Gnosis has issued grants via the GECO grant program. With the GnosisDAO live, it will need a way to incentivize people to create community goods. This post explores ways the GnosisDAO could do this and is looking for feedback and discussion around community grants issued by the GnosisDAO.
Gnosis currently issues grants via the GECO grant program. This program has given a significant amount to builders and researchers but is conducted by Gnosis’s company. At some point, the GnosisDAO will need to issue grants to incentivize the development of community goods.
There is a lot to be unpacked, but the primary issue is how the GnosisDAO can issue grants without governance overhead for each grant given whilst making sure the grant funds are put to the best use possible.
There is a ton of software, tooling, and educational resources needed to support developers building using Gnosis protocols. These community goods are in the best interest of GNO holders as they should lead or facilitate the adoption of Gnosis protocols. How the adoption of Gnosis protocols leads to the appreciation of GNO is a topic for another forum post. Still, I’m quite sure that appreciation of GNO is tightly linked to the usage of protocols produced by Gnosis.
The motivation is also somewhat personal. I work with teams to issue grants, albeit smaller ones ranging in the 1000 to 5000 USD mark. I’m a central point of contact for those teams, and I believe that for GnosisDAO to grow there needs to be a way that grant issuance can happen outside of Gnosis company structures.
A grant program has a few fundamental parameters that need to be addressed:
- How and in what currency grants are paid out in
- The min and max USD value of a grant
- A guideline of what is and is not suitable for grant funding
- A method to decide on issuing a grant
- A method to decide on if a milestone/grant has been reached
- The total size of the grant program
Each sub-DAO could have its own version of these parameters. For example, a sub-DAO responsible for issuing grants that fall in the range of 2 000 to 5 000 USD of GNO value specifically for the creation of tutorials.
Some initial ideas on the parameters above:
How and in what currency grants are paid in
I believe this should be GNO as it helps achieve a greater distribution of GNO and increases the number of participants in the GNO ecosystem whilst aligning the interests of the GnosisDAO and grant applicants.
Min and Max values
Anything less than 1000 USD could probably be better served through a tool like rabbithole/sourcecred. I’m not sure if there is a maximum but what I have noticed is that higher maximums tend to invite proposals which look more like startups looking for seed capital than people looking to produce community goods. Perhaps this can be better addressed by giving the grant program a narrow scope of what can/can’t be funded.
What is funded
Community goods. But what is a community good? I believe this falls under the same definition as a public good because usage of the good is not limited to an exclusive group, does not extract value, and its use does not negatively affect others. However, with the example above each sub-DAO would have a narrower scope.
How to decide on funding a grant?
I’d imagine the bulk of the discussion to take place over this point. One model to issue grants would be a sub-DAO that is essentially a committee formed on a multisig. The members of that multisig would be responsible for deciding on grants based on a charter. Administering grants is work, and there would need to be some method of compensating those who administer grants.
Here are some examples of this in the wild:
Issuing grants based on the outcome of a futarchy mechanic like Gnosis price impact or conditional markets, asking what impact the grant would have on a specific metric if completed. This has never been done in practice, but it would be a great test of futarchy as a concept.
Grants issued by token voting, albeit with a different structure to GIP process. Perhaps something using quadratic voting with sybil resistance and lower quorum thresholds.
Something else? Please add in the comments below if you know of other ways in which grants could be decided on.
How to manage Milestones?
The simplest method but with the most overhead would be manually issuing payments when a milestone has been reached. There is an opportunity to use realti.io and kleros to be independent arbitrators of when milestones have been reached. Conditional Tokens representing successful completion of milestones would be given to grant applicats so they may redeem them for funds once the milestone has been reached.
**The total size of the grant program **
A sub-DAO to be created would require a vote from the GnosisDAO. To make it worth the governance overhead, we can expect sub-DAO’s to command 100 000 USD or greater.
Questions For the Gnosis Community
- What do you think of what the GnosisDAO should and should not fund for grants?
- What do you think about the min and max values for grants?
- What do you think about how grants should/should not be decided?
- What do you think about using conditional tokens to pay out for Milestones reached?
The plans outlined in this proposal are subject to discussion and change. They may also need to be (re)structured to take account of legal, regulatory, or technical developments as well as governance considerations. This document should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in any transactions. You are solely responsible for your own investment decisions and transactions.