Introducing the Polygon Community Treasury Board and Governance Framework

tl;dr

• A governance framework for the Polygon Community Treasury includes Polygon Funding Proposals (PFPs) and a Community Treasury Board (CTB) that will serve as a key decision-maker over the Community Treasury 
• Two tracks will be available for projects to apply for treasury funding: direct and through Grant Allocators

The Polygon Community Treasury was announced in the POL whitepaper and further unpacked in the Polygon 2.0: Governance announcement. It defines a protocol-funded support mechanism, dedicated to ensuring the longevity and flourishing of the decentralized Polygon network and its ecosystem. As a first step in operationalizing the Community Treasury, an independent treasury board is being proposed, which will hold key decision-making power over all funds allocated from the Community Treasury.

This post will detail the design and rationale of the proposed system governing the use of those resources, including the Polygon Funding Proposal framework and an independent Community Treasury Board responsible for funding allocation.

This Community Treasury framework marks the first step in the new era of efficient and community-centered ecosystem development underpinned by transparency, strategic foresight, and a commitment to progressive decentralization. Let’s dive into what it looks like, below.

Community Treasury Board

The CTB is at the heart of this growth initiative. 

As an independent governance body, the CTB is tasked with crafting the overarching strategy for the Community Treasury and acting as the ultimate decision-maker over funding deployment. Board members are united by a shared commitment to the values that define Polygon, Ethereum, and the broader Web3 vision: decentralization, self-sovereignty, and open access to the Internet of Value.

CTB members are nominated for their alignment with these core principles, deep understanding of ecosystem dynamics, and ability to discern the potential impact of strategic capital allocation. Together, they possess the knowledge and experience required to steer the Community Treasury toward maximizing its positive influence on the ecosystem.

Their responsibilities span various critical areas, including:

• Track selection and strategy setting: Before each funding cycle, the CTB develops and publishes a strategic plan outlining funding categories and eligibility criteria for both direct and Grant Allocator funding tracks, ensuring a structured and targeted approach.
• Expenditure approval: The CTB holds the authority to green-light all expenditures, ensuring each grant aligns with the strategic vision and goals of the Community Treasury.
• Application review: The CTB will review applications for funding from applicants.
• Post-cycle reporting: Following each funding cycle, the CTB produces detailed reports that offer transparency on decisions made, expenditures incurred, and the overall seasonal impact of direct and Grant Allocator funding tracks. These reports play a crucial role in fostering transparency and accountability within the community.

In the bootstrapping phase, the Polygon Village Grants team will assist the CTB in operationalizing the above responsibilities. Learn more about the Community Treasury Board here: PFP-2.

The initial list of proposed Board members consists of five ecosystem growth experts, committed to the long-term expansion and development of Polygon. Now, here are the proposed members with brief biographies:

Feel free to check out the full proposal here: PFP-3.

Polygon Funding Proposals

The Polygon Funding Proposal (PFP) system is the first iteration of a framework designed to help streamline the funding process and optimize for transparency, accountability, and competition. Polygon Funding Proposals (PFPs) help govern the Community Treasury openly and transparently, describing processes and templates.  In its current form, the framework addresses the CTB and is set to progressively expand.

The lifecycle of a PFP encompasses several stages: proposal, review, acceptance, rejection, and archival. This structured process ensures that each proposal is thoroughly discussed, evaluated, and aligned with the ecosystem's goals before implementation. PFP editors will ensure each proposal meets clarity, structure, and relevance standards.

Learn more here: PFP-1.

Direct and Grant Allocator tracks

In the initial phase, two main funding tracks will be distinguished: direct and Grant Allocator-based. 

The direct funding track is responsible for facilitating submissions from individual projects to the CTB. All prospective grantees will require CTB approval in order to receive funding from the Community Treasury.  More information will be available soon. 

Efficiently distributing millions of POL in support of growing the Polygon network is a tremendous undertaking. Because of this, the CTB will use external grant bodies known as Grant Allocators (GAs). This approach allows for a more diverse and effective distribution of funds. Specialized entities that seek to facilitate the distribution of allocated funds to grantees can apply to become a GA through the upcoming designated process.

A crucial aspect of the GA framework is the emphasis on impact. Each GA must submit an impact report at the end of the funding cycle to the Community Treasury Board, detailing key performance indicators. These reports will consequently be aggregated in the Community Treasury Board post-season summary. 

Growth vehicle activated

The introduction of the PFP framework and CTB marks a significant milestone in moving the Polygon ecosystem toward increased community governance. 

The Polygon community has been engaging in conversations (come share your thoughts!) for over a year around the topology and vision of governance, and it is currently exploring phase two of the Community Treasury governance, which would introduce increased community participation via the CTB and grant allocator programs. 

Join the community as it embarks on this journey to shape the future of Polygon and the broader Web3 landscape. Bring your ideas, your projects, your voice—this is your opportunity to be part of something transformative. 

Let's build it together!

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