Last quarter, the Panvala League’s five communities successfully matched donations at 4x on Gitcoin Grants, distributing a total of $55,000 to the projects they supported with an average donation of $20. (The quickest way to get up to speed on how Panvala works is by watching our Summer Orientation presentation or reading the slides.) This quarter, we will iterate on our matching model to achieve two goals:
- Grow the league. Our existing communities are familiar with Gitcoin Grants, but our new communities might be new to the platform. It needs to be easy for members of new communities to understand what to do and how Panvala fits in. There are currently two communities on track to join the League: KERNEL, an invite-only program for top tech talent looking to build relationships, products, and companies in blockchain and Web 3, and future modern, an interdisciplinary worker cooperative network of artists, technologists, researchers and organizers. If your community is interested in joining the Panvala League as well, this post outlines that process.
- Make budgeting decisions. Communities in Panvala differentiate themselves by what they fund, so they need to start making decisions about how to allocate scarce resources.
To prepare for the next round, each community will need to:
- Draft your community goals by August 21,
- Apply to join to the Panvala League, which will admit new members by August 28,
- Stake PAN by September 14, and
- Donate with PAN on Gitcoin Grants from September 14-28.
Step 1: Draft Your Community Goals
Each community will support a single Gitcoin Grant this round: their Community Goals grant. This single grant can allocate funds for as many projects as a community wants. This model is inspired by “stretch goals” on Kickstarter: your community will specify how much different things should be funded depending on how many donations and how much matching actually comes in at the end of the round. Your goals should fund shareable goods: either public goods that everyone can benefit from, club goods that your community consumes together, or awards for achievements that your community values.
For new communities, we think the easiest way to get started is to create one or more awards for your community to present. Think of awards like “Album of the Year” or “Best New Artist,” but for achievements that your community values. These can be awards presented to a member of your community, or awards presented to projects or people your community supports.
Communities that already have an agreed method for distributing funds (like SourceCred) can just write a Base Goal that distributes all raised funds using that method.
(Separately from the Community Goals grants, we will continue to match any donation made with PAN on Gitcoin Grants. Donating with PAN provides the most support to any project.)
Here’s an example of a Community Goals grant based on the Commons Stack community (their Trusted Seed community will draft their actual grant closer to the round):
Example: Commons Stack Community Goals
We’ll distribute the funds we raise depending on how much you donate, how much matching we receive from the Ethereum Foundation, and how much extra matching we receive from Panvala for donations made with PAN. With less funds raised, we focus on funding fewer projects to make more of an impact. The bigger the pie, the more slices we add.
Our base goal distributes ½ of the first $5000 funds received to @randomshinichi, the winner of the Elinor Ostrom Prize. We award this prize to outstanding contributors in our community who work to build more effective tools for communities to govern themselves. @randomshinichi has worked incredibly hard building simulations of a Commons for the Commons Simulator which have had a huge impact on the Commons Stack ecosystem.
The other ½ of the first $5000 funds received will go to Marko Prljic, the winner of the Trusted Seed Prize. We award this to members of the Trusted Seed that go above and beyond in their contributions to the Commons Stack Ecosystem of Projects. Marko has made beautiful mockups for the Giveth 2.0 project and has taken on the designs of the Commons Simulator taking it into a very bold and fun direction. These are just 2 of the many projects that he has lent his expertise to, he is truly a design nomad spreading beauty throughout the blockchain space, including making valuable contributions to Panvala.
Goal 1: $5000
If your donations and matching exceed $5000, we’ll distribute the next $5000 to 1Hive Gardens. 1Hive Gardens is an effort to create a template for public communities to coordinate shared resources in a bottom-up fashion.
Goal 2: $10,000
If your donations and matching exceed $10,000, we’ll distribute the next $5000 to Giveth 2.0. Giveth is building its 2.0 version as a DAO with the goal of enabling cryptoeconomic solutions for nonprofit causes, starting with a simple standard crowdfunding platform for an MVP. The remaining funds after the first $5000 will be split between the projects and prize winners above equally.
Goal 3: $25,000 or more
If your donations and matching exceed $25,000, we’ll distribute the next $7000 to CIC Tech @ Grassroots Economics. Grassroots Economics is currently supporting dozens of blockchain-based Community Inclusion Currencies (CICs), balanced by bonding curves, to give aid directly to Kenyans and enable them to create their own tokens. The remaining funds will be split between the projects and prize winners above equally.
Step 2: Apply to Join the Panvala League
The Panvala League currently has five communities: Commons Stack, DAppNode, MetaCartel, DXdao, and Hashing it Out. New communities that want to join the league should try to earn a recommendation from the existing League communities. The Panvala Caucus considers the League’s opinion when making its quarterly budget recommendations to the PAN token holders, who make all final budget decisions in Panvala.
New communities will be evaluated by the existing communities based on several factors:
- Likelihood of donations. Is the community capable of making donations with PAN using the current tools we have? Do they have a desire to make donations in the first place?
- Expansion potential. Does the community bring new people to Panvala, or does it overlap with the existing or prospective members of communities who are already involved? Would adding the community be objectionable to any other potential communities?
- Staked tokens. Staking PAN is how communities earn donation matching capacity. Does the community already have some PAN tokens to stake? Will they be able to come close to the current median ratio of tokens staked to tokens donated (7.4)?
- Values. Panvala aims to grow civic life in cyberspace. Does the community fit with the values we have in mind?
Step 3: Stake PAN
During the week of September 7-14, all Panvala League communities will be encouraged to stake PAN to earn donation matching capacity for their communities. PAN can be staked until the end of the donation matching round (tentatively September 28), but staking before donations start makes it easier for us to teach our communities about staking and donations separately.
The amount of staked tokens needed to earn the highest available multiplier is always relative to what the other communities have staked and donated. Here are the staked amounts and multipliers for last quarter for a concrete example:
Step 4: Donate With PAN on Gitcoin Grants
Gitcoin’s Round Seven of donation matching is tentatively scheduled for September 14-28. All of our communities will be encouraging people to donate to their Community Goals grant with PAN, and we’ll all be encouraging people to donate with PAN to any projects on Gitcoin Grants that they want to support. Every Gitcoin Grant that receives a donation in PAN will also receive extra matching in PAN, just like last round. Matching funds will be allocated using quadratic funding, which means small donations from several people can grow your match more than large donations from a few wealthy people.
Including individual donations, a total of 1,369,935 PAN (~$80,000) will be distributed this round (pending token holder approval). The tokens will be released from Panvala’s smart contracts on October 30, and distributed to grantees within one week.
Interested in joining the Panvala League? Email firstname.lastname@example.org to get started.