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Polkadot, the project being built to connect private/consortium chains, public/permissionless networks, oracles, and future technological developments yet to be created in the Web3 ecosystem, has launched its own Decentralized Autonomous Organization (DAO) called PolkaDAO for the purpose of funding projects around the Polkadot community.
The basic idea behind PolkaDAO is that anybody in the world can create a project for Polkadot and get funded if the community finds it beneficial.
In a tweet announcing the launch, Polkadot said:
“PolkaDAO is a user-led platform for the Polkadot community, allowing you to vote on proposals, and provide funding for projects and ideas that would otherwise not get built.”
Getting Funded by PolkaDAO
The Web3 Foundation has kicked off the PolkaDAO fund with $10,000 worth of DAI. Proposals submitted for funding will be decided on by DOT holders and early contributors and voting power will be determined by the number of DOT holdings a member has. The DAO also reserves the right to assign DOT to ‘early adopters’ in order to increase their voting power and prevent the voting process from being decided by only ‘crowdsale contributors’
PolkaDAO is designed to fund small projects and not huge capital intensive projects so there is a $1,000 per project cap for proposals. Projects the DAO will be able to fund are projects strictly revolving around Polkadot, such as for example a listing website, useful User Interfaces and other interesting applications which would improve the community.
PolkaDAO Operational Framework
According to Polkadot, the decision to allow DOT Holders and early contributors decide on what projects to fund was taken because Polkadot is a community and everyone in the community should be involved in the decision making around the growth of community-based projects. DOT holders will get 80 percent of the voting power shared based on the number of DOT holdings held. This process also serves as a trial for the proposed Treasury DAO which will also be voted on by DOT holders and funded by Polkadot blockchain rewards.
The other 20 percent will be shared amongst early contributors to the Polkadot community who may not have had the opportunity to be a part of the 2017 crowdsale. Web3 Foundation recognizes the immense contributions of these members and will reach out to them to offer them a percentage of the voting reputations to allow them to participate in the voting process for project proposals. PolkaDAO will be fully launched in the first weeks of April 2019 and more information on the voting process and how to redeem reputation will be released prior to the launch date.
Using DAOStack which operates PolkaDAO, members of the community can also make predictions on what projects they think will be funded using DAOStack’s native GEN token.