The current Shimmer Community Treasury Grant Committee and governance community proposes to revise the grant committee framework from Exhibit C - V1 to Exhibit C - V2 (Proposal V.2).
- Yes - Approve proposed framework revision
- No - Do not approve proposed framework revision
This is the second published version of the Shimmer Community Treasury Grant Committee revision Proposal. For reference you can read the first version.
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 oepration and additionally, to allow the IOTA Community treasury tokens from the Build vs. Burn vote conducted on June 2022 (Build vs. Burn 1) to manage 10,000,000 IOTA under the established Tangle DAO LLC. There are twenty-five revisions proposed to the specification.
Given this proposal governs both the IOTA and the Shimmer community, if this proposal goes to Phase II the proposal will include two participation events, one for each community (IOTA and Shimmer). A participation event for the IOTA and Shimmer community will be listed and used for the phase III goverance vote. Each community shall conduct a governance vote in parallel on each network and both communities must be in favor for this proposal revision to be accepted.
A bullted summary of the revision is listed below.
The revisions can be categorized in the below bullet points.
- Revisions that allocates 10,000,000 IOTA from the IOTA Community Treasury to the grant committee once the tokens are available. As well, revisions that give guidelines to how the IOTA community can elect, if they so choose, and manage a grant committee. Lastly, revisions that distinguis the Tangld DAO LLC role and responsibilities from the grant committee.
- This revision enables the committee to use idle assets to benefit the Shimmer and/or IOTA ecosystem and community.
- Revision that enables the committee to be able to create contractual terms for the grant dispersion.
- 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 currenter 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.
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 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 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 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 24: Revision twenty-four is proposed to updating wording to include the IOTA network.
Through a governance vote 15% of the Shimmer Community Funds approved by the vote SGP-005 which then 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 IOTA elected committee.
As 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.
The current Shimmer Community Treasury Grant Committee framework which was developed over two years 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. As well, through weekly governance votes which the committee, community, and IF; through collaboration we proposed to use the current framework for the IOTA community funds allocating 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.
Note: The full specification can be found in the following pull request.