Pre-proposal: Raise VP Threshold for Grant Tiers 4, 5, 6

Governance
1

Summary

Raise the minimum voting power required to pass grants of tiers 4, 5 and 6.

Abstract

At the beginning of the Grant Community Framework a minimum VP participation threshold was set. At the moment current thresholds are 1M VP for Grants for all grants.

Recently a proposal to expand the Community Grant Program has been approved, adding three new tiers that enables access to higher amounts of funding:

  • Tier 4: Up to $60.000 USD, 6 months vesting (1 month cliff).
  • Tier 5: Up to $120.000 USD, 6 months vesting (1 month cliff).
  • Tier 6: Up to $240.000 USD, 6 months vesting (1 month cliff).

This proposal aims to set new VP thresholds for tiers 4, 5 and 6.

Motivation

The VP thresholds are an important mechanism set in place with the purpose of:

  • Ensures that enacted proposals more accurately reflect the sentiment of the greater community.
  • Helps to prevent the DAO from funding underqualified, poorly-formulated, or fraudulent grants.

Specification

General considerations:

  • Past grants received between 1M and 2.3M VP each.
  • Maximum VP received in a proposal 11M VP.
  • Participation of VP may changes over time.

Proposed thresholds for each grant tier:

  • 1M VP ⇒ Tier 1: Up to $1,500 USD in MANA, one-time payment
  • 1M VP ⇒ Tier 2: Up to $3,000 USD in MANA, one-time payment,
  • 1M VP ⇒ Tier 3: Up to $5,000 USD in MANA, 3 months vesting (1 month cliff)
  • 2M VP ⇒ Tier 4: Up to $60.000 USD, 6 months vesting (1 month cliff).
  • 6M VP ⇒ Tier 5: Up to $120.000 USD, 6 months vesting (1 month cliff).
  • 12M VP ⇒ Tier 6: Up to $240.000 USD, 6 months vesting (1 month cliff).

Since amount of VP participating in the DAO might change in time, the recommendation is to review these thresholds periodically (every quarter).

2

I’m not sure we should add even more restrictions to the grants program. The DAO has lots of funds and we’re seeing very little grant proposals. Why would we want to make it even harder to get a grant? I’d say we postpone this until there’s too many low quality grant requests.

1 Like
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ps: please replace all occurances of “tire” with “tier” :pray:

1 Like
4

Previous tiers (up to $5,000) have the same threshold of 1M VP. Higher thresholds are suggested for the new tiers (up to $240,000).

Some people may argue it’s risky to enable the approval of $30k per month over 6 months just with 1M VP. Some Districts have that amount of VP by their own.

I agree we haven’t seen any intent of abuse of the community grants yet.

5

I have been talking with different contributors about this issue and I still believe it’s necessary to raise the VP threshold. I got to modifications to make about this original proposal:

New threshold for Tiers 4, 5 and 6:

  • 2M VP ⇒ Tier 4: Up to $60.000 USD, 6 months vesting (1 month cliff).
  • 4M VP ⇒ Tier 5: Up to $120.000 USD, 6 months vesting (1 month cliff).
  • 8M VP ⇒ Tier 6: Up to $240.000 USD, 6 months vesting (1 month cliff).

Extend the voting period for two weeks on Tiers 4, 5 and 6. This allows more community members to review those bigger grants and participate in the votation process.

I’ll send a proposal with these changes.