This post outlines a starting framework for a 0xDAO grant program. If approved, funding for the grant program will come from the 0xDAO community treasury. We are seeking constructive input and feedback from the community prior to submitting this proposal for a governance vote.
Drawing inspiration from other protocols, we propose to establish a pilot grant program to provide funding to projects, ideas, and events that benefit the 0x protocol and its stakeholders. If approved, funding for the program will come from the community treasury. Specific parameters and investment targets are TBD. Grant proposals will be evaluated and awarded using an investment mindset. An explicit goal of the program is to prioritize investments with the greatest potential for high-impact returns.
The grant program will:
- Develop and implement a structured process to efficiently ingest and evaluate grant proposals;
- Actively track and report on the progress of funded grants;
- Collaboratively assist with maximizing the impact of grant deliverables; and
- Derive outcome and return on investment metrics to inform future investments.
Our intention is to fund projects, ideas, and events that directly benefit the 0x protocol and its stakeholders. We have loosely categorized the following focus areas and are interested in feedback as to prioritization (High, Medium, Low):
- Protocol features and improvements (NFT support and transformers, for example)
- Code audits (for external code integration)
- Tokenomics revamp/optimization
- Developer/user tools (including documentation)
- Research and analytics
- Dapps and new integrations (especially projects using orderbooks)
- New business models and monetization paths (including new use cases for Mesh)
- Community building, outreach, and rewards
- General marketing
- Social media
As representatives of the 0x community, the 0xDAO bootstrap delegates have sufficient delegated voting power to autonomously create on-chain, binding treasury proposals. However, they are not expected, nor are they empowered, to actively oversee project workflows and ancillary activities that are funded by the treasury.
Therefore, we seek input from our community regarding which operations model to implement to ensure that the grant program achieves its goals (as described in ‘Purpose’ and ‘Success Metrics’). The following models may be considered as candidates (we are open to other suggestions as well):
- Community Managed: All funding and operational decisions require an on-chain community vote; program management is by consensus; operational coordination and pre/post-decision work is done on an ad hoc basis by community volunteers
- Committee Managed (Synthetix model): A small committee (elected or appointed) is allocated a budget with discretionary, multisig spending authority and is responsible for running the program (committee may or may not be compensated)
- Lead with Reviewers (Compound/Uniswap model): Program lead is ‘hired’ by the DAO and has some level of discretionary decision-making authority to run the program; also makes funding recommendations that require reviewer multisig approval (lead is compensated)
Process and Timeline
If approved, the program will begin shortly after the proposal passes and will run for a period of six months, at which time the program may be extended, expanded, replaced, or terminated by the community, depending on learnings and results. Additionally, if warranted, interim adjustments may be made prior to the end of the six-month period via the governance process. The program is expected to report progress, operational, and outcome metrics to the community on a regular basis (schedule TBD).
The community treasury is seed-funded by 0x Labs with 2m ZRX (~$4m as of 4/1/2021). We are seeking input as to the amount of funding to be allocated to the grant program for the six-month pilot. Any allocated funds not used will revert to the treasury.
We expect success to come in two forms: objective and subjective.
Objective success metrics:
- Specific ROI metrics as described in ‘Purpose’
- Level and quality of community engagement
- Number and quality of grant applications (especially in ‘high priority’ areas)
Subjective success metrics:
- Improved sentiment and goodwill within the community and broader ecosystem
- Improvement in 0x’s brand and positioning in the market
The grant program will be a critical component of the initial portfolio of activities undertaken by 0xDAO through the community treasury. As an experimental pilot designed to deliver high-impact returns for 0x stakeholders, we intend to learn by doing and will be transparent about what we do well and what we can do better.
Please share your thoughts and suggestions in the thread below. Additionally, please register your general support and preference in the following polls:
Poll: Support for Grant Program
- Do Not Support
Poll: Operations Model Preference
(see descriptions and examples, above)
- Community Managed
- Committee Managed
- Lead with Reviewers