[Tally] [FINAL] [STIP - Round 1]

[Frisson]

SECTION 1: APPLICANT INFORMATION

Applicant Name: Frisson

Project Name: Tally

Project Description: Tally is the most popular onchain governance app, powering many important onchain organizations within the Ethereum ecosystem such as Uniswap, Arbitrum, Gitcoin, ENS, and Compound. Tally provides an end-to-end decentralization stack, making it easy for teams to launch governance, ship software upgrades, and fund initiatives.

Team Members and Qualifications:

• Frisson (VP of Growth at Tally , Arbitrum Delegate, Founder of Content Guild , Founder of DAO NYC)
• Dennison Bertram (Founder and CEO of Tally , Builder of Tally Zero, Founder of Dope Wars , Builder of Safeguard & much more )
• Rafael Solari (Founder and CTO of Tally , Committee Member of Uniswap Deployments Accountability Committee)

Project Links:
Website: https://www.tally.xyz/
Documentation: https://docs.tally.xyz/

Contact Information

TG: @zeroxfrisson

Twitter: @0xfrisson

Email: frisson@tally.xyz

Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes

SECTION 2: GRANT INFORMATION

Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

Requested Grant Size: 200k ARB

Grant Matching: n/a

Grant Breakdown:
The purpose of this grant is to incentivize growth of the DAO ecosystem on Arbitrum and Arbitrum Nova. Today, Tally supports over 500 DAOs with a collective TVL over $10 Billion. DAOs have moved over $100 Million via Tally proposals. The Arbitrum DAO itself is one of Tally’s power users, representing almost $4 Billion in TVL. However, outside of the Arbitrum DAO itself, the DAO ecosystem on Arbitrum is still nascent. Tally supports only 9 DAOs on Arbitrum and 0 on Arbitrum Nova. We believe a healthy onchain DAO ecosystem is one of the most important signals of ecosystem quality and staying power. The best projects in crypto are managed transparently via onchain governance, where no one entity or group controls the admin keys. Application leaders across Ethereum like Uniswap, ENS, and Compound use Tally because it’s the standard for operating onchain governance. Arbitrum is a DeFi rich environment, which would provide DAOs multiple ways to natively deploy a treasury leveraging the countless native protocols on Arbitrum. We believe incentivizing existing and new protocols on Arbitrum to deploy onchain governance and operate on Tally will drive sustainable growth in the ecosystem.

Funding Address: arb1:0x50Db58E1774CB7922d1bF96a267b52e8bb41c0ce

Funding Address Characteristics:
Tally company Safe multisig 2/3 on Arbitrum with Frisson, Raf, and Dennison as signers

Contract Address:
The incentive funds will be deployed into the Governor contracts of Arbitrum DAOs on Tally, including DAOs that are currently live on Tally and DAOs that are created during the incentive program period. I’ve included the current list of Governor contract addresses below (excluding the Arbitrum DAO itself). The future addresses are unknown at this time, but will be included once deployed.

• SWEEPR 0xC0507cFC6A9E65894C05C1c5b193C7B58b36791f
• Immutable 0x8FBF62eEA6Dc9493836A182DD66db02bFfF10695
• London DAO 0x936139366c5db48543368EE9cD075267d176a02c
• Odyssey DAO 0xbCC46a8D83B6f16e5b8A99116B4467B82EB04F01
• GMX Blueberry Club 0x28C3ABA27542e0680Cc3706AEdebFA40bBF9AF1E

SECTION 3: GRANT OBJECTIVES AND EXECUTION

Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.

Objectives:

We intend to leverage the funds to drive adoption of onchain DAOs on Arbitrum. Tally is the industry standard application for onchain governance. We are already speaking with multiple protocols and dev teams who are interested in deploying their DAO on Tally or migrating their existing governance to Tally. We will use these funds to incentivize those teams to make Arbitrum their home.

