This is a resubmission of 1058 as the multisig was not present on Assethub
Amount requested: 183.326 USDC
Introduction
We are reaching out to kindly request additional funding to support our previously funded proposal. This request arises from unforeseen market fluctuations that have impacted our budget and jeopardized the quality of our project delivery.
Background
In our initial proposal, we based our financial calculations on the DOT price of $8.722 (7-day EMA based on Subscan on April 10, 2024). This figure was instrumental in planning and budgeting for the milestone we set out to achieve.
Issue Faced
On the day of award payout, May 8th 2024, the DOT price had dropped to $6.707 (block 20736000 https://polkadot.subscan.io/referenda_v2/663?tab=timeline) At first, we anticipated this was a temporary pullback and expected a correction back to the $8.5 range. Unfortunately, this correction never occurred, leading to a significant shortfall in our budget.
Impact on the Project
The decline in the DOT price has put the quality delivery of our proposed milestones at risk. Without the necessary funds, we face the possibility of compromising on the quality and scope of our deliverables, which we believe is not in the best interest of the community or the project's long-term success.
Request for Additional Funding
To mitigate this situation and ensure the successful completion of our project, we are requesting a top-up of 183.326 USDC (91.663 DOT x 2$ price difference from proposal date to payout date). This additional funding will cover the losses incurred due to the lower-than-expected DOT price and allow us to maintain the high standards we committed to in our original proposal.
Conclusion
We understand that fluctuations in the market are an inherent risk. However, we believe that supporting this top-up request will ultimately contribute to the project's success and the broader goals we aim to achieve together. We sincerely appreciate your consideration and support.
Next Steps
We are available to discuss this request further and provide any additional information required. Thank you for your understanding and continued support.
@Matjaz apologies for the oversight! I appreciate the response and this is indeed a genuince case for top-up. Cheers! on the good work :)
Converting a portion of the funds to a stablecoin upon receipt could have mitigated this risk, especially considering ongoing operational costs like employee salaries etc. A more careful fund management could have potentially avoided or minimized this situation.
I don't understand why such standard practices for risk management are not being followed.