Moonwell Grants Program Framework

This proposal serves as a framework and set of guidelines to follow for those looking to receive grant funding.

One overarching goal of the Moonwell community has been to create decentralized infrastructure that will stand the test of time and outlive any contributing team or individual. With this goal in mind, the Lunar Technology Foundation has allocated 10% of the total WELL supply, or 500M WELL tokens, as well as 20% of the total MFAM supply, or 200M MFAM tokens, to long-term protocol and ecosystem development. This allocation is available to high-quality developers, builders, and projects that would like to contribute to the Moonwell protocol and its broader ecosystem.

What Makes a Good Proposal?

  • Clear Goals and Objectives: The proposal should outline the goals and objectives clearly and informatively. The Moonwell community should easily understand how your proposal adds value to the ecosystem.
  • Detailed Budget Explanation: Provide a granular explanation of the requested amount and designated milestones. This helps the Moonwell community understand how the funds will be used and what goods or services they will receive in return.
  • Moonwell Community Experience: Proposals, and their authors, that demonstrate a deep understanding of the Moonwell protocol and the needs that the community have are more likely to be successfully funded. Proposals that provide the most value are likely to succeed, and who better to know what the community needs than members of the community itself?
  • Comprehensive Timeline: Present a well-structured timeline that outlines each phase of your project. This will help the Moonwell community understand the expected duration and milestones, ensuring transparency and progress tracking.
  • Measurable Outcomes: Define quantifiable metrics or key performance indicators (KPIs) to evaluate the success of your project. This will enable the community to assess the impact of your proposal on the Moonwell ecosystem.
  • Team Expertise and Experience: Highlight the skills, qualifications, and past achievements of your team members to establish credibility. Showcasing the team’s capacity to execute the project successfully can boost confidence in your proposal.
  • Collaboration Opportunities: Identify potential partnerships or synergies with existing Moonwell projects, initiatives, or stakeholders. This demonstrates your willingness to collaborate with the community, creating a win-win situation for all parties involved.
  • Sustainability and Scalability: Explain how your project can grow and adapt to future challenges, ensuring long-term benefits for the Moonwell ecosystem. Consider presenting a plan for future funding or revenue generation to maintain the project’s viability.

Potential Areas of Interest

  • Projects that integrate with Moonwell collateral tokens, mTokens
  • Improvements to the Safety Module. The Safety Module could be improved in many ways.
  • Uplifts and tools that result in the Moonwell protocol being a better DeFi “lego”
  • Informative and interactive educational resources
  • Tooling and infrastructure for institutional liquidity providers
  • An “Autonomous Proposal” system that would allow decentralized/uncoordinated proposals to garnish support and stand by themselves
  • Improvements to Moonwell Governance that would encourage greater participation.
  • A delegate portal similar to

