Proposal [Non-consitutional]: Top-up for Hackathon Continuation Program

[danielo]

@Chris_Areta

We’re curious to better understand how this system works and it would be great to get more details here. If indeed there is now a system in place that works, then we should consider potentially formalising it for future investment programs.

We have developed 2/3 key pieces that can inform future proposals:

• Fund management process: The funds are transferred from the DAO treasury directly to the AF and the AF is instructed to swap ASAP (they can normally execute within a week). Assuming a 30% volatility buffer, the AF can most likely swap successfully and return the excess to the DAO. After the AF Swaps, stables are transferred to the MSS. After the investees complete KYC and contract signing with the AF, the program manager schedules transactions in the MSS. So it’s the MSS signers who approve but the program manager (e.g. RnDAO) who schedules the transaction. This way the funds remain under the control of the AF (the counterparty for the investment) until transferred to the investee. The program manager serves simply as an advisor/service provider for selecting the projects, suggesting the disbursement(s), and delivering some support services.
  Note that one of the strengths of the HCP is having a small amount of funds disbursed each month as opposed to a lump sum upfront, so we can track progress and stop the disbursement if the projects are not executing well. Hence, the program manager serves as a scheduler for the monthly/milestone transactions.
• Contract with milestone-based disbursement: we agreed a term sheet and investment contract with the AF. We might suggest some improvements for the next round but we have a template now. (the AF already had their template before, now we have one with the HCP program setup).
  The setup sees the service provider negotiate a single term sheet with the projects but then we use two similar contracts: one contract between the project and the AF, another between the project and RnDAO. As RnDAO is investing services, this could cause a tax liability (taxed as income) but given that RnDAO is set up as a non-profit with 0% tax and the incubation services are delivered fully remotely, this tax issue is not problematic for us across most jurisdictions.
  Service providers with different legal/tax setups might need to figure out their own approach. This is non-trivial.

[danielo]

Thanks for your comments.

@Oni

A public summary with basic metrics would help justify this exception.

We’re providing monthly updates here. Next one is due tomorrow, and you can also track more frequent progress via the roadmap linked there

Hackathon Continuation Program (HCP) - updates

With the kick-off payment now received, we’re happy to kickoff this thread to update the DAO on our progress on the Hackathon Continuation Program. TLDR on the program: a program of two phases where we take hackathon builders from customer discovery to building and MVP and market testing it. This pilot starts with 4 teams in Phase 1 and we’ll shortlist down to a maximum of 2 teams for phase 2. The program is structured as an investment, pioneering this capability in the DAO. Progress update We…

[WinVerse]

DAOplomats voted FOR this proposal on Snapshot.

We were in favor of both the top-up and sending the extra funds to the TMC.

Sending the leftover funds from the D.A.O Season 1 program as a top-up for the hackathon was the most optimal path forward, and Jojo’s suggestion to send the remainder of the funds to the TMC was great.