The Community Fund DAO was set up to promote the development of the NEM ecosystem by funding NEM startup companies to help jumpstart their businesses. It is open to everyone who meets the minimum requirements.
Approximately 300 million XEM were allocated for this fund during NEM’s Nemesis block. As the fund is limited, applications and approval will be based on a first-come, first-served basis, along with other criteria. Entities are allowed to reapply for rejected applications, provided that these applications have addressed the reasons they were rejected.
The following are the minimum guidelines and requirements for an application to be considered. The more information provided in the application, the better the assessment that can be made by the committee and the community in evaluating the application.
All payments are made in XEM.
Relevant team members in an application must be at least one of the following:
Those who are new to the NEM project must find a possible partner/s in the NEM community who can help them qualify.
The company must have a legal bank account, and with either money in the bank to substantiate the completion of the project or show sufficient XEM in their account(s) that they are serious in doing the project.
Milestones of the project must be specified and completed before any disbursement of funds. Milestones are pre-determined by the NEM Community Fund Proposal Committee. Overdue projects will be reviewed and will either have an extension or a withdrawal of funding.
A summary of the project for public review on the NEM Forum posted 5 days prior to voting for the community’s review.
Details of the nature of the project, target market and size, and a roll-out plan for review by the Community Fund Committee presented within 2 weeks of passing a community vote.
To be elligible for funding:
Applying companies must provide legal or accounting proof (e.g. date of incorporation, place of incorporation, registration number, directors, shareholders, company memorandum, and articles of association).
Individuals or groups will be considered open-source projects. Code to said projects will be open-sourced upon completion of each milestone.
Upon approval of the application, shareholders, directors, and relevant team members must reveal and prove their names and identity (e.g. driver’s license or passport).
The company must have an existing legal bank account with account balance adequate to substantiate the completion of the project, and/or prove ownership of sufficient XEM reserves in their account(s) to show that they committed to the project. This information shall be shown to the Community Fund Committee only and not made public.
Alternatively, a company may provide proof of expenditure and work done to prove their commitment to the completion of the project.
If a milestone is overdue by 3 months, a project progress review shall be requested by the project and carried out by the committee. Once reviewed, the committee shall vote on whether satisfactory progress has been made. If the vote to extend the deadline and set a new one does not pass, funding is withdrawn. Otherwise, the deadline is extended.
All milestones will be stated in XEM, but will also include the current USD value at the time of proposal submission. Should the XEM price change between the time of proposal submission and a milestone payout, the milestone payout will be calculated by the following formula:
d = USD value at the time of proposal
p1 = XEM/USD price at the time of proposal
p2 = XEM/USD price at the time of payout
x = XEM payout amount
( (d / p1) + (d / p2) ) * 1 / 2 = x
XEM price is USD 1 at the time of proposal:
100k XEM (USD 100k) is being requested
XEM price dropped to USD 0.5 while the milestone was being completed:
Instead of 200k XEM (USD 100k), only 150k XEM (USD 75k) will be issued.
XEM price grew to USD 2 while the milestone was being completed:
Instead of 50k XEM (USD 100k), 75k XEM (USD 150k) will be issued.
If a proposal is approved by committee vote, applicants will be required to submit a number of additional documents that will remain confidential within the committee. These documents include:
The aforementioned details must be submitted within two weeks of committee vote approval for funding, and prior to the commencement of the public vote. Failure to do so will result in the disqualification of funding. The committee reserves the right to retract approval pending review of the aforementioned details.
Include a summary of the project for public review on the NEM Forum.
A project summary must include at minimum:
Project summaries must be posted at least 10 days prior to polling, allowing adequate time for community review and discussion.
Proof of any partnerships, deals, sponsors, or other such arrangements mentioned in the proposal and/or business plan, must be included in the submission of the proposal, and verified by the committee. Failure to comply with this rule will result in the immediate disqualification from funding.
Other than the names of the primary company representatives, this information shall not be shared with the public and is only for the Community Fund Committee to verify bona fide applications.
For individuals and groups without a registered company, the solution proposed shall be considered an open-source project, as it is not possible to run a business without a company. It is expected that the code to said projects will be open-sourced upon completion of each milestone.
The information provided shall only be disclosed on a need-to-know basis with those involved in the decision-making process. Upon receipt of the aforementioned information, the identity of those involved in the decision-making process for the given project will be disclosed to the applicant.
Only names (or pseudonyms) of shareholders and directors will be revealed to the community. As the information is confidential, this set of documents shall be furnished to the Community Fund Committee only upon approval of the application.
Prior to starting a vote on the NEM blockchain, proposals are required to:
Anyone who wishes to submit a proposal, will need to complete the following steps:
Tier 1: USD 0 - 40k
Grant proposals will be submitted directly to the Community Fund Committee, and approved internally. Grants will require no equity, token allocation, repayment, or community vote.
Tier 2: USD 40k - 150k
If a total of at least 1% of the importance of the NEM blockchain votes in favor of the proposal, and the vote passes with a 65% majority, the vote is considered accepted by the community. Otherwise, it fails.
Tier 3: USD 150k - 800k
If a total of at least 2% of the importance of the NEM blockchain votes in favor of the proposal, and the vote passes with a 65% majority, the vote is considered accepted by the community. Otherwise, it fails.
Tier 4: USD 800k - 5 million
If a total of at least 3% of the importance of the NEM blockchain votes in favor of the proposal, and the vote passes with a 65% majority, the vote is considered accepted by the community. Otherwise, it fails. This tier is only available to publicly traded companies.
Should a company be awarded milestone payments by the community fund, and further proceed to hold an ICO within 12 months after the last milestone payment, the company shall pay back the community fund in proportion to the amount they received, as determined by the USD valuation at the time of the payouts.
If a company successfully completes all milestones and wishes to seek a second round of funding, the company can submit a new proposal to the Community Fund Committee for review. Once the committee has approved the second round of application, it may proceed to a community vote. Companies may not apply for a second round of funding within 6 months of receiving the final payment from the previous funding round.
Any application that is forwarded for consideration will be required to submit the required information as a minimum. No consideration will be given if any of the said information is not provided or is inaccurate.
All information shall be reviewed in confidentiality. Please submit your application by clicking the button below. For queries, email us at [email protected].
Download the Community Fund DAO Submission Requirement Guidelines
In summary, the following are information to be released to the various parties:
Public info at application:
Community Fund Committee Info:
Identiﬁed Community Fund Committee members as trust in conﬁdence for name veriﬁcation at the acceptance stage:
Real identity of applicants with LinkedIn proﬁles or equivalent CVs given.
Download the Community Fund DAO Submission Requirement Guidelines