CIP: 59
title: Funding for Marketing & Business Development Services - Service Agreement
author: chim9
status: active
created: 2024-12-11

Simple Summary

This is a truncated version due to snapshot character limitations. Please refer to the forum post for the full version of the CIP.

This CoW Improvement Proposal (“CIP”) requests the DAO to approve the allocation of funds to secure comprehensive business development and marketing services for CoW DAO, delivered by Defou S.A., an external Service Provider (the “Service Provider”) for the execution of the Services under the terms of the Service Agreement hereunder (the “Agreement”). The compensation will cover the Service Provider’s labor and expenses on a per-use basis for the period from 1 January 2025 to 31 December 2025 (the “Term”).

The Service Provider will be responsible for market analysis, brand positioning, campaign creation and execution, and developing an ecosystem of partnerships. This will boost CoW DAO’s brands and products visibility, customer engagement, and long-term growth in the decentralized finance ecosystem.

Motivation

To achieve the vision of a decentralized future where digital assets are traded fairly, efficiently, and reliably, CoW DAO requires a strategic approach to business development and marketing. By partnering with an expert Service Provider, this CIP ensures that CoW DAO will leverage tailored strategies aligned with the DAO’s values to expand brand awareness, strengthen partnerships, and engage new markets. The Service Provider will coordinate and facilitate the efforts of the various contributors contributing to the scope of service as defined below. This CIP is critical to ensuring that CoW DAO remains a competitive and innovative leader within the decentralized exchange space, aligned with the DAO’s long-term vision and values.

The Past Execution in a Nutshell

The Service Provider:

• Secured a market making partnership with Wintermute and facilitated the listing of COW token on centralized exchanges (CEX) such as Coinbase, Binance, Kraken, etc.
• Promoted the CoW Swap Widget for integration with various partners.
• Developed business opportunities resulting in the integration of MEV Blocker in partner wallets

Scope of Services

The Service Provider agrees to deliver comprehensive business development and marketing services (the "Service") to CoW DAO, including but not limited to:

• Conducting market analysis to identify target audiences, explore new opportunities, and assess emerging trends.
• Developing brand positioning strategies to ensure alignment with CoW DAO’s core values and market objectives, enhancing brand perception.
• Creating and executing multi-channel marketing campaigns to increase visibility and attract high-quality partnerships related to CoW DAO and its products including but not limited to CoW Swap, CoW Swap Widget, CoW AMM, MEV Blocker, and COW Token.
• Implementing lead generation and customer engagement strategies, as well as fostering and executing partnerships on behalf of CoW DAO to support sustainable development and growth of the CoW ecosystem and COW token.
• Providing progress reports and data-driven insights to ensure transparency, track performance, and align strategies with CoW DAO’s evolving goals.
• Distributing CoW DAO’s products, managing revenue sharing and fee programs between CoW DAO and potential partners in relation to such products.

Compensation

Fixed compensation

CoW DAO will allocate a budget of 20.000 USDC per month to compensate the Service Provider for the delivery of the Service, paid upfront

This compensation represents the Service Provider's estimated costs for the provision of the Service. The proposed budget is based on projected labor, materials, and other direct/indirect costs to provide the Service.

The budget agreed upon for delivery of the Service is effective for the current term of this Agreement. In the event of any substantial changes to the budget or Service requiring an increased allocation requires the Service Provider to submit CIP to CoW DAO to adjust the fee on a monthly basis to account for actual costs incurred. Any such CIP is subject to the approval of CoW DAO's Governance Mechanism as defined in CoW DAO's Participation Agreement. In the event the Service Provider submits a fee adjustment proposal, it must provide a detailed account of costs incurred in the preceding months.

Service Fee for Third-Party Transactions

In addition to the monthly compensation, the Service Provider shall be entitled to collect a service fee for transactions facilitated with third-party partners on behalf of CoW DAO. Such a service fee shall not exceed 5% of such transaction value. All profits made from the Service Fee for Third-Party Transactions will be reinvested solely in accordance with CoW DAO's vision of a decentralized future and its mission to enhance CoW DAO’s products and more generally the CoW ecosystem.

Rationale

Effective business development and marketing are essential for attracting new users and building partnerships. The Service Provider will tailor strategies using proven techniques like SEO/SEM, content marketing, social media marketing, and lead generation to expand CoW DAO's reach and impact. This collaboration will empower CoW DAO to align its growth trajectory with user needs and establish itself as a leading decentralized exchange platform.

Alternate designs, such as internal execution of the Service, were considered but deemed less effective due to a lack of specialized expertise and the need for quick, market-aligned responses.

The proposed partnership approach ensures that the marketing and business development efforts will be executed by experts while remaining closely aligned with CoW DAO's objectives and values.

Execution: Proposed transaction/ Payment

Upon successful passing of this CIP, CoW DAO’s treasury team is mandated to transfer the payment of 240’000USD to the Service Provider at eth:0x5FD8a90b910D7BE482068Db5b2B88eC9Eb0dF7A0 by 10. January 2025..

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Terms and Conditions

[...] Refer to the forum post.