Arbitrum DAO Grants - Delegated Domain Allocation by Questbook
Author Saurabh, Questbook
Type Non-Constitutional
Abstract
- We propose Arbitrum DAO to launch Arbitrum grants program with a budget of $1M spread across 2 quarters to fund a wide variety of teams building apps on top of Arbitrum in a transparent manner. Questbook is leading Compound grants program through delegated domain capital allocation model , a community-run grants program.
- We additionally propose that this budget be managed by 4 individuals called Domain Allocators - chosen from the community and by the community. These domain allocators would manage grants for a domain. These domains are strategic areas of focus for which Arbitrum wants to disburse grants
- The performance of each of these domain allocators will be publicly viewable and auditable using rich dashboards. At the end of the quarter, the Arbitrum community can vote to replace, continue domain allocators or increase budgets for each domain allocator.
- We (Questbook.xyz ) will help facilitate setting up these domain allocators and provide the tooling to run the grants program in an efficient and transparent way. We have previously set up or currently setting up the grants process for Compound, Polygon, Solana, Celo, and Aave.
Motivation
As we continue to experience the depth of the bear market, it is increasingly important for Arbitrum to retain the mindshare of key ecosystem contributors and incentivize builders to build on top of it. Grants program is a great way to attract high-quality builders and grow the ecosystem more quickly. This proposal details the benefit to all the stakeholders involved - token holders, builders and DAO members
Rationale (Benefits to Arbitrum)
The proposed structure will lead to the following outcomes:
- Aligned allocation of funds: By leveraging the Delegated Domain Allocator (DDA) model, Arbitrum DAO can ensure that funds are allocated to projects that align with the domain (selected by the Arbitrum community), promoting efficient and effective use of resources. This approach aligns with Arbitrum’s goal of enabling the distribution of grants and empower the community to build and participate in the future of the Arbitrum.
- Increased transparency: The Delegated Domain Allocator approach provides a clear and transparent process for allocating funds, ensuring stakeholders understand the decision-making process and building community confidence. Questbook, a decentralized grant management platform, provides a transparent space for teams to showcase their backgrounds and experience. In addition, Questbook’s reporting features will allow Arbitrum to quickly generate monthly reports on the allocation of funds, with the details for each grant proposal.
- Increased accountability: With a dedicated group of stakeholders responsible for allocating funds, the Delegated Domain Allocator approach promotes increased accountability, ensuring that the funds are used effectively and efficiently. Domain allocators can be replaced through a community vote if their performance is not up to the standards accepted by the community.
- Lower Turnaround Time (TAT): The Delegated Domain Capital Allocation model will help improve proposals’ turnaround time and overall outcomes for the ecosystem. An example of this is Compound who’s already leveraging the DDA model and has a communication TAT of less than 48 hours. The performance of domain allocators will be measured using objectives and key results (OKRs) to ensure goals are achieved efficiently and effectively.
- Strong Brand Recognition : The Delegated Domain Allocator model will play a crucial role in boosting developer engagement with Arbitrum, as well as forming strategic partnerships with important ecosystems to jointly fund grants in mutually beneficial areas.
Specifications
The program structure focuses on having community members as domain allocators. Arbitrum DAO will be required to set a budget of $1M to be disbursed by 4 domain allocators and for committee compensation. Each domain allocator will be elected by the community. Interested community members can self-nominate themselves to be considered for becoming a domain allocator. The domain allocator for each domain will be selected via a community-wide Snapshot vote. Domain allocators will run their domain on-chain for full transparency. The data and performance across key metrics will be visible to the community in order to evaluate the domain allocator’s performance.
Steps to Implement
Arbitrum Grants Committee
The program will consist of
- A Program Manager
- 4 Domain Allocators
We propose Tally’s Zodiac Governor Module for security purposes, furthermore, a Grants SAFE with a 4/6 multi-sig will be set up between the program manager and four domain allocators, one member from the DAO. We will then have four SAFEs for each of the domains with a 3/4 multi-sig setup between the program manager, the specific domain allocator, one more domain allocator, and one member from the DAO.
Questbook ARB DAO GRANTS acts as a security layer for grants multisig, empowering ARB holders to control multisig when needed.
Currently, we have four signers on the Safe, and the Safe is 3/4 until the domain allocators are elected by the community. As a result, we will have three temporary signers:
- Saurabh - Program Manager
- Frisson - Arbitrum Delegate
- Coinflip - Arbitrum Delegate
- Matt Stable Labs - Arbitrum Delegate
Here’s the multi-sig address: 0xB7c1551BBEB47Eb86266153df5F9D7dA47F08308
We have identified the following domains based on our thorough research and the feedback from the Arbitrum team and community.
Domain Allocator Roles & Responsibilities:
The following will be the roles and responsibilities of the selected domain allocators.
