# Yearn Finance Grants [WIP]
Grants are integral to identifying, incentivizing, and rewarding contributors to Yearn. Currently, the grants process is too informal, centralized, and lacks accountability to the community. Furthermore, the MultiSig is under directive from [YIP-41](https://gov.yearn.finance/t/yip-41-temporarily-empower-multisig/3630) to distribute its powers by March 1, 2021.

In an effort to improve the transparency and administration of the grants process, we propose the following:

### Grants Councils
1. Two grants councils, Protocol & Treasury, of nine members each, to be elected bi-annually through a process of self-nomination + community snapshot vote.
2. Respective bi-annual budgets, proposed within two weeks after council election, approved by community snapshot vote.
3. Council members are expected to be qualified to make judgements for the grant council they apply for, and will be prompted + evaluated as so when applying to a council.

#### Protocol Council
Responsible for the sourcing, review, and approval of grant proposals which affect the technical aspects of Yearn Finance. This includes, but is not limited to, developer grants, research grants, bug bounties, etc.

#### Treasury Council
The treasury council is responsible for the sourcing, review, and approval of grant proposals which affect the non-technical aspects of Yearn Finance. This includes, but is not limited to,

#### Eligibility
- *What criteria are council members expected to self-nominate / be reviewed by?*

#### Requirements
- Council members are expected to actively review and vote on grant proposals for the entirety of their term.
- Failure to vote on three grants rounds in a row should result in removal from the council.

#### Rewards
- *Do we want to reward / pay grants council memebers?*

### Grants Process
1. Grant proposals are submitted through a forum post, under a separate category [Grants]. Proposals are flagged *technical* or *community* by proposer to signal specific council review.
1a. Grant proposal [draft](https://docs.google.com/document/d/1PwMmuIQBZZVoPPhxuS_gJR_mAFkITOWGMl-DJndx3y0/edit?usp=sharing).
2. Council reviews are broken down into a regular cadence.
2a. *Proposals submitted by X.*
2b. *Proposals reviewed by Y.*
2c. Proposal goes to council vote.
3. Approved proposals are recorded on a spreadsheet for integration with financials.
4. Approved proposals are batched and fulfilled monthly by treasury.

### Council Vote
A council vote must take place on every a) grant and b) dispute.
1. Every council vote must reach 50% quorum to be eligible for pass/fail judgement.
2. Every council vote must have at least 67% approval to pass.
3. Every council vote must have at least 33% rejection to fail.
4. Council votes are to take place and be recorded

### Dispute resolution:
Council members are expected to act in good faith of the protocol. This includes objective review and justifiable payment of grants. In the case that a council member is challenged to be failing these expecations, a well-reasoned appeal can be made to the community itself through forum post, at which point discourse and a community vote can occur.

#### Replacing Council Members
1. In the case that a council member needs to step down during their term:
1a. The council member may nominate a replacement, to be approved by council vote.
2b. If the council member is unable to identify a replacement, the council itself is responsible for identifying and approving a replacement for the term.
2c. If the council is unable to identify a replacement, or is over two-thirds through its 6 month term, it may fallback to operating with reduced members. In case this happens, council vote quorum and approval requirements still apply.

2. In the case that a council member fails to meet expectations or requirements.*

## Types of Grants
There are currently three types of grants available. One-time & Recurring grants are self-nominated, while Gifts are meant to allow community members and grants councils to highlight exceptional contributors who may have slipped by.

- People are only eligible for one grant at a time.
- Recipients of recurring grants are not eligible for one-time grants or gifts.

### One-time Grant
Grants exist to fund the advancement of the protocol and creation of public goods for the yearn ecosystem. When submitting for a grant, please outline why your proposal represents a contribution, i.e. what difference it can make to Yearn.

### Recurring Grant
Recurring grants are earned by those who have proven themselves through continued exceptional contributions to the yearn ecosystem. Recurring grants are generally reserved for protocol developers, operations administrators, and community facilitators.

Recurring grants are awarded for a period of three months at a time. Once a recurring grant has expired, the grantee must re-apply if they wish to continue receiving grants.

### Gift
Gifts are after-the-fact grants for exceptional contributors who did not request a grant or were overlooked somehow. Any yearn community member can nominate another for a gift, highlighting volunteer work that went above and beyond the call.

Questions
- How are expectations, accountabilities, and reviews implemented?
- What are the expectations of those receiving grants, especially recurring grants?
- How are accountabilities enforced without creating too much restriction or beaurocracy?

Issues with proposal direction:
- It feels like we are re-solving coordination, transparency, voting, eligibility, etc..
- Most of the issues Daniel brings up can be pretty easily solved through a DAO.