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xGov-75 Social Impact Staking for Algo governance
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| id: 75 | ||
| period: 3 | ||
| title: Algorand Impact DAO and Social Impact Staking Algo Governance (SISAG) program | ||
| author: Alex Macbeth <alex@innofund.io>, Gabriel Von Roda <alex@innofund.io>, Ben Wyeth <ben@thedesignspace.com.au>, Sanjay Mendis <sanjay@flexid.asia>, Claudio Parrinello <claudio.parrinello@planetwatch.io>, Michael Mazur <michael@colu.com>, Cashdillo (@CashdilloXGov) | ||
| discussions-to: https://forum.algorand.org/t/social-impact-staking-proposal-for-next-governance-round/11331 | ||
| company_name: Cashdillo, Planet Watch, Goanna, UrbanChange | ||
| category: Community | ||
| focus_area: Defi | ||
| open_source: Yes | ||
| amount_requested: 380000 | ||
| status: Final | ||
| --- | ||
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| ## Abstract | ||
| a) Social Impact Staking for Algorand governors | ||
| b) An Algorand Impact DAO to govern proceeds | ||
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| Governors and ALGO stakers would be given the option to contribute a X% of governance rewards for vetted social and environmental impact projects. Projects would be hosted on crowdfunding/matchfunding platform Cashdillo; allocations would be managed by a separate Impact DAO and distributed via Cashdillo. Voting can be integrated. | ||
| Social Impact Staking (SIS) drives two key objectives: an opt-in for socially responsible donations AND by design it shall allow for ALGO to become an opt-in environmental, social and governance (ESG) rated digital currency. It creates a new ecosystem ‘Impact Grant’ while fortifying the entire ecosystem’s credentials to external investors. This is in line with the ethos of the ecosystem and its founders. More importantly it will drive ALGO adoption for investors who integrate ESG performance into their portfolios. Paired with ALGORAND being a carbon negative blockchain, this would provide immense promotional value to the ecosystem and means real utility for impact investors. | ||
| How it would work: | ||
| When taking part in the governance vote, users have an additional check box allowing them to opt into SIS and indicate the % of their rewards they wish to donate. | ||
| At the end of the Governance period, when rewards are distributed, the rewards donated to SIS are transferred automatically to the Impact DAO treasury wallet. | ||
| Community members who opt-in for SIS become DAO governors and can vote on how those funds are distributed via the Algorand voting tool | ||
| Both Algorand Impact Projects as well as vetted impact projects around the world are eligible for distributions to support their efforts via the social impact pool. Investors who need ESG rated reporting will have the opportunity to receive an ESG performance report. | ||
| “Algorand Impact Pool / Algorand ESG Pool”: Algorand social impact-focused companies list their impact projects on Cashdillo and the Algorand community/ecosystem votes on how the SIS Governance Program funds are allocated. “Algorand ESG Pool”: The DAO will work with world-class vetted impact projects that provide validated ESG performance data. This brings on-chain ESG reporting to investors in ALGO. Based on the investment/ donation in ESG projects an investors/ donor will receive a digital ESG certificate for further use in their own non-financial disclosure reporting. | ||
| Donated yield reports can be minted as a digital certificate / 'ESG NFT', to which impact data can be added, to showcase the donors impact credentials - | ||
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| ## Team | ||
| The core SISAG team is composed of: | ||
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| Alex MacBeth: He is a co-founder of Cashdillo, a journalist who has extensively worked in the aid and development sector around the world. Alex is a serial founder, who came to Algorand 24 months ago with the mission to bring real world utility to the ecosystem by building a platform that finances social and environmental impact projects in Africa. | ||
| Gabriel von Roda: He is a co-founder of Cashdillo, a trained economic historian, who came to Algorand 24 months ago, after a career in entrepreneurial business in Asia and Latin America and having worked in the leadership teams of several Web2 start-ups. Gabriel is passionate about impact investing, trustless and decentralised systems, how blockchain and DeFi will replace informal finance networks and close the funding gap for projects in the developing world. | ||
| Ben Wyeth: Ben is the founder of the Goanna NFT project, Algorand's highest grossing NFT collection. He is passionate about using NFTs to drive real world impact. The project’s early conservation efforts have been spun out into The Goanna Tree Planting Fund, which has planted almost 200,000 trees across four continents. In 2022 he doubled down on his commitment to NFTs launching Shufl.app, a community focused NFT marketplace dedicated to empowering creators and communities. | ||
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| ## Experience with Algorand | ||
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| The team is grounded in two impact mechanisms / DApps running today on Algorand: Cashdillo and the Goanna Tree Fund. | ||
| Cashdillo has been supported by and successfully graduated from the Algorand Ecosystems Grant Program and the Algorand Europe Accelerator Program. The platform is live on Algorand Mainnet (end of April 2023). | ||
