Title: Prisma Grant Program Pilot
Author: Frank Olson from Prisma Finance
Type: PRFC
Date: 11-12-2023
Summary and Objectives
This post outlines a new program for funding Prisma ecosystem development with grants from the Prisma Treasury.
The proposed program, titled Prisma Grant Program (PGP), aims to fund integrations and community-driven projects that focus on the growth of the Prisma protocol and mkUSD.
Because grants administration is a subjective process that cannot be easily automated, we propose a nimble committee of 6 members to build and oversee an efficient and predictable process for applicants. This framework will govern all grants that fall below a 100,000 mkUSD threshold and will be administered through committee consensus without requiring on-chain DAO voting.
Inspiration and Structure
Drawing from similar programs by Compound, Uniswap, and Aave, the pilot will run for two quarters with a maximum grant budget allocation per quarter.
The committee will consist of six members (one lead, five reviewers) and will administer grants based on rigorous review and consensus, avoiding the need for on-chain DAO voting for each individual grant application. The committee will be responsible for designing and following highly transparent processes for grant administration, as well as reviewing and reporting on outcomes.
The committee current staffing is as follows:
Lead: Frank Olson (Core contributor at Prisma Finance)
Reviewers:
- Wavey (Yearn)
- Winthorpe (Convex)
- Nader Ghazvini (Frax)
- Tetranode
- DeFi Dad (4RC)
Grant Categories
- Rapid Grants: Up to 20,000 mkUSD with a streamlined process aiming to review and deliver verdicts within 2 weeks.
- Community Grants: Up to 100,000 mkUSD, requiring a proposal and community discussion on Prisma’s governance forum in addition to committee review.
- Large Grants: Over 100,000 mkUSD are outside of the scope of this proposal and will be subject to an on-chain approval by the DAO.
Budget and Compensation
- A total of 500,000 mkUSD for two quarters (6 months).
- Of which 450,000 mkUSD will be allocated for grants and 50,000 mkUSD for committee compensation:
- Committee lead will receive 3,333 mkUSD per month
- Reviewers will receive a total of 5,000 mkUSD per month
- The initial funding cap is set at 225,000 mkUSD per quarter for up to two quarters, and is subject to renewal upon biannual reassessment by the DAO.
- Any unspent funds will be returned to the Prisma DAO treasury on a quarterly basis.
Priorities and Metrics
Focus areas include protocol and application development, tooling, audits, hackathons, and bounties. Success will be measured by growth in Total Value Locked (TVL), number of projects funded, and increased LST adoption.
Timeline and Disbursement:
Grants will be organized into two three-month rounds, with applications accepted on a rolling basis. Funding will be disbursed based on milestones and project needs.
Next Steps:
If feedback is positive, the PGP will move to a governance proposal and if ratified, will begin accepting applications for grants on a rolling basis shortly after its approval.
Should the pilot be successful, we could scale the program over time to accommodate more capital-intensive grants so that it can ultimately become a primary engine of funding in the ecosystem. If not successful, we will seek feedback and alternative approaches.
We look forward to hearing your comments and questions below!