Token Engineering Grants Program v1 First Round Funding Proposal
A $25k grants round to distribute funding to TE projects using Quadratic Funding via Gitcoin’s Allo Protocol
This proposal is part of a set of proposals aimed at boosting the TEC’s sustainability. Context for this package of proposals can be found in this roadmap A Proposals Roadmap for TEC/TEA Sustainability.
To provide some context, we’ve been in contact with Gitcoin over the last month to use their new allocation protocol (Allo Protocol) to set up a grants program with the goal of further increasing the dynamism of funding for token engineering projects. We’re hoping to see new projects emerge and support those who are doing a great job already.
Initially, the Gitcoin team was planning some small test rounds in March, but this week they decided to scrap those plans and go straight to a set of full Partner Rounds in April. The TEC has been selected as one of just a handful of these featured partners. (Note that this means that we won’t be moving forward with the proposal for that test posted last week.) This means that the deadlines for this proposal are very tight.
There’s some criteria to qualify an ‘official’ Partner Round, which include having at least a $50k matching pool, however, as they’re just getting started with this new format, and because they’re still tweaking the requirements, we’ll be setting up a $25k matching pool, which is what this proposal is for.
Specifications of this round
This first round, which we’re still considering as the pilot (just a bigger one), will look as follows:
- This will be an open round, accepting any project in tooling and education that contributes to token engineering. Full details for grant acceptance are TBD (happy to hear thoughts in the comments!).
- Tentative dates are:
- Criteria defined by March 28
- Grant applications open April 1 to 17
- Round starts April 25
- Funding amount is $25k total — $23,420 coming from this proposal and $1,580 from the ENS Small Grant we won last month.
- For the chain we’ll be choosing the one where most of rounds will happen to ensure a better experience for donors and increase donations for grantees. Chain is yet to be determined, but we’re guessing that’s going to be Optimism.
- Payments are likely to be made in $TEC, though we’re still confirming a few details with the Gitcoin team to make sure making payments in another chain aren’t an issue.
- Seems likely that we’ll be able to apply a ‘$TEC matching boost’ , where those who hold $TEC can increase their matching amount, hopefully incentivising donors to buy the token and existing holders to donate. We are also investigating a similar boosting function for holders of NFT knowledge proofs from the Token Engineering Academy TE Fundamentals course.
Note that some details here aren’t set in stone.
We’ll make the best decisions we can as we see how the protocol actually works, asking the community for feedback if needed.
For future rounds
The described above is very specific to the first round, where we’re trying to make the most out of the situation. Here are some things we’d like to get done in the future:
- Non-reliance on TEC’s Common Pool — we want this program to be BIG and sustainable over time, will be working to find funding partners/round sponsors with the goal that little to no money from the matching pool comes from the TEC.
- TEC Membership Boost — this is a very early concept, but the idea is to provide another benefit to TEC’s Membership (which may be composed of NFTs and $TEC, etc.).
- $TEC donations — we want to give people the option to donate using the currency of token engineers! However due to the state of the Gnosis Chain ecosystem, most of the rounds running on Optimism/Ethereum, etc. there’s some things we still have to think about and work through. The experience for grantees and donors is very important.
You can see a full document with the different scenarios for these options here.
Additional information to add
How does this proposal benefit the community and/or the field of Token Engineering?
- A grants program injects dynamism into public goods funding for token engineering by helping to catalyze promising, early-stage projects.
- A grants program enables the TEC to stretch the remaining Common Pool funds by stimulating contributions from individual donors and matching funds partners.
- This pilot gives the TEC valuable, hands-on experience running a quadratic funding grant-making process.
- Being one of just a few early stage Gitcoin Allo partners will boost TEC visibility and grow awareness for the field of token engineering within the broader web3 community.
$23,420.00 requested through Tao Voting (see discussion on turning off Conviction Voting here).
How will these funds be used? (Only for conviction voting)
All of the funds will be used as matching fund payouts to grant applicants. The costs of developing, launching and running the pilot are covered by the existing TEC Coordination Team operating budget.
How will you share progress?
Progress will be shared through the Coordination Team Roadmap, which is updated every month.
Project information (if applies)
Core Coordination Team members: