Loot Retroactive Community Funding (Round 1)

Description

Beginning the process of allocating Royalty DAO funds is of utmost importance to keep momentum in the Loot ecosystem. If we spend the money, we will support great projects and keep builders building. Due to the gas challenges of allocating small grants with on-chain voting, we propose an initial block grant, allocated to retroactively fund great public goods projects. We propose an initial block grant of 25 Eth, allocated to public goods projects using quadratic voted via snapshot vote. The proposal has three steps of which the first has been completed: discussion and selection of included public goods projects for round 1, snapshot vote for fund allocation, on-chain treasury vote for execution. If successful, it could become a regular process, similar to Gitcoin Grants. Given ongoing discussion in the Loot discord, the following projects have been selected for the first round of funding.

Projects

There are many public goods projects in the loot ecosystem, projects that have provided significant value to the Loot Ecosystem, often while collecting zero or minimal fees. Retroactive funding allocates treasury funds to these projects for previous work, incentivizing them to continue to build the Loot ecosystem. The projects selected for the first round are as follows:

• LootWatcher (https://www.lootwatcher.com/)
• The Herald (https://lootproject.substack.com/)
• Loot Swag (https://lootswag.io/)
• Loot Bibliotheca (https://bibliothecaforloot.com/loot)
• Loot Exchange (https://www.loot.exchange/)
• Dom (@dhof)
• LootMart (https://www.lootmart.xyz/)
• Loot Rarity (https://github.com/bpierre/loot-rarity)
• George (Loot Discord)

All projects will be given the option to abstain from funding prior to the on-chain vote.

Snapshot Vote (Below)

This vote uses quadratic voting to determine the allocation of the 25 Eth block. Quadratic voting provides voting power to both the quantity of votes received and the number of individual wallets that vote for a specific project and allows voters to spread voting power across options. This mechanism is useful to limit the power of large holders in skewing community consensus. Notably, the snapshot vote does not result in fund allocation. The final distribution will be put up to on-chain voting using the Loot Royalty DAO voting mechanisms.

On-chain Treasury Vote (Next)

After the allocation is determined, an on-chain Loot Royalty DAO vote will be held where the allocation of the funds will be set in accordance with the snapshot vote. Upon approval of this proposal, funds will be allocated to each project.

Why batch?

Batching small grants funding is useful to improve the efficiency of proposals. Since voting is on-chain, there are gas fees. This means that small allocations face a high relative externality. While various mechanisms to circumvent this issue have been discussed, block allocations are the easiest solution in the near term. Snapshot allows for off-chain allocations to be decided by the community, which can then be used in an on-chain treasury vote.