AGP Proposal for a new Nest grant allocation process

Substantially edited on 09.07.19 @ 12.50 CEST

The Nest DAO: application process and governance settings

An Association Track AGP will be created out of this document and the feedback provided.

Philosophy

Until now AA has had the responsibility to decide on Nest grants allocation. On the path to a fully sovereign and autonomous network, the Aragon Association will increasingly delegate strategic decisions to the Aragon community. In the Nest DAO, members of Flock teams, Nest teams and the broader community will take part in grant allocation decisions.

The process detailed below is designed for this purpose. In this new version the Aragon Association steps back in a more coordination and advice oriented role.

The Nest DAO

  • Members of the Nest DAO have a non-transferable membership token enabling them to vote
  • Nest funds are determined by AGPs and held in the Nest DAO
  • Grantees are paid through the Nest DAO (payments can be one-off, issued over milestones, or streamed using the Payroll app)
  • Nest DAO members also form an Aragon Working Group where they can communicate

Membership for the Nest DAO

Requirements

  • Be the member of a Flock team, Nest team, or a community member
  • Being able to demonstrate expertise and skill that will add value to grant selection decisions
  • Members of the Nest DAO have to vote on each proposal. If a member is not voting and cannot justify why, he or she will be offboarded
    • A justification may be that the member thinks he or she doesn’t have meaningful expertise in the area of the grant being judged

Application for membership

  • Flock and Nest teams can appoint team members to the Nest DAO
  • In order to do that, they need to submit a short application explaining why it makes sense for the given team member(s) to participate in the Nest DAO. Especially, applications should justify what type of expertise and skills a team member will contribute to the Nest DAO
  • Example of expertises: knowledge of Aragon user needs, knowledge on the broader crypto ecosystem and technologies, technical ability to review Nest applicant’s PoC and Github repos, deep knowledge of a given part of the Aragon stack…
  • Members of the broader community can also apply provided they can identify themselves and provide a similar justification

Onboarding

  • For the first membership round, the Aragon Association will be in charge of accepting/rejecting applications. After that, Nest DAO members will manage membership autonomously
  • Once applications have been processed by the Aragon Association, accepted applicants will have to submit an identity verification proof using Keybase to receive their membership token

Offboarding

  • If some member is not actively participating in votes, he or she may be offboarded. The Aragon Association may burn its membership token

Governance settings and permissions

Intentions

The Nest DAO and its members should be as autonomous as possible in the allocation of Nest grants. The Aragon Association might keep onwership on sensitive settings such as creating permissions, burning tokens if considered necessary.

Any member of the Nest DAO can create votes, either to select grantees or issue a payment. As the DAO will be dealing with large sums of money, members may want to let the Aragon Association in charge of creating money transfer votes.

Non-members should be able to create votes too. This is because outsiders should be able to ask for a vote on their RFF without going through the approval of a given Nest DAO members or the AA (see forcing request for funding below).

Summing up
  • The DAO will have a council of members voting on proposals and issuing grants. This council will also approve and reject application of new members to the Nest DAO.
  • The Aragon Association may keep centralized ownership over a few sensitive roles (creating permissions, creating transfers, burning/revoking tokens)
  • Outsiders should also be able to create some kind of vote to attract the attention of Nest DAO members and signal their intentions

Voting settings

  • 1-person, 1-vote
  • Super majority support: 66%
  • High quorum: 51%
  • Vote duration period: 15 days
  • Voting app 1: voting app that can be used by anyone
    • Although this votes would not trigger actions, this can be useful for proposers who want to force the RFF to signal their intentions
  • Voting app 2: voting app that can be used by membership-token holders

Finance settings

  • Actions have to be voted by DAO members through voting app 2

Token manager settings

  • Aragon association mints the first set of tokens then hands out to voting app 2
  • Aragon Association keeps ownership over revoking, burning tokens

ACL settings

  • The Aragon Association is in charge of creating permissions

Application for a Nest grant - what’s new?

