Proposal for a new Nest grant allocation process

Proposal for a new Nest application process including the Nest DAO

Note: an Association Track AGP will be created out of this document and the feedback provided. This first change is part of a bigger NestV2 plan which aims at gradually refreshing the current Nest program.

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 Nest V2, Flock teams will take part in grant allocation decisions through appointing a group of team members to the Nest DAO. A new process is designed for this purpose where the Nest DAO has the final say over grant allocation and the Aragon Association steps back in a more coordination and advice oriented role.

The Nest DAO

Each time they get voted-in by ANT holders, Flock teams submit an application for some of their members to join the Nest DAO.

  • Members of the Nest DAO have a non-transferable membership token enabling them to vote
  • The Nest DAO votes on grant allocation decisions
  • AA is in charge of funding the Nest DAO as per AGP proposal for the Nest budget
  • Nest funds are held in the Nest DAO
  • Grantees are paid through the Nest DAO
  • The Nest DAO members also form an Aragon Working Group

Remaining questions:

  • Should the Nest DAO approve the Nest budget proposal submitted to ANVs?

Membership for the Nest DAO

Requirements

  • Be the member of a Flock team
  • If members of Nest DAO do not vote, they will have to justify it to AA, otherwise teams can loose their membership tokens for the period

Application for membership

  • Each Flock team can appoint a group of team members to the Nest DAO
  • In order to do that, Flock teams need to submit a short application explaining why they think the group appointed makes sense (is complementary) and will add expertise and judgement to the Nest DAO
  • For the first membership round, AA will be in charge of accepting/rejecting applications
  • Once application has been accepted by AA, team members will have to submit identity verification using Keybase to receive their token

Remaining questions:

  • Should there be a max number of participants from a given Flock team?

Governance settings and permissions

  • 1-person, 1-vote
  • Super majority support: 67%
  • High quorum: 67%
  • Vote durations: 10 days
    .
  • AA mints/burns and allocates tokens at first, then this job is handed out to voting app
  • Question votes can be created by anyone
  • AA will remain in charge of triggering payment votes

Remaining question:

  • As votes can be created by anyone, the Nest DAO is subject to spam attacks. If the Nest DAO is under a spam attack it will have to coordinate to change the permissions. A more centralized alternative is to leave the ‘create vote’ permission to AA for now

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 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 request for funding and go for 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 emits a encourages/discourages Nest proposals providing a rational behind it
  • AA emits an advice with a note to the Nest DAO
  • 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, emiting recommandations: higly discourage, discourage, encourage, highly encourage
  4. AA’s voting advice: AA has the ability to disclose a public advice on a given request for funding to the address Nest DAO voters. It is accompanied by a voting advice: Yes/No.

Zooming on AA’s voting advice notes

Voting advices consist in a short note disclosed publicly to the address of Nest DAO members. The content is a short summary and analysis of the proposal written by AA with a vote recommendation.

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
  • Recommandation

Next steps

Open to getting feedback on the specs given above.

Bonus: a new guide on the ‘Nest rational for grant allocation’ detailing a method to assess an application will come out soon.

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.

2 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!