- Time commitment per week: Maximum of 25 hours per week for the program manager and 15 hours per week for the domain allocator, which might vary based on the number of applications. The program manager will ensure that the workload is evenly distributed
- Program Manager:
- Communication:
- Work with the Arbitrum team and the elected domain allocators to create and list out the necessary RFPs
- Identify key areas and relevant ecosystem partners who will co-fund grants alongside Arbitrum
- Create marketing content for communicating RPFs to the builders
- Coordinate between Arbitrum team and the community regarding cohort announcement and funding requirements
- Communicate the information regarding approval/rejection of proposals to the Arbitrum community regularly
- Attend community calls, actively participate in the community forum, and keep the community updated and take their feedback on the program
- Regularly update the progress of the grants program to the Arbitrum community over Discord and community calls
- Bi-weekly reporting of key metrics of the grants program and progress each selected project such as:
-
Grants Program:
a. Source good-quality proposals from developer communities
b. Sign the transactions for the approved projects
c. Ensure a quick turnaround time for proposers regarding their proposal decision
d. Coordinate between the domain allocators to ensure that the workload is evenly distributed and take their feedback consistently
-
Domain Allocator:
- Review proposals received for their domains based on the rubrics set by the domain allocator
- Reject/Approve proposals and coordinate consistently with the program manager
- Source applications by reaching out to developer communities in their network
- Discuss program improvements with the other domain allocators and program manager during scheduled meetings.
Compensation:
The grant budget will be $1M with $200k for each domain. The committee compensation will be $200K for 4 domain allocators and one program manager for 6 months. Note that this is the proposed budget. All unused funds from every domain and committee compensation will be returned to the treasury. The compensation for Domain Allocators and Program Managers has been factored into this overall proposed budget. Please find below its details.
P.S
We are inviting applications for all domain allocator roles. Once this proposal passes through Tally, we will create a separate forum post for the nomination of domain allocators. Delegates and community members can self-nominate themselves under the post for two weeks. After the nomination period, a snapshot vote will be conducted.
What does success look like?
Objective
- The prime objective of this model is to have domains that align with Arbitrum’s priorities. This way the contribution of the projects as part of the grants program is directly adding value to the DAO and the token holders.
- Increase in the number of builders, proposals, and funded projects
- Number of partners who are co-funding grants alongside Arbitrum in mutually beneficial areas
- Increase in the homegrown leadership to run grant programs (measured by the number of people running grant programs)
- Increase in the community members’ participation to keep grant programs accountable (measured by the number of people looking at the dashboard and participating in the program)
- Diversity in projects being funded across technologies, geographies, and demographics, to name a few. We encourage the community to regularly review the project domains during Arbitrum’s community call
- Increased engagement in builder community’sDiscourseDiscord, TelegramSocial media (Twitter, Reddit)GitHub
Subjective
- Improved community involvement in the grants program
- Strengthened builders’ sentiment towards Arbitrum
- Enhanced Arbitrum’s brand recognition in builder circles
About Questbook:
Questbook’s role in Arbitrum’s Grant Program
- Saurabh from Questbook will be the program manager. Thereafter, the program manager will be elected from the community. Saurabh was previously working very closely with the Program manager of Polygon, where he facilitated the disbursement of approximately $1 million in grants. Saurabh has received a grant from IoTeX to establish their grant program, and he works closely with the Program Manager of Compound Grants Program 2.0. Saurabh has spoken to more than 100 builders and teams over the last 6-8 months and understands what it takes to make a grant program successful - from both program manager and builder perspectives.
- Questbook Grants tool will make sure the workflows are systematic and transparent.
Product Flows
- Posting a grant -Â Link
- Reviewing and Funding Proposals -Â Link
- Settings -Â Link
- Communicating with Builders -Â Link
- Funding Builders -Â Link
Credentials
- Questbook (YC-W21) is a decentralized grant orchestration tool, currently being used by Compound, Polygon, AAVE, Celo & Solana Ecosystem
- Saurabh from Questbook will be the program manager. Thereafter, the program manager will be elected from the community. Saurabh was previously working very closely with the Program manager of Polygon, where he facilitated the disbursement of approximately $1 million in grants. Saurabh has received a grant from IoTeX to establish their grant program, and he works closely with the Program Manager of Compound Grants Program 2.0. Saurabh has spoken to more than 100 builders and teams over the last 6-8 months and understands what it takes to make a grant program successful - from both program manager and builder perspectives.
Questbook Product Compensation:
- We are willing to share the tool for free with Arbitrum Grants Program team
- However, for any specific ask from the grants team, to run the process more smoothly, we charge for the additional features based on the development overhead.
Timeline
We will start implementing the grants program once this proposal is passed.
Forum Discussion
https://forum.arbitrum.foundation/t/delegated-domain-allocation-by-questbook-arbitrum-dao-grants/14688
Snapshot
https://snapshot.org/#/arbitrumfoundation.eth/proposal/0xe07fb357b2b40e042ca58a36a1534afc33a1d313d4781ac433536bc884fc3c65