Key Performance Indicators (KPIs):

Number of DAOs deployed on Tally
TVL growth of Arbitrum DAOs on Tally
Amount of value transferred via Arbitrum DAOs on Tally

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?: We will directly use the grant to incentivize existing DAOs on Arbitrum to grow and to attract teams to operate their DAOs on Arbitrum. Governance is at the heart of any protocol. Growing DAO-managed assets on Arbitrum leads to protocol growth (the Arbitrum Short Team Incentive Program being a perfect example). We have an existing pipeline of customers who are planning to launch and/or grow their governance on Tally. We will deploy incentive funds directly into the governance contracts of those DAOs.

Justification for the size of the grant: We plan to offer an average grant size of 10k ARB to incentivize ~20 protocols to grow their DAOs on Arbitrum. We will scale the grant size up or down depending on the TVL of the DAO. We will implement a minimum TVL and other requirements (must pass at least one proposal) before the grant is given out.

Execution Strategy and Timeline: We plan to actively work with projects to grow and deploy on Arbitrum and anticipate being able to deploy the grant by Jan. 31, 2024. Execution will be a manual, careful, partnership-based process that involves working closely with projects to grow their existing governance contracts and deploy new governance contracts on Arbitrum.

Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream? Yes

SECTION 4: PROTOCOL DETAILS

Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.

Is the Protocol Native to Arbitrum?: Yes. We have long supported Arbitrum and Arbitrum Nova. The Arbitrum DAO is Tally’s most important client.

On what other networks is the protocol deployed?: The current list of networks Tally supports can be found here: Network Support - Tally Docs

What date did you deploy on Arbitrum?: August 25th, 2022

Protocol Performance:

• $10B of TVL in DAOs on Tally
• $100M of value transferred via Tally proposals
• 500+ DAOs on Tally
• 5,000+ proposals passed on Tally

SECTION 5: Data and Reporting

Provide details on how your team is equipped to provide data and reporting on grant distribution.

Is your team prepared to create Dune Dashboards for your incentive program?: Yes, we will create Dune dashboards that provide visibility into all the Arbitrum DAOs on Tally that received grants via the incentive program funds, including details such as TVL, proposals passed, delegates, and votes. We have experienced data engineers at Tally who can deliver on this reporting.

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread? Yes

Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?: Yes

[Matt_StableLab]

Hello @Frisson thank you for submitting! Please make the following changes to your proposal to comply with the program rules.

1. Please note the following rule regarding the expected timeline of the incentives program.

@tnorm

funds are expected to be distributed as they are received, and programs should aim to end before the end of the incentivization period on Jan. 31, 2024.

Unfortunately, your 6-12 month timeline does not meet these requirements.

2. Grant funds may only be used to incentivize Arbitrum contracts and can not be used for grants for protocols to deploy their DAOs on Arbitrum.

@tnorm

Can I use grant funding for operational costs?

Funds are to be kept in ARB and used to incentive Arbitrum contracts. This funding is not meant support development or operational costs.

[Frisson]

Thank you for the feedback, @Matt_StableLab .

I edited the proposal to reduce the timeline to match Jan. 31. I also clarified that we plan to deploy the incentive funds directly into the existing Governor contracts of DAOs on Arbitrum and listed examples of said contracts.

[Matt_StableLab]

Thank you for this clarification and these edits! Your submission now meets all requirements to be considered for a snapshot vote.

[Noa]

Hello Frizzon, the proposal is interesting, and I’m glad to see such a prestigious protocol like Tally presenting it. Going deeper into it:

• Can you provide specific examples of projects or DAOs that you intend to incentivize with these grants to grow on Arbitrum?
• How will you determine the exact grant size for each project? What factors, besides TVL, will influence this decision?

[Bobbay]

I think its an interesting approach to attract more DAOs on arbitrum but I’m not convinced on the grant size.

A few questions.

1. How did you arrive at a rough average 10k ARB per protocol?
2. How do you expect to select these protocols? FCFS?
3. Do you think passing only one proposal is enough to justify a grant?
4. Out of the DAOs deployed on Tally via arbitrum right now, excluding arbitrum DAO, how much would each DAO receive? Just to paint a picture of your evaluation metrics. Similar to Noa’s question really.

