F/W 2023 Budget Updates

FWB had one of its most successful financial periods in Q3 of 2023. Our success can be primarily attributed to the strategic, community-driven partnerships we generated through FWB FEST. In addition to creating a unique and exceptional experience for our community, as covered by Forbes and Document Journal, the team executed 20 partnerships with major leading brands and protocols, as well as a highly integrated NFT drop to kick off Coinbase’s new L2 Base, with Cozimo de Medici and Deekay.

Total partnership revenue generated by FWB in 2023 to-date is $849,000.

Q3 2023 Summary

Key Takeaways from Q3

• Q3 marks the first positive cash flow quarter in FWB’s history.
• FWB has generated $849,000 in partnership revenue to-date and anticipates an additional $350,000 by year-end. This significantly surpasses our initial goal of $850,000 in partnership revenue for 2023.
• FWB collaborated with Coinbase to launch Base with an inaugural NFT drop, curated by FWB, with Cozimo de Medici and Deekay, generating ~75,000 mints.

Spindl data shows that anotherblock and FWB were the biggest drivers of Base adoption. The Friends With Benefits (FWB) mint on On Chain Summer was particularly good at driving Base users to other dapps, with a Base retention rate of 38%.

• Recurring compensation and expenses have been cut from $167,000 in April to an estimated $70,000 in July, reflecting approximately a 58% reduction in expenses. This is primarily driven by further decentralization of the team and the recent proposal to launch a separate entity in FWB Labs.
• Operational overhead expenses have been minimized to essential necessities, including external legal and accounting services.

Here’s the report back on our Q3 actuals.

Q4 Proposed Budget

Considering the above, below is an overview of the resources we’ll need from the FWB treasury to continue progressing in Q4:

Key Takeaways for Q4 Proposed Budget

• Expected runway of 18 months beginning Q4, 2023.
• Heading into Q4, we are operating even leaner as a core team. We expect to have 3 full-time contributors, 6 part-time contributors, and 5 Community Council members by the end of Q4.
• While we have to be careful about announcing future partnerships that are yet to be executed, we are fairly confident that we will generate an additional $350,000 in revenue across sponsorships and future NFT mints.
• Operational overhead costs are now mostly limited to professional services and servicing.
• Sharing a proposal to allocate a percentage of projected revenue generated by FWB to routinely buy $FWB tokens off the open market in order to replenish the treasury with our native token.
• Our long-term goal is to be generating enough monthly revenue such that it meets our current monthly cash burn of approximately $82,250.

Here’s a report of our Q4 budget with additional details.

Summary

As we close out the year and look towards 2024, the team is primarily focused on the following activities from a revenue-generating perspective:

1. Continue to develop engaging partnerships with start-ups, institutions, and projects within and outside of the crypto ecosystem.
2. Collaborate with emerging artists on open edition NFT mints and other creative projects that drive revenue and more opportunities to the DAO.
3. Successfully launch and capitalize the FWB Labs software arm to create more software-enabled $FWB use cases.
4. Work closely with the incoming Council to strengthen member relations and improve new member leads.