Moonwell Grant Proposal Template

  • Title [Enter Proposal Title]
  • Author(s) [Enter name(s) of associated authors]
  • Related Discussions [Paste link here]
  • Submission Date [Enter Date]
  • Summary
    • Give the community a TLDR on your proposal; not exceeding more than 2-3 sentences.
  • Team
    • Describe the individual or team, relevant experience, and provide proof of past achievements.
  • Overview
    • Introduce and expand on the proposal.
    • Highlight key points on how the proposal will improve the Moonwell ecosystem and the overall implementation process.
  • Motivation
    • What problems will this proposal address/solve?
    • What’s the value-add for the Moonwell community?
  • Implementation/Scope of Work
    • Provide a detailed breakdown of the tasks, goals, and deliverables associated with the grant proposal, specifying how grant proposal funds will will be used.
    • Outline the technical approach and methodologies to be employed, highlighting any innovative or unique aspects that will contribute to the project’s success. If you are proposing a change to protocol smart contracts, present code here.
    • Identify any potential risks, challenges, or dependencies associated with the project, as well as the strategies in place to mitigate or address them.
    • Specify the collaboration, communication, and reporting mechanisms that will be used to keep stakeholders informed about the project’s progress and to facilitate ongoing feedback and input from the Moonwell community.
  • Milestones/Timeline
    • Clear and concrete project milestones with associated dates and proposed funding increments.
  • Budget/Payment
    • Specify the amount of tokens you are asking for. You may request either WELL or MFAM or both WELL and MFAM.
      • To estimate what would be a realistic budget for the grant proposal, consider the TWAP (Time Weighted Average Price), current market capitalization and circulating supply of WELL and/or MFAM.
    • Provide a comprehensive budget breakdown, detailing the allocation of funds for each aspect of the project, such as development, design, and administrative expenses.
    • Present the proposed payment structure and schedule, specifying milestones or phases tied to specific deliverables or project completion percentages, as well as the corresponding payment amounts.
    • If applicable,
      • Mention any in-kind contributions, partnerships, or matching funds that will complement the grant funding and enhance the project’s overall financial sustainability.
      • Include the estimated costs for any necessary hardware, software, licenses, or third-party services, and justify their inclusion in the project budget.
    • Outline the procedures and criteria for monitoring and evaluating the project’s financial performance, ensuring transparency and accountability in the use of grant funds.
  • Relevant Links
    • Attach links to any tools and resources to help community members better understand the proposal and make informed decisions.
  • Poll (Optional):
    • To gather targeted feedback from the community prior to voting, consider incorporating a poll on proposal details, posing questions such as:
      • Does the proposed payment amount seem fair?
      • Is the suggested timeline realistic?
      • Do you believe the proposed project scope is comprehensive and well-defined?
      • Are the expected deliverables and outcomes clearly outlined?
      • Does the proposal align with the Moonwell community’s goals and values?
      • Are the proposed communication and reporting methods sufficient for tracking progress?
      • Are the risks and challenges associated with the project properly addressed and mitigated?

Grant Proposal Process:

The proposal must progress through three distinct stages, with the entire procedure taking no less than 10 days to complete. Each phase necessitates a specific duration for inclusive community discourse and informed voting.

Phase 1 [Forum Proposal & Poll] - 3 days

  • Draft a grant proposal using the above framework and publish it in the “Community Proposal” section of the forum for open community discussion and feedback.
  • (Optional) Include a poll for gathering targeted community feedback.
  • The proposal may be submitted to the Snapshot portal for a community temperature check after a minimum of 3 days on the forum.
    • Incorporating community feedback into the proposal at this stage is encouraged.

Phase 2 [Snapshot Temperature Check] - 3 days

  • Republish the proposal as a new comment under the same forum thread, incorporating community feedback.
  • Edit the proposal title to include a sequential number [MGP-X] and change the proposal’s subcategory from “Community Proposal” to “Moonwell Grants Proposal”.
  • Submit the proposal to the Snapshot Portal with a minimum of 200,000 delegated WELL or with the help of a Moonwell Delegate.
    • Snapshot Vote must be configured to use the following options:
      • Yes: In favor of the proposal
      • No: Against the proposal
      • Abstain: Neither in favor nor against the proposal

Phase 3 [Onchain Vote] - 6 days

  • Allow a 2-day final review window of the proposal before proceeding to submit the proposal to the Moonwell Governance Portal for onchain voting.
  • Submit the proposal to the Governance Portal with a minimum of 400,000 delegated WELL or with the help of a Moonwell Delegate.
  • Instructions for using the Governance Portal proposal generator to submit a grant request can be found here.
  • Successful onchain proposals will transfer grant funding to the designated wallet address following proposal execution
  • Note: By default, proposals should be submitted to the Moonwell Artemis Snapshot/Gov Portal if they apply to both deployments. The only reason to submit a proposal exclusively to the Moonwell Apollo Portals is if it is specifically centered around Apollo or if you are requesting funding in MFAM in addition to WELL.

Thanks for elaborating this framework!

We are in favor of introducing the proposed grant program framework.

From our experience from collaborating with many DAOs, frameworks of similar fashion usually works very smoothly for projects of smaller scale. The proposed framework doesn’t introduce excessive friction and allows sufficient time for the community to voice their opinion.

An alternative to this framework would be to have a grant committee review proposals and decide on where to allocate a determined budget (i.e Questbook). We wouldn’t recommend introducing any sort of grant committee at this stage, as the current frequency of proposals is totally manageable with a lighter framework.

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