Author: Community Treasury Board; Board member Ajit Tripathi posting on CTB's behalf

The proposal introduces the first Season Strategy for the Community Grants Program by the Community Treasury Board. The first season of community grants will distribute up to 35M MATIC to builders in the Polygon network. The first season will kick off from Jun11, 2024, and end after three months on Aug 31, 2024.

The 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.

To make the grants program impactful and focused, the CTB has proposed the following Season Strategy, which dictates the overall direction and intent of the CTB in funding projects in some key categories.

After researching the current market landscape, and deliberating amongst each other, the CTB has zeroed in on Consumer Crypto as the key theme for the program. In addition to this, the CTB may during the course of the season, and based on community’s feedback introduce new themes/verticals/GA’s for better grant outcomes

While Crypto Consumer is a priority for CTB, to take into account the projects seeking support from Polygon Network, CTB has also decided to back teams building long tail dApps, Infra, and Public Goods as Polygon is committed to funding the growth of open source technologies for the growth of the larger Ethereum Network.

To conclude, we as the CTB, believe grant programs need focused effort, and our decision to focus on Consumer Crypto denotes our commitment to fund projects that serve and onboard millions of potential users to crypto

The CTB will distribute funds from the Community Treasury based on a transparent and objective season strategy. A season is defined as a collection of ideas, or themes supported by external experts to drive impactful outcomes.

A typical season will be three months long, and feature specific verticals, themes, and partners who will help the CTB execute the program, and achieve its goals.

• Consumer Crypto

• General Grants

Note: The Consumer Crypto theme will be managed and run by external Grant Allocators who submitted a specific proposal detailing their experience and fit for a given theme to the CTB.. For the first season, Thrive Protocol has been approved and appointed by the Community Treasury Board as the first Grant Allocator. The GA will be solely responsible for shortlisting, reviewing, and deploying grants on behalf of the CTB. After the season, Thrive Protocol will submit an impact report to the Community Treasury Board.. PFP-2 details the specifics of GA engagement by the CTB.

Consumer crypto continues to grow at both the infra and app layers. The six trends driving consumer crypto adoption are virtual beings, decentralized social, Onchain gaming, NFTs, Content Co-creation, and Digital/Physical intersection.

Virtual beings or AI agents have use cases across nearly every sector including DeFi, Social, and Gaming. Implementing these models into products are still in the early phases, but every company is developing an AI strategy. Crypto rails and primitives, such as NFTs, provide infra for virtual beings to proliferate and act autonomously.

Virtual beings, sometimes referred to as AI agents, are onchain entities that can autonomously interact with social, DeFi, or generally any application. The acceptance and adoption of virtual beings are only being accelerated by the growing usage of large language models (LLMs) such as ChatGPT.

Example: Within crypto, virtual beings can be represented as NFTs. Historically NFTs have lacked the ability to develop identity and own assets themselves, but new standards like ERC-6551 give NFTs the ability to own other NFTs, such as a Lens profile, accumulate and trade tokens, and earn reputation from their onchain activities.

Decentralized social opens up each layer of the application stack. Users own the content they create, and have more flexible monetization options. Apps can tap into the shared data layer to side step the cold start problem. New monetization models are unlocked with decentralized social, ultimately creating new base layer for app value flows. Mobile-first is table stakes at this point for social platforms and applications. Many apps now building on top of Lens or Farcaster have launched mobile apps, but mobile wallet interactions still somewhat negatively impact the user experience (UX).

Example: Lens, Farcaster, and CyberConnect are some of the leading social graph layers. Lens, for example, leverages. Bundlr and Arweave for its data storage layer for posts. Each of the social graph layers now has a plethora of applications building on top of them at this point, ranging from Twitter-style apps to decentralized YouTube.

Autonomous worlds break apart the traditional gaming stack. Game state and logic are fully on-chain, allowing assets to be composable, and interoperable across a variety of front ends. Onchain games, also known as autonomous worlds, represent a completely new architectural shift in the gaming stack. Autonomous worlds have their game state and logic fully onchain, allowing developers and users to take full advantage of the open and composable nature of blockchain infrastructure.

