Grants DAO Process Guide (Feb 2025)
This guide provides a short summary of the lifecycle of a grant as a CoW DAO grantee or applicant. It serves as an overview of roles and responsibilities but does not replace official documents (e.g., Grant Agreement Terms). Applicants should refer to the appropriate documents for full details. While efforts are made to ensure accuracy, this guide does not guarantee correctness.
Also, check out these Grant DAO values.
Step 1: Application Submission
Applicants must submit a formal application on the Forum (Section CoW Grants Program → “New Topic”) using the new Grant Application Template (updated February 2025). Key components include:
- Project Overview: Define the problem, proposed solution, and expected impact.
- Objectives & Milestones: Measurable goals with clear deadlines (milestones must be delivered in order).
- Grant Type: Specify whether the grant is milestone-based, time-based, or hybrid.
- Funding Structure:
- Each milestone is funded separately. Even if the final milestone is not reached, completed milestones can be paid.
- If project completion is critical, allocate more funding to the final milestone or add “completion funding.”
- Duration: Grants should not exceed six months unless justified and explicitly highlighted.
- Budget & Fund Request: Provide a detailed cost breakdown. Payments are typically post-milestone unless justified for upfront funding (and explicitly highlighted).
- Team Background: Relevant experience and expertise (exclude referrals).
- Payment Address: One Gnosis Chain address must be specified (expected to match the signed proposal on Snapshot).
Step 2: Review & Decision
2a. Forum Review
- The Grants Committee reviews applications (typically within two weeks). Lack of response signals disinterest, but ideally, a committee member responds within two weeks.
- Other community members (including core team) are encouraged to engage in discussions and provide feedback.
- Reviewers can pitch themselves and contribute expert opinions.
- The Committee assigns a Steward (must be an individual from the committee) to:
- Ensure all template elements are addressed.
- Validate milestone structure and funding requests (obtaining expert input from the Reviewer).
- Act as the main communication point for the applicant.
- Assign a Reviewer before Snapshot voting to ensure available resources and proposal clarity.
2b. Moving to Snapshot
- There is no required forum review period, but proposals should allow time for feedback.
- The applicant submits the proposal to Snapshot for formal voting (the only official Grants DAO governance response mechanism).
- Snapshot Voting Period: Three days (avoid weekends or holidays - pro tip: pre-schedule to start after e.g. a weekend).
- If no Reviewer is assigned, the proposal is unlikely to pass.
- Snapshot Proposal Requirements:
- IPFS link to the CoW DAO Grant Agreement (serves as signing equivalent).
- Final version of the application (incorporating discussed changes).
- Link to the Forum post for reference.
- Best Practice: Update the forum post with “Moved to Snapshot” and link the proposal.
Steward Responsibilities:
- Ensure the Snapshot proposal meets all formal requirements.
- Notify the committee and flag any concerns before voting.
Step 3: Agreement & Execution
Agreement Finalization
If approved on Snapshot, the applicant becomes an official Grantee.
Review & Payment Process
- Milestones must be reviewed before payouts.
- Grantees must request reviews/payments in the forum thread (tagging the Steward or Reviewer).
- Review timelines vary based on availability and complexity.
- Steward provides estimated review timelines (iterations may be needed; partial payouts can be proposed by Steward/Reviewer).
- Once approved, the milestone is included in the next end-of-month payout cycle (typically by the 15th of the next month).
- The Grants Committee has a 30-day payment term after a completed milestone and payment request.
- Payments are in xDAI or COW tokens (converted if needed) and only on Gnosis Chain.
- Milestone-Based Grants: Paid after milestone review.
- Time-Based Grants: Paid based on worked hours, included in payout cycles (subject to Reviewer approval).
Reporting & Communication
- Follow the approved proposal – Deliver milestones and objectives as agreed.
- Actively communicate progress – Stewards may prompt updates, but grantees are responsible for timely reporting.
- Best practice: Maintain updates in predefined channels (e.g., GitHub).
- Official communication must be in the forum thread of the original application
Modifying the Scope of a Grant
- Minor changes (no vote required): Small deadline extensions, budget shifts within milestones, minor deliverable clarifications, and partial payouts can be approved by the Steward and Reviewer.
- Major changes (Snapshot vote required): Budget increases, significant scope changes, extensions beyond six months, changes to payment structure, or grantee reassignment require a Snapshot vote.
- Process: Grantees request changes in their forum thread, and the Steward assesses whether a vote is required. Approved changes must be documented transparently.
- New milestones or continuations, renewals or similar shall always be seen as a stand-alone new grant application (with the newest template + terms & new forum thread + vote).
Step 4: Grant Completion & Termination
Completion
- The grantee successfully delivers all milestones, submits a final report, and receives final payment.
Termination
- By the Grantee: Requires a 30-day notice via the forum.
- By the Committee: Can be terminated via Snapshot vote (typically 30-day notice, but immediate in urgent cases).
- Immediate Termination Reasons: Misuse of funds, harmful actions against CoW DAO, lack of communication, or force majeure.
- Best Practice: Terminations should not be a surprise. If communication is lacking, at least one formal warning in the forum should be issued before immediate termination.
- Grants do not expire automatically – they must be formally terminated.
- If milestones are not met without justification, the committee may initiate a Snapshot vote for termination.
- Post-Termination: Only completed work is compensated. Appeals can be made via DAO governance.
Summary of Responsibilities
Grantee Responsibilities
- Submit a well-structured grant application based on the new template and respond to feedback.
- Deliver milestones and work according to the approved proposal.
- Actively request milestone reviews and payments in the forum thread.
- Communicate progress regularly and align with milestone deadlines.
- Maintain transparency and responsiveness to stewards and reviewers.
Steward Responsibilities
- Ensure the grant proposal meets all formal requirements.
- Validate the structure of milestones and funding requests.
- Act as the primary liaison between the grantee and the Grants Committee.
- Assign a Reviewer before Snapshot voting and ensure the proposal makes sense.
- Provide an estimated review timeline and facilitate communication.
- Flag concerns or missing requirements before formal votes.
Reviewer Responsibilities
- Can be external, from the core team or the committee iteself
- Assess feasibility of milestones and funding structure.
- Provide expert input on deliverables and technical execution.
- Review milestone submissions and approve payouts.
- Guide the Grantee if technical support is needed.
- Recommend partial payouts or required revisions if necessary.
- Communicate clearly on expectations and necessary changes.
Grants Committee Responsibilities
- Oversee the grant process and ensure fair evaluation.
- Engage in discussions and provide feedback on proposals.
- Assign a Steward
- Vote on grant proposals and termination cases via Snapshot.
- Ensure funds are allocated properly and uphold accountability.
- Provide governance oversight and handle disputes or appeals.
- Feedback is encouraged! If you have suggestions, post in this thread, please
