[SGP-0006/IGP-0001] Tangle Community Treasury Grant Committee Framework Revision

[SGP-0006/IGP-0001] Tangle Community Treasury Grant Committee Framework Revision

This proposal has gone through an initial proposal, an updated version containing clarifications and implements community feedback, and is now presented to you in this Phase 2 Poll to determine if it should be voted in a Phase 3 Firefly vote amongst all Shimmer token holders.

This Poll will be open for seven days and close on Monday, 9 October, at 3 pm CET.

Only forum members with Trust Level 1 (basic user) or above are eligible to vote in this Poll.

Do you support the revision of the Shimmer Community Treasury Grant Committee Framework according to the changes proposed in this Governance proposal?
  • Yes - Approve proposed framework revision
  • No - I dont want to implement the proposed changes
0 voters

Simple Summary


Phase 2 - Grant Proposal

A summary of the proposed provisions to revise the below:

The treasury committee and the weekly governance community proposes to revise the grant committee management framework in which we aim to improve the specification with the lessons learned collected by the grant committee during the firts five months of opration and additionally, to allow the IOTA Community treasury tokens from the Build vs. Burn vote conducted on June 2022 (Build vs. Burn 1) to donate 10,000,000 IOTA of the 54,000,000 IOTA so the Tangle DAO LLC can manage under them under a grant committee program.There are twenty-five revisions proposed to the specification.

Because this proposal touches both networks we will have Phase 3 votes happening for the IOTA voters and the Shimmer voters. Both votes will start in paralell on both networks. Only if both communities agrree in the vote, the proposal will be executed.

The revisions can be categorized in the below bullet points.

  • Proposal to give 10 million IOTA from the IOTA Community Treasury (54,8 million IOTA decided in the Build/Burn vote 2022) to the Tangle DAO Grant Committee, so they can also start an IOTA Grant program. The IOTA tokens shall be given to them once an IOTA EVM Chain makes the IOTA Community Treasury available.
  • This revision enables the committee to use unused assets to benefit the Shimmer and/or IOTA ecosystem and community.
  • Changes that give the Tangle Treasury DAO the right to create and sign contracts with grant receivers.
  • Revisions that add or update the specification to make it easier for community members and committees to understand the specification.
  • Revisions that are basic and changes wording, edits grammar, or includes mentioning the IOTA Community Treasury to the Specification

It should be noted that this aligns both communities to vote for how their grant treasury funds should be managed. At the end of the current committees terms, each community can choose to elect new members and additional committee members. If both communities choose to have a single committee manage both community treasury grant funds, each community can vote to do so.

This changes do not create automatically a second / seperate committee. The current elected members of the Shimmer Community Grant Committee will handle all activities. But it opens the opportunity to seperate both grant programs (IOTA grants and Shimer grants) in the future, in case the communities would want that and decide it in a governance vote.

Revisions that add the IOTA Community Treasury and distinguish the Tangle DAO LLC role and responsibility.


Revision 01: Revision one was proposed to officially update the name from the original Shimmer Community Grant Committee to the current name Tangle Community Treasury Grant Committee(s). In this proposal, it is being proposed to include specification details that govern the committee to oversee any funds in which the IOTA Community may grant with a purpose bound to the current Shimmer Community Grant committee(s).

Revision 02: Revision two proposes to update the introduction wording to and change some statements so that the committee intends to manage all assets that may be allocated to the committee by either the IOTA and/or Shimmer community. Additionally, a graphic can be viewed below representing the structure of the LLC that is a liability umbrella over the communities DAOs.

Revision 06:

Revision six proposes some updates to the grant reviewer’s activities and responsibilities to include IOTA related activities.

Revision 07: Revision seven revises the terms of the committee(s) as both the IOTA and the Shimmer communities will elect their committees through governance votes. This revision proposes to use the current committee members and allow them to manage the 10,000,000 $IOTA, ensuring the 10,000,000 $IOTA will last until the end of the 2024/2025 term. The committee shall finish its term in March 2024, upon which both communities will elect the current or new members to represent them.

Revision 16: Revision sixteen proposes to revise the grant evaluation scoring system that better reflects the committees observations and recommendations. Wording is also updated to include the IOTA ecosystem.

Revision 22: Revision twenty-two has been proposed to clarify the IOTA’s committee budget which proposes to donate 10,000,000 $IOTA to be used from the IOTA Community treasury and bound to the grant committee. These funds are proposed to be used through the end of the current committees term, as well as, used throughout the 2024/2025 period if the community votes to continue the grant committee. Statements are also proposed to better describe how the budget is used between the two committees and how those assests will be liquidated and sent back to the respective community if the community does not continue the grant committee.