Example:

The infrastructure layer for autonomous worlds is led by Lattice’s MUD engine, Dojo, Curio’s Keystone OPchain, and Argus Labs’ World Engine. Each has its own design tradeoffs but shares the common goal of bringing autonomous worlds to life.

NFT Financialization allows NFT users to use their assets in financial markets. The primary use case has been taking leverage against NFTs. The evolution of NFTs could change how these markets function.

Example:

The core growth driver of NFT financialization continues to be the growing importance of digital items in society, as well as the efforts to develop the underlying IP of NFTs. For example, Pudgy Penguins have an active strategy to drive value to the brand, which, in theory, will create more liquidity and value for the core NFTs.

New platforms for IP creation have been developed for creators across many different mediums. A major theme has emerged around co-creation and driving community engagement. Co-creation will drive increased community engagement, and new ownership opportunities.

Example:

Projects like StoryCo and Storyverse enable creators (e.g., writers, film producers, and IP holders) to co-create content with each other. Platforms like Mad Realities encourage viewer participation, via the MAD token, to influence the direction of content production.

Physical goods outfitted with specific chips allow for these products to gain life onchain. These items effectively become equipped with a crypto wallet, allowing them to develop their own onchain history and meaning.

Example:

Now, projects like IYK and Kong can be used to supercharge physical items by attaching specially-made NFC chips to them. These chips effectively give physical goods a crypto wallet. Creators can leverage this as a new medium of interaction and engagement with their audiences. For example, musicians can sell chipped merchandise at their events, allowing fans to get corresponding digital items and for artists to connect digitally with fans who purchase those goods.

By incorporating web3 game mechanics into commercial activities, businesses can create a participatory economy where consumers are active stakeholders rather than passive participants. Some examples of mechanisms used include: Rewards/Loyalty programs, NFTs as product authentication/activation, and automation of the sales experience through the use of smart contracts.

Example:

Nike’s rewards/loyalty program. Activated fashion such as MNTGE, 9dcc, Uniqly, and Arianee. Tokenized RWA platforms like Courtyard and Arena Club.

“Scenecoins are “community-first memecoins” that “launch as a Schelling point for distributed communities with shared values and missions.”” This is the anticipated progression of turning culture into currency. As of now memecoins typically launch first then a community is created around them. Scenecoins are already developed communities or creators creating a memecoin.

Example:

Memecoin ecosystems like $DEGEN and $BONSAI, and dapps such as p00ls.io. |

Eligibility Criteria:

• Any project building in the consumer crypto landscape

• Looking to contribute long-term to the development of Polygon

Note: Grant Allocators will decide the per project allocation based on their review, and selection procedures

The General Grants initiative aims to serve the long tail of builders, founders, and developers to submit their unique ideas and projects to secure support through the community grants program.

While there’s no hard-pressed rule against funding any specific vertical or project, the below list provides guidance to projects based on what we find most impactful to fund:

• Dev tooling & libraries

• Protocol Infra

• Any decentralized Applications across use cases For e.g. DePIN, Gaming, RWA, AI, Infra & Public Goods etc.

Eligibility details:

• Any project building in the long tail of crypto

• Looking to contribute long-term to the development of Polygon

Program grant details:

• Grant type: Milestone-based

• Grant cap: Up to 50K POL per project

Note: Grantees are free to submit their proposal with any grant amount they desire to secure; however, all grants above 50K POL will invite special scrutiny & diligence and will take a longer time frame to evaluate

Community grants are an ongoing program. As such, there is no end date for projects seeking grant funding to submit their proposals for CTB review and approval.

However, for operational purposes, the below table provides broad guidance around specific activities, and estimated duration or dates.

Applicants or grantees submitting their applications in June will reasonably expect a 4-week turnaround on their application status. The results will be announced on the last date of the month, June 30, 2024. The process repeats month after month until the end of the season.

