Introduction
The purpose of defining the Grants Framework is to
- Accommodate the transition from the current centralized grants processing performed by Business Development (Microgrants/Community grants), Metis Foundation (Direct/Investment/Unicorns grants), P1X (Investment/Incubation grants) to Governance.
- Provide an overview of the grant application process, roles and responsibilities of Metis Foundation, P1X, account managers, grant processing partners, and grant seekers, as well as the importance of grants in achieving strategic objectives.
Overview
The Grant’s strategy revolves around the objectives identified by the Metis Foundation.
Objectives
- TVL/number of active wallets
- Bring builders to the ecosystem - bringing builders to the Metis ecosystem will alow to increase TVL and number of active wallets - main strategic KPIs
- Incentivize “good” behavior
- Participation in governance
- Collaboration between projects in the ecosystem
- Building a community of Key Opinion Leaders (KOL)/ Key Thought Leaders (KTL)
Considerations
- Sustainability
- Grants to particular projects must be time-bound and/or create a net financially positive outcome.
- Capital Efficiency
- Cost and scalability of Grant’s administration (e.g. decentralized milestone verification)
- % of grants that go to projects that (eventually) generate more revenue for the network than the grant
- Grant amount required to get a particular outcome
- Grant amount that go to projects that fail or have little to no benefit
- Additionality
- Would proposed benefit have happened anyhow?
- Attractiveness and Alignment
- How exciting is the opportunity for the right people, not just anybody who wants money?
- For example, the very best developers might not be excited about shilling their project on Gitcoin quadratic rounds, but they might love a grant to get Koris’ help.
- Meanwhile, great marketers might love Gitcoin.
- How well do the different grant programs meet the needs of the people we want to attract?
- The best entrepreneurs may be interested in something other than the ~5-figure grants you can get via Gitcoin. Our incubator and accelerator Portfolio Company P1X (p1xlabs.com) can help with that.
- How easy is it for these people to follow the process compared to other ecosystems?
- How exciting is the opportunity for the right people, not just anybody who wants money?
- Collaboration
- How can we increase the chances that different kinds of builders (e.g. marketers, devs) meet each other and decide to collaborate and coordinate?
- Participation
- Participation addresses the potential risks related to the level and quality of engagement in the grant voting process.
- Low Participation: If there is insufficient participation, qualified projects might fail to achieve the necessary quorum. As a result, these projects may not pass the selection process and consequently, will not receive the grant.
- High Participation: Conversely, high participation from unqualified or malicious participants can skew the voting process. These participants may vote against promising projects or favour less promising ones to ensure that more deserving projects do not pass. This manipulation can lead to qualified projects not receiving the grants they deserve.
- Participation addresses the potential risks related to the level and quality of engagement in the grant voting process.
Strategy
In “A Letter to Metis Community” Metis co-founder Kevin Liu outlines our strategic use cases and pathways to achievement. Our strategy focuses on specific sectors including Meme coin, Games, Real World Assets (RWA), and On-Chain society, targeting builders who are actively contributing to these areas. The approach is designed to maximize value for all participants within the Metis ecosystem, through the following key areas:
Value Generation
Our strategy includes sharing revenue with the community as a fundamental element. This involves:
- Builder Mining: Projects actively contributing to the network through transactions and user engagement will earn Builder Mining Rewards (BMR).
- Sequencing Profits: Stakeholders can earn additional profits by participating in the network’s sequencing processes.
- Endorsed Project Rewards: Participants who endorse successful projects will receive a portion of the builder mining rewards from those projects.
Community Ownership
We aim to foster a strong sense of community ownership and involvement in directing Metis’s future, supporting the upcoming Governance 2.0 initiative.
Enhanced Participation
We are implementing several initiatives to boost community participation and accountability:
- Incentives for Introducers and Endorsers: Reward those who introduce and endorse projects, ensuring accountability for failed projects, which emphasize awareness and responsibility rather than financial restitution.
- Grant Value Based on Endorsements: Align grant values with the level of community endorsement to ensure support for high-quality projects.
- Token Staker Voting Power: Although this is a future addition, we are planning to empower token stakers with voting power to influence grant allocations and governance decisions, reflecting our strategic direction and not immediate operational changes.
