The Board will be updating the budget proposal for delegate approval by tomorrow mid-day.
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Note that the proposal has been updated in the main text per Foundation request.
This is account of changes is presented “as is.”
To highlight the changes to the proposal, the primary update was to endeavor to update the Eth-OP conversion from a historical median to a 6-month TWAP. This change increased the operating budget substantially, from 2.30mm OP to 4.44mm OP. The primary drivers for the change were (a) feedback from the community and (b) the view of the board that comments regarding the substantial change in the ETH-OP conversion rate since Season 7 were valid.
The update reduced the illustrative years of Budget remaining from ~6.98 to ~6.39 years.
An explanatory paragraph was added to highlight the means of comparing the historical budgets to the current method:
“Note that in this amended proposal, we have used a 6-month TWAP Eth-OP conversion. This is based on feedback and internal review suggesting that the recent volatility in Eth-OP conversion merits a shorter duration conversion period. We believe the historical median is relevant for a relatively large set of historical data, but we believe that the community may review the rate as necessary for budget updates. The 25.8% budget figure is derived by comparing historicals to the overall median. This represents a translation and that should be considered, as the 25.8% is not otherwise “apples to apples”.”
The applicable update is included as an edit to the main proposal in the body of the first post to this thread.
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Want to highlight that the current proposal up for a vote
includes a transcription error, because it is for 4,200,000 OP. Less importantly, it also states the percentage of TTM revenue is 47.1%, which would be correct for 4.2m but not 4.4m OP.
Also there are several references in the copy to 4.44m vs 4.40m. Presumably the larger amount is a typo?
Forgive the aggressive use of tags, but it’s time sensitive and some people may be out of the office this time of year: @lavande @Maxwell @Agora @op_julian
Thank you for pointing out the internal consistency. I believe the vote will be recast. It should be 4.44M.
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Love the approach but OP purchasing power is quite low. I doubt the 6-month Eth-OP conversion will be sufficient.
Please note that the years of runway in the illustrative budget were based on the Community Budget tracker, which the Board has learned is incorrect. We understand that the remaining Gov Fund allocation is 124.3mm OP rather than 162.6mm. In the illustrative analysis, this would yield ~4.89 years of runway according to the illustrative analysis rather than ~6.39 years. The Budget Board is evaluating whether this would change its recommendation. Ultimately, the Foundation will determine whether the vote would need to be rerun. The figures in the body of the proposal will be updated with a note specifically highlighting this change.
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The Foundation confirms that the remaining Governance Fund balance is ~124.3m OP as shown in the [PUBLIC] OP Token Unlock (Estimated) which community members can view via the Dashboard, Trackers, and Addresses page of the Governance Docs.
The Budget Board’s view has not changed based on the updated figures.
The following reflects the views of L2BEAT’s governance team, composed of @kaereste, @Sinkas, and @Manugotsuka, and it’s based on their combined research, fact-checking, and ideation.
We voted FOR the proposal.
While we still have some reserves remaining around the final budget allocated for the operating budgets of S8 and S9, as also expressed by other delegates above, we believe that the proposal is good enough as it is. That said, we would like to comment that if the OP price were to decrease and fall significantly below the current price we have today, it would be worthwhile to explore the idea of a buffer budget to provide fair compensation for the council members’ efforts.
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@danelund.eth a few clarifying questions:
- Can you please share links to the source of truth for this (124,327,380 OP) amount.
- Can you please confirm whether the amount posted on June 3 of 124,327,380 OP excludes Season 7 operating budgets for all Councils (these budgets were approved by the Token House in December 2024).
The post linked below from the foundation clarified the budget remaining is 124.3m OP. The first page of the first link in that post is marked for June 19, 2025 and shows the original allocation and committed amounts. The difference between the two is 124.3m OP.
In regards to your suggestion to allow for a buffer in case of market volatility, the Budget Board will have the ability to put forward a proposal for a mid-point adjustment at the start of Season 9 to accommodate for this!