Core Development: Salaries

Budget Amount: 25,000,000 SC per month, from block subsidy
Treasury Kickoff: 120,000,000 SC, from treasury
Timeline: Jan 2021 — Jan 2022

I propose allocating half of the 2021 Core Development Budget towards in-house developer salaries. Using conservative estimates of $200k/yr per employee and $2k/1MS, this provides enough funding for three full-time developers. In practice, the average cost per employee will likely be lower, and the USD/SC exchange rate may be more favorable, so it may end up being feasible to support five or six employees on this budget. Of course, we’ll almost certainly want to revise this budget for 2022 in accordance with the actual team size.

By default, employees will be paid in USD. We will seek to convert the initial 120MS to USD soon after incorporation, as a buffer against exchange rate volatility. Thereon, we will convert smaller amounts in regular intervals, likely once per month. We will target a maximum USD buffer of 1 year per employee, i.e. enough to cover their salary, benefits, payroll tax, and other associated costs.

Initially, I will be the only full-time developer at the Foundation. I propose a developer compensation rate of $120k/yr for myself, for an estimated total cost of $156k/yr. Salaries for other developers are TBD, but in general, I imagine they will need to be slightly higher than the industry average because the Foundation has no stock options to offer.

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I do think that paying employees is good, and that hiring in house people to work for the foundation is good so :+1:

:+1:

My only question would be: does it make more sense for your salary to come out of a separate category as President instead of Core Development?

I wondered about that too, since I’ll be wearing many different hats at the Foundation. My feeling is that the dev compensation should come out of the dev budget, and compensation for other roles can come out of other budgets. Namely, we’re expecting to use the “Foundation Core” budget to compensate all board members and advisors (likely to the tune of a few $k per month), so I think it’d be reasonable to lump that on top of my developer compensation. Most employees will fall more neatly into a single category, though.