Revision 23: Revision twenty-three proposes to clarify the legal entity in which members fall under.

Revision 25:
Revision twenty-five proposes to update how changes to this framework can be initiated. The revision adds freedom to any community member so that they can propose changes if they see fit through a governance vote. Additionally, wording is added to distinguish which communities and how they can make changes to the LLC entity, and or, to their committees framework.

Revision that enables the committee to use idle assets while prioritizing the growth of the ecosystem and community.


Revision 20: Revision twenty was proposed to be added which allows the committee to use idle funds to help the ecosystem. In this first couple of months of operation, we became aware that we have an unused oprtunity to support the Shimmer Ecosystem and especially the newly emerging DeFi protocols with the assets that have been allocated to the Committee. Instead of having them sitting idle, waiting for Grant proposals to which they can be paid out in the future, we believe that we can put those funds to a good short term use for the benefit of the ecosystem by placing them startegicaly, and after thorough risk assesments, into some yield bearing opportunities. This will provide much needed liquidity for the start of the Shimmer EVM DeFi ecosystem and therefore seems to be a better use of the funds than having them sitting idle in a wallet doing nothing.

It should be noted that using idle assets is solely to support the growth of the ecosystem and support the community. Any use of idle assets shall be proposed to the community, shown transparently, and completed in a short-term manner in which the assets can be used for grant funding prior to the end of the committees terms.

Revision that enables the committee to be able to create contractual terms for the grant dispersion.


Revision 18: Revision eighteen proposes that this section added to the specification to allow the committee the freedom to create contractual terms. Instead of simply giving a grant without ever creating such terms the grant receiver doesn’t have to pay anything back, this gives the committee the ability to create terms. Sometimes, the treasury may support the ecosystem by providing liquidity, temporary loans, or act as a liquidity provider. During these special circumstance contractual terms should be used.

Even grants that do not require repayment still will have contractual terms that grant receivers are required to sign. For example, even a contract not requiring repayment will ensure grant funds can not be used for illegal purposes or to fund terrorism and protect the treasury. An example of a Tier I grant receivers contract can be viewed here: Grant Receiver Agreement (Tier I) - V1.md.

Revisions that add or update the specification to make it easier for community members and committees to understand the specification.


Revisions 03: Revision three proposes to add a ‘Definitions’ section. As this specification may manage IOTA and other assets, it may confuse community members, so this section is proposed to be added for clarity.

Revision 14: Revision fourteen proposes to update the funding tier categorization to remove the ‘regular’ and ‘low’ tier distinction. This becomes very confusing for both the community and reviewers. It is a responsibility of the program lead to manage the treasury properly, in particular to market extremes and volatility.

Revisions that are basic and changes wording, edits grammar, or includes mentioning the IOTA Community Treasury to the Specification


Revision 04: Revision four proposes to update the mission of the Tangle Community Treasury Grant Committee to include the IOTA network and update the grant committee name.

Revision 08: Revision eight proposes grammar edits and updates the Shimmer and IOTA governance framework link.

Revision-09: Revision nine proposes some grammar edits and paragraph number formatting.

Revision 10: Revision ten proposes to clean up this paragraph, add the terms ending date, and mentions both communities.

Revision 11: Revision eleven proposes to add mention of the IOTA’s network to bullet point one of the guiding principles. Some wording edits to add clarity.

Revision 12: Revision twelve proposes add language to detail the difference between the two communities (IOTA and Shimmer).

Revision 13: Revision thirteen proposes to change the bold lettering and update the paragraph numbering.

Revision 15: Revision fifteen proposes to update the paragraph. The application is active and can always be updated per the committee or communities request.

Revision 17: Revision 17 proposes to take out the link to the database. The database can be interfaced through www.TangleTreasury.org.

Revision 19: Revision nineteen is proposed to update the wording and statements to coincide with the current used database which is interfaced through the website www.TangleTreasury.org.

Revision 21: Revision twenty-one updates the complaint process with some wording and the link to www.govern.iota.org.

Revision 24: Revision twenty-four is proposed to updating wording to include the IOTA network.

Abstract


Through a governance vote, 15% of the Shimmer Community funds approved by the vote SGP-005, had been allocated to the elected committe to use the funds for a committee led grant program. After successfully operating this approved initiative for five months, the committee and community proposes to revise the current framework with small revisions, and also update the framework to inlcude a portion of the IOTA community treasury and allocate them to the current and future elected committee.

As IOTA EVM goes live and the future of IOTA Mainnet starts to become a reality, it is important to have a grant funding system in place for both networks. The most important part of any grant committee is trust, protection of community funds, and transparency. The current framework and proposed revisions maintains these foundational principles.


