Finances
Principles
In order to keep the DAO on a successful path, YFD tries to implement sound resource management practices in pursuit of its goals. This means using policies and procedures for the best coordination between functional areas of the DAO. Just like any organization, the proper allocation of resources between the many moving parts of the project minimizes waste and maximizes human potential.
For better management of time and funds, YFD always try to implement the following factors:
Simplicity Simplicity is a sound approach to structuring DAO resources. This allows for easy management and ease of understanding for every community member.
Foresight While planning the long term goals the DAO tries to estimate all future needs (especially capital) of the project. A plan without foresight means certain disaster, without meeting the needs of the working capital. In other words, plan today for the needs of tomorrow.
Flexibility Readjustments are almost always a reality. A financial plan must account for easy altering and adapting. Being flexible means long term plans become easy to adapt to, based on changing conditions of the future.
Optimization Employing DAO resources in an optimal manner prevents the waste of capital and human resources. By engaging the many eyes and ears of the community to govern spending, YFD aims to avoid idle capacity and maximize the potential and utility of the protocol for each stakeholder.
Economy YFD is building on an economy of scale. By utilizing reusable code and creating reliable community-made toolkits for developers, the burden on devs to solve the same problem over and over again is greatly reduced. This keeps costs down as much as possible and enhances the resource efficiency of the DAO with explosive growth potential over time.
Costs
Before comitting to any spending, the DAO makes sure to involve and inform the community as much as possible.
Whenever the community realizes a necessity is revealed, the following steps take place:
A proposal document is drawn up with in-depth analysis of the expenses
Community discusses the cost vs benefits and proposes optimization
A service provider is registered, through community vote, on the payment whitelist
The finalized proposal is placed on-chain for community vote
Vote results in:
Consensus is reached and the funding begins.
Cancellation and remaining funds are returned to treasury
Smaller payments can be one-time payments.
Larger payments are broken down in milestones with additional voting for payment release.
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