Financial Information

September 2022

Expenditures

(Finalizing September accounting… stay tuned.)

What we worked on and what was happening:

Work of the Month: Summary

(Going forward, we will provide a succinct recap of what we have been up to over the last month. If you have any questions or would like to learn more about a specific activity or issue, please do not hesitate to reach out!)

 

During September, we’ve been busy as Congress worked through the legislative process on several major crypto issues, namely custodial stablecoin and digital commodity spot market regulation, as well as reacting to overreach by executive agencies. Here’s a high-level overview of what we worked on this month:
 

The Digital Commodity Consumer Protection Act

Arguably the biggest item of the month was responding to the Senate Agriculture Committee’s Digital Commodity Consumer Protection Act (DCCPA).
 

We made sure that the Committee was aware of the implications that the legislation, as written, would have on DeFi.

Generally, the bill focuses on regulating centralized players in the crypto spot markets, like exchanges, but as we soon came to realize, how the bill affects DeFi was unclear and needed to be addressed.

While the legislation is still being worked on, we know that DeFi MUST be considered separately from centralized businesses like exchanges, given their fundamental functional differences.

CFTC Enforcement Action

On September 22, the CFTC took unprecedented action against a DAO for violating the Commodity Exchange Act.

We made it crystal clear that this type of “lawmaking via enforcement” not only will stifle innovation in the United States, but also discourage any U.S. persons from participating in DAOs.

While this action is still fresh, we will continue to make our voices heard, meet and discuss the matter with relevant parties and not hesitate to support and assist any person willing to fight on the issue.

Reports from the EO on Digital Assets

On September 16th, the White House released several, anticipated reports as a result of the President’s Executive Order on Digital Assets.

While the EO reports demonstrated a healthy dose of skepticism in the Administration, we were encouraged to see that the federal government has begun to comprehensively consider DeFi, its risks and its potential. We even scrolled through all the reports and pulled out each mention of DeFi.

We look forward to continuing to work with the executive agencies as they develop a workable and effective crypto policy framework that ensures DeFi development and use will continue to flourish in this country.

Promoting our Grantmaking Work

To best support our mission of shaping global regulatory policy and ensuring that the transformative potential of DeFi is open to all, we actively award policy-focused grants to individuals, nonprofits and academic institutions to fund projects that help explain, expand, and sustain the future of DeFi.
 

This month, we published an open letter to the DeFi community, calling on them to help us spread the word and help us find, and fund, the projects that will shape the future of DeFi.
 

Twitter Space Conversations

To best keep the community informed on the happenings in D.C., we convened a Twitter Space conversation on September 8th to recap various Congressional Hearings that touched on Crypto.
 

As legislative momentum continues to build, we will continue to host Spaces conversations featuring some of the most notable thought leaders in crypto policy.
 

Stay tuned for our next Spaces, which will focus on the status of the House Financial Services Stablecoin legislation.

Media

  • The New York Times’ Dealbook: Warning Signs Multiply Ahead of Pivotal Fed Interest Rates Meeting

    • The issue has sparked a feud among crypto insiders. “Decentralization is a spectrum, and where the line is drawn between centralized and decentralized is a policy choice that Congress will eventually have to make,” said Miller Whitehouse-Levine of the DeFi Education Fund lobbying association.

  • The Defiant: Gensler Rattles with Suggestion PoS Coins are Securities

    • Miller Whitehouse-Levine, policy director at the DeFi Education Fund, called the White House’s announcement a “let down given the hope that I shared with many others that the administration was ready to create a healthy environment for US [crypto] industry and users.”

  • The Capitol Account: DeFi Advocate Talks Hacks, Fraud and How His Industry Can Revolutionize Finance

    • This week we chatted with Miller Whitehouse-Levine, the policy director of the DeFi Education Fund. An early crypto enthusiast, he may have one of the hardest jobs in Washington: explaining to confused lawmakers and regulators what decentralized finance is – and why they shouldn’t be afraid of it.

