Proposal 65: structure the PowerPool DAO treasury allocations

Proposals
1

Proposal 65: structure the PowerPool DAO treasury allocations

update (June 18, 2024) - The proposal number has been changed from 62 to 65 to maintain consistency in Snapshot voting

Summary

  • The main share of the PowerPool DAO treasury (75.29%) still isn’t allocated
  • The PowerPool growth plan includes a set of activities requiring funding, such as marketing, user acquisition, and chain-specific ecosystem growth
  • The Treasury is proposed to be structured to fund specific activities according to growth goals. It includes Marketing, PowerPool Points, and a set of allocations dedicated to growing protocol brand and user base on emerging L2s
  • The voting on this proposal results in determining treasury allocations and details of PowerPool DAO growth focus

Motivation

Background

From the PowerPool launch, the DAO treasury has been stored on the multi-sig [1]. Since then, it has been continuously used for various purposes according to the proposals approved by the community, such as

  • funding liquidity mining programs [2],[3]
  • paying out project expenses and rewarding DAO contributors [4]
  • rewarding testnet participants and bug bounties [5]
  • compensating the community members due to the BNB bridge termination CVP stuck [6]
  • providing the token allocation for the core team [7]
  • funding market-makers operations and providing CVP liquidity on CEXes [8]
  • establishing the dedicated DAO funds (treasury allocations) such as the Ecosystem Growth Fund & Grants program (referred to as the Ecosystem Fund thereafter) [9]

All notable updates to token distributions have been reflected in the coinmarketcap/coingecko token trackers.

As per all previous DAO proposals, the community treasury is now held in the Multi-Sig (~28.83m $CVP) and the Ecosystem Fund (~9.46m $CVP):

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Fig. 1. The current state of the PowerPool DAO treasury allocations.

This means that a significant share of the treasury, stored on multi-sig (28.8m $CVP), still hasn’t been allocated to any specific purpose.

PowerPool ecosystem expansion plans

PowerPool’s main product is PowerAgent, which the team has extensively tested and improved over the last 1.5 years with node runners’ community support.

PowerAgent has been positioned as the dePIN Keeper network offering Transaction Execution As a Service for users and protocols.

Now, PowerPool is expanding its vision beyond Transaction Execution as a Service, including automation powered by AI agents. The growth of the decentralized AI sector and the necessity to execute AI decisions (such as yield, trading strategies, and more) offers a significant expansion for PowerPool’s value proposition and future user base.

PowerPool allows users, protocols, and AI agent to automate daily Defi routine actions and tasks with complicated logic. It is being tested on Ethereum, Gnosis, Arbitrum, and Polygon Sepolia and was recently deployed on Base.

According to the published roadmap, PowerPool aims to deploy PowerAgent on all significant EVM-compatible chains and rollups, promote ecosystem growth, raise brand awareness, and acquire users/Keepers in various ecosystems.

According to the current state of the market, PowerPool needs to work even more on a significant expansion to the L2s, acquiring members from new communities via events/marketing/media/KOLs outreach, introducing the points system, and performing synergetic win-win integrations with Defi and AI protocols.

The ecosystem expansion plans should include the following:

  • Deployment on Optimism, Scroll, Linea, zkSync, Blast, StarkNet, Avalanche, BNB Chain, NeonEVM, and other notable chains, including EVM-compatible Bitcoin L2s in the future
  • Providing incentives (points and future token airdrops) to increase awareness and user base (including both keeper and job owner acquisition)
  • Marketing activities, including media outreach, community campaigns, KOLs campaigns
  • Participating in events and hackathons as co-hosts and bounty sponsors focused on chains where PowerAgent is deployed
  • Establishing long-term partnerships with L1/L2 EVM-compatible ecosystems
  • A significant amount of DevRel activities, AI protocols research/integration, and offering grants and other types of incentives for builders and protocols

Treasury utilization goals

Treasury should serve the protocol expansion in the web3 landscape with a focus on continuous growth of the following objective and subjective metrics:

  • the overall brand awareness and brand value in the crypto community of developers and users
  • number of L1/L2 ecosystems covered by PowerAgent network operation
  • Chain-specific brand recognition as the automation infrastructure for end users, builders, and protocols
  • the total number of users, Jobs, Jobs executions, and total value processed through the PowerAgent automation network
  • the total size of a PowerAgent node runner community across different L1/L2s
  • total number of automated products and templates built on top of PowerAgent, including AI-powered strategies

Motivation conclusion

The PowerPool treasury contains ~28.83 million $CVP that has not yet been allocated. The growth strategy and roadmap require significant funding for marketing activities and incentivizing various L2 chains.

In order to efficiently utilize the treasury, it should be specifically allocated to funding activities that grow the protocol metrics mentioned above.

For this purpose, we propose establishing an updated treasury structure according to the protocol expansion plans and growth strategy.

