Rari Foundation

Abstract

This proposal revises the lock-up period for $RARI tokens awarded to grantees of the Ecosystem Grants Program from the RARI Ecosystem Growth Fund. It builds on the previous proposal, RRC-12: RARI Ecosystem Growth Fund 2.

Previously, RRC-12 stated: “The individual grants should take the form of locked RARI that is revocable for a period of 6 months in the following tranches: 50% upon grant approval and 50% upon project delivery. This mechanism aims to ensure the grant recipients deliver their projects in full.”

Based on insights from Sprint #1, the Ecosystem Growth Fund (EGF) Committee proposes these changes:

• Remove the lock-up period for $RARI after full project delivery.
• Allow the EGF Committee to decide on a case-by-case basis if $RARI tokens should be locked until project completion and hitting the last milestone.

Motivation

The EGF Committee recommends revising the lock-up period to remove barriers for accessing funds earlier while ensuring projects are delivered fully and on time. Most grants involve short-term projects, making a 6-month wait impractical. This change would also attract more established projects requiring upfront payments.

Rationale

The proposal aims to:

1. Attract more mature projects with proven track records to the RARI Ecosystem that require upfront payment.
2. Remove barriers to accessing funds for projects that need the grant to cover development costs.

Specifications

From Sprint #1, the EGF Committee noted that most projects do not exceed 2 months. A 6-month lock-up period can cause frustration. Therefore, the Committee suggests granting immediate access to funds upon full project delivery.

Additionally, the Committee proposes that while it is generally reasonable to lock $RARI until project completion, some projects might need a portion of the grant upfront to cover initial costs.

The Committee suggests evaluating on a case-by-case basis whether a project can access a portion of funds after grant approval, this is only for exceptional cases where the project needs to cover development costs.

Maintaining milestones as a part of grants will help protect RARI DAO from potential grants’ mishandling.

Steps to Implement

As Sprint #1 of the Ecosystem Grants Program concludes and participants are selected, the results of this proposal will be applied immediately, affecting Sprint #1 applicants. The lock-up period terms will be outlined in grant agreements and managed via Hedgey Finance 1.

Timeline

The voting period is advised to conclude by June 10th on Tally, followed by a cooling-down period.

Overall Cost

There is no cost associated to implementing the proposal.