Why is it important?
Challenge settings are not effective for funding categorisation. Funding categories offers a simpler, more effective & scalable solution.
What does success look like?
Increasing the effectiveness of funding categorisation so that the most promising proposals can be submitted that provide the highest impact
Key Metrics to measure
Funding categories do not focus on goal or objective setting. This is better suited as an independent process - https://docs.catalystcontributors.org/funding-categorisation-analysis/community-goals-and-objectives/goals-and-objectives-with-funding-categories
Each of the funding categories provides suggestions for what success metrics could be applied to individual proposals - https://docs.catalystcontributors.org/catalyst-funding-categories/
—- FUNDING CATEGORIES BACKGROUND —-
Funding categories offer an effective approach for doing funding categorisation in the Catalyst funding process. Funding categories if fully adopted can remove the issues and inefficiencies surrounding challenge settings.
Funding categorisation has a number of properties that can be analysed. Categorisation can be broad or specific, inclusive or exclusive and recurring or changing. Funding categories have been created based off the properties which are more effective for funding categorisation. Funding categories focus on being broad, inclusive and recurring - <https://docs.catalystcontributors.org/funding-categorisation-analysis/categorisation-properties>
Using more effective categorisation properties results in a number of advantages. Funding categories offer a more efficient, simple, flexible, scalable and egalitarian approach to do funding categorisation than challenge settings. Funding categories are effective for directing funding and also help to increase healthy competition - <https://docs.catalystcontributors.org/funding-categorisation-analysis/funding-categories-advantages/overview>
Funding categories achieve similar or often better outcomes than challenge settings for ensuring each focus area has access to funding in a given funding round - <https://docs.catalystcontributors.org/funding-categorisation-analysis/historical-analysis-and-comparisons/funding-access-for-each-focus-area>
Funding categories provide a 80% total cost reduction when used as a replacement to challenge settings. The numbers used for this estimation are also conservative - the savings are likely higher! Read more here - <https://docs.catalystcontributoars.org/funding-categorisation-analysis/historical-analysis-and-comparisons/categorisation-overall-cost-comparison>
The full list of funding categories can be found here - <https://docs.catalystcontributors.org/catalyst-funding-categories/>
—- BUDGET WEIGHTING VOTE —-
The total budget that gets applied to each funding category is determined using a democratic budget weighting vote.
Funding categories are assigned a percentage by each voting participant in the vote. A weighted average percentage is then achieved from the voting results. This percentage is then converted into the equivalent ADA value that will be requested for that funding category from the total amount of funding that will be available in the next round.
To register and participate in the budget weighting vote you can find all of the details in this funding categories documentation - <https://docs.catalystcontributors.org/catalyst-funding-categories/budget-weighting-votes/fund-9>
This proposal represents a way for the community to vote for the full usage of funding categories for the next funding round.
This proposal includes all of the funding categories. Funding categories cover all forms of idea and innovation and also introduce a full time contributor model.
Full list of funding categories and the budgets that would be used:
- Community & Outreach - 1,800,000 ADA
- Products & Integrations - 3,000,000 ADA
- Governance & Identity - 2,000,000 ADA
- Development & Infrastructure - 2,925,000 ADA
- Nurturing Ideas & Teams - 1,000,000 ADA
- Catalyst Contributors - 1,100,000 ADA
- Cardano Contributors - 975,000 ADA
The budgets for the categories were determined using a democratic community vote prior to proposal finalisation.
How will it work?
If this proposal is selected then there will be seven funding categories for the community to submit proposals into for the next funding round.
Funding categories will have a budget weighting applied to them that is from the results of the budget weighting vote - <https://docs.catalystcontributors.org/catalyst-funding-categories/budget-weighting-votes/fund-9>
Who’s on the team?
Currently challenge teams are used for the challenge settings when they are voted in. Funding categories are simply a model to improve funding categorisation. Anyone in the community is welcome to join as a challenge team member for any of the funding categories that get selected to be used in the next funding round. Challenge teams are not fully formed at the point of proposal submission.
Are there any risks?
No. Only one of two outcomes can come from this proposal. The first is this proposal is selected, meaning it must come first in the voting process, and means that funding categories will be used in full for the next funding round. The second outcome is that the proposal does not come first then the remaining challenge setting proposals will compete for access to the available funds.
Funding categories provide a more simple, effective, cost reduced, efficient and egalitarian approach to funding categorisation. There are a number of advantages of using funding categories over challenge settings - <https://docs.catalystcontributors.org/funding-categorisation-analysis/funding-categories-advantages/overview>
Voters who have read the funding categories analysis and want to see funding categories replace challenge settings can consider the following choices for the upcoming vote:
- To increase the chance that funding categories are used in the next funding round the voter can upvote this full fund proposal as well as all the funding category proposals.
- To maximise the chance of funding categories being used then voters can also optionally downvote all proposals that are not funding categories.
If you have any feedback or concerns regarding this proposal please feel free to reach out to us in a dedicated Telegram for funding categories discussion - <https://t.me/catalystfundingcategories>