Proposal for the Creation of a Liqwid SubDAO Framework for Catalyst Funds

Introduction

The purpose of this proposal is to establish a Liqwid SubDAO Framework for Catalyst Fund12 and future Funds. The framework will guide the SubDAO in reviewing and shortlisting proposals that benefit both Liqwid and the broader Cardano ecosystem.

SubDAO Mission

The mission of the Liqwid SubDAO is to review and shortlist proposals that are to the benefit of Liqwid and/or the wider Cardano ecosystem based on the rating system used in Fund11 and reasoned arguments for or against the ratings given to proposals. In doing so, the SubDAO can provide LQ stakers with the top 50 proposals for on-chain voting. Of which the top 20 proposals will be voted for with the ADA held at the time of Catalyst Fund snapshot.

Roles and Responsibilities

Roles

  1. Reviewing Proposals from Catalyst:
  • The SubDAO members will be responsible for reviewing proposals submitted to Catalyst, ensuring they align with the SubDAO’s mission of identifying proposals that are to the benefit of Liqwid and/or the wider Cardano ecosystem.
  1. Shortlisting Proposals:
  • The SubDAO will shortlist proposals based on a rating system similar to that used in Fund11(see below). Once ratings are given the proposals are based on their average score across the 4 points.

  1. Providing Reasoning for Selected Proposals:
  • For each shortlisted proposal, the SubDAO will provide at minimum a sentence for their reasoning why the proposal achieved the rating the review provided. This reasoning will be transparent and accessible to the Liqwid community.

Responsibilities

  1. Timely Review of Allocated Proposals:
  • SubDAO members must review allocated proposals before the agreed-upon deadline to ensure there is sufficient time for Liqwid’s on-chain voting process prior to Catalyst voting.
  1. Adherence to Deadlines:
  • Members are expected to adhere strictly to review deadlines to maintain the integrity and efficiency of the review process.
  1. Engagement and Participation:
  • Active engagement and participation in discussions and reviews are required from all SubDAO members to ensure a thorough and diverse evaluation process.

Compensation

To recognize and reward the effort and time commitment of SubDAO members, 2,000 ADA will be allocated per funding round from the Catalyst rewards once received.

The 2,000 ADA will be split equally among proposal reviewers.

for example;

  • if a fund has 5 SubDAO members, each will receive 2,000 / 5 = 400 ada per member
  • if a fund has 10 SubDAO members, each will receive 2,000 / 10 = 200 ada per member

The remainder of the rewards received will go 100% to LQ stakers, as voted on during proposal 47. see here

Implementation

  1. Formation of SubDAO:
  • The SubDAO will be formed with members from the core team, community managers and community members to share expertise where applicable.
  • First members of the SubDAO have been selected based on the participants of Fund11’s review process, in addition to community managers and community members who have expressed interest since Fund11/Prior to this proposals being written.
  • Members are as follows:
    (@itzDanny, @DC1, @FlorianVolery(jonny sachs on discord), @heinrichs, @ConkeyKong, @Dev, @Apollo, @psychadalias)
  1. Adhering to Review Process:
  • The standardized review process established above, leveraging the Fund11 rating system will be followed to ensure consistency and fairness in evaluations.
  1. Documentation and Transparency:
  • All reviews, ratings, and reasoning for shortlisted proposals will be documented and made available to the Liqwid community and other stakeholders to ensure transparency.
  1. Reusability:
  • This framework is designed to be reused for successive Catalyst Funds, with periodic reviews and updates to improve its effectiveness and alignment with evolving goals and priorities.
  • Comnunity members should confirm interest in participating prior to deadline for campaign proposals being submitted, if volunteer number are low the previous Fund’s reviewing members will retain their SubDAO position ensuring Catalyst proposals are reviewed.
  • A limit of 10 SubDAO members will be implemented for the Catalyst SubDAO.
  • If at any point we have a numbers of volunteers exceeding the 10 member limit, then LQ holders should vote to decide who will be part of the SubDAO, as numbers remain low the above mentioned members will form the SubDAO for Fund12.

Conclusion

The creation of the Liqwid SubDAO Framework for Catalyst Funds is a strategic initiative to enhance the selection and support of proposals that benefit Liqwid and the Cardano ecosystem. By establishing clear roles, responsibilities, and a structured review process, the SubDAO will ensure that only the most impactful and feasible proposals are shortlisted and supported. This framework will be a cornerstone for Liqwid’s ongoing participation in the Catalyst funding process, fostering innovation and growth within the community.

Do you support this proposal and the creation of Liqwid’s SubDAO Framework for Catalyst Funds with the proposed SubDAO members?

  • Yes
  • No
0 voters
1 Like

I agree with this proposal, as it builds on the experiences we gathered from Catalyst Fund 11.

However, I am not sure that having more than 10 people will improve coordination. We should limit the number of members to prevent the process from becoming too bureaucratic.

@itzDanny If you plan to onboard 10, 20, or 30+ people, how would you manage all these individuals? What governance process will you implement?

1 Like

I don’t disagree with you regarding numbers.

including past participants and new members expressing interest total members is currently 9. 10 members meant a maximum of 2000 ADA would removed from the Catalyst rewards for SubDAO members compensation.

I dont believe more than 10 would be needed, and if we have a Catalyst fund with more than 10 interested parties a vote by LQ stakers should be conducted to select SubDAO members.

I believe 10 members is sufficient and manageable given our resources etc.

I think you should request a total ADA amount as opposed to a fixed amount per team member. This way team members are properly compensated for the amount of work completed reviewing proposals (e.g. if the subDAO has only 5 team members I think these individuals should be compensated more than if there were 10+ members as they will be asked to do more work).

1 Like

Good idea.

I will update to proposal to state a maximum of 2,000 ADA will be removed from Catalyst Fund rewards as compensation for SubDAO members efforts.

In addition to a 10 member limit on Catalyst SubDAO per Fund to avoid dilution of rewards SubDAO members and to reduce complexity of coordinating all members and reviews.

1 Like