divine-comedian
commented
11 months ago Closing this one as it's now become QF which is already launched and sailing!
Closed divine-comedian closed 11 months ago
divine-comedian
commented
11 months ago Closing this one as it's now become QF which is already launched and sailing!
Design a system where top-ranked projects on the platform receive matching funds from the Giveth Matching Pool -
Check out this spec from the forum: https://forum.giveth.io/t/givmatching-idea-generation-on-how-to-distribute-funds/346/19
Open to changes but this spec has been up for +3 months on the forum. We'll need to consider that the Giveth Matching Pool needs at least $500k funds to begin and will need continuous funding afterwards.
To that end we should consider if this should happen before, during or after GIVfi development.
Here's the full post from the forum with my proposed spec :point_down:
Okay everyone, I took a serious stab at trying to figure this out and I came up with a pretty robust solution. Strap in, we're going deep. :diving_mask:
General Overview
With GIVmatching we will take "top-ranked projects" from established bi-weekly rounds and distribute a portion of the funds held in the Giveth Matching Pool to these projects. The metrics for deciding "top-ranked projects" will change depending on where we are in the current Giveth Core Roadmap. More details on that a bit further down. :straight_ruler:
GIVmatching starts officially when we hit $500,000 worth of funds held inside of the Matching Pool. We will liquidate all holdings at that time into GIV and distribute matching funds exclusively in GIV. :bank:
From launch, every 2 weeks we will take a percent of the current GIV holdings in the Matching Pool and set them aside to have as matching funds for a given number of top-ranked projects. This means, without receiving additional funding each round will distribute incrementally less as the GIVmatching supply dwindles.
The top "top-ranked project" will have a set percentage more of maximum matching funding than the bottom "top-ranked" project, with all the projects inbetween calculated proportionally. This is the
variance factor. :pie:For example:
Donations made to the Matching Pool after launch will be arbitrarily liquidated into GIV at any given moment, decided by the multisig holders, thus keeping the GIV supply periodically topped up.
GIVmatching will provide up to 75% of the USD value of donations as matching funds or if this over the matching funds remaining it will match with whatever funds remain for the given project. The 75% matching is considered the GIVmatching Factor. :money_with_wings:
A project that has been "top-ranked" in a round and received GIVmatching funds will become ineligible for the subsequent 5 rounds (10 weeks). :no_entry_sign:
Parameters
There's a few parameters that we'll need to decide at launch and we could modify between rounds:
The first two states that will define a project's rank are pre-GIVpower launch and post-GIVpower launch.
pre-GIVpower :astronaut:
Before the launch of GIVpower the clearest metric we have for ranking projects is USD value of donations received within a given period. Projects must be Verified to be eligible for GIVmatching. :moneybag:
Following the GIVbacks bi-weekly cycle we can get the sum of the USD value of donations received to each project during the given period dates, we'll take the top slice of highest donated to verified projects, assuming elgibility, and make them eligible for GIVmatching on donations for following 2 week round.
post -GIVpower :rocket:
After the launch of GIVpower we'll have a new metric to consider, that will be the average amount of GIVpower staked to a project during a round. We'll now have this metric in addition to USD value of donations received to consider when ranking projects. GIVmatching will transition to follow the bi-weekly cycle of GIVpower from GIVbacks.
We can dynamically set how much we value one metric over the other by introducing two new parameters: Donation Factor and GIVpower Factor which can increase or decrease the influence of each metric on the final GIVmatching rank of a project. :balance_scale:
For example:
Parameters
So we'll introduce two new parameters than can be changed, making our total list of modifiable parameters post GIVpower launch to be:
Spreadsheets!
It wouldn't feel right with some good ol' spreadsheets to play around with some parameters. You can fork this Google Sheet and get started.
0.CHECK IT OUT! :eyes: https://docs.google.com/spreadsheets/d/1jneA_gvTRMgOMgv_KmhJNagqDms1YIudD-0m1I-wnVk/edit?usp=sharing
Major props to Zhiwei for creating the variance factor algorithm and @cquinterom096 for implementing the cusom function script so we can actually play around with it!