This strategy is designed to create a thriving, self-sustaining ecosystem where innovative projects can flourish, and all participants are incentivized to contribute to the network’s success. It serves as a strategic overview, setting a direction that will be refined as our programs and partnerships evolve.
Metis Grants Overview
There are four levels of support that project founders can choose between within the Metis Grants Framework:
Pioneer Grants (VC/Incubator/Accelerator Funding)
Focuses on trailblazing projects that require substantial funding to establish groundbreaking innovations within the Metis ecosystem. Designed for projects that have demonstrated outstanding track records and are ready for significant growth.
These projects receive support from P1X, a Metis Portfolio Company focused on ecosystem acceleration and project incubation.
Navigator Grants (VC/Incubator/Accelerator Funding)
Designed for projects that are charting a course toward significant growth and need support to navigate their expansion within the Metis ecosystem and projects established on other mainnets looking to expand onto Metis. Funding is based on the value already created by their products and tokens.
These projects receive support from P1X.
Voyager Grants
Supports projects that are on a journey to scale, providing the resources needed to reach broader markets and enhance functionality. Targeted at projects that have an MVP (Minimum Viable Product) already proven to be working. These grants help projects scale up and build out full functionality.
Explorer Grants
Targets early-stage projects that are exploring their potential, offering initial funding to build traction and demonstrate value. Intended to help projects build initial traction and demonstrate their capability.
These grants are designed for projects in the early stages of development.
Projects can self-select into any of these levels, but they will be competing with other projects within the same level. Therefore, it is crucial for project founders to choose wisely. Account Managers are available to provide information through community calls, FAQs, and other resources to help them make the best decision.
Roles and Responsibilities
AM/BizDev (Account Managers/Business Development)
Responsible for finding places and communities to promote the grants programs to projects. They play a key role in guiding projects to the appropriate level and partner stream.
Grant Assessment Committee
A cross-functional team of subject matter experts who provide strategic support and make decisions regarding project eligibility for different levels of support (Pioneer/Navigator/Voyager/Explorer).
P1X
P1X (p1xlabs.com), supported by the Metis Foundation, provides targeted support for Level A/B grant requests, focusing on ecosystem acceleration and project incubation.
P1X Grants & Incubation Program is designed to support and incentivize “Fi” related projects that contribute to the Metis ecosystem by providing financial assistance and resources. The goal is to enhance the ecosystem’s value, increase user engagement, and drive innovation in the DeFi, GameFi, SocialFi, and other “Fi” sectors.
Grant Processing Partners
Partners such as Gitcoin and Thrive help decentralize the grants processing by involving the community in filtering out projects that do not meet Metis’ requirements, quality standards, and strategic vision. Specific details on utilizing a particular partner will be made available to the community in the near future.
Grant Communication Committee
This team helps projects navigate the Metis Governance Forum submission process and subsequent Snapshot voting. They ensure that projects receive the necessary support to move through the grant process smoothly.
Grant Processing Flow
Promotion
AM/BizDev teams find communities to promote the grants programs. Projects can submit their initial application using Metis Grant Application form.
Proposal Submission
- Pioneer projects: Exceptional projects with significant progress and potential may be moved to Pioneer grant support for incubator/accelerator funding.
- Navigator projects: Projects established on other mainnets that are looking to expand onto Metis and have demonstrated significant value through their existing products and tokens are qualified for Navigator grant support.
- Voyager projects: Projects that have already demonstrated major progress or have successful Explorer grant results may receive a Voyager grant to scale up. These projects will submit proposals, which will be organized in batches on the Metis Governance Forum. Based on the voting results, projects will qualify for the Voyager grants support.
- Explorer projects: Projects showing initial promise will enter the Explorer grants flow managed by the Grants Processing Partners, receiving early grants to build traction.
Note: For Pioneer/Navigator projects, initial screening and the CEG submission process can occur simultaneously or in any order, as it will not affect the final result.
Continuous Evaluation
Projects are continually assessed to ensure they meet milestones and demonstrate progress. Those that do not meet these criteria may no longer receive support. The Grant Assessment Committee evaluates projects based on demonstrated traction and progress and can suggest increasing the project level based on its advancement.
