Community Adoption Fund: Blast-off!
Announcing the allocation of 2 million VEGA to the Community Adoption Fund! Once the funds are delivered to the on-chain treasury, VEGA token holders can propose and vote on the use of these tokens via on-chain governance. #FreeTheMarkets
This post is an update on the Community Adoption Fund (CAF) following the consultation period outlined in the original CAF announcement. As a result of the active participation of community members on Discord and through two community calls, the project can now confirm the size of the CAF and timing of the delivery of tokens to the on-chain treasury.*
*Note: this will be irreversible, once the transfer transaction has been confirmed on the Vega blockchain, the project team will have no control over such tokens.
CAF Size
The total size of the Community Adoption Fund will be 2,000,000 VEGA released over 3 months beginning this week (w/c 12th February 2024).
Funding Process:
- Opening tranche. Will become available in the on-chain treasury on Thursday, 15th February 2024. 200,000 VEGA tokens will be transferred ahead of the main fund and will be immediately available in the on-chain treasury.
- Main fund. The remainder of the CAF (1,800,000 VEGA) will be committed on-chain one month after the opening tranche, provided that the community has remained engaged and demonstrated the ability to conduct good governance and deploy funds. These funds will be (irreversibly) set to be delivered in three monthly tranches of 600,000 VEGA.
On-Chain Reward Pools
Prior to the delivery of the first main fund tranche, existing reward pools on-chain will continue to operate as normal. The existing on-chain reward pools will be phased out to make way for CAF funds during the first month after main fund tranche 1 is delivered.
Empowering the Community
Once CAF funds reach the on-chain treasury these are now controlled by the Vega community through the governance protocol. As for all governance proposals, the community is encouraged to post ideas for proposals on the community forums and allow for discussion and refinement before making on-chain proposals. This maximises the chance of the proposal being successful and allows time for input from other community members to conduct analysis and research, and ultimately to publicly support, improve, or challenge the proposal.
While the project team cannot control or instruct the community on how to act, it’s important to note that spending funds from the on-chain treasury has unique properties and risks compared with other on-chain actions, including as a result of the ability to send tokens to any public key on the VEGA network. As such, it’s important that proposals and their implementation properly address how to ensure that funds are used as expected by the voting community. There are many possible methods for doing this, for example by leveraging the reputation of professional operators as a guarantee of their commitments made in proposals, or creating governance structures (e.g. DAO or similar) within the community to manage some initiatives and funds. More detailed development of these and other ideas is out of scope for this post and for the project team, and should be carried on by the community in the Vega Forum and Discord or other appropriate places.
The project team is excited to see how the community uses the CAF to advance the goals and adoption of the Vega project! The team invites the community to stay connected and engaged on the Vega Forum for further updates and discussions.
CAF Update 2024/03/18:
The Vega project completed the transfer of the opening tranche funds on February 15th, 2024.
However, the on-chain transfer of the main fund tranche will now be postponed by 2–4 weeks as a result of feedback from some community members, as well as the impact of the recent incident on the community.
Although there have been active discussions, no initiatives utilising the opening tranche of CAF funds have yet reached the on-chain proposal stage and the team have not been able to complete the assessment needed to commit the main tranche.
As stated in the initial announcement above, the team has the opportunity to adjust the programme prior to making the immutable commitment of the remaining CAF funds, if necessary. This may be done in order to maximise the positive impact of this initiative on the Vega project. The team is committed to ensuring the community has the necessary tools, information, and processes to make the most of the CAF. The team will continue to gather feedback before committing the remaining funds on-chain and will make changes if necessary.
About Vega Protocol
Vega is Web3’s native derivatives layer. The community is creating the building blocks for a new financial system. One that puts control of the markets, the products, and the fees in the community’s hands. Vega is a decentralised network that supports the creation of derivatives markets for a variety of crypto assets. #FreeTheMarkets
