AIP-330: ApeCoin Innovation Fund

Administrative Review
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Proposal Name

ApeCoin Innovation Fund

Proposal Category

Ecosystem Fund Allocation

Abstract

This AIP serves to create an innovation fund for buildoors and small to medium sized projects building within the ApeCoin community, current and future projects included.

The aim is to streamline innovation funding and remove bottlenecks within the ApeCoin DAO AIP process for smaller projects within first 12 months of development life cycle.

Nurture new ideas and projects coming from various initiatives like ThankApe and EthGlobal - Refer to AIP 230 by @maariab

Create a central hub for projects to share knowledge, resources and foster a supportive environment of growth and collaboration.

The fund itself should be managed by the APE Foundation. The monthly staking rewards should be paid out for the core team to utilise for expenses and project funds.

In the spirit of web3 and the DAO, the core innovation team should be chosen by vote every 12 months like the Special Council or Steward Roles.

Author

@WebMoss

Software Engineer -13 Years
Web3 Hacker EthGlobal - 4 years
Volunteer EthGlobal ETH Cape Town 2019

EthGlobal Accomplishments:

ApeCoin Prize Winner (AIP 243 - The Ape Inn)
Filecoin Prize Winner (Datahaus / Mojo Music)
Tableland Pilot Program (Mojo Dynamic Music NFT)
Mint Tea - 1st Place deBridge (NFT Bridge)

Motivation

  1. The AIP process kills innovation before it can begin.

  2. You need to engage too many third parties to have an AIP pass. This requires major effort, time, marketing skills, budget and luck. High failure rate due to these factors.

  3. Projects come in all shapes and sizes and there is no support network or funding outside of the AIP process for buildoors and projects just starting up. Yes, small projects matter, one ant alone can do nothing, 1000 working together can move mountains.

  4. Existing and established projects have still not received funding and create for the ecosystem out of love, but also out of pocket which is dangerous, they get despondent, burnt out and may stop providing a valuable product or service. This is not the way.

  5. Building and working in silos is not collaborative.
    Good ideas can be shared which adds value, for example the current issue whereby the sale of staked Apes results in losses. A solution could be shared and implemented in our ecosystem to eliminate or at very least help prevent losses for Ape holders.

  6. Too soon… projects submit bad AIPs in a rush to get funding, this can cause additional admin overhead or AIPs must be revised in order to get passed causing additional admin, slows down innovation and the building process.

  7. No legal or regulatory advise given before AIP submission which is a big issue. Builders are not lawyers, AIPs go up that present legal challenges to the DAO, SC and the ApeCoin foundation.

  8. Aligns projects with ApeCoin brand guidelines and ApeCoin DAO goals and mission. This will also help prevent duplicates and copy pasta culture.

  9. Ensures a better quality product in the end, which in turn provides better security. Example implementation of warm.xyz in projects as best practice. Lets ensure we keep our Apes Safe as Houses.

  10. Utilises resources like ApeComms and other media channels to promote our ecosystem projects. This is a double win, it gives great exposure for new projects, and provides content for media channels to put out there and be first to broadcast the alpha vibes.

*:memo: Developers are not marketing specialists and often very shy, or don’t speak English as first language or live outside optimum timezones so miss out on valuable opportunities to shine like a diamond :gem:

Rationale

This proposal aligns 100% with guiding values

“The DAO follows a proposal process to vote on how the Ecosystem Fund will be distributed by the APE Foundation to promote a diverse and self-sustaining ecosystem.” - apecoin.com

If you build it, they will come… we need to build that self-sustaining ecosystem and nurture it.

Benefit to ApeCoin Ecosystem

Creates a funding mechanism for innovation and building that offers no risk to the ApeCoin DAO and community.

Funds don’t leave the DAO, they are staked and managed by the DAO, only staking rewards are utilised for the innovation fund.

