Introduction
Decentralized Autonomous Organizations (DAOs) represent a transformative approach to governance and operations, leveraging blockchain technology to ensure transparency and community-driven decision-making. To effectively operate a DAO-operated zone, certain off-chain expenses are unavoidable, including costs for essential infrastructure such as subgraph subscriptions (e.g., The Graph for indexing blockchain data) and decentralized storage solutions (e.g., Filebase for IPFS-based file storage). These services are critical for maintaining the functionality and accessibility of the DAO’s operations. This PIP proposes that the DAO secures funding from the Panther Protocol Foundation through a grant to cover these expenses and outlines a governance structure to manage these funds responsibly.
Summary
Operating a DAO-managed zone requires robust infrastructure to support its decentralized applications and data accessibility. Key off-chain expenses include:
- Subgraph Subscriptions: Services like The Graph provide indexed blockchain data, enabling efficient querying for DAO operations. These subscriptions typically require recurring payments, often in fiat or stablecoins, to maintain uninterrupted service.
- Decentralized Storage (Filebase): Filebase or similar platforms ensure secure, decentralized storage for DAO-related data, such as governance proposals, metadata, or community resources. These services also incur regular costs.
To cover these costs, it is proposed that the DAO should request a $1200 grant from the Panther Protocol Foundation. This funding will ensure the DAO’s infrastructure remains operational, enabling seamless governance and community engagement.
Description
To manage the grant and ensure accountability, the following process for handling funds is being proposed:
- Appointment of a Fund Manager:
- The DAO should appoint a single, trusted individual to act as the Fund Manager, responsible for receiving stablecoin disbursements from the DAO’s treasury and converting them to fiat (if necessary) to pay off-chain expenses via credit card.
- This individual will be accountable to the DAO community, providing regular reports on expenditures and ensuring transparency in all transactions.
- To volunteer for this role, I propose myself (@ToXiC_eHC) as a candidate, given my commitment to the DAO’s mission and willingness to uphold transparency and accountability. However, the community should vote to confirm this appointment or select another candidate.
- Multisig Wallet for Fund Security:
- The DAO should establish a multisignature (multisig) wallet to hold and disburse the grant funds. A multisig wallet requires multiple approvals for transactions, reducing the risk of mismanagement or unauthorized use.
- A minimum of three signers should be appointed to the multisig wallet to ensure decentralized control and oversight. These signers should be selected through a community vote to reflect the DAO’s democratic ethos.
- The Fund Manager will initiate transactions, but at least two of the three signers must approve them, ensuring no single individual has unilateral control over the funds.
- Community Oversight:
- To maintain trust, it is proposed that the Fund Manager should submit monthly or quarterly reports to the DAO, detailing all expenditures, including receipts or proof of payment for services like subgraph subscriptions and Filebase.
- The DAO community can review these reports and raise any concerns through governance proposals or discussions on the DAO’s designated platform.
Proposed Actions
To secure the necessary funding, it is proposed that the Panther DAO should submit a formal grant proposal to the Panther Protocol Foundation, including:
- Budget Estimate: The current cost estimate for running these services are set at less than $100 per month. The requested runway of these services is at least 12 months.
- Justification: A clear explanation of how these services support the DAO’s operations, such as enabling real-time data access for governance or secure storage for community assets.
- Governance Plan: An outline of the proposed fund management structure, including the Fund Manager role, multisig wallet, and community oversight mechanisms.
- Timeline: A proposed timeline for fund utilization, with regular updates to the foundation on how the grant is being spent.
The grant request should emphasize the DAO’s commitment to transparency and accountability, reassuring the foundation that the funds will be managed responsibly.
Next steps
To move this proposal forward, I volunteer to assist in drafting the grant application and, if approved by the community, serve as the Fund Manager. However, the success of this initiative relies on community participation. I propose that the DAO:
- Hold a governance vote to approve the grant request and the proposed fund management structure.
- Nominate and select at least three individuals to serve as multisig signers.
- Establish a timeline for submitting the grant proposal to the foundation and setting up the multisig wallet.
By securing funding and implementing a transparent governance structure, the DAO can ensure the sustainability of its operations and continue to thrive as a decentralized, community-driven organization.
Conclusion
The operation of a DAO-operated zone requires careful planning to address off-chain expenses, such as subgraph subscriptions and Filebase storage. By requesting a grant from the foundation and establishing a robust governance structure with a Fund Manager and multisig wallet, the DAO can manage these costs effectively while maintaining transparency and community trust. I encourage the community to support this proposal, participate in the governance process, and help build a sustainable future for our DAO.