As outlined in the Operating Manual, a persistent Council is expected to continue into the next Season unless a Dissolution proposal is approved. As outlined in Guide to Season 9, the Foundation is proposing the dissolution of the Grants Council.
This proposal is not related to the dedication, intentions, or contributions of Council members. We thank all former and current Grants Council members for their contributions to the Collective over the years, theyâve played a very valuable role in our experimentation with decentralized capital allocation.
Name of Council or Board: Grants Council
Current Charter: OPerating-manual/Grants Council Charter v0.1.md at main ¡ ethereum-optimism/OPerating-manual ¡ GitHub
Reason for Dissolution Proposal:
The Grants Council was established under the Council and Board Framework to review and approve grants applications across the Collective. After multiple seasons of operation, the Foundation has assessed that the current structure creates coordination friction without proportional benefit to grantees or the broader ecosystem.
Over the past three years, Optimism has experimented with ways to organize, fund, and align our efforts to build and grow the Superchain. Weâve run experiments evaluating the following:
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Community-led capital allocation aimed at fueling user growth, supporting developer adoption, and winning customers.
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Community contributions via Mission Requests and a public core development process.
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Public goods funding aimed at discovering how Optimism might accurately fund positive impact to support a growing ecosystem.
What weâve learned is that attempting to coordinate a disparate set of teams and organizations results in loss of shared context and less efficient operating structures, and also does not meaningfully increase decentralization where it matters.
There is a lot of governance overhead associated with Councils (running elections, onboarding members, operating budgets, etc.) and we have not found the benefits of the Grants Council to offset those costs. We believe those costs only make sense when there is a strong reason that a function being fulfilled by an independent group of people meaningfully increases decentralization where it matters most (ie. the Security Council.) Weâve also decided to pause Retro Funding, the Foundationâs own community focused grant program, due to a similar cost/benefit analysis.
As a result, the Foundation is proposing the dissolution of the Grants Council.Over time, the Optimism Collective has operated with an increasingly complex Council and Board structure that was designed to distribute governance responsibilities during an earlier phase of the Collectiveâs development. As the Collective matures, the Foundation is proposing a series of changes to reduce structural overhead, streamline decision-making, and improve the speed and quality of grants deployment. Dissolving any non-mission critical Councils, such as the Grants Council, is a necessary step toward that streamlined vision.
The Foundation will continue to make select strategic grants, as necessary, in pursuing the OP Enterprise strategy. As in a public company, the primary role of governance becomes holding the Foundation accountable in making these grants. Unlike the original vision of DAOs, the role of governance will not be to allocate capital directly but rather to ensure those entrusted with this responsibility (the Foundation) perform well.
We thank all members of the Grants Council, from Season 3-9 for your contributions in this ongoing experiment. Youâve played an important role in the evolution of the Collectiveâs understanding of accountable capital allocation.
Action Required
Token House delegates are asked to vote For or Against the formal dissolution of the Grants Council.The Citizensâ House will not vote as it has been temporarily paused.
A âForâ vote approves dissolution of the Grants Council, effective immediately. In the case of an âAgainstâ vote, a prospective Lead would need to propose a budget in the next voting cycle and recruit candidates to nominate themselves to be members. The Foundation will not provide operational support or facilitate coordination with core teams.
Proposals by the Foundation donât require delegate approvals. If this proposal is approved, it will supersede any documentation referencing the Council and the Council will be dissolved effective immediately. The Foundation will work with the Council to complete offboarding, as needed.