[FIP - 111] Participate in Gitcoin Funding Round

Governance Proposals Miscellaneous
1

Authors

Frax Core Team

Summary

The objective of this proposal is to authorize a $150k FRAX maximum donation to the next Gitcoin round at the discretion of the team.

Background and Motivation

Gitcoin is where the world’s leading web3 projects are born, validated & funded. This includes @Uniswap, @poapxyz & @BanklessHQ, just to name a few!

Gitcoin Grants allows individuals to get funding for a public goods project they are working on. It leverages Quadratic Funding (QF) to allocate extra funding from a matching pool to the most impactful projects based on the number of contributors. And this ensures that projects doing the most significant public good get the most support.

|291x381.97916666666663

The latest Gitcoin Grants Round (GR15) featured three types of rounds:

  1. Main Round with $500k in matching funds
  2. 13 Ecosystem Rounds with a total of over $1.3 million in matching funds
  3. Four Cause Rounds with a total of $1M in matching funds (Climate Solutions, Crypto Advocacy, DeSci, DEI)

It was supported by multiple matching sponsors such as Vitalik Buterin, Aave, Yearn, Polygon, ENS, Chainlink, and 1inch.

1600×522 179 KB

We believe our industry aims toward a paradigm in which smart contracts are the predominant type of digital agreement, which depends heavily on open-source contributions. Therefore, supporting open-source development is, in our opinion, an essential duty, particularly if blockchain infrastructure is to maintain its value as a vitally important public asset that benefits everyone.

PROPOSAL

  • For: Authorize $150k FRAX maximum donation to the next Gitcoin round at the team’s discretion.

  • Against: Do nothing

2 Likes
2

People and projects that build key infrastructure and continue to do so during a bear market allow the entire space to evolve. FRAX investing back into the greater ecosystem is smart imo, not only because of the direct effects of what is being built, but also through network effects. Gitcoin contributions, basepool gauges and Frax Staked Eth (fraxETH) show how commited and positive sum FRAX is to Ethereum and DeFi.

A maximum donation amount of 150k FRAX in considerable. Given the current size and health of FRAX, I’m confident though that this amount of FRAX won’t have any significant negative short term effects on our balance sheet. We do know however that bear markets can last for years, so being conservative and ensuring long term health remains key.

Is this donation a one time thing or is the core team considering recurring donations though Gitcoin? We haven’t seen large grant requests on our forum for quite some time. Are we expecting this to stay the same? Maybe, if Gitcoin is a great way of funding builders and smart minds for the better good of the FRAX ecosystem, we could even consider a FRAX branded “Stablecoin cause”. Can already see the awesome flywheelpod guys doing a shit ton of interviews :wink:

1 Like
3

Support this proposal 100%

1 Like
4

I think we can decide again for the later rounds in the future through governance voting. And I really like the idea of FRAX branded “Stablecoin cause”.

5

This proposal is up for voting here: Snapshot