NEM

Community Fund

Introduction

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 was 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.

Process

1. Request funds for idea

2. Make an official proposal

Make an official proposal/discussion thread on the forum. Have a regular Telegram chat, forum or other avenue of communication with project managers. Have a one-time “get to know this project” session via a Youtube video, AMA, recorded speech at a meetup, or others.

3. Propose the idea

Propose the idea on a public area of the NEM forums. Coordinate with the Community Fund Committee on the date of vote.

4. NEM community voting

NEM users vote on importance, either in favor or against the idea.

Acceptance:
Tier 1: USD 0 - 40k
Grant proposals will be submitted directly to the Community Fund Committee and approved internally. Grants will require no equity or 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, then 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, then 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, then the vote is considered accepted by the community.

5. Community Fund Committee voting

Upon acceptance of the community, the Fund Committee will vote.

Acceptance = 80% of the Community Fund Committee in favor.

6. If the vote fails

If the vote fails, the Community Fund Committee can either reject the proposal outright, or propose a modified idea to the community, and the community would vote again until the proposal is either accepted or rejected.

Rejected applicants may propose again after every 2 weeks.

Amount Requested

  • Publicly Traded Companies: < USD 15M
  • Registered Companies with the Public Shareholders: < USD 5M
  • Non- Company Public Entities: < USD 500K

All payments are made in XEM.

Active Membership Fee

Relevant team members in an application must be at least one of the following:

  • Show an aggregate of at least 250 posts in the NEM forum
  • Be regulars in the main NEM Telegram Channels
  • Be well-known through attending and participating official NEM events

Those who are new to the NEM project must find a possible partner/s in the NEM community who can help them qualify.

Stakes

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

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.

Project Summary

A summary of the project for public review on the NEM Forum posted 5 days prior to voting for the community’s review.

Project Details

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).

Critical Criteria of Consideration

Amount Requested

No more than USD 5 million shall be allocated to publicly-traded companies. No more than USD 800k shall be allocated to privately-held companies. No more than USD 40k shall be allocated to non-company entities. Two projects by the same owner may not be funded concurrently.

Stakes in the Game

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 its account(s) to show that it is committed to the completion of 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 its commitment to the project.

Milestones

Each applicant shall specify milestones of the project and prove the completion of each milestone before any disbursement of funds can be made. Upon completion and submission of a milestone, the Community Fund Committee will verify that the work has been completed to a satisfactory standard and disburse the allocated funding for the milestone.

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 do 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

Example:

XEM price is USD 1 at the time of proposal:
100k XEM (USD 100k) are 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) are being paid out

XEM price grew to USD 2 while the milestone was being completed:
instead of 50k XEM (USD 100k), 75k XEM (USD 150k) are being paid out

Milestone Restrictions

Milestones must:

  • Be objective
  • Be quantifiable
  • Be verifiable
  • Be clear and understandable
  • Demonstrate the end result of work
    • e.g.  Beta product after testing and bug fixing is complete
  • Be uncategorizable as initial project research, company setup, or community updates
    • e.g.  Use cases/Recruiting/Blogs/Meetups etc
  • Not be easily replicable via NanoWallet
    • e.g.  Creation of namespaces and mosaics or other native functionality
  • Be submitted with evidence of all subheadings
  • Have a deeper explanation of each subheading
  • Include the value in USD and XEM per subheading as a fraction of the total for the given milestone and a justification of such
  • Not include works already completed

Project Details released to the Community Fund Committee

Upon a successful vote by the NEM community, each applicant shall include a project description detailing the nature of the project, target market and size, and a roll-out plan for review by the Community Fund Committee. The project details will not be made public and are only required after the project has passed an initial community vote. Project details should be presented to the Community Fund Committee within 2 weeks of passing a community vote.

Project Summary

Include a summary of the project for public review on the NEM Forum.

These project summaries will be posted at least 10 days prior to voting so that the community will have time to review and discuss the project before voting will start.

Proof of any partnerships, deals, sponsors, or other such arrangements mentioned in the proposal 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.

Company

All applicants must have already formed a company and are prepared to commit themselves to the project. All submissions must be accompanied with proofs that the company exists and signed by a legal or accounting professional. Proofs shall include company details (date of incorporation, place of incorporation, registration number, directors, and shareholders) and the company’s memorandum and articles of association.

