Recipients of a Popcorn grants
Popcorn token (POP) holders may nominate and elect beneficiaries through a multi-step proposal process. First a beneficiary must be nominated and accepted by POP holders. After a beneficiary is accepted, it may then be awarded a grant through a separate voting process. A successful nomination will contain financial or impact reports, a mission statement, and an Ethereum address proof of ownership. Organizations wishing to apply to become a beneficiary may contact the Popcorn Foundation for guidance at no cost.
Beneficiaries must be able to show impact in one of the following areas:
- Open Source
There is a multi-stage process for an organization to become eligible to receive a grant. To summarize, first, prospective organizations must be nominated to become eligible beneficiaries through a Beneficiary Nomination Proposal. Only successfully nominated beneficiaries may be considered for grants. Grants are fixed-term meaning that they are only awarded for the length of the term defined by the grant. A grant term can be 1 month, 3 months, or 12 months. Grants are awarded to certain top-ranking beneficiaries as voted on by the governance token holders. Those beneficiaries awarded a grant will receive a percentage of fees collected by Popcorn smart contracts for the duration of the grant term.
- 1.Beneficiary Nomination Proposal: For an organization to become an eligible grant recipient, a Beneficiary Nomination Proposal (BNP) must be raised and the proposal must receive a majority of votes cast towards “Yes” with at least 10% of the available supply of governance tokens voting “Yes”. As a spam prevention mechanism, members wishing to nominate a beneficiary through a BNP will be required to lock at least 2000 PopcornDAO governance tokens for the duration of the BNP process. a. An organization wishing to apply for eligible beneficiary status may acquire the requisite number of tokens to raise a BNP, or they may reach out to the Popcorn Foundation to seek a nomination at no cost. b. Supplementary application materials, such as mission statement, proof of address ownership, and links to impact reports will be included as an IPFS content hash.
- 2.Beneficiary Nomination Challenge Period: If a BNP passes the first phase of voting with a majority of votes, there will be a subsequent 2-day challenge period where users may challenge and veto the BNP. During this phase, users will only be able to vote “No” to veto the BNP. This additional phase in the BNP voting process prevents exploits where a flood of late “Yes” votes swings the results. At the end of the challenge period, if the BNP receives more yes votes than no votes, the elected organization will become eligible to receive grants as an eligible beneficiary
- 3.Fixed-term Grant Elections: Periodically, the governance token holders will elect eligible beneficiaries to receive fixed-term grants. Throughout the period of a year, there will be monthly, quarterly, and yearly fixed-term grants awarded to beneficiaries through a quasi-quadratic voting process. Of the top-ranking beneficiaries, only a certain number of eligible beneficiaries will be awarded a grant. The number of beneficiaries awarded the grant depends on the length of the grant term and the grant parameters defined in the smart contract. The grant may be awarded using some degree of randomness according to the configuration of the smart contract. This hybrid approach acknowledges Arrow’s theorem, which highlights the imperfection of any ranked voting system, and it further aims to combine merit, popularity, and potential randomness to reduce the undue influence of over-represented stakeholders dominating the results of awarded grants. This configurable approach allows less mainstream projects, or what may be considered to be “entrepreneurial public goods” a chance to receive funding. Further rules and explanations: a. Eligible beneficiaries will not be allowed to apply for more than one grant at a time. b. An eligible beneficiary may not be awarded a fixed-term grant if that eligible beneficiary has been awarded a grant and the awarded grant term is currently active. For example, if a beneficiary has been awarded a one-year grant, then it is not eligible to be awarded another grant for the duration of the year.
- 4.Beneficiary Takedown Proposals - over the course of time, it may become necessary to remove beneficiaries from the registry. This need may become pressing if beneficiary actions violate the principles and values stated in the Popcorn Foundation charter. In the event that an eligible beneficiary violates the principles and values in the Popcorn Foundation charter, or if the allocation of funds is not consistent with the charter’s criteria, a Beneficiary Takedown Proposal may be raised, which upon successful execution will remove a beneficiary address from the registry.