Governance Vote: Ecosystem Vault 2.0
- To redirect all tokens in the Fantom Ecosystem Vault towards a Gitcoin Grants program.
- To update and replace any existing governance rules for the Fantom Ecosystem Vault with a new set of rules, termed the Vault Governance Charter, as made available here.
- To modify the end date of the proposal 33 “Stop burning early staking unlock penalties, instead redirect them to eco-system vault” so as to end with immediate effect as of the passing of this Governance Vote.
On 19 January 2023, Fantom launched the Vault to collect 10% of all transaction fees paid to the Network as distributed by the Special Fee Contract (SFC) to the Vault wallet, accessible at https://vault.fantom.network
This proposal seeks to:
Create a clear set of governance rules for the program to update and replace those made in the proposal of 3 October 2022.
Redirect the tokens in the Vault to a Gitcoin Grant, the distribution of which to be determined by community voting utilising Gitcoin’s quadratic funding model.
Bring forward the passage of a Governance Vote to stop burning early staking unlock penalties, instead redirecting them to Vault for distribution under the terms of this Charter.
Further background and information on this issue is available below .
Anything beyond this point is for contextual and informational purposes only.
Streamlining the Ecosystem Vault
Discussion Paper for Upcoming Governance Vote
TL:DR As of today, the Ecosystem Vault has accrued over 520,000 FTM. This proposal seeks to utilize quarterly Gitcoin Grant rounds as the distribution method of the Vault until an alternative solution is submitted through a governance proposal.
This proposal seeks to:
- Repurpose the Ecosystem Vault’s distribution of current and future FTM by redirecting the Vault’s collected FTM quarterly toward matching funding rounds held on Gitcoin for all projects on Fantom — these matching funding rounds would be solely for the Vault FTM. From the time of the Vault’s inception, it has collected over 520,000 FTM; however, the current governance structure’s requirements to receive funding from the Vault have proven to be overly restrictive for the majority of projects. In addition to hosting the matching funding rounds, Gitcoin will support the Vault by showcasing the growing FTM amount on the following websites, https://explorer.gitcoin.co/ and https://grants.gitcoin.co/.
- To update and replace any existing governance rules for the Fantom Ecosystem Vault with a new set of rules, here, this measure is to improve the transparency and functionality of the Vault.
- The active proposal number 33, which was proposed by a Fantom community member has met the threshold of greater than 55% approval and quorum however the end-date was set to September. If this proposal is successful, governance proposal number 33 will end with immediate effect.
How will this work?
Depending on this proposal’s end date upon passing the governance process, every quarter (3 months), the Fantom Foundation will start a matching funding round on the Fantom network in collaboration with Gitcoin.
Fantom-based projects can apply to the round and receive a matching amount of distributed FTM tokens supplied by the Vault.
What will be the Gitcoin round requirements?
The rounds will be open to anyone who is either already building on Fantom (contracts deployed on mainnet) or providing a fundamental service that helps the network grow.
Read the full details on the requirements to join a Gitcoin matching funding round on the Fantom Documentation.
What will deter sybil attacks?
To deter sybil attacks, round managers will enable:
- Matching cap of 15% of total amount (for example, if total matching amount is 500,000 FTM, the most a project can be matched with is 75,000 FTM)
- Minimum donation threshold of $1 USD
For how many rounds will this continue?
These funding rounds can continue quarterly in perpetuity as long as the Vault continues to accrue tokens. However, if the results are deemed unsatisfactory, it is possible for a future governance proposal that passes to end this proposal and replace it with an alternative method of distributing the FTM in the Vault.
What are the biggest risks?
The largest risk is that the rounds are manipulated through sybil attacks, which will be mitigated by the round managers from Gitcoin and the Fantom Foundation to the greatest extent possible.
Pros and cons
- The Gitcoin rounds will continue to run and grow in perpetuity with the Fantom network
- This represents another avenue for project funding
- Both new and established projects can apply
- Risk of advanced sybil attacks