DigixDAO User Guide: Projects

This is part (4/6) of the DigixDAO User Guide that will be released over the next few days, making it easier for users to digest the entirety of the guide.

We will be releasing the full guide in a downloadable PDF at the end of the series for those who prefer an offline version of our guide.

Another guide, focusing on interacting with the DigixDAO governance platform will be provided as well in the coming days.

Projects

There are 2 types of Projects that can be created in DigixDAO, which are Projects and Special Projects. Projects are used to request funding from DigixDAO and Special Projects are used to change configuration parameters of DigixDAO. There are 6 possible stages of a Project, which are: Idea, Draft, Proposal, Ongoing, Review and Archived. This section focuses on the lifecycle of a Project, from the requirements to create a Project at the Idea stage to the end of a Project when it is Archived.

KYC Mandatory for Proposers

To be a Proposer, you are required to submit certain KYC Information to the KYC Admin. Only KYC-approved Proposers can create Projects on DigixDAO.

The KYC Information that you are required to submit includes your:

• Full name;
• Date of birth;
• Form of identification, which can be your passport or national identity card;
• Country of residence; and
• Nationality.

After your KYC Information is vetted and approved, you will qualify as a Proposer and can now create Projects on DigixDAO.

Projects

As a Proposer, the Maximum Funding you can request from DigixDAO through a Project is 300 ETH. Also, the maximum number of Projects per Quarter will be 80 Projects at the launch of DigixDAO. As this is the very first iteration of DigixDAO, we have set this limit to prevent potentially undiscovered vulnerabilities that could put the entire DigixDAO at risk. The 100 ETH limit and the cap on 80 Projects can be amended through a Special Project, which could be created as DigixDAO progresses successfully through subsequent Quarters.

Digix Projects

Digix Projects are also Projects which also request funding from DigixDAO, but are created by a Founder address. The only difference between Projects and Digix Projects are that a Digix Project is able to request more than 300 ETH from DigixDAO. Those who are interested in submitting a proposal that is greater than 300 eth are most welcome to connect with the Digix team to seek endorsement. Regardless, all Digix Projects will have to be approved by through the votes of Moderators and Participants before any funds are granted.

Special Projects

Special projects are only meant to change configuration values of DigixDAO and are not able to request any funding from DigixDAO. Special Projects can only be created by Founder addresses and do not require collateral to be created. Once created, all Special Projects can go straight to Participant voting.

Special Projects are necessary as the parameters in DigixDAO at launch may require adjustments due to certain factors after the launch, such as the actual level of participation in DigixDAO and the number of Projects that successfully receive funding from DigixDAO. One example could be that, it may no longer be realistic to require a Collateral of 2 ETH per Project if the value of ETH reaches an exorbitant amount.

Collateral

Before creating any Project, you need to stake a Collateral of 2 ETH before it is successfully created. We included Collaterals to minimise the creation of spam Projects and also to discourage Proposers from abandoning a Project midway. Similar to other configurations of DigixDAO, the amount of Collateral required to create a Project can be adjusted through a Special Project.

Once your Project is created, your Collateral can only be returned when:

1. You terminate your Project before finalising it at the Draft stage;
2. Your Project does not get through Moderator voting at the Draft stage;
3. Your Project does not get through Participant voting at the Proposal stage; or
4. You deliver all Milestones in your Project and Participants approve to return your Collateral at the final Review stage.

Essentially, once you receive any funding for your Project, you can only get back your Collateral after you complete all the Milestones of your Project. All Collateral that is not returned to Proposers will be sent to DigixDAO.

Final Reward

In contrast with Collateral which can be seen as a penalty for abandoning a Project midway, the Final Reward is your incentive to fully complete your Project. At the final Review stage, Participants will vote on whether you should receive both your Collateral and Final Reward. Although you are free to set your own Final Reward, it would be best to keep your Final Reward to a reasonable amount as Participants may vote to reject it.

Creating a Project

To create a Project, you are required to provide the following details:

• The title of your Project;
• A short description on your Project;
• Detailed information about your Project;
• Images to supplement the description and information about your Project;
• The number of Milestones required to complete your Project;
• Funding required for each Milestone of your Project;
• A description of what you intend to deliver at each Milestone of your Project; and
• Your Final Reward after you fully complete your Project.

Moderators and Participants will use the information you provide to determine the feasibility of your Project. With this in mind, it is always best to display information which will boost your credibility and also your ability to complete your Project.

Project Stages

All Projects start as an Idea and end when Archived. At any stage of a Project, all Participants in DigixDAO can comment on it.

