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# System prepended metadata

title: Community wallets utilization proposal

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# Community wallets utilization proposal

## Context
Within a year of mainnet operation, a significant amount of GAS coins have accumulated in some of the community wallets. A set of recognized and specially designated wallets, that are receving generous contributions from validators on an epoch basis, in order to support and champion different causes.
> (More about those wallets can be found [here](https://0l.interblockcha.in/autoPay))


In front of you is a proposal draft on how to utilize (at least some of) those wallets.

## Why now? What changed?
The recent emergence of the Diem ecosystem to the (more) public knowledge surface, strongly impacted by Aptos and Sui announcing funding rounds and launching mainnet(s), has led to an influx of attention to the 0L project.
Social networks, discord, miners count, in basically every metric, the 0L project is getting an increased attention.

The above, led to existence of an OTC market (which I believe is actually much older/mature than I recognize it). a peer-to-peer trade, exchanging GAS for another asset.
This now gives a reference price and sets a base value for the project GAS coin.


## Two Growth program - Internal & External
### Internal

This project is in a stage where in order to succeed, it must be given dedicated love and attention.

Functions such as Product, Engineering, Design, Strategy and Marketing, would benefit from having full-time staff.

That by no means suggests that the community would not be the main factor in driving them. However, a combination of strong community contributions (incentivized/rewarded bounties and sponsoring) side-by-side with a group of dedicated people, will do much good here.

There are several community wallets aimed at such goal, totalling more than 150M GAS. These funds could provide a run-rate of about a year of full time employees (~10 people ballpark).

### External

While the Diem blockchain and the 0L modifications are amazing, those are only a meanss to an end, and that end is to have a vibrant and comprehensive new monetary system that can host any form of financial product and logic.

The external fund is basically an incubator, where anyone can approach a committee(*see governance*) with an idea for a project or a product, and receive grants that will help fund and bootstrap this initiative, under the agreement that if and when that product is generating any form of revenue and as long as it does, 20% of the proceeds will be funnelled back to the original funding wallet, thus showing gratitude to the community while helping future developments to occur in the same manner.

There will clearly be other projects that are built outside the external grants program, however, being a grant program project funded from inside the protocol by the community and key stakeholders will carry a significant show of merit and help with community adoption once launched.
(maybe even some form of "job board" where projects can look for working hands, and entrepreneurs can assemble a founding team around their projects)


## Considerations

### Positive and negative effects
#### Positive
Both programs, internal and external, will be very helpful in (1) provide means for better and diverse distribution of the GAS coin across more wallets, and (2) if implemented well, increase community engagement and strnegthen the social aspect of 0L.

#### Negative
Incorrect implementation of the programs, especially the internal one, may lead to and some drawing back of contributions. "If there are already employed fulltime in the project, why is my time and effort required"

### Implementation
* Conslidate fragmanted community wallets into much smaller wallet count (internal, external, social, do good). (TODO: how difficult would that be with existing wallet controllers?)
* Each wallet will deploy capital on initiatives that fits its aim
* (possibility) Comittee of N controllers per program, voting on applications and accepting at 2/3 quorom
* TODO: How comitee members are being chosen? Is there a mendatory rotation? LIFO queue?
* The process of being accepted, either for an internal “employment” program or as an external grant seeker, should be well defined, fair, and transparent.
* The existence of community wallets should be better published and everyone should be encouraged to tip them constantly.


### Legal
TBD.
Are there any legal liabilities in any of the programs? (TODO: Ask Peter)

### Alternatives
* Patreon style and just bounties on everything.
(Then the bounty managers/organizers are fulltime? Or on a bountie themselves? Where the chain start and ends?)

* Each community wallet and its group behind choose who and what they support on an individual basis.