General Project Information
Project Name: Syscoin Ecosystem Funding Redirection
Governance Proposal Version 1.0
Project Manager: @kaue
Team:
- @BigPoppa Syscoin Foundation (Finances)
- @ bstr156 Syscoin Foundation (Product)
- @ willyk Syscoin Foundation (Operations)
- @ DogeGone Business Development
- @ proguerra Community Development
ps: I can only mention two users per post, hence the weird tags above.
Description
This proposal aims to redirect the majority of Syscoin’s masternode governance budget toward the Syscoin Foundation. The objective is to improve the management and allocation of resources for ecosystem growth, scaling, and maintenance, as well as to simplify the grant and funding process for external actors.
Lessons from Previous Experiences
Previous experiences in the Syscoin ecosystem have shown that there is a significant lack of oversight in governance funding. This has led to incomplete projects and a recurring budget that is difficult to quantify in terms of tangible value. These situations underscore the importance of having a more structured and accountable system for managing and allocating resources in the ecosystem.
Access to Grants and Funding for the Ecosystem
It is important to note that under this proposal, anyone from the Syscoin ecosystem can still apply for grants, hackathon budgets, event budgets, bug bounties, and more. The key difference is that the Syscoin Foundation will be responsible for managing these funds, which will enable them to make decisions more quickly and efficiently, benefiting the entire ecosystem.
Alignment with Industry Practices
This proposal is in line with the practices of other DAOs across the blockchain ecosystem, such as MakerDAO, Near Protocol, Arbitrum, Optimism, and many others. These organizations have recognized the importance of having a more streamlined and efficient approach to resource management and allocation. By adopting a similar approach, Syscoin can move away from its current legacy system and establish a more effective and accountable governance structure for funding projects and initiatives within the ecosystem.
In today’s highly competitive blockchain landscape, many protocols and infrastructure providers often require grants as a vital incentive to consider network onboarding. This approach is a common industry practice designed to attract significant players to enhance a network’s ecosystem. Based on empirical practice and our experiences with similar ecosystem developments, we believe that the budget outlined in our proposal is competitive enough to attract key ecosystem actors, thereby significantly improving Rollux and, by extension, Syscoin’s ecosystem expansion.
Rationale
The rationale for this proposal is based on multiple factors, including the need for improved oversight, increased efficiency, fostering ecosystem growth, and promoting a more decentralized approach to governance. We will explore each of these factors in greater detail below.
Improved Oversight
In the past, the Syscoin network has experienced several issues related to a lack of proper oversight in governance funding, such as incomplete projects which were unable to deliver on their promises due to poor management and execution, or projects that delivered the tech but with zero to no tangible return. By shifting the budget towards a trusted ecosystem partner like the Syscoin Foundation, we can ensure a higher level of accountability and more effective use of resources.
Increased Efficiency
By leveraging the Foundation for the management of grants, hackathon budgets, event budgets, bug bounties, and other funding opportunities coming from Superblocks, we can significantly streamline the process and reduce the time and effort required for decision-making. This enables the Foundation to act quickly and efficiently, providing support to ecosystem projects and initiatives in a timely manner, while also having way more legal backing, improved milestone monitoring, and other tangible benefits compared to the legacy model which incentivized recurrent funding without hard, ongoing requirements. As a result, the entire Syscoin ecosystem can benefit from a more agile and responsive funding mechanism.
Fostering Ecosystem Growth
A core objective of this proposal is to support the growth and development of the Syscoin ecosystem by providing resources and incentives to developers, businesses, and community members. By applying a more standardized analytical process towards budgeting, we can ensure that these resources are directed toward initiatives that will have the most significant impact on the ecosystem. This includes supporting research and development, marketing and outreach efforts, and community engagement activities that help to drive adoption and innovation within the Syscoin network.
Goals & Objectives
This proposal’s primary goals and objectives aim to strengthen the Syscoin ecosystem by reallocating resources effectively, driving innovation, and promoting community involvement. The following sections outline these goals and objectives in greater detail, along with specific targets to achieve over the next six months:
Enhance Resource Allocation
Target: Allocate more than 90% of the budget effectively within the next six months, ensuring funds are allocated effectively and transparently. This improved allocation will facilitate better decision-making, increased oversight, and more efficient use of resources, ultimately benefiting the entire Syscoin ecosystem.