Motivation

The current Shimmer Community Treasury Grant Committee framework was developed over two years by the community and did an amazing job of guiding the committee operations while protecting the community allocated funds. As Mike Tyson once said, “Everyone has a plan until they get punched in the mouth”. The point is, no matter how much planning goes into an operation, nothing can be accounted for until it is implemented.

The current grant committee conducted a lessons learend and assessed the current framework. We looked at what may cause inefficiency, communication that my cause confusion, or limitations. Through weekly governance votes within the committee and by involving the community in the weekly governance calls we decided to propose to use the current framework also for the IOTA community funds and agreed to propose an initial allocation to the committee to manage 10,000,000 $IOTA for grant funding.

Rather then creating a new entity, multiplying costs, the governance group proposed to use the current grant system framework for the IOTA community tokens as well. Such revisions were made to the current framework which would allow distinction of how both communities manage their committees and their cummunity funds. The below specification is the revised proposed framework.


Specification

Note: The full specification can be found in the following pull request.

.md file: https://github.com/Tangle-Community-Treasury-DAO/Operation-Agreement/blob/03e3cc65533525c908f5d2d0ddf2a388c6ce0f63/Exhibit%20C%20-%20V2.md

Pull Request: Deep sea 888 version 2 by Deep-Sea-888 · Pull Request #7 · Tangle-Community-Treasury-DAO/Operation-Agreement · GitHub


Implementation

Once this proposal has successfully passed Phase 3 (Firefly vote) in the Shimmer and IOTA network, the following measures need to be taken:

  • The framework will be updated in the Tangle DAO LLC Github
  • When the IOTA EVM is available on the IOTA Mainnet 10 million IOTA will be transfered to the grant committee multi-sig wallet setup on the IOTA EVM.

Vote Name, question and answers, and optionally additional information

Question:

  • Do you support the revision of the Shimmer Community Treasury Grant Committee Framework according to the changes proposed in this Governance proposal?

Answer 1:

  • Yes, I approve the proposed framework revision

Answer 2:

  • No, I don’t want to implement the proposed changes

Additional:

Read the full proposal: [SGP-0006/IGP-0001] - Tangle Community Treasury Grant Committee Framework Revision

Shimmer Network Participation event of the proposal

{
  "name": "[SGP - 0006] - Shimmer Community Grant Committee Revision Proposal",
  "milestoneIndexCommence": 6353144,
  "milestoneIndexStart": 6474104,
  "milestoneIndexEnd": 6595064,
  "payload": {
    "type": 0,
    "questions": [
      {
        "text": "Do you support the revision of the Shimmer Community Treasury Grant Committee Framework according to the changes proposed in this Governance proposal?",
        "answers": [
          {
            "value": 1,
            "text": "Yes",
            "additionalInfo": "I approve the proposed framework revision"
          },
          {
            "value": 2,
            "text": "No",
            "additionalInfo": "I don't want to implement the proposed changes."
          }
        ],
        "additionalInfo": ""
      }
    ]
  },
  "additionalInfo": "Read the full proposal here: [https://govern.iota.org/t/sgp-0006-igp-0001-tangle-community-treasury-grant-committee-framework-revision/1675]"
}

IOTA Network Participation event of the proposal

{
  "name": "[IGP - 0001] - Shimmer Community Grant Committee Revision Proposal",
  "milestoneIndexCommence": xxxxxxx,
  "milestoneIndexStart": xxxxxxx,
  "milestoneIndexEnd": xxxxxxx,
  "payload": {
    "type": 0,
    "questions": [
      {
        "text": "Do you support the revision of the Shimmer Community Treasury Grant Committee Framework according to the changes proposed in this Governance proposal?",
        "answers": [
          {
            "value": 1,
            "text": "Yes",
            "additionalInfo": "I approve the proposed framework revision"
          },
          {
            "value": 2,
            "text": "No",
            "additionalInfo": "I don't want to implement the proposed changes."
          }
        ],
        "additionalInfo": "The IOTA voters agree to allocate 10 million IOTA Tokens through a donation from the IOTA Community Treasury to the Tangle Community Treasury Grant Committee and accept the operation specification outlined in the following proposal [https://govern.iota.org/t/sgp-0006-igp-0001-tangle-community-treasury-grant-committee-framework-revision/1675]"
      }
    ]
  },
  "additionalInfo": "Read the full proposal here: [https://govern.iota.org/t/sgp-0006-igp-0001-tangle-community-treasury-grant-committee-framework-revision/1675]"
}

Milestones will be adjusted for the final participation event json files to adhere to the correct milestone timings.

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