Specifications

We propose establishing a structure for the DAO treasury by funding processes that directly affect the growth of the protocol according to the expansion plan. They are listed below:

  1. Marketing activities focused on a growing overall brand awareness
  2. The points system, aimed at facilitating users acquisition
  3. The chain-specific growth funds, which will act as a universal funding pot for all actions needed to establish the PowerPool brand, grow the user base, and attract more builders to build on top of PowerPool on a specific chain, including AI-powered strategies

The PowerPool treasury is an Ecosystem Fund + multi-sig balances or approximately 38.29 million $CVP. The new treasury structure is proposed by distributing $CVP from multi-sig to allocation-specific multi-sigs while keeping the Ecosystem Fund allocation the same.

Proposed PowerPool DAO treasury allocation:

Name Goal $CVP allocation Share of treasury(rounded to 0.01)
PPP (PowerPool Points) User acquisition on various chains 5,000,000 13.06%
Marketing Growing brand awareness through events, media publications, X (Twitter) campaigns, and other activities 4,000,000 10.45%
Arbitrum Funding chain-specific growth activities 1,500,000 3.92%
Optimism Funding chain-specific growth activities 1,500,000 3.92%
Polygon Funding chain-specific growth activities 1,500,000 3.92%
Base Funding chain-specific growth activities 1,500,000 3.92%
Linea Funding chain-specific growth activities 1,500,000 3.92%
Blast Funding chain-specific growth activities 1,500,000 3.92%
Gnosis Funding chain-specific growth activities 1,000,000 2.61%
Future L2s funding Reserved for the future L2s expansion 8,000,000 20.90%
Ecosystem Fund Generalized purposes, including ecosystem growth, DAO expenses, rewarding contributors, etc 9,463,920 24.70%
Multi-sig Treasury allocation for funding other activities 1,834,448 4.78%

Note that categories related to L2 funding include funding for AI-powered strategies and integrations on these chains.

The bar and pie charts represent the proposed treasury structure:

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Fig. 2. The proposed structure of the PowerPool DAO treasury allocations (bar chart).

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Fig. 3. The proposed structure of the PowerPool DAO treasury allocations (pie chart).

Technical details

The new treasury structure will be implemented by creating multi-sigs for all new allocations and funding those allocations from the original multi-sig. The updated supply information will be submitted to Coinmarketcap and Coingecko.

Tokens allocated to certain categories can be reallocated to others according to future governance proposals. This option would allow treasury funding to remain relevant to the market’s state.

Conclusion

The new structure of the PowerPool treasury aimed at funding active ecosystem growth according to the expanded dePIN automation narrative is proposed to the community. It includes specific allocations to fund marketing, user acquisition, and chain-specific activities focusing on Ethereum’s most emerging and growing L2s, including AI-powered strategies on these chains. It also includes reserves to fund general DAO expenses, PowerPool growth on new chains that will be prioritized later, and other activities. If the community approves the new treasury structure, the funds will be allocated to a set of multi-sigs according to the allocation structure presented in the specification section.

3 Likes
2

Given the great progress which has been made on executing the Roadmap and proving the utility of the PowerAgent v. 2 DePIN services network, it is now appropriate to begin earmarking $CVP issued and held in the Treasury for operational and network development purposes. Earmarking this $CVP in advance gains the attention of prospective node runners and developers active on targeted EVM chains/layers that these resources are available to them. Nothing gains attention like a big pile of incentives specifically targeted. It says to everyone in the EVM ecosystem ‘come and get it!’

Growing the size of the Community across an ever-expanding number of EVM chains/layers is the first step towards energizing the $CVP value accrual flywheel. The vast majority of this $CVP will go to node running Keepers whose most powerful incentive is to hodl and stake as much $CVP as they can. PowerAgent clients will usually specify high $CVP stakes for their eligible Keeper signer sets, and the PowerAgent random task allocation algorithm is also driven in part by relative $CVP stake size. As more and more Jobs are registered, the ROI on adding $CVP to Keeper stakes will be high, and Keepers who do not aggressively grow their $CVP stakes will find that they earn less.

Clients will not fully trust our network until we have enough operational Keepers with significant $CVP at risk on EVERY chain/layer we wish to serve. Given the effort and risk, we need to grant minimum stakes to new operational Keepers. But these new Keepers will be very, very unlikely CVP sellers, because they must always have at least the minimum stake. In future, investor-delegated $lsCVP will only be allocated to Keepers with the minimum stake.

Client Protocols and Template Developers are all encouraged to also be node running Keepers, but again we will need to grant at least minimum stakes so they can have visibility of their Jobs and royalty earnings.

I support this proposal, and will be adding suggestions on fine tuning the allocations, primarily by defining royalty-matching payouts for Template Developers who launch services that pay micro royalties and auto-fund common goods in the EVM ecosystem.