| The Goanna Tree Planting Fund is Algorand’s first dedicated impact fund, administered by the AK Foundation. The capital that is raised via donations and community initiatives is then invested through various de-fi protocols. The generated yield is then used to directly support conservation efforts and tree planting projects around the globe. This innovative approach allows the fund to be truly sustainable both in terms of the projects it supports and also its own longevity. | ||
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| ## Present Proposal | ||
| Roadmap | ||
| Phase / Milestone | ||
| Action | ||
| Date | ||
| Undertaking | ||
| Phase 1 | ||
| Vote by Governors | ||
| Voting period Q1 2024 | ||
| The community decides to establish this mechanism for ALGO governors | ||
| Phase 1 | ||
| Establishment of SISAG DAO mechanism | ||
| Q1 2024 | ||
| A positive vote on the SISAG establishment leads to the founding of the umbrella DAO | ||
| Phase 1 / Milestone 1 | ||
| Project initiation with Algorand Foundation & SISAG Team | ||
| Pay-out: USD15,000 | ||
| Q1 2024 | ||
| The project commences with SISAG Team starting its implementation efforts | ||
| Phase 2 | ||
| Adaptation of Algorand on-chain voting platform | ||
| Q2 2024 | ||
| Coding of voting platform and ASA for DAO voting | ||
| Phase 2 | ||
| Establishment of “Algorand Impact Pool” and enlisting respective cohorts of impact projects | ||
| Q2 2024 | ||
| Pool will be populated with projects working on environmental, social, and governance projects. | ||
| Phase 2 / Milestone 2 | ||
| Promotional drive across ecosystem “Christmas season’s giving on Algorand” | ||
| Milestone Pay-out: USD13,000 | ||
| Q1 2025 | ||
| Ecosystem Partners, the Foundation, run a dedicated PR effort. | ||
| Phase 3 | ||
| First Governance cycle with opt-in mechanism | ||
| Gov voting period 2024 | ||
| ALGO Governors have the option to contribute x-% of their staking rewards to any if the two pools | ||
| Phase 3 | ||
| First voting in Impact pools | ||
| Q3 2024 | ||
| Based on the size of the ALGO contribution a on-chain vote will be held with a dedicated vote asset. | ||
| Phase 3 | ||
| First pay-out to projects | ||
| Q3/Q4 2024 | ||
| Projects receive their respective votes | ||
| Phase 3 / Milestone 3 | ||
| First reporting on impact activities to investors/ donors | ||
| Pay-out: USD11,000 | ||
| Q1/Q2 2025 | ||
| On-chain reporting of impact performance and pay-outs to investors and donors. | ||
| Phase 4 / Milestone 4 | ||
| Evaluation and reporting of the program and decision on ways forward and improvements. | ||
| Q2 2025 | ||
| The voting and funding cycle shall be evaluated by the DAO and SISAG members and a report to the community members and governors shall be presented | ||
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| ## Future Blueprint | ||
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| Milestone 1: Get project approved in XGov vote | ||
| Milestone 2: Build back end-tech and get quote and scope for setting up foundation | ||
| Milestone 3: Set-up DAO to administer SISAG | ||
| Milestone 4: First implementation phase | ||
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| > For Milestone-based grants, please refer to <a href="https://github.com/algorandfoundation/ARCs/blob/main/ARCs/arc-0034.md#submit-a-proposal"> How to submit a proposal</a>. | ||
| ## Benefits for the community | ||
| Totally transparent and without room for double accounting | ||
| Similar initiatives could be encouraged by Defi platforms, NFT Marketplaces and other ecosystem Dapps. | ||
| Other ASAs could opt-in to similar dedicated programs and the DAO could be later opened to DeFi platforms in the ecosystem | ||
| Decentralized voting: Each donor has a weighted vote. This is dependent on the amount of their SIS contributions. The voting happens in the pool during a voting window and is tallied. This not only allows for decentralization in donation and impact investment but also gives donors a say in where they want their funds to go. | ||
| Creates an ecosystem philanthropic mechanism to automatically drive Algorand towards even greater social impact | ||
| Strengthens the ESG credentials of Algorand as a blockchain, potentializing greater investment into the ecosystem by making ALGO an ESG-rated asset | ||
| A proactive community effort to bring social and environmental impact mechanisms to the Algorand community | ||
| Drives adoption of ALGO and makes it attractive to institutional investors who need to report on the ESG performance of their investments. A tremendous growth in this sector could ultimately lead to increased adoption of ALGO itself. | ||
| Pioneering an Ecosystem Philanthropic Mechanism Template: There is potential for this to be a template for other chains/CEXs to adopt a Social Impact Staking mechanism. Algorand would be the first. | ||
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| ## Additional information | ||
| Read Also: Impact staking a claim on DeFi: Could an altruistic approach to staking assert DeFi's credentials to rival traditional giving mechanisms? | ||
| https://medium.com/@alex_5439/impact-staking-a-claim-on-defi-could-an-altruistic-approach-to-staking-assert-defis-credentials-dc10930c0b2c | ||
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| Budget | ||
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| Legal structure for set-up of foundation | ||
| 10,000 | ||
| PR & Marketing efforts | ||
| 8,000 | ||
| Back-end: Tech Implementation & Server Costs | ||
| 10,000 | ||
| Front-end: Impact pool design & web design | ||
| 10,000 | ||
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| Total estimated costs | ||
| 38,000 | ||
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