Community Fund DAO. Submission Requirement Guidelines

Transcription

1 Community Fund DAO Submission Requirement Guidelines

2 INTRODUCTION The Community Fund DAO was set up to promote the development of the NEM ecosystem by funding NEM start-up companies to help jump-start their businesses. It is open to everyone who meets the minimum requirements. Approximately 300 million XEM was allocated for this fund during NEM s Nemesis block. As the fund is limited, applications and approval will be based on a first come first serve basis along with other criteria. Entities are allowed to re-apply for rejected applications provided that these applications have addressed the reasons why they were rejected. Below are the minimum guidelines and requirements in order for an application to be considered. The more information provided in the application, the better assessment that can be made by committee and the community in evaluating the application. PAGE 2

3 CRITICAL CRITERIA OF CONSIDERATION CRITERION Amount Requested Active Member Stakes in the Game Not more than 15m USD shall be allocated to publicly traded companies. Not more than 5m USD shall be allocated to registered companies with public shareholders. Not more than 500k shall be allocated to non-company public entities. Two projects may not be funded concurrently. In the event that the project requires more than the maximum amount allocated, the applicant shall have to prove that she can complete the project with the funding given. All relevant team members in an application applying for the fund must show an aggregate of at least 250 posts in the NEM forum, be regulars in the main NEM Telegram channels (verified by one of the admins or committee), or well-known through attending and participating official NEM events to show that they have been involved in the NEM project. For those who are new to this NEM project, they will need to find a possible partner or partners in the NEM community whom they think will be able to help them qualify and contribute to the project. The company must have already opened a legal bank account and shall have either money in the bank to substantiate the completion of the project or show sufficient XEM in their account(s) that they are serious in doing the project. This information shall be shown to the community fund committee only and not made public. As an alternate proof, if the entity concerned has expended money, to show proof of work done. Milestones Each applicant shall specify milestones of the project and prove the completion of each of milestone before any disbursement of funds can be made. Included in the milestone is the expected amount of XEM required. Generally, the entire award amount will not be given at once, but at pre-determined milestones reviewed by a pre-determined group of community members known as the NEM Community Fund Proposal Committee. If a milestone is overdue by 3 months, a project progress review shall be requested by the project and carried out by the committee. PAGE 3

4 CRITERION Once reviewed, the committee shall vote on whether satisfactory progress has been made. If the vote to extend the deadline and set a new one does not pass, funding is withdrawn, otherwise, the deadline is extended. All milestones will be stated in XEM, but will also include the current USD value at them time of proposal submission. Should the XEM price change between the time of proposal submission and a milestone payout, the milestone payout will be calculated by the following formula: d = USD value at the time of proposal p1 = XEM/USD price at the time of proposal p2 = XEM/USD price at the time of payout x = XEM payout amount X= ((d / p1) + (d / p2)) 2 Project Details released to the Community Fund Committee Project Summary Upon a successful vote by the NEM community, each applicant shall include a project description, detailing the nature of the project, target market and size, and a roll-out plan for review by the Community Fund Committee. The project details will not be made public and are only required after the project has passed an initial community vote. Project details should be presented to the community fund committee within 2 weeks of passing a community vote. Include a summary of the project for public review on the NEM Forum. These project summaries will be posted at least 5 days prior to voting so that the community will have time to review and discuss the project before voting will start. Company (optional, but strongly recommended) All applicants must have already formed a company and are prepared to commit themselves to the project. All submissions must be accompanied with proofs that the company exists and signed by PAGE 4

5 CRITERION a legal or accounting professional. Proofs shall include company details (date of incorporation, place of incorporation, registration number, directors, and shareholders) and the company s memorandum and articles of association. Other than the names of the main players, this information shall not be shared with the public and is only for the community fund committee to verify bona-fide applications. For individual or groups, if there is no company, the solution proposed shall be considered an open-source project as it is not possible to run a business without a company. It is expected that the code to said projects will be open-sourced upon completion of each milestone. Real Identity Every shareholder, director, and relevant team members shall have to reveal their names and identity in order to be eligible for funding. Each shareholder and director will have to prove their identity (example, driver s license or passport). Information provided will only be privy to those in the decision-making team who will also reveal their identities and not to any other persons outside of the team. Only names (or pseudonyms) of shareholders and directors will be revealed to the community. As the information is confidential, this set of documents shall be furnished to the community fund committee only upon approval of the application. Pre-Vote Activity Prior to starting a vote on the NEM blockchain proposals are required to do the following: 1. Make an official proposal/discussion thread on the forum. 2. Have their own regular Telegram chat or forum or other avenue of communication with project managers. PAGE 5

