LEAP-17: Establishing GrantsDAO

Author	Cinque, Burtrock, Ksett
Status	Implemented
Created	2022-02-03

Simple Summary

This LEAP proposes to establish a GrantsDAO.

Abstract

GrantsDAO is a five-seat Committee responsible for evaluating and considering grant proposals for contributing to Lyra Protocol or LyraDAO.

Motivation

Community grants are a great way to reward contributors for providing meaningful contributions to the Lyra Protocol or LyraDAO. The GrantsDAO offers a sustainable way to reward contributors and transparency to these decisions. As Lyra evolves, sub-DAO's will help Lyra streamline the management process and promote stability and accountability for DAO's actions.

Specification

Overview

GrantsDAO token holder vote would select Five DAO members, LyraDAO will distribute an NFT to the selected members to facilitate voting on grants and allocation of grant funds. GrantsDAO members are responsible for rewarding grants and allocating the GrantDAO funds.

Rationale

Setting up a GrantsDAO is another step towards decentralized governance. This will enable LyraDAO to manage funds towards the betterment of the protocol and attract the talent, skills and, culture to develop and sustain the growth of Lyra.

Technical Specification

Build a smart contract + frontend that allows GrantsDAO members to vote on grant proposals for contributing to the Lyra Protocol or DAO.

Grants

A grant is a financial award given to a contributor who provides significant value to the Lyra DAO or protocol
- Anyone can propose a grant.
- Accepting or Rejecting a grant requires a majority of GrantDAO member votes in favor (i.e., 3/5).
The scope of the GrantsDAO in regards to grants include:
- Defining processes and templates for submitting a grant proposal
- Guiding applicants through the processes
- Interviewing applicants and evaluating proposals
- Voting on proposals and distributing the funds outlined in the proposal
Token Holder
- Token holders are eligible to vote in Grants DAO elections.
- Tokens that the Lyra DAO controls are NOT eligible to vote.
GrantsDAO

The Grants DAO will be a five-seat committee and will sit for three calendar months at a time. The responsibilities of Grants DAO include, but are not limited to:
- Being an active member in Discord and the broader Defi community
- Recognize contributions made by the community members and reward them accordingly.
- Attract talent and incentivize protocols and contributors to integrate with Lyra
- Vote to Pass or Deny grant proposals promptly
GrantsDAO position is an incentivized role and will be paid a monthly discretionary stipend by the LyraDAO.
Election

The initial Grants DAO members will serve till the end of next council term. The GrantsDAO election process starts exactly after the council election ends. The election process will hold the similar election rules as the LyraDAO Council election. see LEAP-15. At the end of the voting period, the Five DAO members with most votes will receive an NFT from LyraDAO, granting them the right to vote on grants and allocation of grant funds.
Management of Funds

Initially, grants approved by the GrantsDAO will be agreed on and funded by Lyra's DAO multisig. Once the Lyra treasury is established, $50,000 denominated in LYRA with a maximum of 250,000 LYRA is allocated to GrantsDAO each epoch. At the end of the epoch, any allocated funds that are not used are returned to the treasury. The monetary responsibilities of GrantsDAO include, but are not limited to:
- Maintaining a budget in the GrantsDAO multisig contract.
- Allocating funds to the grants that have been approved.

Configurable Values

Number of seats = 5
DAO allocated funds = $50,000 USD (max: 250,000 LYRA)