Moonwell Ecosystem Grant Draft Proposal

[GAMA]

@Trilemma

From past experience, we’ve learned that grant funding and liquidity incentives are not sufficient to guarantee success or achieve specific KPIs or milestones. Market forces outside of our control often have more to do with the growth in TVL, liquidity, and new users in our community than the grant itself. That being said, we can think of liquidity incentives as a necessary catalyst for growth. An analogy to consider is growing a plant: it needs soil, fertilizer, light, and water to grow. The grant funding might be similar to adding fertilizer to the soil. If the sun, water, and other conditions are favorable, the plant will flourish, however, if there is no sunlight, the plant won’t grow no matter how much fertilizer you provide.

It would be dishonest to the community to predict specific KPIs that might be achieved with grant funding, because it will depend more on market conditions and other ecosystem infrastructure, such as exchange, custodian, on/off-ramp and wallet support, however, we can see that liquidity incentives have produced successful outcomes during the launch of Moonwell Apollo ($350M TVL) and Moonwell Artemis ($500M TVL) when market conditions were otherwise more favorable.

I suggest you guys would take into grant post requirements which state that clear measurable things need to be posted: Ecosystem Grants Program: Tranche 2 Update

• Each application should have clear milestones and targets. It is recommended a minimum of three milestones. The GLMR distributions will be tied to these milestones
• Teams should keep in mind that while they may ask for the maximum amount (2M GLMR), the community may not give them the full amount during the snapshot vote. In fact, all 4 of the grant teams for Tranche 1 got less than they asked for. When setting targets, teams pro-rate those targets in 4 bands; i.e.

If we receive 500K GLMR, we will aim to achieve X target
If we receive 1M GLMR, we will aim to achieve Y target
If we receive 1.5M GLMR, we will aim to achieve Z target
If we receive 2M GLMR, we will aim to achieve A target.

The Foundation will use these targets as milestones in the grant agreement to act as a gatekeeper for releasing funds.

• Teams should indicate in their proposal when they are planning to launch their protocol , emission program or other deliverable that is tied to the grant
• Teams that receive the grant should update the community via the forums on progress on a regular basis; a minimum of 1 update per month is required.
• In addition, the Foundation may require the team to share performance statistics and metrics on a regular basis.

I am happy with other answers and wish you best of luck with the proposal