Facilitates the onboarding of new developers and projects entering the ApeCoin DAO wishing to receive smaller funding grants to build out their ideas, MVP or project

Ensures the alignment of new projects entering the ApeCoin ecosystem with the ApeCoin DAO goals and mission.

Creates a launchpad for projects to prepare for the next phase, which should be submission of AIP for final funding stage.

Help projects prepare and submit a polished AIP. Improves chances of success.

Allows projects to utilise Apes within the innovation fund for IP, marketing and usage within their projects or concepts. Could be in the form of a pfp for the project, perhaps a storyline or even some marketing materials.

  • A percentage of profit made from sales using our jpegs should be paid back to the fund
    :memo: Amounts to be finalised, but as an example, 20% on profit of sales is paid back to the fund to continue growth.

We would also utilize a wide skillset from our ApeCoin community including artists, designers, developers, lawyers, media, news and more. We are essentially supporting our community and showcasing all of the individual talents.

Projects can be taken in house, for example the ApeCoin Arena and ApeCoin payment gateway proposal could be an in house project.

Beta testing can be assisted by core team. Better Security testing and audits can be carried out quicker.

Lastly this will create a vessel to receive back from the ecosystem. Currently the DAO cannot receive payments, but funds can be received by innovation fund to drive innovation further.

Other benefits to be added as identified.

Specifications

Horizen Labs official ApeCoin Staking Contract
Uniswap Pools
Binance
Paraswap
There’s many options to choose in regards to Staking ApeCoin and jpegs.

Essentially the DAO is in full control and stakes the assets, the innovation fund only receives monthly rewards from the staking pools to operate and distribute to projects on a monthly basis.

Steps to Implement

  1. Establish the innovation fund.

  2. Acquire 25 Bored Apes, 25 Mutants and 25 BAKC for staking utility and also for IP opportunities within ApeCoin projects.

  3. Stake ApeCoin against jpegs giving up to 88% APR. Stake remaining allocation of ApeCoin, staked alone gives approx 40%.

  4. Setup of entity to receive the staking rewards, let’s get to work.

  5. Elect core team to manage projects and services on offer.

  6. Project checkin, sit with projects and find out their status, goals, needs and current issues or problems.

  7. Align with communications, marketing and promotion channels.

  8. Align with ThankApe initiatives, we aim to showcase the projects in dedicated events and initiatives.

  9. Align with community services and offerings that we can utilise within our projects like artists, designers, developers, lawyers, security, writers, media, etc.

  10. Project showcase to community
    Winners chosen by community in a fun showdown round for the season. Best Projects chosen can win a prize, could be an NFT, additional funds or both.

Timeline

Month 1
1.1 The ApeCoin Innovation Fund will be setup and funds will be staked by the DAO.
1.2 The required number of jpegs can be purchased while we have a good floor and selection on offer.
These two steps can happen asap so that the funds can start growing and we can begin the next steps.

Month 2
2.1 The core innovation team and advisory board is established.

Month 3
3.1 Align projects within ecosystem
3.2 Identify needs of projects and builders.
3.3 Begin providing first support in form of services and funds to projects.

  • This can differ per project size and need.
  • Ongoing monthly support provided for maximum of 12 months per project.
  • Thereafter AIP is prepared and submitted, supported by communications.

Overall Cost

The maximum AIP allowance of 5% should be allocated to the innovation fund from the DAO Treasury.

A monthly operational budget for the core innovation team should be approximately 50k to 70k per month and will be taken from the innovation fund payments

The core innovation team should include the following members:

1x Project Manager - Oversee all projects and in-house ApeCoin projects.
2x Web3 Developer - Front-end & Full stack developers to advise and assist projects.
1x Smart Contract Developer - Develop and Audit Smart Contracts, advise and assist projects.
1x Marketing - Oversee marketing activities, advise and assist projects.
1x Designer - Designs for all projects and in-house ApeCoin projects, advise and assist projects.
1x Writer - Copy creator for all projects and in-house ApeCoin projects, advise and assist projects.

