Governance Vote: Ecosystem Vault 2.0

The Network Vault
#1

Governance Vote: Ecosystem Vault 2.0

Resolution

  1. To redirect all tokens in the Fantom Ecosystem Vault towards a Gitcoin Grants program.
  2. 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.
  3. 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.

Background

  1. On 3 October 2022, a Network Governance Vote resolved to establish the Fantom Ecosystem Vault (the Vault) on the basis of an earlier forum post on the subject.

  2. 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

  3. This proposal seeks to:

  4. Create a clear set of governance rules for the program to update and replace those made in the proposal of 3 October 2022.

  5. 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.

  6. 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.

  7. 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.

Purpose

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:

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

Pros:

  • 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

Cons:

  • Risk of advanced sybil attacks
11 Likes
#2

As someone who has eagerly awaited the ecosystem vault to start being distributed for the benefit of the network, I’m going to say transferring the contents to a Gitcoin grant is not a great idea.

The biggest appeal of the ecosystem vault is that it was funding that would be made available without needing the community to contribute its own money. It seems like it would be a major step backwards to now require users to put up their own funds, especially in the current market.

Looking around other chains, it appears the most common grants format is simply to have a trusted council of people who have a vested interest in seeing Fantom succeed. Often times there are RFPs created to encourage submissions for a specific need. I would love to see us go in that direction instead.

Gitcoin has a place, but I don’t think it should be the ONLY avenue for funding. And this proposal seems to be consolidating our options into that single avenue.

2 Likes
#3

MetaPay has been operating steadily on the Fantom chain for more than a year, and hopes to have a closer ecological cooperation with Fantom.
Metapay membership management system POWER and platform token NFTW are deployed on the Fantom chain
POWER contract address:
0xB13092f9139439DBC00120f452100Df15e4e8d20
NFTW contract address:
0xb5c622c8598c5f69d48dea1ea414189502e6b35d
MetaPay is a blockchain application ecosystem co-sponsored by a group of blockchain enthusiasts from all over the world. We hope to link more consensus members and jointly promote the application of MetaPay. Let blockchain technology bring more convenience to people’s daily life.
The value of the MetaPay yuan payment OTC chain payment system is the first to open up the payment channel directly from the chain to the real world. Let USDT realize the free exchange with any real commodity without trust endorsement. It has established a value bridge between the metaverse world and the real world.
MetaPay yuan payment system. Our advantages

  1. The system is 100% decentralized: there is no APP, no DAPP, no background, and the network cannot be shut down after deployment. It runs continuously and supports cross-chain transactions of multiple public chains.
  2. Operation is 100% decentralized: all players jointly operate and manage through voting.
  3. Distribution is 100% decentralized: all profits of the system are automatically entered into the NFTW trading pool, allowing NFTW to passively increase its price.
  4. The first decentralized payment system: The MetaPay ecological application has been implemented, and it is the first to use the OTC model to allow USDT to be like Alipay: you can place an order ∽ receive the goods ∽ inspect the goods. Then confirm the payment.
  5. NFTW issuance method: the total amount is 21 billion, and all others are produced through 10 years of mining. Through the destruction of the mining mechanism, there are only 2.1 billion left in the whole network. 1% of the transaction fee is used for technology development.
  6. Cross-chain transaction system: We will deploy MetaPay transaction system and NFTW transaction pool on multiple public chains at the same time, and the income generated by the payment system (0.3% handling fee for each transaction) will automatically enter the transaction pool. NFTW players can cash in all public chain pools through our self-developed cross-chain system.
  7. The marketing adopts the star talent system: while fully respecting the laws and regulations of each country, it also allows those who make contributions to the market to get high returns.
    MetaPay yuan payment OTC chain payment system
    OTC transactions on the USDT chain can be realized, and USDT online and offline payment functions can also be realized. This system will be gradually deployed on all mainstream public chains
  8. Asset management module (DUSDT): mainly used to package USDT into DUSDT or unpack DUSDT into USDT. Each contract has a specified asset package, please look for the contract address, other contract assets are not applicable. False U cannot be encapsulated. At the same time, the ordinary transfer function of DUSDC is also completed in this module.
  9. Negotiation transaction module (NEGO): The main module of this system is mainly used for OTC transactions on the DUSDT chain and DUSDT online and offline payment functions.
  10. Arbitration module (ARB): If the OTC transaction encounters a dispute, the arbitration is completed in this module. The system randomly assigns 3 arbitration committee members, and the final award is based on 3 to 2 wins.
    The OTC trading system currently deploys 4 public chains,
    Fanton Binance Huobi Polygon Other public chains are under development.
2 Likes
#4

Hey Aspenth – I understand that position. In the long-term there are multiple pathways to bring it back to funding RFPs. However in the short to medium term we need to find a way to distribute the FTM rather than just watching the Vault fill up. Will be working on ways to get more active voters within the community so proposals can reach quorum. (Some to explore are a community committee or voting delegations).

3 Likes
#5

COuld there be a middle ground where some funds are stilled burned? I think the deflationary aspect of any chain is important. I know this proposal isn’t specifically for how the funds will be used but is there a system of checks and balances where recipients of grants will have to provably meet certain milestones?

2 Likes
#6

old post but agree, gitcoin is limited

2 Likes