P.S. I like how you can filter via chain

[0xJaeThorn]

Never heard of tally before…

Have you been used by any other ARB ecosystem projects before?

[Frisson]

Thanks, Noa!

A good starting point in terms of examples would be the current set of Arbitrum DAOs on Tally. Additionally, we are talking with a number of large protocols about deploying onchain governance in the near future on Arbitrum, including a gaming metaverse on Arbitrum Nova, a RWA-backed stablecoin protocol, and a DeFi perps protocol. It would not be appropriate for us to reveal the exact identity of these protocols in this public context.

In additional to TVL, we will consider number of proposals passed, the value of those proposals, and distribution of voting power.

[Frisson]

Nice to meet you! Yes, you can filter by network on Tally’s explore page to see the projects that use us on Arbitrum. The most notable of course being the Arbitrum DAO itself. Tally - Explore DAOs

[Frisson]

Hey Bobbay, thanks for the reply!

1. I think 10k ARB is roughly the minimum amount required for the grant to be meaningful for most quality teams and projects. I think we would go lower for smaller, promising projects and higher for larger projects.
2. The primary driver of grant size will be TVL locked in the Governor contract. We will also consider number of proposals passed, the value of those proposals, and distribution of voting power.
3. No, we would include other requirements beyond having to pass one proposal. I think passing one proposal could be enough when combined with other factors, but would not always be sufficient. We plan to consider the TVL in the Governor and the number of unique delegates, along with the overall credibility of the project.
4. Based on the state of the DAOs (other than the Arbitrum DAO) in the screenshot in your reply, none would be immediately eligible to receive a grant (see 3.) However, we expect several of them to mature sufficiently to become eligible during the incentives period.

[Matt_StableLab]

Hello @Frisson ,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

@Matt_StableLab

• Review Period Deadline: October 4, 2023 11:59 PM EST

Please complete the following steps required for your application to proceed to Snapshot:

@Matt_StableLab

2. Once feedback is collected, applicants will need to change their application title from [DRAFT] to [FINAL] by the Review Period deadline: October 4, 2023 11:59 PM EST. At that time, all eligible proposals with the following formatted titles will be migrated to Arbitrum Snapshot to vote. The correct format for a proposal ready to move to vote looks like this: [Project Name] [FINAL] [STIP - Round 1].

Once you change your proposal title to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness.

Once marked as [Final], your application post will be locked by moderators and you will no longer be able to edit your proposal.

[Frisson]

@stonecoldpat @eli_defi @cliffton.eth this proposal is ready

[cliffton.eth]

Post has been changed to FINAL and locked.

[BlockworksResearch]

Blockworks Research supports this proposal and deems the requested amount of 200K ARB justified based on, among other things, the anticipated sustainable impact on, and goodwill to, the ecosystem, metrics such as TVL / volume / fees on Arbitrum and overall, a comparative analysis of all submitted STIP proposals, the distribution of incentives across verticals, as well as, to a certain extent, the recommendations made by the Arbitrum Working Group through the four grant categories.

[litocoen]

I’m inclined to support this proposal because of the indisputable value Tally adds to the DAO ecosystem but having minor doubts about the potential for abuse using this distribution system.

Don’t you think people could spin up fake DAO’s and wash trade some funds around?

[Frisson]

Thanks Lito!

Spinning up fake DAOs is definitely a concern. We plan to individually asses each DAO’s grantworthiness. We will consider TVL in the DAO, proposals passed, the number of unique delegates, and the overall credibility of the project.

[iZUMi_Finance]

We support this proposal to use the grant funds for driving the adoption of onchain DAOs on Arbitrum via Tally.

BR
iZUMi

[SEEDGov]

Tally: @Frisson

From @Seedgov led by the @cattin delegation, we want to convey our support to this proposal. The reasons why we agree are as follows:

• Tally’s track record is very good, and is aligned with Arbitrum.
• 200k incentives for DAOs, we believe they add value to the ecosystem.

We want to clarify that this is not the final vote, since as we clarify in this release, the final vote is defined by our community. We also want to invite you to attend our Governance Call that will be held tomorrow in our discord.