:memo: Staking against jpegs offers a higher APR, this is not ment to be a transfer of wealth from ApeCoin DAO, it’s ment to facilitate IP usage of Apes for the projects who cannot afford them.

:memo: This is not ment to be a floor sweep, jpegs will be chosen based on look and marketing appeal but will be limited to the lower end of the price range.

:memo: Staking against NFTs does offer higher yields but this may create a burden for admin.

This proposal is requesting 15,000,000 ApeCoin, to be provided in tranches via a mechanism to be determined together with the APE Foundation at a later date.

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Hi @0xWebMoss,

Your topic will be moving to the AIP Draft phase in less than 24 hours. Are you content with the feedback received or do you wish to extend community discussion for another 7 days?

If we do not hear from you within 48 hours after your topic closes, your topic will be moved straight to the AIP Draft process.

We look forward to hearing from you.

-@Facilitators

2 Likes
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This topic was automatically closed after 7 days. New replies are no longer allowed.

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Hi @0xWebMoss,

Thank you for your ideas [and the ApeCoin DAO community for the insightful discussions]. A moderator will reach out to the author to finalize the AIP Draft using the appropriate template. In accordance with DAO-approved guidelines, if the author doesn’t respond within 30 days, the proposal will be automatically transferred to the Withdrawn category, and the author can re-submit the idea. Once the AIP is Drafted and meets all DAO-approved guidelines, it will be published on Snapshot for the official live voting phase at: Snapshot.

Follow this Topic as further updates will be posted here in the comments. @0xWebMoss please see your messages for the next steps.

-@Facilitators

1 Like
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Hi ApeCoin DAO Community,

@0xWebMoss has completed editing their AIP Idea to be their AIP Draft.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

7

Would like to follow up with a few ideas that could be developed in house by having the Innovation fund in place.

Build an ApeCoin payment gateway, something that can manage ApeCoin subscriptions and do push notifications, emails, etc.

An MBA - Made by Apes integration would be key, could go as far as building shopify, WordPress plugins, etc.

8

Another project that the Innovation team could do in house, the ApeCoin Arenas for gaming and the metaverse. I believe the idea is good, but it requires proper funding and collaboration.

1 Like
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Hi ApeCoin DAO Community,

Our team has reviewed and discussed @0xWebMoss’s AIP Draft and have sent a list of initial questions. We await answers.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

11

It’s a great idea but the I think it’s far fetched for people to stake jpegs

1 Like
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Thanks for your valued feedback.

I made mention towards the end that staking against NFTs does offer higher yields but this may create a burden for admin.

By staking we are essentially locking away these assets for safe keeping and as an added bonus we can earn approx 88% APR.

The main idea of holding these NFTs is more for projects to utilise in designs, artwork and other digital assets they want to create.

For example I want an artist to create some amazing graphics for The Ape Inn and want to use 4 Apes, 6 Mutants and some doggos in my artwork. This could be twitter banners or a Pfp for the project, etc.

Theres no way I can go buy all those NFTs, so in this situation I could request to use the Innovation Apes within my project designs.

Another take could be I want to make a cool mutant cap or t-shirt, I then request the use of Apes and agree that 15 or 20% of profit from any sales of my IRL product goes back to the fund.

The NFTs will essentially pay for themselves if staked, after a year or so we could start to acquire more from the rewards.

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Hi ApeCoin DAO Community,

@0xWebMoss has responded to our questions and has provided consent to share them in this forum for the community.

1. “A monthly operational budget for the core innovation team should be approximately 50k to 70k per month and will be taken from the innovation fund payments.” Please outline the specific salaries for each position of the proposed “core innovation team.”

