Prop 56 ETH to Dollar Conversion Reevaluation

Prop 56 was funded for 55 ETH (165K) to make 5K FUN Frames:

Price Breakdown was:
Pre-Production – ~50K
Production – ~80K
Shipping – 15K
Warehousing for 1 year – 12K
Liability Insurance for 1 year – 9K

Klim received 5ETH on 4/13/22 (3,029 ETH) and 15 ETH on 4/27/22(2,800 ETH) for pre-production and tooling costs. The remaining ETH was held in a Gnosis until samples were delivered and the tooling was complete.

Early May Klim cashed out:
5E at ~$3,029 (4/17) = 15,145
5E at ~$2,930 = 14,650
10 at ~$2,450 = 24,200
Total = ~53,995 USDC (would have been 57,000 if cashed out right way)

After this, while the funds were in the Gnosis the price of ETH dropped significantly and we began discussing what we should do for creators needing USD to complete projects moving forward. We saw an example with Prop 73 where the funds were converted to USDC. We landed on this being a good path forward. We continued to discuss balances needed to complete projects before this precedent was set.

For Klim the remaining ETH was held in a Gnosis Safe while tooling was completed and samples were made. He delivered his product on time as promised. He incurred additional expenses for rush fees and shipping on samples that were sent to Austin & NYC. He is now ready for production but the funds are short.

While tooling was being created and the price of ETH dropped significantly I was not comfortable making any decisions with the DAO’s funds independently. I began having multiple conversations within the DAO to discuss how to finish this Prop and the best path forward. It seemed that converting the balance in the Gnosis to USDC was the best move while we figured out how to treat the remaining funds needed to complete the Prop. On July 8th I made a Swap for the remaining 35ETH to USDC and sent 42,163 USDC to Klim.

The total needed to finish this project is $116,000 of which Klim has $42,000. He needs an additional $74,000 (~50ETH on 7/19/22) and deliver:

5000 pcs Incl. 500 GOLD NOUNDER GIFTS:
3500 RED
500 CHROME GOLD -exclusive to NOUN holders

Send Klim 55 ETH to be converted to USDC
FUN Frames Multisig: 0x6C3A3374f1250597431d4ead59C35FBadf132b40
(Remainder will be sent back to the NounsDAO)

Other Bigshot Nounworks Project:
Made 5K Pins that are available for distribution. Gave ~250K away in NYC. Working on retail availability and Nouner discount request fulfillment.

1,200 Stickers
Gave away in NYC

Toys Stage 1 Dev & Prototype
Has created multiple digital sculpture iterations based on a variety of feedback and has printed some samples for testing. Delivering documents, models, etc for final review shortly.