Cycle 1 Information and Advice

Information
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Cycle 1

How to Delegate YT Thumb (4)
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Information

Important Dates

Consider subscribing to the Important Dates Calendar!

  • The first cycle officially began on Jan 8, 2024 at 06:35 PM UTC.
  • The screening stage will run until Mar 21, 2024 at 06:35 PM UTC
  • The funding stage will run from then until April 1st at block 19561703
  • The challenge stage will run from then until Apr 07, 2024 06:35 PM UTC
  • Grantees may claim their AJNA on Apr 07, 2024 06:35 PM UTC

When Do I Vote?

Stage Date
Screening Stage 03/17/24 - 03/20/24
Funding Stage 03/31/24 - 04/06/24

When Do I Submit my Proposal?

Stage Date
Screening Stage 03/01/24 - 03/17/24

Anticipated Grants

These are the current interested grants on my radar for cycle 1. I’ll be tracking all grants and grant ideas in this publicly available spreadsheet.

Advice

Context

  • Delegates cannot modify their votes once placed.
  • Proposers cannot modify their asks once submitted on-chain.
  • Grants are awarded in AJNA.

Submitting Your Grant Proposal

For Grantees

Surplus or Deficit Scenario Planning

This first cycle is particularly tricky when it comes to getting what you ask for in terms of fiat-denominated value. While an AJNA price is expected to come about sometime this week, the fact is that it will carry with it some price risk. Meaning if someone asks for $100,000, priced at 0.10 per AJNA they will be inputting a 1,000,000 AJNA request on-chain. If by the time the grant is approved and becomes claimable the AJNA token doubles to 0.20 or halves to 0.05, this leaves the grantee in an awkward situation.

In the case of a surplus the receiver may end up with more than their intended budget, and what voters intended to approve. **I strongly recommend two things:

  1. Proposals have a mandatory condition to return surplus funds to the Treasury in AJNA
  2. Roll over surplus funds by discounting them from future grants and if it’s clear that stakeholders are not interested in continuing your scope of work, return those surplus AJNA tokens to the treasury.

In the case of a deficit the receiver may end up with less than their intended budget, and what voters intended to approve. I have no strong recommendation since two options could make sense. Grantees may:

  1. Refund the AJNA in full, opting to cancel their grant.
  2. Reshape the scope of work to fit the provided lower budget. Asking for a secondary grant in the next cycle to fund the complete scope of work.

Timing

To minimize price risk and come close to an accurate AJNA estimate, I strongly recommend grantees submit their grants within the last 7 days of the Screening Stage.

Voting on Grant Proposals

For @Delegates

Timing

To maximize the quality of decision-making, I strongly recommend voting as close to the end of the screening stage as possible. This allows all proposals to be submitted and available for consideration before you place your permanent and unmodifiable votes.

Other

@Delegates and @Proposers should consider setting up an ENS domain name to make it easier for all parties involved to know whether an address is legitimate.

Funding Stage Details

  • total amount requested across 10 proposals: 8,797,607 AJNA
  • max grant amount this cycle: 90% * 7,308,186.88 = 6,577,368 AJNA
  • cycle is oversubscribed by 2,220,239 AJNA
  • looks like there are no partial grants, so each grantee will either receive full amount or nothing
  • seems like we gonna be able to fund 5 to 8 grantees this round, depending on how people will vote
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Interesting for community growth and builders.

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image
priceless David :fire:

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Maybe I missed something, and apologies if so. But I thought the Ajna grants were a fixed amount of Ajna per cycle, and then its split per share of vote?

I don’t fully understand the concept around asking for a $ amount. Or has it changed and we are now voting to allocate X amount of Ajna per grant to each project, and once the Ajna is gone, then its gone.

Sorry if this was all explained somewhere else and I missed it :sweat_smile:

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I thought I fixed that :man_facepalming: lol

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You have it right. Grant cycles enable a fixed maximum AJNA amount be granted to a maximum of 10 proposals per cycle.

But grants can vary in size, so people will be asking for some amount of value denominated in AJNA tokens.

For purposes of financial prudence, I intend to assess all budgets in USD terms to understand whether the asks are reasonable. I don’t think it’s right for the protocol to grant $1,000,000 USD of value when the original and fair ask might have initially been $500,000 USD of value. We should do what we can to reduce the chance of overspending the protocol’s AJNA and likewise reduce the chance of losing a great grantee because their ask got discounted due to a volatile token price.

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Would it be possible to set some kind of timetable/deadline where we could get details on the grants (via the forum) prior to the on-chain grant being submitted? It would be good to have more time than that to review, whenever possible.

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IDK about a hard deadline, people are free to post their proposals when they want. I would just say the sooner the better, and the more likely delegates will feel comfortable voting yes on a proposal. Plus, the sooner a proposer posts, the more feedback they could get, the more time they have to improve, thus resulting in an increased probability of a proposal getting yes votes.

I’ll be posting mine at some point within the next week or two.

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one david = one david.

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Is it still today?

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That was a soft deadline, true deadline is technically the last day of the screening stage.

1 Like