This proposal requests funds as outlined in the Era post. This is made up of a Era Budget of $1,143,000 towards transformational keystone projects, led by PNF, and 80% of the incoming DAO allocation each cycle towards community contributions. These two mechanisms span the life of the era leading up to V1 Launch
Authors & Recipients:
PNF, on behalf of Pocket Network community
Motivation & Rationale
Pocket Network is in a critical phase leading up to v1 launch. PNF believes success will come when the whole community is productively aligned behind and contributing to our stated ambitions. We need to prioritise resource allocation towards these priorities.
Our incredible community is one of our competitive advantages and we need to unlock all of our talent by prioritising resource allocation to ambitions, creating certainty of funds available for contributions (and funds remaining in the broader treasury), and remove some of the frictions and distractions of smaller proposals and debates so that energy and attention is focused where it’s most needed: execution.
Mechanism design & implementation
The ERA budget proposal defines two financial mechanisms for the life of this era leading up to v1 launch:
1. The Era budget
The Era budget defines approved spend in $USD equivalent towards “keystone” projects. These high leverage projects are an important step change in the nature of Pocket Network and outline major milestones, outside of protocol development, leading up to v1 launch.
The Era budget is defined so that each keystone project is a budgeted line item against which the project needs to be delivered. PNF and/or the keystone project manager will be responsible for delivering the project within budget. Eras have bi-monthly “cycles” and PNF will report on use of the Era budget and the prevailing burn rate each cycle. The budget and burn rate will be continuously visible and transparent to the DAO at all times through a provided wallet address.
Upon passing of the proposal the funds for the Era budget will be moved to a separate Pocket wallet so the DAO can easily discern the Era budget as distinct from the remaining DAO treasury. Given that PNF will look to protect this value against changes in the price of POKT, we will also provide a gnosis safe address for stablecoin conversions that are visible to the DAO.
2. The Era allocation
The Era allocation defines the % of DAO allocation of block rewards that will be provided for contributors to support our ambitions. The DAO allocation is currently 10% of all block rewards and we propose that the Era allocation is 80% of this 10% (i.e. 8% of all block rewards).
This mechanism is proposed so that there is certainty for contributors that any work that is aligned with our core ambitions will be supported and prioritised, while allowing the DAO to scale up and down contributions based on the prevailing Pocket price. It also creates clarity that even though significant funds are being allocated towards our ambitions, the DAO treasury will continue to grow in the background the whole time (with 2% of all block rewards accumulating to the main treasury).
The mechanism will work by retroactively reviewing the DAO take each cycle and withdrawing the funds to a separate Era Allocation wallet that will be used to make payments to contributors over the coming cycle. This amount will be visible to all and provide certainty to contributors of the contribution pool that can be accessed within the upcoming cycle.
The other mechanisms to be operated during eras will enable new contribution types through Sockets and POPs which were outlined in the GROW program . These will be expanded upon in a separate forum post about the DAO OS shortly.
Ambition: v1 is the most successful new protocol launch ever
v1 protocol development and launch (new hires, advisers, support)
Protocol team and v1 launch need support from the DAO. Support for acquisition costs of new hires (i.e. agency or scouting fees), advisors (marketing, launch) and contingency support (hard to predict)
v1 economics and governance R&D (part-time contributors plus third party experts)
v1 economics and governance are critical aspects of v1 launch, as seen in the debates about v0 inflation and tokenomics. This budget is to support two major workstreams of community contributions and some of the most reputable system designers/advisors in crypto who can co-lead this work with PNF.
Ambition: Pocket has $1B of annual protocol revenue
Activate 1+ new Gateways (legal, documentation, support)
The community is already aware that we are working with a new gateway provider and this is a funding bucket for supporting their launch regarding legal, docs or any other small support needs they may have to go live.
Ambition: Pocket has the healthiest culture and governance of any DAO
Activate and embed Pocket DNA
Pocket DNA is the core of our culture and will become a more prevalent part of onboarding contributions. This is a small request to support design, marketing and rewards as we activate.
Automated governance CREDs
CREDs is the next iteration of Pocket Governance that will both automate the trophy system, and also make governance more granular which will enable a larger group of DAO voters. This ask is for the technology support needed to automate our existing system, as well as for a POP for a contributor to project manage the rollout of creds under the guidance of PNF.
Continuation of the existing IDEAS program, but expanded further to help improve the product and service quality.
Sockets are the main mechanism for rapid community experiment and new contributions. PNF has incubated this program with sockets for development of IBC integration for v1 launch, a Design Socket that has delivered the updated forum and numerous community graphics, as well as the transition of Testnet infrastructure to Nodefleet. This allocation guarantees space for new and continuing Sockets and signals that anyone within the community has agency to experiment with new products, services or initiatives that support the Ambitions.
Ambition: Pocket has the institutional financial rails of a blue-chip token
wPOKT (front-end, back-end, research, project planning, design, audits, custody, infra, legal, analytics)
PNF is leading the development of wPOKT and this items covers the costs of design and development of the technical solution, as well as audits, legal and telemetry for a safe and successful rollout.
wPOKT min liquidity
Minimum amount to support the launch of wPOKT on Ethereum mainnet with liquidity.
Tier 1 Exchange listing
Expected costs to launch of POKT on a tier 1 exchange. Conversations have been underway for some time and having funds available will allow us to move quickly at the right time.
1. Era Budget: $1,143,000 USD equivalent at the trailing 30 day average POKT price at time of passing
|Ambition (Big Hairy Audacious Goal)||Keystone Projects||Budget $,000K|
|v1 is the most successful new protocol launch ever||v1 protocol development and launch (new hires, advisers, support)||100|
|v1 economics and governance R&D (part-time contributors plus third party experts)||250|
|Pocket has $1B of annual protocol revenue||Activate 1+ new Gateways (legal, documentation, support)||30|
|Pocket has the most trusted infrastructure brand in crypto||Establish a PNF Marketing function, including a PR firm (PNF expense)||0|
|Hire a HoM (PNF Expense)||0|
|Pocket has the healthiest culture and governance of any DAO||DNA||20|
|Retroactive Public Goods grants (PNF Expense)||0|
|Sockets (3 contributors per month on average per year)||108|
|Pocket has the institutional financial rails expected of a blue-chip token||wPOKT (front-end, back-end, research, project planning, design, audits, custody, infra, legal, analytics)||150|
|Tier 1 Exchange listing||350|
|wPOKT min liquidity||75|
|Total Era Budget ($)||1,143,000|
2. Era Allocation: 80% of the retroactive DAO allocation for each new cycle towards community contributions
- Each Cycle is 2 months.
- The DAO income in the last 30 days was 1,989,400.93 POKT
- 80% of this amount is 1,591,520 POKT.
- The Era allocation to community contributions would be 3,183,040 POKT (indicative example only) across the two months of the cycle. The remaining 795,760 of new POKT from the DAO allocation will remain in the DAO treasury
For clarity, any excess or unutilized funds from the Era Budget will be returned to the DAO Treasury at the end of the Era or at the close of the keystone project (whichever comes first), and any remaining funds from the Era allocation will be returned to the DAO treasury at the end of each cycle.
We welcome questions, feedback and discussion on the proposal from the whole community. Thankyou
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