I. Introduction
This document builds upon the existing standards for Service Providers (SP) and Grantees, introducing new guidelines for SP funding proposals and accountability measures.
This proposal updates [BIP-629] for all SP and Grantees to abide.
I. Service Provider Standards
Service Provider (SP) agrees to protect the resiliency of the DAO and promote its growth by adhering to basic ecosystem standards. SP agrees to use best efforts to adhere to the following:
- Ecosystem Values
- DAO Code of Conduct
- DAO Accountability Guidelines * This includes adhering to any contract terms covered by an agreement the Foundation/OpCo needs to sign for SP’s work
- Dos and Donts of Business Development and Marketing
To prevent fraud, theft and token manipulation as much as possible
To protect the confidentiality and privacy of data and information received in the course of Balancer work. For example, adhering to the Data Retention Policy for communications and NDA (need-to-know only sharing). - To protect the security and integrity of the ecosystem by developing code or building resilience features to mitigate hacks, theft or other misconduct.
II. Grantee Standards
Grantee agrees to protect the resiliency of the DAO and promote its growth by adhering to basic ecosystem standards. Grantee agrees to use best efforts to adhere to the following:
- Ecosystem Values
DAO Code of Conduct - DAO Accountability Guidelines * This includes adhering to any contract terms covered by an agreement the Foundation/OpCo needs to sign for grantees work
- To prevent fraud, theft and token manipulation as much as possible by reporting issues to Balancer OpCo as needed
- For marketing or promoting the Balancer protocol, to do so within community ethos to be fair, transparency and accurate
- To protect the confidentiality and privacy of data and information received in the course of any Balancer ecosystem work.
- To operate in a manner that would not cause the grantee or a member of the Balancer ecosystem to be in violation of any laws or regulations and provide the necessary information to confirm this. This includes verification of key project members, legal entities, and anyone with access to the wallet receiving any grant funds.
III. Funding Proposal Guidelines
To enhance transparency and accountability, all SP funding proposals must now include the following elements:
A. Cost Basis Breakdown
- People Cost:
- Provide a clear description of the cost per Full-Time Equivalent (FTE) employee.
- Break down the cost into categories such as salary, benefits, and overhead.
- Present this information in an easy-to-understand format such as tables or aggregate overviews.
- Non-People Cost:
- Itemize all infrastructure costs associated with the proposal.
- Include expenses such as software licenses, cloud services, and hardware requirements.
- Discretionary Budget:
- Outline any discretionary spending proposed, such as for research, travel, or professional development or freelance budgeting requests.
- Provide justification for each discretionary item.
- It is expected that discretionary spendings are fully detailed in updates (see below)
B. Objectives and Key Results (OKR) Approach
- Objectives:
- Clearly state the objectives of the SP in alignment with the Balancer protocol
- Each objective should be specific, measurable, and time-bound.
- Key Results:
- For each objective, define 2-4 key results that will indicate progress and success.
- Key results must be quantifiable and directly tied to the stated objectives.
- Value Proposition:
- Explicitly state the expected return on investment for the DAO.
- Highlight how achieving these OKRs will contribute to the growth and success of the Balancer ecosystem.
IV. Accountability Guidelines
The Accountability Guidelines will be updated to embrace the following:
- Mid-funding OKR Reports:
- Submit reports detailing progress on each OKR at least once in the middle of the funding period (e.g. after one quarter for bi-yearly funding).
- These reports should be posted publicly on the Balancer Forum.
- Quarterly Financial Reviews:
- Provide a detailed breakdown of how funds were utilized, comparing actual spending to the proposed budget.
- Explain any significant variances from the original proposal.
- Annual Performance Evaluation:
- Undergo an annual review process where other ecosystem participants can assess the SP’s performance against their stated OKRs and budget utilization.
- This summary of this evaluation will be posted publicly to inform future funding decisions.
V. Proposal and Renewal Process
- Initial Proposal:
- SPs must submit a comprehensive proposal following the guidelines outlined in Section III.
- The proposal should cover a specified period, typically 3 months for new SP and 6-12 months for vested teams.
- Community Review:
- All proposals will undergo a one-week community review period (minimum) on the Balancer Forum.
- SPs are expected to engage with the community and address any questions or concerns raised during this period.
- Voting:
- After the review period, the proposal will be put to a vote by veBAL holders.
- Renewal:
- For continued funding, SPs must submit a renewal proposal before their current funding period ends.
- Renewal proposals should refer to the monthly reports to showcase past performance and updated OKRs for the next period.
VI. Amendments
This guideline may be amended through the standard Balancer Improvement Proposal (BIP) process. Any changes will be subject to community review and voting.
Specification
If approved, these standards apply to all current and future SPs and grantees.