  • Decrypt: CFTC Sues a DAO, Raising Legal Questions for DeFi Founders and Users

    • In an emailed statement to Decrypt, the DeFi Education Fund called the lawsuit against Ooki DAO an “unprecedented action [that] seeks to create novel policy in response to novel issues, all via an enforcement action.”

  • Decrypt: Miller Whitehouse-Levine of DeFi Education Fund Shares Reasons for Optimism on Crypto Regulation

    • DeFi Education Fund policy director Miller Whitehouse-Levine tells Decrypt's Dan Roberts and Stacy Elliott in our Decrypting Mainnet series at Mainnet 2022 about how DeFi in some ways "came too early for the crypto ecosystem" and that some lawmakers see it as "hocus pocus, but there's still reason for optimism. He also sees Bitcoin as "a DeFi protocol for payments."

 

August 2022

Expenditures

The DEF’s expenditures generally fall into three categories: grants given, internal expenses and operations (employees, rent, insurance, etc.), and external expenses (independent contractors like legal counsel, lobbyists, web development, etc.). The DEF’s expenditures during the month of August 2022 were: $130,292 in grants, $102,107.07 in internal expenses, and $87,500 in external expenses.

What we worked on and what was happening:

Multisig Withdrawal Notice

The committee will withdraw 430,000 $USDC and 0 $UNI from the DEF’s multisig to fund upcoming grants and expenses. After completing this withdrawal, the DEF’s assets held in the multisig will be 6,898,857 $USDC and 499,000 $UNI.

 

July 2022

Expenditures

The DEF’s expenditures generally fall into three categories: grants given, internal expenses and operations (employees, rent, insurance, etc.), and external expenses (independent contractors like legal counsel, lobbyists, web development, etc.). The DEF’s expenditures during the month of July 2022 were: $126,431.02 in internal expenses and $101,500 in external expenses.

What we worked on and what was happening:

 

June 2022

Expenditures

The DEF’s expenditures generally fall into three categories: grants given, internal expenses and operations (employees, rent, insurance, etc.), and external expenses (independent contractors like legal counsel, lobbyists, web development, etc.). The DEF’s expenditures during the month of June 2022 were: $31,250 in grant payments, $84,801.27 in internal expenses, and $217,342.50 in external expenses.

What we worked on and what was happening:

 

May 2022

Expenditures

The DEF’s expenditures generally fall into three categories: grants given, internal expenses and operations (employees, rent, insurance, etc.), and external expenses (independent contractors like legal counsel, lobbyists, web development, etc.). The DEF’s expenditures during the month of May 2022 were: $31,250 in grant payments, $74,914.16 in internal expenses, and $141,718.80 in external expenses.

What we worked on and what was happening:

Multisig Withdrawal Notice

The committee will withdraw 615,000 $USDC and 0 $UNI from the DEF’s multisig to fund upcoming grants and expenses. After completing this withdrawal, the DEF’s assets held in the multisig will be 7,743,780 $USDC and 499,000 $UNI.

 

April 2022

Expenditures

The DEF’s expenditures generally fall into three categories: grants given, internal expenses and operations (employees, rent, insurance, etc.), and external expenses (independent contractors like legal counsel, lobbyists, web development, etc.). The DEF’s expenditures during the month of April 2022 were: $165,958 (Fight for the Future grant payment) in grant payments, $66,205.02 in internal expenses, and $172,662.29 in external expenses.

What we worked on and what was happening:

 

March 2022

Expenditures

The DEF’s expenditures generally fall into three categories: grants given, internal expenses and operations (employees, rent, insurance, etc.), and external expenses (independent contractors like legal counsel, lobbyists, web development, etc.). The DEF’s expenditures during the month of March 2022 were: $57,945.98 in internal expenses and $143,929.29 in external expenses.

What we worked on and what was happening:

 

February 2022

Expenditures

The DEF’s expenditures generally fall into three categories: grants given, internal expenses and operations (employees, rent, insurance, etc.), and external expenses (independent contractors like legal counsel, lobbyists, web development, etc.). The DEF’s expenditures during the month of February 2022 were: $61,504.55 in internal expenses and $143,741.32 in external expenses.