In Nest “V1”

Proposal funnel

  1. Create an issue with proposal idea asking for feedback
  2. AA provides feedback whether if idea is worth pursuing

-Provided that proposal idea is approved by AA-

  1. Team can submit a request for funding
  2. AA provides feedback and approves most of the time, sometimes not

Who is involved in grant allocation?

  • Nest Manager and Executive Director at AA are selecting grants
  • They gather feedback and opinions from Flock team members, including those directly impacted by the proposal

In Nest “V2”

Funnel

  1. issue with proposal idea asking for feedback for a minimum of 30 days unless it has authorization from AA to move on
  2. AA coordiantes with Flock teams to provide feedback if necessary
  3. AA encourages/discourages to submit a request for funding

-Provided that proposal idea is encouraged by AA-

  1. Applicant team submits a request for funding

-If proposal idea is discouraged by AA-

  1. Team can still choose to go for a request for funding and trigger a vote in the Nest DAO

-In any case, if request for funding is approved by Nest DAO-

  1. Applicant team has to submit a verified Ethereum address, for example using Keybase’s signature system
  2. A payment vote to the provided address is triggered by AA

Summing up: who is involved in grant allocation?

  • In Nest V2, AA doesn’t have the ability to strictly reject proposals
  • In Nest V2, AA has the role to provide the right feedback to challenge and shape up proposals, and coordinate to gather opinions if necessary
  • AA encourages/discourages Nest applicants to submit their proposal to the Nest DAO
  • AA issues a note to Nest DAO members, explaining as objectively as possible what the proposal is
  • In Nest V2, the Nest program goes one step further to a more decentralized making on the strategic decisions that are Nest grants by harnessing collective decision making to vote on applicants

Clarification of new concepts

  1. Application time: Proposals have to be submitted a minimum of 30 days before requesting for funding
  2. Forcing request for funding: Provided it has respected the application time of 30 days a team can decide not to listen to AA and force request for funding to access the Nest DAO voting round
  3. AA’s recommandations to applicants: AA can encourage or discourage applicants to submit a request for funding, issuing recommandations: higly discourage, discourage, encourage, highly encourage
  4. AA’s voting note: AA has the ability to disclose a public note assessing the pros and cons of a given request for funding

Zooming on AA’s notes

AA’s notes consist in a short note to the address of Nest DAO members. Notes are public. The content is a short summary and analysis of the proposal written by the AA.

No longer than 500 words:

  • Summary of the proposal according to AA
  • How it seats in the Aragon Landscape
  • Subjective opinion supported by clear rationale

Next steps

Feedback and opinions are welcome. The settings proposed above can be discussed and adjusted up until the implementation of the Nest DAO.

4 Likes

Hello Louis,

Interesting proposal to decentralized AA veto power on grant issues.

On the vote membership it outlines both AA and flock teams. Shouldn’t it considered the initial coop voted in prior AGP and any other type of structure funded thru the Aragon funds?

I like the idea of having representatives from all parts of the ecosystem. Would include community too.

The effort to keep decentralizing decisions on how to allocate founds is deeply appreciate. The new proposal funnel is consise and well explained.

I would only consider the possibility of giving a bit of weight power of the Nest DAO to other participant of the network. Community, current Nest teams, etc.

3 Likes

This is great! Just wanted to make sure that I’m getting this right: the AA will still be the one performing most of the due diligence for now, while Flock teams can also perform their own and they do finally have the decision power.

2 Likes

I think this is a great proposal, and I like that AA will be a due dilligence provider as Luis mentions, yet not a central authority.

There are a few things I would change:

I think the Nest program is a great way to begin to become more decentralized with Aragon. For this reason, I think we should aim to remove “A payment vote is created by AA”. Additionally, if we want 30 day evaluation period then the voting app should have a 30 day duration. This then reduces friction and administrative burden, and it can operate more like a DAO.

