CoW DAO

CIP: 80
title: CoW DAO Grants 2026 Renewal
author: @Sov, @mfw78, @Chim9, @middleway.eth, @notsoformal, @Master_CoW
status: Active
created: 2025-11-26

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Simple Summary

The 2026 CoW DAO Grants Program renewal builds on the foundation established in CIP-63 while refining focus toward strategic growth. Rather than repeating governance documentation from the previous proposal, this renewal demonstrates how the program has evolved from establishing processes to executing on priorities.

Previous Renewal Reference: CIP-63: Renewing the CoW Grants Program

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Overview

The 2026 renewal reflects an evolution of the CoW Grants Program. Governance frameworks, operational safeguards, and termination procedures established under CIP-63 remain fully in effect. This proposal focuses on execution, capital efficiency, and strategic alignment with protocol priorities identified through sustained collaboration with the core team.

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Budget Evolution

CIP-63 allocated 600,000 xDAI and 1,465,260 COW for general grants, along with 4,990,000 COW reserved for volume incentives.

For 2026, the budget request is grounded in the actual Q4 2025 deployment rate rather than projected growth. Any unused 2025 funds roll forward transparently.

As of today, the Grants Safe holds:

• 271,319 xDAI
• 6,680,618 COW

Confirmed commitments for Nov 2025 – Jan 2026 amount to approximately:

• 50,464 xDAI
• 130,304 COW

After accounting for these commitments, the Grants DAO expects to retain approximately:

• 220,855 xDAI
• 6,550,314 COW

Of the remaining COW balance, 4,990,000 COW remains specifically reserved for the volume incentive program, which continues to be deployed only when partner activity demonstrates clear value multiplication.

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Capital Efficiency & Quarterly Fund Releases

To reduce idle treasury exposure and improve capital efficiency, the Grants DAO will introduce quarterly fund releases instead of a single annual transfer.

• 25% of the annual allocation per quarter
• Ability to decline funds if not needed
• Up to 75% of idle assets returned to the CoW Treasury
• Maintains flexibility for timely grant approvals

This mechanism was developed in collaboration with the Core team and the Treasury Committee.

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Current Funds & Commitments with Budget Request

Category	xDAI	COW
Current Safe Balance	271,319	6,680,618
Committed (Nov 2025–Jan 2026)	50,464	130,304
Estimated Remaining	220,855	6,550,314
Reserved for Volume Incentives	—	4,990,000
2026 Budget Request	500,000	6,550,314
Additional Funding Required	~279,145	—

Based on these figures, the request is for a total 2026 budget of 500,000 xDAI and the residual COW balance remaining in the safe (approximately 6,550,314 COW).

Given the estimated 220,855 xDAI currently available, this represents a shortfall of approximately 279,145 xDAI to be transferred from the CoW Treasury.

Consistent with the quarterly release mechanism, this funding will be drawn down as needed quarter by quarter.

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Treasury Infrastructure Update

As part of this renewal, the Grants Treasury Safe will be migrated from Gnosis Chain to Ethereum mainnet. This simplifies accounting and reduces bridging requirements when receiving top-ups from the CoW DAO Treasury.

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Strategic Focus Refinement

Through increased collaboration with the core team in 2025, several priority areas emerged where grants can extend CoW Protocol’s reach and address ecosystem needs.

A key challenge identified is the technical complexity of CoW Protocol. Unlike AMM integrations, building on CoW requires understanding batch auctions, solver networks, and intent-based trading.

The Grants Program addresses this through targeted investments in documentation, tooling, and hands-on support.

2026 Strategic Focus Areas

1. Developer Onboarding and Enablement Creating pathways for developers through improved documentation, SDKs, Order Decoder tools, and Playground infrastructure.

2. Strategic Ecosystem Alignment Partnering with protocols where CoW provides unique value, particularly around MEV protection and batch auctions.

3. Novel Applications on CoW Supporting advanced use cases including programmatic orders, CoW AMMs, and cross-chain solutions.

This balance addresses immediate core team needs while investing in experimental initiatives that may unlock new protocol use cases.

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Operational Maturity

Operational improvements since CIP-63 include:

• Weekly core team syncs
• Automated tracking
• Public grant activity via the Notion-based Grants Hub

References:

• Current Operations & Pipeline: CoW Grants Hub
• Weekly Updates Archive: CoW Grants Weekly Updates

Grantee experience remains a priority, balancing rapid turnaround for simple grants with thorough evaluation for complex technical proposals. Applicants receive regular communication throughout the process.

A standardized grantee feedback form will be introduced upon grant completion, reviewed quarterly and incorporated into operational improvements.

All governance mechanisms from CIP-63 continue unchanged.

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Key Reference Documents

• CIP-63 Full Governance Details
• Grants Terms & Conditions
• Grant Application Template
• Grants Forum Section

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Measuring Success Differently

While CIP-63 emphasized activity metrics, the 2026 proposal shifts toward outcome-based evaluation, including:

• Volume growth
• Developer adoption
• Infrastructure improvements

Qualitative contributions such as research and community building are also recognized.

Historical example: The TWAP infrastructure now used by the Ethereum Foundation began as an experimental grant.

Historical Context

• Q3 2025 Review
• H1 2025 Review
• Retroactive Funding Initiative

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Committee Details

The committee combines technical, operational, and ecosystem expertise.

• mfw78 (Technical Lead): Deep technical knowledge of CoW architecture
• Chim (Grant Steward): Financial management and grant accounting
• Sov (Grant Steward): Large-scale grants experience and ecosystem relationships
• middleway.eth (Core Team): Strategic alignment
• Master_CoW (Core Team): Protocol development alignment

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Committee Operations

Multisig & Governance

• Multisig Safe
• Snapshot Space: cowgrants.eth
• COW Grants Hub

Committee Safe Signers

• mfw78
  • Snapshot / Safe: 0x0F641723997145715d23c0129b96041011d26666
  • Stipend Recipient: 0xc0de401Dfb531Ec15A453C3301E5807Cf2C8323e
• Chim9: 0xF44217A8b6b3f258BFFEaD635c226528aa516aea
• Sov: 0x2D7d6Ec6198ADFD5850D00BD601958F6E316b05E
• middleway.eth: 0xA11DA8B2D9A7883eb636d7de426025e5fD9fda1A
• Master_CoW: 0x76bA9825A5F707F133124E4608F1F2Dd1EF4006a

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Committee Compensation

• Technical Lead: $3,000/month in COW
• Grant Steward: $2,000/month in COW
• Core Team Members: No additional compensation

Performance Bonus Structure

• Quarterly bonus pool up to 1,500 xDAI per member per month
• Awarded based on peer review
• Structure carries forward from CIP-63

Partnership Incentives

Committee members who secure external ecosystem funding may receive:

• 5% success fee
• Capped at 10,000 xDAI per grant
• Paid cash-on-cash from received external funds

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Historical Program Evolution

• CIP-8: Original Grants Program Launch (2022)
• CIP-18: First Renewal (2023)
• CIP-35: Second Renewal (2024)
• CIP-63: Current Mandate (2025)

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Conclusion

The 2026 renewal represents evolution rather than revolution. Governance safeguards from CIP-63 remain intact while budget methodology improves capital efficiency through quarterly releases.

This proposal continues the trajectory established in 2025, demonstrating how ecosystem investment creates durable competitive advantages for CoW Protocol.

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