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.

Real Identity

Each shareholder, director, and relevant team members must provide proof of identity (example, driver’s license or passport).

The information provided shall only be disclosed on a need-to-know basis with those involved in the decision-making process. The identity of those involved in the decision-making process for a given project will be disclosed to the company upon receipt of the aforementioned information.

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.

Pre-Vote Activity

Prior to starting a vote on the NEM blockchain, proposals are required to complete the following:

  • Make an official proposal/discussion thread on the forum
  • Establish their own Telegram channel, forum, or other means of communication with project managers
  • Host a “get to know this project” session. Applicants must introduce themselves and their projects via a Youtube video, AMA, recorded speech, presentation, or other means that is easily accessible and publicly available

Voting Process

Anyone who wishes to submit a proposal will need to complete the following steps:

  1. Post their proposal in the Project Proposals section of the the NEM Forum, meeting the criteria outlined in the previous sections.
  2. The proposer must coordinate with the Community Fund Committee to determine which date to initiate the polling process. There may only be 2 fund proposal polls active at one time. If there are already 2 active polls, new submissions enter a waiting list until active polling has completed. NEM users may vote in favor of or against a proposal. Votes are weighted by the POI score of the address from which it was cast.
  3. If the community endorses the proposal by meeting the POI and majority thresholds during polling, project details are then to be reviewed by the Community Fund Committee.
  4. After the poll has concluded and documents have been submitted to the Community Fund Committee, the committee members will vote.
    1. If 80% of the Community Fund Committee is in favor, the proposal is accepted.
    2. If the vote fails, the Community Fund Committee can either reject the proposal outright or propose a modified idea to the community, in which case the community would vote as in step 2. This continues until the proposal is either accepted or rejected.
  5. If a proposal is rejected, it may be proposed again after a waiting period of 2 weeks.

Funding tiers

Options:
Tier 1: USD 0 - 40k
Grant proposals will be submitted directly to the Community Fund Committee and approved internally. Grants will require no equity or 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, then 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, then 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, then the vote is considered accepted by the community. Otherwise, it fails. This tier is only available to publicly-traded companies.

ICO Post-Community Fund Proposal

If a company already completed an ICO, it is not eligible for community funding.

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 set to the fiat rates at the time of the payouts.

Applicants planning or considering a future ICO after receiving community funding must disclose this information prior to live polling.

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 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, drop us an email at [email protected].

In summary, the following are information to be released to the various parties:

Public info at application:

  1. Company Name
  2. Introduction
  3. Amount requested
  4. Active and relevant members (real name or pseudonym of applicants are allowed)
  5. Milestones
  6. Project Summary

Community Fund Committee Info:

  1. Stakes in the game
  2. Project Details
  3. Company details

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

NEM Community Fund Proposals

TravelbyBit
Forum: Link
Telegram: @TravelbyBit

MHub
Forum: Link
Telegram: @NEMHub

Prover
Forum: Link
Telegram: @prover_io

CoderSchool
Forum: Link

GreeOx
Forum: Link
Telegram: GreeOx

BlockGrain
Forum: Link
Telegram: @blockgrain

MiCai
Forum: Link

myCoinvest
Forum: Link
Telegram: @mycoinvest

LocationCore
Forum: Link
Telegram: @locationcore

Ethyl
Forum: Link
Telegram: @ethylC

FamilyPoints
Forum: Link
Telegram: @familypointstoken

AbacasXchange
Forum: Link
Telegram: @ABACASXCHANGE_ABCS

CopyrightBank
Forum: Link

LuxTag
Forum: Link
Telegram: @luxtag

Apostille
Forum: Link

Choice
Forum: Link
Telegram: @choicetopay

Sen Ree Yal
Forum: Link
Telegram: @senreeyal

Submit Community Fund Proposal









Basic Information


Tier 1: USD 0 - 40kTier 2: USD 40k - 150kTier 3: USD 150k - 800kTier 4: USD 800k - 5 million


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References

Why Community Fund?

If requesting equity or grant, why should the NCF choose to fund your project?

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