  1. Unless the request for funding is inappropriate (troll, attack…). A vote is created in the Nest DAO

Along the same lines, I don’t see why we need to restrict proposal creation to AA, we should let anyone create proposals (or maybe at least any of the Nest DAO members whose main duty is making sure they aren’t posting spam and the identity is verified?).

But in general these concerns make me think we need better tools within Aragon to filter out the spam (if our DAO designs require centralized curation…).

3 Likes

Hey there,

Thanks a lot for feedback @calcadarafael, @gabi. I think it may make sense to have already funded Nest teams able to claim for seats in the DAO provided their application is relevant (screened by AA at first, then by the Nest DAO). When it comes to the broader community, I guess we can leave applications open there too, I think however that It’ll be gradually harder to get into the DAO (from Flock to Nest to broader community) as ecosystem knowledge and skin-in-the-game required to take decisions on Nest grant allocation are high.

2 Likes

Hey @luis, thanks for your feedback.
So AA will do all the due dill and coordination work. The idea is that Nest DAO members just have to do the last mile and vote Yes/No.

AA will give a short note advising on why the grant should be allocated or not and Nest DAO members can take it from there.

However please note that the workload for Nest DAO members will be small but certainly not 0. I’d say 20 mins to read proposal and AA 's (easy to process) note and then a bit more time to discuss and take a vote decision.

Here AA would ideally help make things smooth and remain available to facilitate process. Still Flock teams should think carefully about who they appoint to fulfill the role as Nest DAO members should have at least a small cognitive availability and some skills to judge on grants.

2 Likes

Hey @stellarmagnet thanks for the feedback,

I feel like once discussions have happened for 30 days and the applicant team goes for a vote, another 30 days would be too long. I’d be open to hear more feedback in your sense but it seems to me like 10 days is already significantly long.

Why not if we’re confident that the process, members and governance settings allow us to do it. Which I think it definitely could!

Yep should have deleted that thanks. Proposals are allowed to all (see governance settings and permissions section). The idea that only Nest DAO members can create payments sounds good in this setting!

Yep looks like its going to be a recurring one.

The Coop is an already funded group funded by the Aragon. I would like to understand more about the rationale why the decision to exclude it initially as it covers all other groups except the Coop.

About having a Community representation or open vote to gather sentiment, it seemed to me way more in line with an inclusive mission than having already selected teams to vote.

I think we’ll be very open to receiving applications in any form from any entity in the community.

I am talking about the membership process and the rationale for having all the Nest teams and excluding the Coop and the community voice.

Like WHO decided and why it was decided that way. or if it was just a non issue. So we might know where to focus.

I am talking about the membership process too :). I wrote this proposal and there was no rationale to exclude any team, just made sense to involve Flock teams first for now as they are already somewhat involved in the grant allocation decision today by providing advices to AA.

Hope this clarifies things!

1 Like

This makes a lot of sense, thanks!

Reviving this post.

The proposal will be updated and presented to ANV#3!

1 Like

This is probably worth a separate discussion in another thread, but as a matter of terminology I would not call this a “DAO” because of the permissions required to add and remove members from the organization. I usually think of DAOs as being permissionless organizations to join and participate in. Anyways, I’m happy to take this to another thread to keep the rest of the discussion focused more on the operational details of the proposal.

If implemented as-is then yes I think so, although first I think it’s worth asking: have the Flock teams even agreed to take on this responsibility, on top of the responsibilities their team members already have to deliver what was promised in their Flock proposals?

Taking a step back, why make Flock team members the only voters instead of turning it over to ANT holders directly, like the CFDAO but with more funding? Or maybe having a “Nest Council” that is elected by ANT holders and paid to oversee the program (to compensate for the time spent reviewing and voting on proposals)? Thinking about how to decentralize Nest without putting more of a work burden on Flock teams (at least without compensating accordingly), and involving ANT holders in the process beyond simply approving or rejecting funding for the Nest org.

3 Likes

Thanks John! Leaving naming aside for now: I will soon post an update to this post with some modifications, enlarging participation to the whole community (teams, community contributors, ANT holders). There will still be a screening for membership.

1 Like