Title# 1IP-#: 1inchDAO Ecosystem Fund
Simple Summary
Establish a grants review council consisting of domain experts to advise the DAO on grant requests. And form Request for Comment (RFC) according to the priorities of the DAO
Abstract
The proposal suggests establishing a Grants Review Council (Ecosystem Dogo). The council will help potential grant applicants optimally structure their applications and recommend a course of action to the DAO. The panel will not decide whether to fund a proposal but only advise the DAO on what decision to make. It is ultimately up to the token holders to make this decision via snapshot.
Motivation#
The 1inchDAO has recently seen a lot of activity from various groups asking to build applications and products on top of the 1inch protocol. The bottlenecks we identify here are:
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- Applications are structured in a way that is unfavourable to the DAO
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- There needs to be proper due diligence on applicants
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- The DAO needs the body which supports grant applicants, tracks past grants’ progress and sources credible teams for the DAO.
Specification
Grants Review Council is an independent review body within the 1inchDAO org structure, responsible for assisting the DAO in making funding decisions.
Council Mandate,
The mandate of the council has two goals:
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- Assist the DAO in making decisions
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- Assist applicants with making applications
Council Structure
The council will consist of 3-5 individual members with diverse expertise. We recommend the following structure:
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- Legal
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- Tech and dev tooling
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- Social and education
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- Finance and accounting
Success factors
We suggest that the council runs till the budget expires and produce a report on its activities at the end of its budgetary cycle. The DAO can continue or discontinue this council based on this report.
The DAO can measure the council’s success based on
the number of grants advised on
the average turnaround time for grant requests.
Selection procedure
We suggest that interested candidates reply to this post expressing interest along with a summary of their experience and expertise. The 1inch foundation and the recognised delegates will select the most qualified team and suggest this to the DAO via a snapshot proposal.
Rationale
There are a few alternatives to this approach which are popular in other DAOs
- Grants Committee
A trusted group of peers elected by token holders to manage the end-to-end grant process on behalf of the DAO.
- Quadratic Matching
Funds are retroactively allocated based on community consensus.
- RPGF [Optimism Model]
A ‘Citizen’s House’ consisting of core contributors retroactively allocate funds.
The second and third approach requires an active community, which we lack. We could consider the first approach. However, this adds a centralisation vector to the funding process, which we want to avoid.
Considerations
Compensation for Grant Reviewers
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Base Comp [retainer]
This base compensation assures that members are available to dedicate time towards grant applications whenever they arise, as well as helping applicants with structuring their applications. We suggest a base compensation of $1000/person paid in 1inch tokens at the end of each month. -
Variable payment
We suggest a variable payment which is a fixed % of the total ask for each successful grant.
This is paid per review in USDC.
Total Ask %
<$100,000 5%
$100,001 - $500,000 4%
$500,001 - $1M 3%
$1M+ 2%
Max Budget:
We suggest a max budget of $100,000 for the first iteration of the Grants Review Council.
We invite all interested applicants to comment on this post expressing their interest for one or more seats in the council.