Executive Summary
This proposal is aimed at creating conditions for the sustainable further development of the ZkFair ecosystem. Due to the fact that in the long term the project will need funds for further development and support, this proposal is aimed at creating a Community Driven Treasury and further actions to fill and manage it.
Community Driven Treasury will allow the accumulation of funds for important initiatives and programs for the further development of the network and the release of updates, as well as popularization of ZkFair network in the crypto community.
Filling principle
The treasury will be filled by taking a portion of the gas fees generated from any transaction on the network. The retention percentage is proposed to be fixed at 20%.
Basic fees should be implemented with basic fee equal to $0,15-0,20 per transaction. Based on market conditions fees should be dynamically adjusted along with the increase in momentary peak loads or by setting higher gas limit and price by user.
Projected incomes with 50 million transaction in a year can be equal to $2-2,5 million in USDC and be higher with growth of transaction amount, as well as with potential increasing of basic fee or retention percentage.
Management principle
For the purposes of treasury management, it is proposed to form a Сouncil, which will include both current representatives of the project team and the largest holders and active community members. The total number of seats on the Сouncil will be equal to 20 people, where 5 places will be taken by current team members, 5 places by top holders of ZKF token and 10 places by people who will be selected by community.
The election of community Сouncil members will take place in two stages:
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nomination of 25 candidates who passed the initial selection by voting for the best candidates based on their questionnaires, and if they fulfill the mandatory condition - to be a holder of ZKF tokens.
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voting for candidates on a Snapshot or other platform, by preliminary staking the ZKF tokens available to the voter.
The top 10 candidates with the most votes will be elected to the supervisory board (Council) as representatives from the community.
The Council will be elected for two years, after which a new Council election will be initiated.
Handling the funds of the treasury
To raise funds, it is proposed to initiate multi-sig smart contract to operate with special address where fees will be accumulated. In order for treasury funds to be used, 15 of the 20 Council members must sign off on the transaction.
Fund funds will be used for initiatives proposed by the community that have been voted on.
Such initiatives may include, but are not limited to:
- grants to teams implementing their projects in the ZkFair network;
- grants as part of a bug hunting campaign;
- payments to programmers who have made a major contribution to the further development of the ecosystem;
- promoting the project by organizing or participating in international conferences and other events.
Conclusion
A Community-Driven Treasury will help the ZkFair ecosystem continually grow and focus more on research and development, and be better prepared for opportunities that will come to market. If this proposal is accepted, the current project team will undertake preparations for the subsequent staking of ZKF tokens and will carry out the necessary integrations with a voting platform such as Snapshot.
The estimates presented in the proposal may be changed either up or down through additional community voting.