1 Like
3

This proposal provides a good plan and structure for protocol expansion, especially this summer/autumn. It’s also flexible since funds can be reallocated between existing L2 pots. We have decent points, and other L2s will come to the protocol’s attention in the future.

1 Like
4

It is exactly what PowerPool DAO needs to grow and expand. By directing funds towards marketing, user acquisition and chain-specific initiatives, we will significantly strengthen our brand and attract more users and developers.

1 Like
5

As an active member of the PowerPool community, I strongly support Proposal 62, which aims to structure the DAO treasury allocations to fund specific activities that are crucial for the growth and expansion of the PowerPool ecosystem. This proposal is comprehensive and well-aligned with the strategic goals of PowerPool, focusing on marketing, user acquisition, and ecosystem growth across various L2 chains.

Key Reasons for Support:

1. Strategic Allocation of Funds:

  • The proposed allocation of funds is strategically designed to address the most critical areas for growth, including marketing, user acquisition, and chain-specific ecosystem growth. By earmarking funds for these specific purposes, the DAO can ensure targeted and effective use of resources.

2. Focus on Marketing and Brand Awareness:

  • Allocating $4,000,000 (10.45% of the treasury) to marketing activities is essential for increasing the overall brand awareness of PowerPool. This includes events, media publications, social media campaigns, and other marketing activities. A strong marketing push will help in attracting new users and developers to the platform.

3. User Acquisition Through PowerPool Points:

  • The allocation of $5,000,000 (13.06% of the treasury) to the PowerPool Points (PPP) system is a smart move to incentivize user acquisition on various chains. This system will help in building a larger user base, which is vital for the growth and sustainability of the protocol.

4. Chain-Specific Growth Funds:

  • The proposal includes $9,500,000 (24.74% of the treasury) dedicated to funding growth activities on specific L2 chains such as Arbitrum, Optimism, Polygon, Base, Linea, Blast, and Gnosis. This focused investment will help establish PowerPool as a leading automation infrastructure on these chains, enhancing its adoption and utility.

5. Future L2 Expansion:

  • Reserving $8,000,000 (20.90% of the treasury) for future L2 expansion ensures that PowerPool can remain agile and responsive to new opportunities in the evolving DeFi landscape. This forward-thinking approach is crucial for staying competitive and relevant.

6. Ecosystem Fund and General DAO Expenses:

  • The Ecosystem Fund, with an allocation of $9,463,920 (24.70% of the treasury), will support generalized purposes, including ecosystem growth, DAO expenses, and rewarding contributors. This fund ensures that the DAO has the necessary resources to support a wide range of activities that contribute to the overall health and growth of the ecosystem.

7. Flexibility and Governance:

  • The proposal allows for the reallocation of funds between categories based on future governance proposals. This flexibility is important for adapting to changing market conditions and emerging priorities, ensuring that the treasury remains effective and relevant.

Recommendations for Implementation:

1. Regular Monitoring and Reporting:

  • Establish clear metrics and regular reporting mechanisms to track the progress and impact of the funded activities. Transparency in how the funds are being utilized will build trust within the community and demonstrate the effectiveness of the allocations.

2. Community Involvement and Feedback:

  • Actively involve the community in decision-making processes and solicit feedback on the ongoing and planned activities. Engaging the community will foster a sense of ownership and collective responsibility for the success of PowerPool.

3. Performance Evaluation:

  • Conduct regular evaluations of the funded activities to assess their performance against the set objectives. This will help in identifying successful initiatives and areas that may require adjustments or additional support.

4. Long-Term Partnerships:

  • Focus on establishing long-term partnerships with L1 and L2 ecosystems, as well as other DeFi and AI protocols. These partnerships can drive synergies and expand the reach and impact of PowerPool’s solutions.

Conclusion:

Proposal 62 presents a well-structured plan to leverage the PowerPool DAO treasury for meaningful growth and expansion. By strategically allocating funds to marketing, user acquisition, and chain-specific growth, PowerPool is positioning itself for success in the competitive DeFi landscape. I strongly support this proposal and believe it will significantly enhance the protocol’s brand, user base, and overall ecosystem value.

Let’s move forward with this strategic allocation and drive PowerPool towards a prosperous future.

6

I am writing to express my full support for Proposal 62 on structuring the PowerPool DAO Treasury Allocations. This proposal presents a well-considered plan that will enhance transparency and ensure strategic fund allocation.

By clearly defining the allocation categories and setting up a structured approach, we can maximize the impact of our resources and drive the community forward. This move will not only improve our financial management but also strengthen the trust within our community.

I believe that implementing this proposal will provide a solid foundation for our future growth and success. Let’s work together to support these improvements and continue to build a robust and dynamic PowerPool ecosystem.

7

Update notice: I have changed the number of this proposal from 62 to 65 to maintain consistency in Snapshot voting.