This structured framework ensures that innovative projects within the Metis ecosystem receive the necessary support to succeed while maintaining high standards and strategic alignment.
Pioneer Grants (over $100K in Metis tokens)
Ideal candidates for Pioneer grants include projects needing support to create a groundbreaking proof of concept before securing venture funding or infrastructure companies operating with proprietary technology.
Pioneer projects are the ones that can closely collaborate with Metis throughout the entire launch process.
Support Provided
- Technical support and financial advice for tokenomics.
- Deep marketing collaboration with Metis’s official social media accounts.
- Support in acquiring initial users from various communities.
- Continuous funding support based on market performance until the launch is completed.
- Approval for Metis EDF (Eco Development Funding) to boost project awareness.
- Assistance in gaining recognition on open-source platforms like Gitcoin.
- Help with listing tokens on major CEXs.
- Additional funding and support based on stage performance, including:
- Further funding as the project achieve milestones.
- Assistance in accessing Metis EDF for exceptional projects.
- Support in securing VC funding for projects that demonstrate excellent performance at different stages.
Navigator Grants (over $50K in Metis tokens)
The ideal candidate for Navigator support is a project established on another mainnet that seeks to expand onto Metis and has already demonstrated significant value through its existing products and tokens.
Support Provided
- Deep marketing collaboration with Metis’s official social media accounts.
- Support in acquiring initial users from various communities.
- Increased funding to expand the scope of tokenomics after a successful launch on Metis.
- Potential approval for Metis EDF to enhance project visibility.
- Additional funding and support based on stage performance, including:
- Further funding as the project achieve milestones.
- Assistance in accessing Metis EDF for exceptional projects.
- Support in securing VC funding for projects that demonstrate excellent performance at different stages.
Voyager Grants (up to $50K in Metis tokens)
The Voyager grants program, previously known as Microgrants or Community Grants, is designed to swiftly and efficiently support innovative projects within the Metis ecosystem. This program offers targeted grants to help projects scale up, focusing on areas such as Deployment, Marketing, and User Acquisition.
Projects can qualify for Voyager grants in two ways:
- Through Explorer Grants: Projects that initially received Explorer grants and demonstrated positive results may be elevated to receive Voyager grants.
- Direct Qualification: Projects that have already demonstrated major traction or progress can directly apply for Voyager grants.
Proposals for Voyager grants are organized into batches on the Metis Governance Forum. Based on the voting results, projects qualify for further support. Continuous evaluation ensures projects meet their milestones and KPIs, with the Grant Assessment Committee suggesting adjustments to project level based on progress.
This structured approach ensures that projects receiving Voyager grants are aligned with the strategic goals and standards of the Metis ecosystem, fostering innovation and tangible contributions.
Target Builders
We aim to support builders with the following:
- Low Entrepreneurial Experience: Talented coders who may lack the business acumen needed to launch a successful project.
- Good Coders, Poor Marketers: Teams with strong technical skills but limited marketing knowledge and resources.
- Innovative Thinkers Needing Financial Support: Creators with groundbreaking ideas that require funding to bring their projects to life.
- Community-Focused Developers: Builders aiming to create applications that enhance community engagement and provide real value to users on the Metis network.
Common Challenges and Solutions
- Limited Resources for Deployment. We provide a Deployment sub-grant to cover initial costs, ensuring that projects can deploy their smart contracts and front end exclusively on Metis without financial barriers.
- Lack of Marketing Expertise. A marketing sub-grant is allocated to help projects create impactful marketing campaigns, leveraging tools like Koris to maximize their reach and engagement.
- User Acquisition Difficulties. User Acquisition sub-grant is issued once initial marketing efforts show results. These sub-grants support further strategies to grow the user base and drive transactions within the Metis ecosystem.
Grant Process Overview
- Initial Grant Request. Projects submit a grant request via the Metis Governance Forum (CEG), outlining their objectives and milestones.
- Milestones Setting. Milestones/KPIs are set based on the submitted information.
- Deployment Stage. Projects that still need to be deployed receive a Deployment Grant. Once they deploy their smart contracts and exclusive front end on Metis, the initial grant is unlocked.
