AIP-532: Add time limit for AIP recipients to take custody of Funds

Active Proposals AIP Drafts
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PROPOSAL NAME:

Add time limit for AIP recipients to take custody of Funds

TEAM DESCRIPTION:

As Governance related will discuss if GWG Stewards wishes to be added as an author. However, as the onus on reporting is on the Foundation. It will no require future work from the GWG.

PROPOSAL DESCRIPTION:

Currently, there is not a time limit for Accepted AIPs to take custody of the funds. Funds are usually given in APE, converted at the requested in USD amount, based at the previous days closing price. This means the foundation has a liability in outstanding USD amount until the Accepted AIP takes custody of the funds.

The AIP recipients must take custody of funds within 60 calendar days of the AIP passing.

BENEFIT TO APECOIN ECOSYSTEM:

  1. Reduces the USD liabilities of the ApeCoin DAO.
  2. Makes the Accepted AIP authors receive the funds in under 90 days and have no reason not to start implementing their AIP in a timely manner.
  3. Avoids inefficient use of funds when they budget for compensation, but don’t have the budget to implement outside of that. When the funds are received, they back pay which might lead to sub optimal outcomes.

DEFINITIONS:

USD Liability - A USD liability on a company balance sheet refers to any financial obligation that the company owes and is denominated in U.S. dollars. These liabilities can include various forms of debt, such as loans, accounts payable, and other financial commitments that require future payment in USD.

STEPS TO IMPLEMENT:

Outline the steps to implement your proposal.

  • This can be implemented immediately after the AIP is passed.
  • If a Future AIP has only requested funds in APE they will be given 120 days to accept the funds. This will make no impact on the Banana Bill, which has passed already, so the above rule does not apply. Also the rules below do not apply as the Banana Bill is priced in APE.

Continuing the discussion from AIP-454: The BANANA Bill: Apes Gotta Eat:

  • For AIPs priced partly or fully in USD the following will apply:
    a) Future AIPs will be informed in advance BEFORE their AIP goes to vote of the 60 calendar day limit to accept the funds.
    b) Any AIP passed in the last 30 days will be given 60 days to accept the funds
    c) Any AIP passed more than 30 days before this AIP has passed will be given 30 days to accept the funds.
  • KPI - reduction of US liabilities of the ApeCoin Foundation.
  • This is a 0 Cost AIP
  • The APE Foundation would need to update their internal processes to comply to this process.

If the AIP has tranche funding. The taking custody of funds time limits will apply to first tranche. Further tranches of the funding which are based on milestones, they will be voided if the milestone(s) are delayed by over 120 days.

Timeline for ApeCoin Foundation Internal Processes

  • KYC/KYC If the Foundation takes longer than 5 business days to complete the KYC/KYB the delay will be added to the time limits given above.

  • Sending Grant Agreements Once the KYC/KYB is complete, if the Foundation takes longer than 2 business days to send the grant agreements to approved AIP, the delay will be added to the time limits given above.

  • Grant Contract Negotiations : 7 business days expected for negotiations around the grant contract.

Therefore there are 7 business days expected for the internal processes and 7 days for negotiations. Therefore a total of 14 business days.

Extensions

Authors can apply for a 30 day extension, citing the reason for the delay. Valid reasons include:

  • Document Translation : Required all documents in English; the recipient documentation maybe in their local language and require translation and notorisation for KYC and/or KYB.
  • AIP Recipients’ Legal Entities : Establishing a legal entity in an offshore location usually takes around 2 or 3 weeks. Certainly it can take longer in some jurisdictions, for example in Germany it could take 6 to 8 weeks.

This can be decided by the DAO Administrator who will inform the AIP recipient via email.

Reporting

The time take for each AIP will need to be reported if:

  1. If the AIP author exceeds the limits and an extension was requested and approved.
  2. The Foundation does not complete in the timeframes given above.

REPORTING EXPECTATIONS:

The Foundation will share on a quarterly basis total AIP USD liabilities.

OVERALL COST:

“Total amount requested from the ApeCoin Ecosystem Fund = $0.”

1 Like
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Makes sense to me, and definitely an element of the DAOs grant agreements that should be in place.

Keeping this in mind, and to further our chat we had on the concept earlier, I do think that there should be an ability for authors to extend their grace period, as there could be many circumstances where a delay may be necessary.

Another consideration will be needed with regard to the APE Foundation’s stronger approach to tranche funding, and issuing grants based on subsequent milestone achievements, now mandatorily written into proposals.

But overall, a good observation on a nuance of our process which does need framing :muscle::muscle:

AC

3 Likes
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Added to address the points you brought up. Thanks.

2 Likes
4

Hi,

Totally understand the idea and think it’s just common sense.

Would like to see you define what the consequences will be should the funds not be “claimed”.
Will the AIP be classed as expired/completed/fulfilled/forfeited etc - creating a new category. Should there be any penalty imposed on resubmission attempt for example, maybe a specific label given? etc etc

Also think this line needs clarification:

Reading suggests some responsibility still remains with the foundation, possibly use wording which adds context and better clarity from responsibilities of administrators - so instead of “AIP passing”, use “after execution of grant agreements have been signed”. Or perhaps some additional context could be added under definitions.

Thanks.

2 Likes
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:white_check_mark: Kapow! This is an easy “yes” vote :+1:

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Some questions:

  1. How will this time limit be enforced?
  2. What happens if the delay is due to actions by the Foundation? As we’ve seen in the past, contracts tend to take some time to put together, and funds aren’t disbursed until the paperwork is completed. It’s why I wrote this proposal AIP-478: Require Ape Foundation To Disburse AIP Funds In Timely Fashion
1 Like
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FYI, added these two sections.

2 Likes
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@Frostyz updated this section. Will continue to refine.

3 Likes
9

YESS~ AGREE
No think, just say YES

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Hi @bigbull ,

The community feedback period for your proposal would be ending in roughly 24 hours.

  • If you’re content with the feedback received, your next steps are to finalize your proposal using the AIP Draft Template.

  • A moderator will reach out to the author to finalize the AIP Draft. Upon receipt of the final Draft, we will review and provide instructions on the next steps.

  • Are you ready to proceed to the next phase or do you wish to extend community discussion for another 7 days?

We look forward to hearing from you.

-@Facilitators

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Hi @bigbull ,

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.

  • Once the AIP Draft is confirmed by the author and meets all DAO-approved guidelines, it will receive an AIP ID number and move forward for Draft Analysis Review.
  • @bigbull please see your messages for the next steps.

Follow this Topic as further updates will be posted here in the comments. In accordance with DAO-approved guidelines, if the author does not respond within 30 days, the proposal will be automatically transferred to the Withdrawn category, and the author can re-submit the idea.

-@Facilitators

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

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Hi ApeCoin DAO Community,

@bigbull has completed editing their AIP Idea to be their AIP Draft.

This proposal has been assigned the AIP ID Number 532.

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

Kind Regards,

-@Facilitators

2 Likes
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Fully support this direction. Would be a yes from myself.
-Trippies #DelegateAccelerator

1 Like