This is the second of two planned treasury proposals for the current lease of the Encointer common-good parachain. The first share for Q1 and Q2 2023 had been [approved](https://kusama.polkassembly.io/treasury/235) by Kusama OpenGov in Dec 2022.

Since the previous proposal, significant changes have occurred around Kusama's Treasury. The implementation of OpenGov resulted in unsustainable spending levels, leading to a restrictive voter backlash aimed at safeguarding the remaining funds in the KSM Treasury. Considering the remaining funds available, Encointer recognizes the need to adapt its funding strategy. Instead of solely proposing to the KSM Treasury, we will now extend our proposals to the DOT Treasury as well, supported by the assertion that Encointer benefits not only Kusama but the entire Dotsama ecosystem. As DOT treasury proposals experience congestion and OpenGov is soon to be implemented on Polkadot, it is imperative to secure uninterrupted funding for our team and prevent any disruptive downramp-upramp scenarios. Therefore, we propose the following measures:
1. This proposal to the KSM treasury shall cover our expenses for July and Aug 2023
2. As soon as OpenGov lands on Polkadot, we shall submit a proposal to the 
DOT treasury to cover our expenses from Sept onwards

**The amount of the proposed spend (1.) is CHF 213’000 ≃ USD 234’000**

A growing part of KSM voters is in favor of **retroactive funding** by the treasury. Encointer claims that enforcing retroactive funding for common goods has significant downsides: Asking teams to front the costs themselves in cases where there is no return on investment will keep those teams small and impacts low. Besides Encointer’s established track record, we’d like to emphasize that the founder of Encointer, Alain Brenzikofer, has worked for Encointer without pay from the beginning, which amounts to well above a person-year by now. So, if you insist on retroactive funding, please consider approving this proposal on the grounds of Alain’s pre-investment. 

[Detailed proposal Document](https://docs.google.com/document/d/1lUVpmTjE81_rwBR38H80rSiwYd3eoPZHE6TGykwlsSo/edit?usp=sharing)


Encointer Lease2 Treasury Proposal 2/2

Democracy

- This is the second treasury proposal for the Encointer common-good parachain.
- They are extending their proposals to both the KSM and DOT treasuries.
- The proposal covers expenses for July and August 2023.
- The proposed spend is CHF 213,000 (about USD 234,000).
- They mention the downsides of retroactive funding and ask for approval based on the founder's pre-investment.

#319 Encointer Lease2 Treasury Proposal 2/2