1x Project Manager - $8000.00 per month

1x Senior Front-end developer - $10 000.00 per month

1x Senior Full stack developer - $10 000.00 per month

1x Smart Contract Developer - $10 000.00 per month

1x Marketing - $7 000.00 per month

1x Lead Designer - $10 000.00 per month

1x Writer/ Copy Creator - $5 500.00 per month

Total $60 500.00 per month or $726 000.00 per year

In addition to the core team we may also need to pay service providers in the community, for example we could contract in different artists, builders, lawyers, etc. when needed, this could be for in-house projects or to provide aid to a project.

These figures are based off salaries for America and may differ according to a person’s location.

2. Given that the compensation of the core innovation team is to be derived entirely from staking rewards, what recourse does the Innovation Fund have in the event that the $APE price falls below levels necessary to adequately support the team’s compensation, or if the staked NFTs are liquidated?

Please note the NFTs should never be liquidated, they should be purchased and maxed staked, in theory the NFTs will pay for themselves using this mechanism and from proceeds for usage in IP related sales.

I’ve included a breakdown below of where we sit currently in regards to ApeCoin Price.

Based on the current price of $1 we should receive approx 277K per month which still allows us enough wiggle room to cover the team and invest $200 000.00 into different projects and events.

This is a valid concern so to mitigate risk I suggest that in the beginning months, a buffer is created which will secure the funding of the core team for 12 months. Only after month 3 or 4 do we begin paying out funds to projects. This should give us close to $1 million as a buffer.

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3. What is the maximum individual funding request for an Innovation Fund grant recipient?

The Innovation Grants should be broken down into different sizes and based on purpose.

Micro Grant - $5 000.00 to $10 000.00

Can be requested for promotions and marketing like IRL events, ApeCoin merch drops, perhaps a small buidl idea like a discord bot, small contract audits, etc.

Small Grant - $10 000.00 to $25 000.00

I have an idea grant, let’s see if WGMI, 1 or 2 team members, can also be used for larger events, larger contract audits

Medium Grant - $25 000.00 to $50 000.00

Hackathon starter grant, 1 or 2 team members, team can contract in service providers from ApeCoin community, example a solo hacker wins a prize but has no team to assist.

Large Grant - $50 000.00 to $120 000.00

Team grant, 3 to 5 team members that want to push a winning product.

4. Given the Innovation Fund’s operational costs, will there be a maximum monthly allowance for grant recipients?

The maximum a project should receive in total is $120 000.00 or $10 000.00 per month for 12 months.

Projects requesting more than $120 000.00 should submit their proposals directly to the ApeCoin DAO.

We can aid in AIP creation and processing, promotion in our delegate and communication channels.

5. You’ve noted that “the fund itself should be managed by the APE Foundation.” Given that implementation will need to be coordinated between the core team and the Foundation, who will be responsible for managing that coordination?

I’m not sure how much work this process will take but believe a Special Council member or a Higher Ranking Steward would be best. I understand that this will add additional work, but one of the aims of the innovation fund and core team is to streamline the AIP process, remove duplicates or copy pasta requests. This will provide better structured AIPs, all of which will free up SC’s time and resources for more pressing matters and larger AIP requests.

6. Your “core innovation team should be chosen by vote every 12 months like the Special Council or Steward Roles.” Your Timeline section indicates that in Month 2, “The core innovation team and advisory board is established.” If your proposal is approved, and its team elections are to take place at the same cadence as Special Council and Steward elections, your core team elections would potentially take place in June of 2024. Please clarify your expectations regarding the elections timeframe, and whether the Governance Working Group would be responsible for its coordination.

We will need to work closely with the Governance Working Group in the beginning, they should be responsible for its coordination. The important thing is we do not want to interrupt progress.

7. Do you provide consent to share these questions and answers with the community in this forum?

Yes

A DAR package is being worked on and upon completion this AIP will move into Administrative Review. Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

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Hi ApeCoin DAO Community,

We have sent a list of follow up questions to the author.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

15

Hi ApeCoin DAO Community,

@0xWebMoss has responded to our questions and has provided consent to share them in this forum for the community.

1. The election of your team is listed as occurring after the purchase of the NFTs and creation of the innovation fund. Who then will be responsible for purchasing the NFTs and establishing the fund to receive the initial funding?