6 CRITERION 3. Have a one-time get to know this project session where the project introduces their project via a Youtube video, AMA, recorded speech at a meetup, or other means. Voting Process A person with an idea to submit will need to go through the following steps: 1. Propose their idea on a public area of the NEM forums (to be designated), meeting the criteria outlined in the sections above. 2. The proposer has to coordinate with the community fund committee on which date to hold the vote. If there are already 2 other votes happening at the same time, the proposal enters a waiting list until those votes finished. NEM users vote with their importance either in favor or against the idea. 3. If a quorum of at least 3% of the importance of the NEM blockchain is met and the vote passes with a 65% majority, then the vote is considered accepted by the community. Otherwise, it fails. 4. If the community gives the thumbs up, to submit the project details as aforementioned to the community fund committee. 5. If the community accepts the vote, then the community fund committee will vote. a. If 80% of the community fund committee is in favor, the proposal is accepted. b.if the vote fails, the community fund committee can either reject the proposal outright or propose a modified idea to the community, in which case the community would vote as in step 2. This continues until the proposal is either accepted or rejected. 6. If a proposal is rejected, it may be proposed again after a waiting period of 2 weeks. PAGE 6

7 CRITERION ICO Post Community Fund Proposal If a company already completed an ICO, it is not eligible for community funding. Should a company be awarded milestone payments by the community fund and further proceed to hold an ICO within 12 months after last milestone payment, the company shall pay back the community fund in proportion to the amount they received set to the fiat rates at the time of the payouts, paid back in the ICO tokens fiat approximation. These payments shall not exceed 2.5% of the total token supply or the fiat equivalent received from the community fund. Any application that is forwarded to us for consideration will be required to submit the above information as a minimum. No consideration will be given if any of the above information is not provided. All information shall be reviewed in confidentiality. Please submit your application to the following communityfundproposal@nem.io PAGE 7

8 In summary, the following is information to be released to the various parties: Public info at application: I. Company Name II. Introduction III. Amount requested IV. Active and relevant members (real name or pseudonym of applicants are allowed) V. Milestones VI. Project Summary Community Fund Committee Info: I. Stakes in the game II. Project Details III. Company details Identified Community Fund Committee Members as trust in confidence for name verification at the acceptance stage: Real identity of applicants with Linkedin profiles or equivalent CVs given. PAGE 8

9 Propose the idea on a public area of the NEM forums. Coordinate with the Community Fund Committee on the date of vote. Upon acceptance of the community, the Fund Committee will vote. Acceptance = 80% of the community fund committee in favor. COMMUNITY FUND COMMITTEE VOTING Make an official proposal/discussion thread on the forum. Have a regular Telegram chat, forum or other avenue of communication with project managers. Have a one-time get to know this project session via a Youtube video, AMA, recorded speech at a meetup, or others. NEM COMMUNITY VOTING NEM users vote on importance, either in favor or against the idea. Acceptance = At least 3% NEM Blockchain importance, with 65% majority. If the vote fails, the Community Fund Committee can either reject the proposal outright, or propose a modified idea to the community, and the community would vote again until the proposal is either accepted or rejected. Rejected applicants may propose again after every 2 weeks. IMPORTANT NOTE: All milestones will be stated in XEM, but will also include the current USD value at them time of proposal submission. Should the XEM price change between the time of proposal submission and a milestone payout, the milestone payout will be calculated by the following formula: X= EXAMPLE: ((d / p1) + (d / p2)) 2 d = USD value at the time of proposal p1 = XEM/USD price at the time of proposal p2 = XEM/USD price at the time of payout x = XEM payout amount XEM price is $1 at the time of proposal: 100k XEM ($100k) are being requested XEM price dropped to $0.5 while the milestone was being completed: Instead of 200k XEM ($100k), only 150k XEM ($75k) are being paid out XEM price grew to $2 while the milestone was being completed: Instead of 50k XEM ($100k), 75k XEM ($150k) are being paid out PAGE 9