Proposal to Create Indigo Foundation Financial Structure

TL:DR: Now that Indigo Protocol V2 has been implemented and with passage of Proposal 40, the Labs team seeks approval from the DAO members of the transfer of INDY from the DAO Treasury to Foundation wallets.

A ‘yes’ vote on this Proposal provides the DAO’s approval of making payments to service providers for past work, and provides the Foundation funds to use in the next 7 months for future payments to service providers and Lemma and CLS as services providers, and approves the creation of bank accounts and several Foundation-controlled multi-sig wallets.


The DAO members have voted in the past to retain and pay various service providers to provide services to the Indigo Protocol. Some service providers, like MLabs and AWS, have been paid by Indigo Labs (under the Labs’ April 2023 Services Schedule, Proposal 17). Other service providers, like Labs and TxPipe, agreed to defer payment until after V2 when the Foundation would be able to make payment using the DAO Treasury.
The chart below summarizes all past bills incurred under those DAO votes which the Foundation is now in a position to pay:

Service Provider / DAO Proposal Services / Date Fees / Services Pass-through Expenses
Indigo Labs \ Proposal 17 \ Proposal 30 April 2023 Services $25,136.95 $0
May 2023 Services $50,237.20 $12,053.52
June 2023 Services $43,129.75 $11,116.81
July 2023 Services $23,779.90 $17,181.05
Aug 2023 Services $21,862.15 $25,916.94
Sept 2023 Services $30,965.45 $19,806.00
Oct 2023 Services $28,342.95 $24,013.00
Nov 2023 Services $27,134.55 $21,949.72
Dec 2023 Services $16,366.25 $18,884.85
Jan 2024 Services $16,035.00 $29,805.13
Feb 2024 Services $12,528.30 $29,810.69
Mar 2024 Services $16,391.25 $28,347.81
April 2024 Services $19,114.65 $21,574.32
May 2024 Services $10,609.65 $15,955.46
Sub-Totals: $341,634.00 $276,415.30
Combined Total: $618,049.30
TxPipe / Proposal 31 Monthly Service @ $380 , March, April and May 2024 $1,140
Carey Olsen (Legal) / Proposal 17 Foundation Formation Expenses $19,734
Zedra / Proposal 1 Annual services for 2023 ($34,626.59) and 2024 ($34,779.03) $69,405.62
Lemma / Proposal 40 April 2024 Services Agreement ($25,000 setup, $14,500 May monthly fees) $44,500
MEXC 2024 Listing Fees $60,000
CLS / Proposal 40 2024 Services for April and May $12,000
TOTALS $824,828.92


Vendor / Payee Service Terms Estimated 2024 Budget (June 2024 through December 2024)
Indigo Labs Technical services Hourly fees. Indigo Labs continues to provide services to the Foundation under the April 2023 Services Schedule. Historically, the fees have averaged $28,000 per month. However, until the DAO approves a specific set of further technical developments, we recommend a budget of $25,000 per month. $175,000
MLabs Technical services Hourly fees. MLabs has presented a Proposal to the DAO to approve a direct services agreement with the Foundation starting June 1, 2024. That proposal includes authorization of a minimum of $15,000 per month for the seven remaining months in 2024. $105,000
AWS Web app hosting Use-based fees. Historically fees have averaged approximately $3,400. We anticipate that average to increase as the Platform experiences greater use, and we estimate $3500 for this table. $42,000
TxPipe Cardano Kupo Port and Ogmios Port authentication key services Monthly flat rate of $380 = $4,560/year. Potential additional fees for overages on requests or connections. $5,000
Zedra Supervisor & Independent Director Services 2024 payment for 2025 services. Estimated $27,000 / year for director services; $8,000 / year for Supervisor and related services. $35,000
CLS Treasury Management Services Estimated $2,000 per month. $14,000
Lemma Financial Services Estimated $14,500 per month $101,500
Alpha Growth Marketing, Business Development and Community Development Services Estimated $3,000 per month $21,000
General Admin and Op Budget General funding of foundation expenses Estimated at approximately 10% of expenses. $50,000
TOTAL: $538,500.00


The DAO members have already committed to making these payments by approving services agreements with each of these vendors. A ‘yes’ vote on this Proposal approves the above-listed 2024 budget and the transfer of INDY sufficient to pay for the services provided in the past.

These additional steps to get the Foundation operating more fully have been two years in the making and part of the Indigo Protocol’s decentralization story from the start. We hope to have everyone’s support and look forward to answering any questions.


Thanks for providing a high attention to detail on the fees so far and what is to be expected going forward.


Oha, nice overview about the costs, I really appreciate.

But isn’t 800K$ in INDY a bit much sell pressure at the current CNT market conditions?


@1,24$/INDY, it would represent >600kINDY, i.e. > 5% current circulating cap, which 64% are staked… even if, CLS are wizards of trading, I think it likely would…

Maybe why it would be important to redirect a part of interest fees to INDY stakers and INDY buyback as currently discussed in the forum…


Yes, it likely will …

I don’t think buybacks and increased Indy staking rewards will equal 800K$ in short term.

So how to prevent people from exiting their INDY?
I am quite sure many investors (like me too) didn’t know until now that past expenses have been added up to unpaid bills.

I get that paying them is necessary, also for future operations of the platform. But now at these market conditions and all at once?


Whoa, this MUST be released in percentages over a long span of time… This will absolutely destroy the token value… Its already destroyed, yikes! Hard No on the vote unless its a structured time release… Also, I never knew this was coming… Got a feeling a lot of hodlers will also sell if this proposal passes, which in combination with this will for sure send everyone who holds the bags on a nonstop train to Rekt City…

After some more thought, this should be paid in ADA or USD, anything but INDY… I’m not sure why the team wouldn’t want that also, you know, why do that to your own token and investors… I hope that I’m misunderstanding something, please clarify if I am, because to me this sounds real bad… The market cap of INDY is just too small to absorb this especially in a time where the Cardano ecosystem needs more time to grow, get more liquidity, and new investors to the space…

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It should be noted that the past expenses presented here have already been paid for by Labs and will not cause additional sell pressure on the token to cover them. INDY received as repayment would be used to extend runway for the Labs core team and used strategically over time.

Additionally, the majority of the service providers here accept INDY as a form of payment in addition to other digital assets. The only monthly expenses shown here that will in theory require token selling to cover are AWS, which is averaging $3.5k USD/mo. Zedra is an annual expense as shown in the budget breakdown, while Lemma accepts combination of INDY, ADA and stables.

Since ADA is accepted by all vendors aside from AWS, this is why the Treasury Management Phase 1 proposal suggests 50% earmarked for DAO opex so as to minimize the need for INDY to be sold. The ADA accrued from interest alone could in theory cover all DAO opex needs.

I hope this clears up any concerns with perceiving this proposal to automatically trigger INDY sell pressure. It does not.


Oh, well that’s a relief!
I guess I just misunderstood this sentence…
“A ‘yes’ vote on this Proposal provides the DAO’s approval of making payments to service providers for past work”
Payment for past work kinda sounds like all that money is still owed… Maybe it needs to be reworded in case holders vote against without reading replies… I think others that previously commented might of been confused as well…
Nevertheless, no worries, sorry for the “Hard No” and mini-panic attack I had…