diff --git a/gips/0084-ecosystem-incubation-multi-token.md b/gips/0084-ecosystem-incubation-multi-token.md new file mode 100644 index 0000000..032984d --- /dev/null +++ b/gips/0084-ecosystem-incubation-multi-token.md @@ -0,0 +1,138 @@ +--- +GIP: 0084 +Title: Ecosystem Incubation / Multi-token +Authors: Max Tang +Updated: 2025-06-17 +Stage: Candidate +Discussions-To: https://forum.thegraph.com/t/ +Category: Economic Parameters +Depends-On: N/A +Implementations: TBA +--- + +## Abstract + +This GIP proposes a simple incubation framework for new ecosystem projects, where: + +- the ecosystem sets up an incubation program governed by The Graph Foundation; + +- projects in the program get access to (optional) ecosystem resources: + - The Graph Foundation-led funding and/or capital access; + - support and assistance from the Foundation team for streamlined access to physical infrastructure network (such as Indexers and validators) and white-glove support , if applicable; + - various degrees of business and marketing support; + - technical guidance in select circumstances (whereas normally a firewall is elected between The Graph’s R&D and the incubated projects). + +- in return, if these projects graduate from the incubation program and issue a token, there will be a pre-determined percentage minted for The Graph Foundation, which may later decide to distribute its allocation to staked GRT addresses (retroactive mints). The implementation details will vary from project to project. + +## Motivation + +Since its inception in 2020, The Graph Network gained a strong reputation and mindshare among developers. Many developers have asked for collaboration opportunities for their projects. Ecosystem participants have offered help from time to time, but there is demand for a more structured program. + +Incidentally, many ecosystems are shifting to an incubation or hybrid incubation/grants model. Incubated projects have much better incentive alignment versus grant recipients. Better hands-on support also reduces failure rate, yielding better results for capital deployed. + +## Detailed Specification + +This proposal specifically sets up a few operating bodies in the ecosystem, overseen by the Foundation. For the avoidance of doubt, the Incubation Committee is **a group within OpCo** (specified below): + +- a small Incubation Committee (5-7 people) that determines resource allocation within the program; + +- an OpCo that handles business operation and holds the incubation funds; + +- potential future budget allocation at the Foundation for OpCo activities. + +The above structure is recommended to: + +- isolate financial, legal, and IP risks; + +- track accounting and performance metrics; + +- create a path for alternative funding structures (grants, co-investment vehicles) + +Projects will go through a series of funding stages similar to normal venture cycle: + +- Seed/Pre-seed (pre-product/MVP); + +- Series A (scaling); + +- Series B (acceleration); + +- Series C and beyond (large scale expansion); + +The program will typically fund early stage (pre-seed through Series A), with potential follow-up funding in subsequent stages. Terms will vary, depending on value-add and market conditions. A small number (1-5) is expected to be qualified for the ecosystem’s formal business development support. + +Funding agreements will typically include a token agreement with a pre-determined allocation to The Graph Foundation, which may later decide to distribute to staked GRT addresses. In absence a token launch, these equity holdings will be owned by the OpCo and eventually capital will be recycled into newer incubated projects. + +### Responsibilities of the OpCo + +- Set the program’s vision, mission, and long-term strategic goals, and communicate these clearly throughout the organization; + +- Devise and execute the incubation strategy; + +- Make high-level decisions, including resource allocation, major investments, and risk management; + +- Oversee day-to-day operations to ensure alignment with strategic objectives, often delegating but maintaining overall control; + +- Budget planning; + +- Monitor financial performance and ensure the program meets financial targets. + +### Responsibilities of the Foundation + +- Approve strategy and annual budget; provide strategic oversight and guidance; + +- Hire and evaluate the program’s executives, including the entire Incubation Committee; + +- Monitor and approve major decisions such as mergers, acquisitions, budgets, and executive compensation; + +- Oversee risk management; + +- Maintain financial oversight, safeguarding OpCo assets and ensuring financial sustainability. + +### Responsibilities of the Incubation Committee + +- Incubation Strategy and Policy Oversight + + - Review and approve the incubator's overall allocation strategy + + - Define allocation criteria aligned with the incubator's thesis + + - Establish risk management frameworks and parameters + + - Periodically review and refine incubation strategies based on market conditions and performance + +- Deal Evaluation and Decision-making + + - Evaluate prospective incubations presented by the deal team + + - Make final decisions on capital deployment + + - Assess deals against established incubation criteria + + - Challenge assumptions and provide perspective on market trends + + - Review due diligence findings and determine if additional information is needed + +- Portfolio Management and Monitoring + + - Monitor the performance of existing incubations + + - Evaluate and approve follow-on incubations + + - Review portfolio company progress against key metrics + + - Assess portfolio balance and diversification + + - Authorize significant changes in incubation strategy or rebalancing + +- Governance and Compliance + + - Ensure adherence to the incubator's incubation policies and guidelines + + - Oversee regulatory compliance related to investments + + - Review and address potential conflicts of interest + + - Ensure proper documentation of investment decisions + + - Maintain transparent communication with limited partners +