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cp title author Contributors uses-component technical-proposal requires-onchain impacts/modifies status date-proposed date-ended
130
Goals and Objectives on Resource Allocation for the DAO Treasury
Kate_Bee
ImdioR, 0xJulCaesar
CP4
false
false
CP2, CP107, CP108
passed
2024-06-01
2024-10-18

Short Summary

This proposal is an agreement that the goal of resource allocation from the Centrifuge Treasury should always support the mission of Centrifuge and to this end, resources should be allocated to the proposals that can make the case for the highest return and highest impact for Centrifuge according to clear goals and themes.

High Level Objective

Centrifuge builds technology to tokenize financial products and creates communities to champion the adoption of RWAs.

We want to fund work essential to growing Centrifuge and we want protocol growth to benefit all token holders.

Now that we have a substantial Treasury [link] made up of block rewards, transaction fees and pool fees [link] and it will keep growing, we expect to see an increasing amount of proposals from people or groups who would propose to expand the network and use some of those funds.

This proposal puts forward a starting point for goals and themes so that DAO members have adequate and agreed on starting points to assess proposals made to spend treasury funding. Additionally, prospective proposers will have an idea of what is in scope for funding, and what is not.

This proposal will follow the standard non-technical proposal voting process (RFC -> Opensquare snapshot).

  • If passed, all proposers will be asked to name which Goal(s) their proposal helps achieve and what Theme(s) their proposal supports.

  • All Treasury proposals must follow CP2 [link]

  • If CP128: Amendments to CP2 component passes, Treasury proposals which request a sum larger than $50K CFG equivalent must be paid via milestones. The details on how to submit a milestone-based proposal are part of the amendment to CP2.

Background

Treasury Spending Agreements

The DAO agreed to the RFC on Treasury Spending and the Updated Treasury Spending Agreement as well as mandating the Treasury and Advisory Group (TAG) to perform a host of activities, including giving a non-binding report on the relevance of every Treasury proposal submitted to the DAO.

This proposal does not replace the Updated Treasury Spending Agreement, but rather, builds on it to give more guidelines.

Historical spending

Historically, 95% of development on the protocol has been done by k/factory on behalf of the protocol and Centrifuge Network Foundation from funds raised before the Treasury was established.

Similarly, 95% of all marketing has been done by the k/factory team.

However, external proposals are still considered extremely helpful in the advancement of general growth effort, and are likely to be able to market and grow awareness of the DAO itself.

We want to see more proposals making use of the Centrifuge Treasury to achieve the Goals below, that support the following themes.

Goal and Themes

A goal is an achievable long-term outcome.

A Theme is a subject or set of ideas that groups work areas.

The Goals:

All proposals should connect to the wider Centrifuge goals, please specify which goals your proposal meets and how.

  • Building the best technology for tokenizing and securitizing real-world assets
  • Focusing on attracting new asset managers through great technology
  • Targeting high-quality issuers and financial products
  • Enabling on-chain and institutional investors to invest in tokenized assets
  • Creating awareness of RWAs
  • Bringing more liquidity to Centrifuge pools
  • Expanding token utility for CFG
  • Increasing utility for tokens issued through the Centrifuge protocol
  • Having the most interoperable and secure protocol in the RWA ecosystem

Themes

Proposals requesting funds from the Treasury should specialize in one or more of the following Themes. Each proposal must list which Theme(s) are applicable.

Here we set out 4 key Themes that are crucial to growing the protocol and suggest approaches to resource allocation of the Centrifuge Treasury.

Theme One: Fund Protocol Development

Building and improving the protocol is essential for achievement of the Goals.

This includes:

  • Building infrastructure
  • Developing new products
  • Adding needed features and functionality to existing products
  • Providing security and testing capabilities
  • Developing and executing integrations and protocol improvements
  • Research and development; including developer tools, and governance tools

Any proposals asking for funding related to protocol development must demonstrate the proposers experience and understanding of the Centrifuge Protocol and its technical components and considerations.

Theme Two: Grow Adoption

This includes work that involves:

  • Bringing liquidity to the protocol, for example business development like building key partnerships
  • Researching and successfully making business develop proposals to other DAOs
  • Bringing valid and desirable assets and pools to the protocol
  • Marketing to key audiences and institutions
  • Increasing usage of Centrifuge products or services
  • Lead generation activities

Any proposals asking for funding related to adoption must show the measurable level of growth and impact that their proposal will make.

Theme Three: Increase token utility

Support efforts to increase the utility of the CFG token:

  • Adding utility to the CFG token, for example, enhancing accessibility by integrating and connecting the CFG token into other ecosystems.
  • Expanding the token utility: including things like expanding the usability of the token (e.g. bringing liquidity via partnerships), adding fees (e.g. how the protocol charges fees, what level fees are set at) and so on.
  • Researching and proposing or utility increasing essential parameters, for example, possible staking for pools.

Any proposals asking for funding related to utility must show in detail their understanding of the tokenomics and legal underpinning of the token and the larger context regarding utility and have an action plan for how utility will be added. For example, if a proposal wants to add utility via staking for pools it would need to include, among others, legal research, functionality, and implementation details.

Theme Four: Awareness, Education, and Community

Support efforts that drive awareness of Centrifuge and build an active DAO.

  • Helping expand current education and utility for the existing users and community (educational material)
  • Helping more people become DAO members and especially Active Contributors through growing awareness (campaigns, content, ambassadors, case studies and so on)
  • Marketing efforts including videos, campaigns, hackathons, conferences and conference attendance
  • Marketing campaigns that spread awareness of Centrifuge to existing and potential audiences
  • Partnerships and initiatives with other organizations to support and educate about RWAs and other aligned topics

Any proposals asking for funding related to marketing and growing awareness must show robust understanding of relevant audiences and prior Centrifuge marketing efforts/campaigns/actions.

Changes

If this proposal passes, the following changes would be instituted in the proposals applying for Treasury funding:

  • All proposals should connect to the wider Centrifuge goals, and specify which goals your proposal meets and how.
  • Proposals must specialize in one or more of the Themes and list which Theme(s) are applicable.

Alignment to the mission of Centrifuge DAO

This proposal helps ensure Centrifuge DAO members allocate resources to robust, needed, and impactful proposals that expand the protocol and growth of Centrifuge ensures we are on track to achieve our mission.

Link to the RFC on the Forum: https://gov.centrifuge.io/t/cp130-goals-and-themes-for-resource-allocation-for-the-centrifuge-treasury/6564/1

Link to the Opensquare Snapshot: https://voting.opensquare.io/p/224