Looking at other organisations that have implemented innovation funds, we should ideally have an Innovation Fund Manager, this role or function could also be performed by a senior members of the WGs in the beginning.

The person chosen for this role should be responsible for co-ordinating with SC to acquire the NFTs and stake them.

2. What is your specific involvement in the implementation of this proposal?

I would be happy to take on the role of Innovation Fund Manager/Project Manager to implement this proposal. However, this is not a requirement and should a better suited candidate be found, then I will work with them to bring the Innovation fund to life.

3. How will grant recipients of the Innovation Fund be selected? Please provide a detailed description of the grant process, as well as which team members will be responsible for which parts of that process.

Guidelines:

  1. Recipients must hold at least 1 ApeCoin.

  2. Recipients should be active members of the ApeCoin community and have achieved a minimum Level two, possibly even level 3 status in discord.

  3. Projects coming through initiatives like ThankApe, EthGlobal or similar initiatives should be eligible and can apply, but does not mean they will be accepted.

  4. The aim of the fund is to inspire innovation and bring fresh ideas and new ways to improve the ApeCoin ecosystem, we can hold different funding rounds that serve a need the community has identified, for example a funding round for Account abstraction.

  5. Applicant’s will be required to complete an application form with details of their project, team, budget and reasons for requesting funds. Validation questions will be constructed to weed out bad actors and chance takers.

  6. Applications should not conflict with already implemented ideas, for example, we don’t need 50 bots for discord.

  7. Other factors as determined by the SC, Stewards, WGs, core team or the ApeCoin community.

Steps:

The Innovation Fund Manager/Project Manager will be responsible for receiving and validating the applications. Applications that qualify according to our guidelines will be reviewed and further validated by the core innovation team.

Validated projects and ideas will be presented to the SC and WGs for further comment, the applications may serve different areas like Governance, Metaverse, gaming, etc. so input from the different WGs will be invaluable,

Successful applicants must perform a KYC before any grant payments will be made to grant recipients.

The project manager will hold bi-weekly meetings with the grant recipients, at minimum once a month, to track progress, needs or any issues the teams may be experiencing. Additional support can be provide by the core team as needed.

Once a project has finished it’s funding stage, the core team will assist in preparation of a professional AIP for the project to submit to the ApeCoin DAO for vote, should they need further funding.

Lastly, AIPs will be supported by the various communications channels in the ApeCoin community and clearly communicated to the different delegate groups who hold a vested interest in the ApeCoin DAO.

NOTE: Additional steps and processes may be included as they are identified by SC, WGs, Stewards, Core Team or any active ApeCoin DAO community members.

4. Do you provide consent to share these questions and answers with the community in this forum?

Yes

A DAR package is being worked on and upon completion this AIP will move into Administrative Review. Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

16

Hi ApeCoin DAO Community,

We have no further questions for @0xWebMoss. This AIP is now under Administrative Review.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

17

Gm, gm

Thank you for your interest and support of this AIP.

I wanted to make note that the core innovation team will essentially serve two roles in the ApeCoin DAO and community.

The first would be as mentors to different teams and projects starting out. They will support projects and guide teams as they build the future of ApeCoin.

The second would be to develop in house projects for ApeCoin and the community. We need to create ways for the fund to sustain itself and hopefully grow with some time and energy.

I’ve highlighted a few project ideas like an official ApeCoin Payment Gateway, as well as fun projects like the ApeCoin Arenas for Wreck League and Otherside.

The more we develop these types of products the more we can invest in ourselves and also projects with great potential.

Once projects have completed their initial growth phase of 12 months with some essential funding. These projects become ready to spread their wings and fly opening up investment opportunities for all.

The AIP process should essentially be promoting investments as well, almost becoming the ApeCoin y- combinator.

Once a basic foundation is laid, we can build the house of ApeCoin.

Please feel free to leave your valued feedback

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