This document serves to explain the financial status of COLORSxCOMMUNITY as of July 20, 2022.
The community and DAO currently sit inside COLORSxSTUDIOS GmbH (‘COLORS’) in Germany, making COLORS legally and financially accountable during this phase of the DAO. We will set the DAO up as its own legal entity. You can read more about the structure here.
At present, the multisig (treasury) is controlled by individuals who all have contracts with COLORS (either employment or freelance).
To date, all community operations have been sustained by COLORSxSTUDIOS GmbH, subsidizing the cost with revenue generated in other areas of its business. It should be noted that COLORS, while successful, is an independent music company that due to its commitment to authenticity has a relatively constrained budget when compared to other brands with similar cultural impact.
The goal is for this operation to be a) self-sustaining, and b) independent. It is the goal of the core team to bring it there through experiments in collaborative symbiosis between COLORS, the community, and the DAO, as well as emergent community brands that can be launched, funded and supported directly by the community.
In order to move closer to that goal, COLORS launched the Founding Pass NFT to bring community on-chain and to kick off the process of progressive decentralization of community governance and activity. This is, at present, the only source of funds generated. The core team, together with the wider community and supported by COLORS, will be focused on creating new sources of revenue to bring sustenance to the DAO. The funds will be used to cover the costs associated with this roadmap.
To date we have generated around 69 ETH, most of which has been converted to USDC. This has been less than what we expected, both in terms of volume sold, as well as the value of ETH versus fiat.
Our recurring costs (in euro) at present are:
There are also one-off expenses (in euros):