Author: Community Treasury Board; Board member Ajit Tripathi posting on CTB's behalf

The proposal introduces the first Season Strategy for the Community Grants Program by the Community Treasury Board. The first season of community grants will distribute up to 35M MATIC to builders in the Polygon network. The first season will kick off from Jun11, 2024, and end after three months on Aug 31, 2024.

The 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.

To make the grants program impactful and focused, the CTB has proposed the following Season Strategy, which dictates the overall direction and intent of the CTB in funding projects in some key categories.

After researching the current market landscape, and deliberating amongst each other, the CTB has zeroed in on Consumer Crypto as the key theme for the program. In addition to this, the CTB may during the course of the season, and based on community’s feedback introduce new themes/verticals/GA’s for better grant outcomes

While Crypto Consumer is a priority for CTB, to take into account the projects seeking support from Polygon Network, CTB has also decided to back teams building long tail dApps, Infra, and Public Goods as Polygon is committed to funding the growth of open source technologies for the growth of the larger Ethereum Network.

To conclude, we as the CTB, believe grant programs need focused effort, and our decision to focus on Consumer Crypto denotes our commitment to fund projects that serve and onboard millions of potential users to crypto

The CTB will distribute funds from the Community Treasury based on a transparent and objective season strategy. A season is defined as a collection of ideas, or themes supported by external experts to drive impactful outcomes.

A typical season will be three months long, and feature specific verticals, themes, and partners who will help the CTB execute the program, and achieve its goals.

• Consumer Crypto

• General Grants

Note: The Consumer Crypto theme will be managed and run by external Grant Allocators who submitted a specific proposal detailing their experience and fit for a given theme to the CTB.. For the first season, Thrive Protocol has been approved and appointed by the Community Treasury Board as the first Grant Allocator. The GA will be solely responsible for shortlisting, reviewing, and deploying grants on behalf of the CTB. After the season, Thrive Protocol will submit an impact report to the Community Treasury Board.. PFP-2 details the specifics of GA engagement by the CTB.

Consumer crypto continues to grow at both the infra and app layers. The six trends driving consumer crypto adoption are virtual beings, decentralized social, Onchain gaming, NFTs, Content Co-creation, and Digital/Physical intersection.

Virtual beings or AI agents have use cases across nearly every sector including DeFi, Social, and Gaming. Implementing these models into products are still in the early phases, but every company is developing an AI strategy. Crypto rails and primitives, such as NFTs, provide infra for virtual beings to proliferate and act autonomously.

Virtual beings, sometimes referred to as AI agents, are onchain entities that can autonomously interact with social, DeFi, or generally any application. The acceptance and adoption of virtual beings are only being accelerated by the growing usage of large language models (LLMs) such as ChatGPT.

Example: Within crypto, virtual beings can be represented as NFTs. Historically NFTs have lacked the ability to develop identity and own assets themselves, but new standards like ERC-6551 give NFTs the ability to own other NFTs, such as a Lens profile, accumulate and trade tokens, and earn reputation from their onchain activities.

Decentralized social opens up each layer of the application stack. Users own the content they create, and have more flexible monetization options. Apps can tap into the shared data layer to side step the cold start problem. New monetization models are unlocked with decentralized social, ultimately creating new base layer for app value flows. Mobile-first is table stakes at this point for social platforms and applications. Many apps now building on top of Lens or Farcaster have launched mobile apps, but mobile wallet interactions still somewhat negatively impact the user experience (UX).

Example: Lens, Farcaster, and CyberConnect are some of the leading social graph layers. Lens, for example, leverages. Bundlr and Arweave for its data storage layer for posts. Each of the social graph layers now has a plethora of applications building on top of them at this point, ranging from Twitter-style apps to decentralized YouTube.

Autonomous worlds break apart the traditional gaming stack. Game state and logic are fully on-chain, allowing assets to be composable, and interoperable across a variety of front ends. Onchain games, also known as autonomous worlds, represent a completely new architectural shift in the gaming stack. Autonomous worlds have their game state and logic fully onchain, allowing developers and users to take full advantage of the open and composable nature of blockchain infrastructure.