What we worked on and what was happening:

Multisig Withdrawal Notice

The committee will withdraw 325,000 $USDC and 0 $UNI from the DEF’s multisig to fund upcoming grants and expenses. After completing this withdrawal, the DEF’s assets held in the multisig will be 8,068,780 $USDC and 499,000 $UNI.

 

January 2022

Expenditures

The DEF’s expenditures generally fall into three categories: grants given, internal expenses and operations (employees, rent, insurance, etc.), and external expenses (independent contractors like legal counsel, lobbyists, web development, etc.). The DEF’s expenditures incurred during the month of January 2022 were: $187,792 in grant disbursements, $62,505.01 in internal expenses, and $140,831 in external expenses.

 

December 2021

Expenditures

The DEF’s expenditures generally fall into three categories: grants given, internal expenses and operations (employees, rent, insurance, etc.), and external expenses (independent contractors like legal counsel, lobbyists, web development, etc.). The DEF’s expenditures during the month of December 2021 were: $23,783.18 in grants, $102,107.07 and 177 $UNI in internal expenses, and $76,695.60 in external expenses.

Multisig Withdrawal Notice

The committee will withdraw 300,000 $USDC and 0 $UNI from the DEF’s multisig to fund upcoming grants and expenses. After completing this withdrawal, the DEF’s assets held in the multisig will be 8,983,780 $USDC and 499,000 $UNI.

 

November 2021

Expenditures

The DEF’s expenditures generally fall into three categories: grants given, internal expenses and operations (employees, rent, insurance, etc.), and external expenses (independent contractors like legal counsel, lobbyists, web development, etc.). The DEF’s expenditures during the month of November 2021 were: $60,000 in grants, $62,572.22 and 177 $UNI in internal expenses, and $167,525.00 in external expenses.

 

October 2021

Expenditures

The DEF’s expenditures generally fall into three categories: grants given, internal expenses and operations (employees, rent, insurance, etc.), and external expenses (independent contractors like legal counsel, lobbyists, web development, etc.). The DEF’s expenditures during the month of October 2021 were: $45,000 in grants, $26,813.92 and 177 $UNI in internal expenses, and $32,525 in external expenses.

 

September 2021

Expenditures

The DEF’s expenditures generally fall into three categories: grants given, internal expenses and operations (employees, rent, insurance, etc.), and external expenses (independent contractors like legal counsel, lobbyists, web development, etc.). The DEF’s expenditures during the month of September 2021 were: $125,292 in grants, $18,078 and 177 $UNI in internal expenses, and $28,900 in external expenses.

Multisig Withdrawal Notice

The committee will withdraw 500,000 $USDC and 0 $UNI from the DEF’s multisig to fund upcoming grants and expenses. After completing this withdrawal, the DEF’s assets held in the multisig will be 9,283,780 $USDC and 499,000 $UNI.

 

August 2021

Expenditures

As a tax exempt organization, the DEF is required to file IRS Form 990 annually, which will serve as the basis of our monthly expenditure updates. Form 990 provides information about non-profit organizations’ programs, activities, relationships, transactions, and governance, in addition to revenues, expenses and assets. Certain expenditures are broken out on the 990 in greater detail, including grants, payments to highly compensated independent contractors, and payments to key employees and directors. It is designed to ensure exempt organizations are fulfilling their missions and merit continued tax-exempt status. The 990 is filed with the IRS and will be publicly available on the IRS website and on our website. Our first 990 will be due on November 15, 2022.

The DEF’s expenditures will fall into three categories: grants, internal expenses and operations (employee and grants committee member compensation, rent, insurance, etc.), and external expenses (independent contractors like legal counsel, web development, etc.).

In August 2021, the DEF’s expenditures incurred are: $195,500 in grants, $28,966 and 177 $UNI in internal expenses, and $46,768 and 0.48 $ETH in external expenses.

Multisig Withdrawal Notice

The committee will withdraw 400,000 $USDC and 1,000 $UNI from the multisig. After completing this withdrawal, the DEF’s assets held in the multisig will be 9,783,780 $USDC and 499,000 $UNI.