Assuming you are a Proposer and have successfully created a Project:

1. Idea

Your Project is at the Idea stage right after you have successfully created it. You are able to edit your Project at this stage in response to feedback or refine the details of your Project. To move your Project to the Draft stage, your Project has to receive an Endorsement from a Moderator in DigixDAO. The Endorsement can come from any Moderator, including yourself. Your Collateral is refunded if you terminate your Project at this stage.

2. Draft

At the Draft stage, you have the final chance to edit your Project. Once you feel confident about the details of your Project, you can proceed to finalise your Project to allow Moderators to vote on it. After you finalise your Project, you can no longer edit the existing content of your Project. Note that you only have 90 days from the start of the Idea stage to finalise your Project. If not, your Project will be considered inactive and finalisation is no longer possible.

Once finalised, Moderators will be able to vote on your Project for the next 10 days. To move your Project to the Proposal stage, your Project has to be approved by Moderators through a majority vote. All Moderators can vote at the Draft stage, including yourself. Your Collateral is refunded if it is rejected during the Moderator vote.

3. Proposal

At the Proposal stage, all Participants, including the Moderators and yourself, can vote on your Project for the next 15 days. The Proposal stage is crucial as this is the stage which determines whether funds are granted by DigixDAO. To move your Project to the Ongoing stage, your Project would require a majority vote by Participants. If your Project receives the majority vote, DigixDAO will grant you the funding you requested to deliver your first Milestone. Your Collateral is refunded if it does not pass the Participant vote.

4. Ongoing

At the Ongoing stage, you are able to use the funding received from DigixDAO to deliver the current Milestone of your Project. At this stage, you can add further supporting documents to your Project to show your progress in the current Milestone. After completing a Milestone, you can mark your Milestone as “completed” and move your Project to the Review stage for a Participant vote.

5. Review

At the Review stage, Participants will vote on whether your current Milestone is delivered as promised. Similar to voting at the Proposal stage, your Project will have to receive a majority vote by Participants. At this stage, Participants will have 14 days to vote on your Project. If your Project is approved by the Participant vote, you will receive additional funds to deliver your next Milestone and your Project will move to the next Ongoing stage.

In short, the Project will move between the Ongoing and Review stages until you deliver the final Milestone of your Project. After you fully deliver all your Milestones, Participants will vote on whether you receive your Collateral and Final Reward at the final Review stage.

6. Archived

At the Archived stage, your Project is either fully completed or it failed to receive a majority vote at any voting phase. At this stage, although you can no longer act on your Project, Participants will still be able to comment on it.

Milestones

Milestones are meant for you to demonstrate the current progress on your Project. You can mark a Milestone as “completed” at any time your Project is at the Ongoing stage. At the Ongoing stage, you are also able to increase the number of Milestones in your Project and also amend the funding you initially requested for the subsequent Milestones. For the launch of DigixDAO, each Project can have a minimum of 1 Milestone and a maximum of 5 Milestones.

Keep in mind that Proposers may request a large amount of funds for a Project that contains only one Milestone and thereafter abandon their Project without doing any work. For example, assuming a Proposer requests for the maximum amount of 300 ETH for a Project and the breakdown of his Milestone funding is as follows:

• First Milestone: 290 ETH
• Final Reward: 10 ETH

Moderators and Participants should be wary of this Proposer as there is a strong likelihood that the Proposer could abandon his Project after receiving the 290 ETH. As there is no easy way to prevent this situation, we would depend on the comments and votes of Moderators and Participants to mitigate this situation.

An example of a sensible funding schedule of a Project with 2 Milestones could be as follows:

• First Milestone: 50 ETH
• Second Milestone: 100 ETH
• Final Reward: 150 ETH

With this funding schedule, Participants are able to review the work completed by the Proposer at the Review stage before granting additional funds to the Proposer.

Claiming Voting Results

As a Proposer, you are able to view the results of the voting round after each voting period has passed. However, you will have to manually claim your voting results to mark the end of the voting round. You have a deadline of 7 days to claim your voting results and is necessary for both Moderator voting and Participant voting.

Claiming voting results is crucial for a Proposer — if you do not do so, your Project would be deemed as rejected even if it received a majority vote.

PRL Intervention

Where the PRL finds that your Project goes against the Vision, Mission and Guiding Principles of DigixDAO, is contrary to the Terms of DigixDAO or may raise any other legal and regulatory concerns, the PRL is able to mark your Project as illegal or invalid and stop any further funding for the Project.

We always appreciate feedback from the community on any angles, so do drop us a note or join our channels below:

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