Drive Innovation and Adoption
Target: Support the development and launch of at least five native projects within the Syscoin ecosystem by Q4 2023.
One of the core objectives of this proposal is to support the development of new projects, applications, and initiatives within the Syscoin ecosystem. By providing resources and incentives through the Syscoin Foundation, we aim to attract talented developers, entrepreneurs, and community members who can contribute to the network’s growth and innovation.
Encourage Community Involvement
Target: Increase community involvement by 50% through active participation in various initiatives within the next two months.
A crucial goal of this proposal is to promote active community participation in the Syscoin ecosystem. By streamlining the funding process through the Syscoin Foundation, we can provide accessible opportunities for individuals and organizations to contribute to the network’s development, such as grants, hackathons, bug bounties, and more. This increased involvement will help to create a more vibrant and engaged community, which is essential for the long-term success of the Syscoin network.
Strengthen Ecosystem Partnerships.
Target: Establish at least three new strategic partnerships with key players in the blockchain space within the next three months.
By fostering stronger partnerships, we can ensure a more cohesive and collaborative approach to growing and maintaining the Syscoin ecosystem, ultimately leading to better outcomes for all stakeholders.
Budget Distribution
Approximately 87,000 SYS per month (equivalent to around $11,000 at the time of writing) for ecosystem scaling via grants, hackathons, and events; over a period of six months.
Reporting and Surpluses
All involved parties must provide monthly spending reports in the governance forums. Any surplus funds will be allocated toward future spending within their respective scopes.
As the Project Manager, I (@kaue) will be responsible for providing regular updates on spending and progress in the governance forums. While I aim to be as transparent as possible with our community, it’s essential to respect the non-disclosure agreements we might have with onboarded projects, as well as protect their privacy. This balance is crucial in maintaining healthy relationships with our partners and ensuring confidentiality where necessary. For this reason, some specifics might not be disclosed in the reports. However, rest assured that significant efforts will be made to keep the community updated about the overall progress, major achievements, and utilization of funds in a manner that upholds transparency without compromising on essential confidentiality.
Risks
The primary risk associated with this proposal is potential resistance from community members who may be concerned about concentrating resources among a few key stakeholders. However, the benefits of improved resource management, transparency, and efficiency should outweigh these concerns. Additionally, the monthly reporting requirements will ensure accountability and visibility for the community.
Moving forward together
This proposal is the culmination of extensive discussions with core team members and ecosystem partners. After careful analysis and consideration of the present state of Syscoin, as well as projections for the future, we have come up with this proposed solution. We believe that redirecting the majority of Syscoin’s masternode governance budget toward the Syscoin Foundation is a critical step toward realizing the full potential of our network.
We firmly believe that this approach is not only the best way forward for Syscoin in the short term, but it also lays a solid foundation for sustainable mid to long-term ecosystem scaling. By placing the responsibility of managing these funds under the umbrella of the Syscoin Foundation, we can increase the efficiency of the fund allocation process, improve oversight, and ensure that the funds are used in a manner that provides tangible value to the Syscoin ecosystem.
Nevertheless, we understand that this proposal, like any other, is not the absolute truth and must undergo community scrutiny. We, therefore, invite all community members to voice their opinions, and propose suggestions, or changes to what we have presented. Our objective is not to impose a solution but to encourage active participation from the community in shaping the future of Syscoin.
We earnestly hope that this proposal will be well-received by the community. More importantly, we hope it will spark a constructive discussion that will ultimately lead us to make the best decision for Syscoin’s future. After all, the ultimate goal of this proposal is to facilitate the scaling of Syscoin’s ecosystem, fostering growth and innovation, and ensuring that Syscoin continues to be a competitive player in the blockchain space.
Regardless of the outcome, we remain committed to the Syscoin ecosystem, and we will continue to work tirelessly to ensure its growth, development, and success. We look forward to engaging with the community in this decision-making process and thank everyone in advance for their active participation. Together, we can shape the future of Syscoin.