# Arbitrum Grants Team Post

### [Temp Check] Create a Grants Team to Fund New Builders on Arbitrum

**Constitutional / Non-Constitutional:** Non-Constitutional

## Abstract
This proposal aims to establish a dedicated Grants Team within the Arbitrum DAO to support and fund new builders and projects in the ecosystem, fostering growth and innovation.

## Motivation
As the Arbitrum ecosystem expands, it's crucial to attract, support, and fund talented builders who can contribute to the platform's growth and success. By creating a Grants Team, the DAO can allocate resources effectively and efficiently to projects that align with Arbitrum's mission and values.

## Rationale
The creation of a Grants Team aligns with the Arbitrum community's mission to nurture a thriving ecosystem of developers, projects, and applications. This initiative will provide resources to new builders, enabling them to bring innovative ideas to life and contribute to the long-term success of the platform.

## Key Terms
**Grants Team:** A dedicated team of 3 individuals within the Arbitrum DAO responsible for managing the grant application and distribution process.
**New Builders:** The target of these smallers grants is to promote individuals or small teams and eventually graduate them into VC funding, winning hackathons, etc.

## Specifications

### Election
The Grants Team will be voted on by the Arbitrum DAO token holders. 3 individuals will serve 1 year terms, elections starting 6/1 and terms starting 7/1 each year.

In each application, the runner must identify as a community chair or technical expert. The top vote receivers in each category will recieve a position as well as the next highest vote receiver.

### Grant Applications
The team will develop a clear and transparent "grant application process and workflow" for new builders each year (Starting 7/1) and post the criteria to the forum.

Grant applications will be evaluated based on predefined criteria, such as potential impact, innovation, feasibility, and alignment with Arbitrum's values.

A quality grant application process for the Arbitrum DAO should be well-structured, transparent, and accessible to potential applicants. The process should efficiently evaluate proposals based on their merits and alignment with the DAO's goals. To ensure a high-quality application process, the following components should be included:

**Clear Guidelines and Eligibility Criteria:** Provide detailed information on the grant program's objectives, funding priorities, and eligibility criteria. This will help potential applicants understand whether their project aligns with the DAO's goals and if they are eligible to apply.

**Application Template:** Develop a standardized application template to streamline the submission process and ensure consistency across all proposals. The template should cover key aspects such as project description, objectives, timeline, budget, team qualifications, and relevant experience.

**Review and Evaluation Process:** Establish a transparent and objective review process, involving the grant committee, community members, and subject matter experts as appropriate for each grant tier. Clearly outline the evaluation criteria and scoring methodology to ensure fairness and consistency in the decision-making process.

By incorporating these components, the Arbitrum DAO can create a robust grant application process that encourages innovative and impactful proposals while ensuring transparency and fairness in the allocation of funds.

### Tiers
Grant tiers will are elligible to change in the Grant Application and Process Workflow but should follow a format similar to as follows:

**Tier 1:** Committee Decision Grants ($5,000-$10,000)
Description: These grants are intended for smaller projects or initiatives, typically requiring modest funding. Decisions for these grants will be made solely by the Arbitrum DAO Grant Committee. The committee will assess each proposal based on its feasibility, potential impact, and alignment with the goals of the DAO. Applicants can expect a streamlined review process with a quick turnaround time for decisions.

**Tier 2:** Community Advisory Grants ($20,000-$50,000)
Description: Projects within this tier will involve a higher level of funding and complexity. While the grant committee will still take the lead in evaluating proposals, community members will be invited to provide input and feedback on the project's merits. This collaborative approach ensures that a wider range of perspectives are considered and helps foster a sense of collective ownership within the DAO.

**Tier 3:** Expert Review Grants ($75,000-$150,000)
Description: These grants cater to ambitious projects with significant funding requirements, often involving specialized expertise. In addition to the grant committee's evaluation, proposals in this tier will undergo an expert review process, where subject matter specialists from within or outside the DAO community assess the project's technical and strategic merits. This ensures that only the most promising, well-vetted initiatives receive funding.