- Marketing Stage. After deployment, a second grant is issued for initial marketing efforts, mandating the use of Koris for campaign execution.
- User Acquisition Stage. Successful marketing campaigns that meet predefined KPIs unlock the final User Acquisition Grant, aiding in further user engagement and retention.
Quality Control and Iterative Funding
- Quality Filter. To guarantee that only high-quality projects receive grants, we have established stricter selection criteria that prioritize technical excellence and innovative potential. This evaluation will be carried out during the grant pre-qualification process by external grant providers.
- Iterative Funding Model. Additional funding may be granted after a successful audit and demonstration of impactful results. This flexible approach ensures rapid scaling and continuous support for promising projects within the Metis ecosystem.
By targeting specific builder archetypes and addressing their unique challenges, the Voyager grants program aims to enhance the quality and impact of projects within the Metis network, ultimately driving increased transactions and user participation.
Support Provided
- General marketing collaboration with Metis’s official social media accounts.
- Further collaboration discussions based on project performance.
Explorer Grants (up to $20K in Metis tokens)
We are combining external grant service providers such as Gitcoin and Thrive to complement their work so our grants program can reach the greater community of people looking for an ecosystem to build their projects.
Another goal for us is to improve the quality of the applications from the grant seekers and our partners using their established processes, which will help us achieve that.
While going through the Explorer grants process, the project team will achieve predefined milestones and present quantifiable results such as building a business case, presentation deck, and so on, so by the time of reaching the Voyager grants sub-process, the team understands the project needs and knows what to ask for in their grant application, which they will submit on the Metis Governance Forum.
Using that pre-grant processing will also enable a greater community of reviewers to audit the project’s ability to deliver on their promises and build some understanding required to make an educated choice while voting for the project in the CEG Batches sub-process.
Support Provided
- General marketing collaboration with Metis’s official social media accounts.
- Further collaboration discussions based on project performance.
Change project level
Project level change can be initiated either by the project (e.g. they think they’re a higher level now) or by recommendation from the AMs.
There is a path for a Voyager grant to evolve into a Navigator or Pioneer grant if the project accomplishes certain key milestones, such as securing a priced investment round or reaching specific growth objectives.
Another example may be that after every Gitcoin round, there will be clear “winners” that can be contacted and recommended to apply to Metis Governance Forum or P1X.
Community Ecosystem Governance (CEG) Batches
Upon passing the grant pre-approval process through external grant providers or if the project believes that it has already demonstrated significant traction/progress, the project’s team’s next step is to submit its proposal on the Metis Governance Forum (https://ceg.vote), followed by the voting on Snapshot (https://snapshot.org/)
If the project passes the voting criteria, it becomes eligible for the Voyager grant.
The CEG Batches program is a key part of our grants process. Planned enhancements (see Enhanced Participation paragraph above) aim to improve efficiency, fairness, and encourage active, responsible participation, aligning incentives with the long-term success and sustainability of projects within the Metis ecosystem.
Role of the Account Manager
In the Metis network, there is a perceived lack of oversight on projects, particularly CEG and partnership projects, which can lead to community disappointment and over-reliance on Metis for marketing, undermining user trust and engagement.
To address these concerns, the role of the Account Manager in supporting the grants process is critical. The Account Manager will be responsible for multiple projects/teams and will work closely with grants processing service providers to ensure the grants process is effective. Additionally, the Account Manager will maintain positive, collaborative relationships with project leaders to ensure smooth communication and quick resolution of problems. They will offer guidance and orientation to applicants, empowering them to choose suitable grants and advance their projects. Acting as a community manager and customer success representative for defined groups or cohorts, they will ensure effective communication and support.
Conclusion
The Metis Grants Framework is designed to catalyze innovation, enhance project quality, and increase engagement within the Metis ecosystem. By targeting builders with low entrepreneurial experience and strong technical skills, the framework addresses critical challenges such as resource constraints, marketing expertise, and user acquisition. Through a structured and iterative funding model, we ensure that only high-quality projects receive support, fostering an environment of continuous growth and improvement. This approach accelerates the deployment and scaling of promising projects and drives increased transactions and user participation, ultimately strengthening the Metis network.