The following is a non-binding proposal for the Collective to consider in passing a Midterm Adjustment to the DAO Operating Budget for Seasons 8 and 9. The proposal is informed by the Budget Board’s good faith review of historical information provided to the Collective. The content is presented “as-is” without a certification of its accuracy or effectiveness. The Collective is encouraged to review any and all information made available to the Collective in making its budget determinations.
As part of the initial Budget Board Advisory Proposal for the DAO Operating Budget for Seasons 8 and 9, the Budget Board noted that it might revisit the total Operating Budget through the Midterm Adjustments Process. Following a season of progress, the Budget Board has voted to propose an increase to the Season 9 allocation of 2.3M OP, bringing the combined Season 8 and Season 9 Operating Budget to approximately 6.74M OP.
This proposed increase was derived using the same framework applied in the initial Operating Budget proposal. Specifically, the Budget Board applied a target percentage to trailing twelve-month (TTM) ETH revenue and converted the result using a 6-month OP-ETH TWAP. To reflect progress between seasons, the Board averaged the initial Year 1 and Year 2 TTM target percentages, resulting in an approximately 23.84% TTM revenue target for the Operating Budget. The 6-month TWAP was updated to reflect the period from June 30, 2025 through December 31, 2025.
Consistent with the original proposal, the Budget Board attributed one half of the total Operating Budget to Season 8 and one half to Season 9. As a result, this adjustment applies solely to Season 9, representing a prospective adjustment rather than a combination of retroactive and prospective changes.
The Budget Board proposes to allocate the increased Operating Budget across the four Councils and Boards in the same proportions used in the preliminary Operating Budget.
A comparison of the key inputs that differ between the initial Operating Budget and the proposed adjusted Operating Budget is provided in the charts below.
Finally, the Budget Board notes that the proposed increase to the Operating Budget is offset by a meaningful reduction in allocations to Missions. Initial assumptions projected Missions funding to remain flat relative to prior seasons at approximately 10.5M OP per season; however, actual Missions allocations across Seasons 8 and 9 have averaged approximately 6.06M OP per season. Taken together, these adjustments maintain alignment with the original budget framework while reflecting realized revenue performance and observed spending trends.