish amount so we’re present early, and we can figure out where we go later”.
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One more question for the community – the IMC has been providing an ETH-denominated amount of incentives for rETH/ETH liquidity and a split ETH/RPL-denominated amount of incentives for RPL/ETH liquidity. This is nice for liquidity because it essentially smoothes RPL price volatility away.

:exclamation: Do you think we should be reducing those numbers some as RPL ratio has gotten hit? This could be partial, of course. Or should we stick to the smooth choice?

@peteris gave some great feedback on discord: Discord

IMC has been talking about this a bit internally and we are looking for community feedback on this rough plan:

  • We will aim to maintain one year of runway (13 periods) in the IMC treasury. This attempts to strike a balance between smoothing out ratio volatility and keeping the IMC solvent.
  • We will count POL beyond “minimum safety” as part of runway.
  • For next period we are looking at keeping everything but Aura as is and reduce Aura accordingly, because bribe efficiency there has been going down.
  • Going forward we will reevalute and reduce spend further as necessary to maintain the one year runway.

Assuming a 0.015 ratio, this would roughly translate to lowering Aura from 53 ETH to 37.5 ETH for Budget 14 (September 1 - September 28):