This is a sister proposal to: [Proposal][TFL][TextProposal] Establishment of CommunityPoolSpend Committees and Establishing Proposal Guidelines - #2
Read the sister proposal first to better understand the context of this proposal.
There is a single FAQ to address common concerns to both proposals live at the sister proposal link.
Create a high-velocity pool of capital to take advantage of opportunities within Terra.
Establish 3rd parties to verify quality and keep initiatives accountable to high-leverage use of community resources.
Increase overall metabolism and rate of innovation within the Terra Ecosystem.
Given the community pool remains at >5M LUNA (>$35M as of July 23, 2021) post-Columbus-5 and Ozone launch we believe Rapid Grants to be among the highest leverage opportunities for the team to introduce stable governance mechanisms moving forward while maintaining agility in supporting the development of new projects. Even in its current state, TFL does not have sufficient mechanisms in place to issue rapid grants to the abundant community projects emerging, especially given increased interest after the launch of the $150M Ecosystem fund. Rapid Grants are defined as fast pools of funding to pursue high leverage opportunities within the ecosystem, specifically bypassing the 14-day voting mechanism and the guidelines for other proposals.
With inspiration from our friends at Compound / DeFi grants, we propose a Rapid Grants framework. We aim to use Rapid Grants to improve the overall velocity of shipping speed within the Terra ecosystem, especially by 3rd party groups of community members. We are known to be among the fastest product teams in DeFi and crypto, and while we aim to improve governance mechanisms by introducing scalable processes, we also want to maintain mechanisms to allow us to move at rapid speed. The next phase for Terra, we believe, is to be the fastest shipping community within DeFi more broadly and evolve the principles of product-driven, fast-iteration that TFL has been known for.
Thus we propose the following to emulate and improve upon current standards of grants and community governance following the structures below:
Rapid grants will be deployed to accelerate teams the Terra Ecosystem Committees believed to be essential to ecosystem development and the overall health of the Terra ecosystem. Thus, we will move fast to secure opportunities within the ecosystem.
- Rapid Grants pool fund to be seeded with an initial 300K LUNA to provide funding for teams that would benefit the ecosystem via rapid funding. For example, upcoming hackathons/sponsorships, and teams that the Committee would like to expose to the Terra Ecosystem heavily.
- The initial funding will be for Q3 and Q4 of 2021 encompassing August 1 (or whenever proposal passes, whatever happenss earlier) to December 31st, 2021.
- In this format, funding decisions are to be made within 72 hours of the formal submission of a proposal. This is opposed to the potential 4-week period of a proposal review by TFL as well as the two-week on-chain vote period, which provides flexibility for teams to maintain high shipping velocity. Teams will still be required to submit all necessary proposals and milestone documentation. All funding will be auditable on-chain. However, select teams will be eligible for distribution via a rapid grant.
- The Terra Ecosystem Committee will vote on all Rapid Grants and a simple majority will be needed to approve a Rapid Grant. Rapid Grants are to be recorded in public via the public Terra Ecosystem page for community records.
- Rapid Grants bypass the on-chain vote and instead delegates authority to internal TFL members to issue grants.
- The Rapid Grants pool will also be used to fund expenses related to the program including Hackathon development, sponsorships, and other community initiatives (CosmWasm course development, etc), creation of podcasts, institutional reports, conferences, etc. to increase overall developer supply.
- The Terra Ecosystem Committee has the responsibility of reviewing projects and commenting to the community via Agora discussions their views on project and milestone feasibility.
- This group is also responsible for releasing funds associated with project milestones.
- External Ecosystem Representatives (i.e., outside of TFL) are approved members that maintain robust long-term interests in the success of the Terra ecosystem to properly incentivize constructive and honest behavior. They will consult with specific project-related issues and concerns. They are not responsible for releasing or managing Treasury funds.
- If this proposal is approved, we will create a follow-up procedure for updating the Terra Ecosystem Committee pending feedback from the community including adding/removing members.
- Depending on the amount of work we will discuss a fair compensation scheme for this committee that will be publicly auditable.
Community member representatives of the Committee will be re-evaluated in subsequent quarters. The initial Committee representatives were determined by TFL and were selected to help bootstrap the new funding process but will be open to changes pending community feedback as the Committee and proposal system evolves.
- Over time, we plan to decentralize the Committees to represent the greatest interests of the community.
- Applications for additional community members are live here: https://airtable.com/shrwRT85mFnwzelVn
- The schedule of replacing and adding committee members is to be evaluated on a quarterly basis.
- TFL Leader - @0xwagmi, Ecosystem Lead, Terraform labs
- TFL Leader - Stanford Liu, Research, Terraform labs
- Community Leader - @treehugger
- Community Leader - @SebNondzee
- Partner Protocol Leader - @tansawit, Band Protocol
- Ecosystem Fund Leader - Ninor Mansor, Arrington XRP Capital
- Ecosystem Tech Leader- @Larry0x, Delphi Digital
- Please note similar initiatives within community pools of major DeFi protocols, we are aiming to match these pools and set a standard of performance at minimum. In addition, we aim to improve these governance mechanisms over time. Please familiarize yourselves with these other programs before commenting.
- Compound: https://compoundgrants.org/program-expenses
- UNI https://www.notion.so/Welcome-to-UNI-Grants-6e3e84967a984a5fb127ae749649ddc9
- Other grant programs https://www.defigrants.org/