Mango Labs 2023 Funding Proposal

The DAO agreed to fund Mango Labs previously back in late 2021 for funding of 1.5m following a vote. Here’s that forum post: Draft: Mango Labs. Brian Smith also produced a general accounting of the DAO’s finances including the grant given to Mango Labs back in July: https://forum.mango.markets/t/mango-financial-report-initial-release/582.

Over 2022, 992k was spent on salaries and 751k on other expenses for a total of $1.74m. The amount exceeding 1.5m was through short term loans which have to be paid back.

Here is an overview of DAO projects that Labs assisted with in the last 12 months.

Mango Pay App

The app is intended to be non-custodial Venmo for crypto. It’s not quite ready for publishing, but there is an alpha channel in discord where you can try it out. There is an android and iOS version now. The primary purpose of this app is to facilitate payments across borders and among friends who reside in different countries in a seamless way. Towards that end work is ongoing on getting the offramp payment processors setup .

Mango v4

Following the relevant DAO votes, delegating certain forward looking research and development tasks to Mango Labs, Mango Labs made contributions to Mango v4. Mango v4 is currently in testing and awaiting full launch. A lot of the changes coming in v4, especially the safety ones, were discussed in the discord call last Sunday. As always, the UI code and the program code will be or already are open sourced. The monorepo is available here: GitHub - blockworks-foundation/mango-v4: mango-v4 monorepo, contains program, ts client, and py client

Security Audits

We decided to pay for the Neodyme security audit for Mango v3 from the Labs budget instead of petitioning the DAO directly because Neodyme needed an entity, preferably in the US, for invoice. We paid for this expecting that we can come ask the DAO for reimbursement later. A security audit will also be necessary for v4.

Legal

The Mango v3 exploit in October opened up the DAO to many new legal challenges. There are substantial expenses related to the federal investigations into Avi. There are also now expenses related to our own civil suit against Avi to recoup the 47m, following depositors’ transfer of rights to Mango Labs. Any proceeds which Mango Labs recovers from this litigation it intends to transfer to the DAO

I am requesting 2m for Mango Labs the next year with another report in Jan 2024. The reason for the increase is we expect the legal costs to be substantial and unpredictable. I’ll make a formal DAO proposal shortly after this post. Feel free to vote against this proposal for any reason including needing more time for debate.

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Appreciate the transparency and the ongoing commitment!

Few questions for clarity

  • What is the head count of Mango Labs? Any expected changes?
  • Is it accurate to say 2M is an increase? 1.74M spent in 2022 so ~250K of the new grant goes to pay that back leaving ~1.75M for 2023
    ‐ Can you provide some details on the inital 100M MNGO vesting over 4yrs? How much of that has been allocated to devs? What’s remaining?
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  • salaried head count is currently 6, I don’t expect changes but anything’s possible
  • Yes 2m is an increase over last year, but not a significant one. We do have significantly more legal expenses though. The legal is top priority and if Labs needs more to handle that, I’ll request more funds
  • I ended up not getting the 100m MNGO directly and instead I’ll make proposals directly to the DAO for certain Mango Labs members to receive MNGO summing up to 12.5m.
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I ended up not getting the 100m MNGO directly and instead I’ll make proposals directly to the DAO for certain Mango Labs members to receive MNGO summing up to 12.5m

So instead of 100m mngo you want to make it 500m mngo (at current prices)?

No, where are you getting 500m MNGO? I said 12.5m MNGO in total.

Ah ok, I read it as MNGO summing up to 12.5m (dollars) thanks for clarifying!

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What’s the budget split on the above 4 points?

It would be good to understand at least roughly how the first $1.75M was spent so far on v4/audit/mobile/legal and if you foresee any drastic changes in that allocation for the second $1.75M

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It’s hard to give exact numbers on this but I can make estimates.

Mango Pay App - 800k

Mango v4 - 400k

Security Audit - 235k

Legal - 280k

The remainder was all the other miscellaneous expenses.

In terms of how the spending will look going forward, I think the legal expenses will likely go up. Other than that, it’s hard to say. We will have to make a decision on continuing the Mango Pay App, and it’s possible the project needs to be sunsetted. I encourage DAO members to weigh in on this when the app is fully released.

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