Increase Foundation Monthly Grant from $250,000 to $350,000
Summary
This proposal requests DAO approval to increase the Foundation’s monthly grant allocation from $250,000 to $350,000 per month in order to support the protocol’s expanding operational, development, security, and ecosystem needs.
The previous monthly grant of $250,000 was approved by the DAO in February. However, the Foundation intentionally did not utilize this allocation at the time due to significant treasury expenditures related to urgent protocol matters, including costs associated with the Resolv incident and other strategic priorities.
As the protocol enters a new phase of growth and expansion, the Foundation expects substantially higher operating costs and therefore proposes increasing the monthly grant to $350,000.
Background
In February, the DAO approved a monthly Foundation grant of $250,000 to support ongoing development and ecosystem initiatives. Despite this approval, the Foundation chose not to draw down the grant because the treasury was already facing elevated spending requirements, particularly during the Resolv incident and related activities.
Over the past several months, the scope of the Foundation’s responsibilities has expanded significantly, creating new financial requirements that were not anticipated when the original grant amount was approved.
Rationale for the Increase
The requested increase will enable the Foundation to continue executing on its roadmap and support several major initiatives, including:
- Continued development and integration work related to Sui.
- Expansion of AGI3 markets and associated infrastructure.
- Additional security reviews and protocol audits.
- Strengthening and enhancement of the protocol’s off-chain security systems.
- Hosting community events and ecosystem initiatives.
- Participation in major industry conferences, including Devconnect, Token2049, and other relevant events.
- Legal expenditures.
- Potential expansion to additional blockchain ecosystems and integrations.
- Additional engineering and developer resources required to support new products and protocol features.
- Ongoing operational and ecosystem growth expenses.
These initiatives are essential for maintaining the protocol’s competitiveness, security, further growth, and long-term sustainability.
Proposed Change
The Foundation requests that the DAO approve an increase in the monthly Foundation grant from:
- Current approved amount: $250,000 per month
- Proposed amount: $350,000 per month
The new grant amount would become effective immediately upon DAO approval.
Conclusion
The Foundation has historically exercised financial discipline, including foregoing the previously approved grant allocation during periods of elevated treasury spending. Given the protocol’s increased scope and the growing number of strategic initiatives, the Foundation believes that increasing the monthly grant to $350,000 is necessary to sustain growth, maintain security standards, and continue delivering value to the ecosystem.