Example:

The infrastructure layer for autonomous worlds is led by Lattice’s MUD engine, Dojo, Curio’s Keystone OPchain, and Argus Labs’ World Engine. Each has its own design tradeoffs but shares the common goal of bringing autonomous worlds to life.

NFT Financialization allows NFT users to use their assets in financial markets. The primary use case has been taking leverage against NFTs. The evolution of NFTs could change how these markets function.

Example:

The core growth driver of NFT financialization continues to be the growing importance of digital items in society, as well as the efforts to develop the underlying IP of NFTs. For example, Pudgy Penguins have an active strategy to drive value to the brand, which, in theory, will create more liquidity and value for the core NFTs.

New platforms for IP creation have been developed for creators across many different mediums. A major theme has emerged around co-creation and driving community engagement. Co-creation will drive increased community engagement, and new ownership opportunities.

Example:

Projects like StoryCo and Storyverse enable creators (e.g., writers, film producers, and IP holders) to co-create content with each other. Platforms like Mad Realities encourage viewer participation, via the MAD token, to influence the direction of content production.

Physical goods outfitted with specific chips allow for these products to gain life onchain. These items effectively become equipped with a crypto wallet, allowing them to develop their own onchain history and meaning.

Example:

Now, projects like IYK and Kong can be used to supercharge physical items by attaching specially-made NFC chips to them. These chips effectively give physical goods a crypto wallet. Creators can leverage this as a new medium of interaction and engagement with their audiences. For example, musicians can sell chipped merchandise at their events, allowing fans to get corresponding digital items and for artists to connect digitally with fans who purchase those goods.

By incorporating web3 game mechanics into commercial activities, businesses can create a participatory economy where consumers are active stakeholders rather than passive participants. Some examples of mechanisms used include: Rewards/Loyalty programs, NFTs as product authentication/activation, and automation of the sales experience through the use of smart contracts.

Example:

Nike’s rewards/loyalty program. Activated fashion such as MNTGE, 9dcc, Uniqly, and Arianee. Tokenized RWA platforms like Courtyard and Arena Club.

“Scenecoins are “community-first memecoins” that “launch as a Schelling point for distributed communities with shared values and missions.”” This is the anticipated progression of turning culture into currency. As of now memecoins typically launch first then a community is created around them. Scenecoins are already developed communities or creators creating a memecoin.

Example:

Memecoin ecosystems like $DEGEN and $BONSAI, and dapps such as p00ls.io. |

Eligibility Criteria:

• Any project building in the consumer crypto landscape

• Looking to contribute long-term to the development of Polygon

Note: Grant Allocators will decide the per project allocation based on their review, and selection procedures

The General Grants initiative aims to serve the long tail of builders, founders, and developers to submit their unique ideas and projects to secure support through the community grants program.

While there’s no hard-pressed rule against funding any specific vertical or project, the below list provides guidance to projects based on what we find most impactful to fund:

• Dev tooling & libraries

• Protocol Infra

• Any decentralized Applications across use cases For e.g. DePIN, Gaming, RWA, AI, Infra & Public Goods etc.

Eligibility details:

• Any project building in the long tail of crypto

• Looking to contribute long-term to the development of Polygon

Program grant details:

• Grant type: Milestone-based

• Grant cap: Up to 50K POL per project

Note: Grantees are free to submit their proposal with any grant amount they desire to secure; however, all grants above 50K POL will invite special scrutiny & diligence and will take a longer time frame to evaluate

Community grants are an ongoing program. As such, there is no end date for projects seeking grant funding to submit their proposals for CTB review and approval.

However, for operational purposes, the below table provides broad guidance around specific activities, and estimated duration or dates.

Applicants or grantees submitting their applications in June will reasonably expect a 4-week turnaround on their application status. The results will be announced on the last date of the month, June 30, 2024. The process repeats month after month until the end of the season.