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+---
+GIP: 0084
+Title: Ecosystem Incubation / Multi-token
+Authors: Max Tang <[email protected]>
+Updated: 2025-06-17
+Stage: Candidate
+Discussions-To: https://forum.thegraph.com/t/<xxxx>
+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
+