Grants Program Case Study Assesment

--- tags: TEC --- # Grants Program Case Study Assesment Given the cases presented below, I suggest we focus and optimise for A and D, which gives us the opportunity to build something really big and attractive enough to fundraise to the point where we don't have to use money from the Common Pool (and even get paid or offset some of our operating costs for this service). All this while giving benefits to those who decide to participate in our economy. ## Case Study A: Rounds in the de-facto Grants Festival Chain ### Considerations - For this case we're picking the chain where all/most rounds are happening, which I assume is going to be Optimism. ### Benefits - We increase the amount of donations (both in amount of donors and size) when doing the round on a chain with more TVL/active addresses -- the likelihood increases by running the round on the same chain and at the same time as Gitcoin. ### Risks & Disadvantages - There's not any risk or disadvantage inherent to choosing the most popular chain that I'm aware of, some aspects in the following case studies depend on this though. ## Case Study B: $TEC donations ### Considerations - Please read 'Case Study A' before, $TEC donations is bound to the Gnosis Chain. - If there's multiple options to donate (e.g. DAI, ETH & TEC), it's not clear why donors would buy the token. ### Benefits - New funds enter the ABC (thus generating tributes). ### Risks & Disadvantages - Optimises for the TEC instead of grantees, which may receive less donations if users have to swap to a less common token. - Harder to fundraise/increases dependency on TEC's common pool. - If $TEC is the only donation option this program becomes another DAO common pool, which increases the point above^. ## Case Study C: $TEC Payouts ### Considerations - As the Allo Protocol matures and automates more things it may not be possible to do payments outside of the chain and flow the round is set up in. ### Benefits - We 'take back' some of the matching pool funds when grantees exit the ABC. ### Risks & Disadvantages - Grantees may experience price swings as the price changes when others sell their grant allocation. - If timed, a bad actor can take the liquidity or front-run grantees. - Harder to fundraise/increases dependency on TEC's common pool. ## Case Study D: Membership Boost ### Considerations - Boosts the matching multiplier of those who meet the criteria. - Membership boost is made up by two NFT categories: - Paid membership: bought using $TEC, lasts a pre-determined amount of time (6mo, 1yr, 2yr?). Required to keep $TEC flowing, instead of just boosting by holding $TEC, which is a one-time purchase. - Membership Complements: TEA certificates and other forms of reputation and recognition. ### Benefits - One benefit more for the TEC Membership Program. - Helps give experts more weight into the decisions and best projects for the discipline. - Can be done chain agnostic by using some form of DID/VC profile like the Gitcoin Passport. ### Risks & Disadvantages - The capital-Constrained Liberal Radicalism mechanism (a.k.a. Quadratic Funding) is intended to work for the masses, we must be careful not to give too much power to members or we risk reducing its efficiency. [ETH Latam](https://twitter.com/ethlatam)