**Tier 4:** DAO-Wide Vote Grants ($200,000+)
Description: Reserved for the largest and most impactful projects, grants in this tier require the approval of the entire DAO community. Proposals must first pass through the initial grant committee review, community advisory input, and expert review stages. Once these evaluations are complete, the proposal will be put to a DAO-wide vote. This ensures that only the most critical and transformative projects receive the substantial funding and broad support necessary for success.

### Quarterly Reports
The Arbitrum DAO Grant Committee is required to submit comprehensive quarterly reports on the projects they have funded. These reports will provide insights into the progress, impact, and performance of each funded project, ensuring transparency and accountability within the DAO community. The quarterly reports must include the following key components:

**Project Overview:** A brief summary of each funded project, including its objectives, timeline, and key milestones. This overview should also highlight the project's relevance and alignment with the DAO's goals and objectives.

**Metrics for Success:** A clear outline of the quantitative and qualitative metrics used to assess the success of each project. These metrics may include, but are not limited to, user engagement, adoption rates, revenue generated, cost savings, and overall impact on the DAO ecosystem.

**Progress Update:** A detailed account of the progress made by each project during the reporting period, including any achieved milestones, completed tasks, and notable accomplishments. This section should also discuss any challenges or obstacles encountered and the steps taken to address them.

**"Why We Funded This":** A rationale for the committee's decision to fund each project, focusing on the unique value proposition, potential impact, and strategic fit with the DAO's goals. This section should provide the community with a clear understanding of the committee's funding priorities and decision-making process.

**Financial Summary:** A breakdown of the funds disbursed to each project, including the total amount granted, the amounts spent to date, and any remaining funds. This section should also highlight any significant deviations from the original budget and provide explanations for these discrepancies.

**Next Steps:** An overview of the planned activities and milestones for each project in the upcoming quarter, along with any anticipated challenges or risks. This section will help set expectations for future progress and ensure continued alignment with the DAO's objectives.

By submitting these quarterly reports, the Arbitrum DAO Grant Committee will promote transparency, enable the community to monitor project performance effectively, and foster a sense of collective ownership over funded initiatives.

## Steps to Implement
1. Create a Forum post for individuals to apply for the 3 grants team positions
2. Upon completion, Grants team meets to establish clear guidelines and criteria for grant applications.
3. Grants team develops and launches a grant application platform. (ex. https://ensgrants.xyz/)
4. Promote the grant program within the Arbitrum ecosystem and beyond.
5. Arbitrum DAO token holders vote on their favorite projects
6. Monitor and support funded projects, ensuring they meet milestones and contribute to the ecosystem.

## Timeline
1. Applications and voting on Grants Team members: 4 weeks
2. Establish guidelines and criteria: 2 weeks
3. Develop grant application platform: 4 weeks
4. Launch and promotion of grant program: Ongoing (Quarterly Rounds)
5. Grant application evaluation and distribution: Ongoing

## Overall Cost
1. Grants Team compensation: 60,000 USDC/year (based on three part-time members) (To be paid upon completion after Step 4)
2. Grant funds allocation: 10,000,000 USDC/year (initial budget, subject to adjustment based on the success of the program and availability of funds)
3. 10,000 USDC misc infrastructure costs, website hosting, outsourced development, etc.

# NOTES

Go for bigger grant program
Could you effectivley allocate this amount of capital

Something in the middle of Optimism and Gitcoin
Optimism - too centralized
Gitcoin - Too dispersed

Make a grant tier
Bronze - tiny bets 5k
Silver - support 25k
Gold - you're a star project 100k

Project comes to $ARB

Shoot down questbook and bring good idea

EF made mistake of issuing too big of grants that didn't go anywhere

-------- Retrospecitve compensation for projects
there are certain teams that they could not allocate ARB to because they had to be a DAO. Projects that couldn't get an airdrop deserve to get some retrospective
Have a deployment date cutoff

3 points to remove people throughout the year?