Public Goods Staking: Dora x Axelar

Project Name: DoraHacks/Dora Factory

Description

DoraHacks is the largest web3 developer incentive platform, supporting over 5,000 teams with $50m+ in early stage grant funding since 2014. Dora Factory creates protocols and tech stacks for decentralized governance, empowering open-source communities and decentralized organizations through trailblazing solutions like the Public Good Staking infrastructure.

Date - 01/24/2024

Contact Name - George Pagonis (BD/Investments Analyst @ DoraHacks, Core Contributor @ Dora Factory)

Grant Amount - 8,000,000 $AXL token delegation to our node (2 year term)

Project Description

Dora x Axelar GrantDAO aims to jointly nurture essential public goods and new projects/startups in the Axelar ecosystem by providing grants, hackathon prizes, and incubation/investment opportunities. With sustainable yield generated from the node operated by DoraHacks, the sufficient incentive will be provided to hundreds of new teams building in the Axelar ecosystem. Dora x Axelar GrantDAO will be co-managed by DoraHacks and the Axelar team.

DoraHacks already operate one node in the Axelar ecosystem to help validate the network, however we aim to set up a second Public Goods Staking node where we will use the node proceeds to provide grants/hackathon prize pools to developers and teams building on the Axelar Ecosystem. The aim of the node is to generate rewards from the delegation provided by the Axelar Foundation, and not attract retail stakers to stake with us on that node as it will operate as a Public Goods node.

Ideally, we’ll seek a token delegation from the Axelar Foundation, which will allow us to generate sufficient yield per annum in order to fund various initiatives within the Axelar Ecosystem.

All of the proceeds will be injected into the Dora x Axelar GrantDAO. 70% of the proceeds will go to developers as incentives. 30% will go to Dora GrantDAO covering expenses.

Impact

The rewards generated from the Public Good Staking node run by Dora Factory, will be used to support the growth of the Axelar ecosystem in a sustainable manner. The funding for various developer initiatives, and grants for ecosystem projects will come directly from the node proceeds. The funds will be used as per the request of the Axelar Foundation, as this partnership aims to strengthen the relationship between Dora and Axelar to foster the growth of the Axelar ecosystem. We propose the following methods for reward distribution:

  1. 40% of generated proceeds will be mainly used as prize rewards for Axelar seasonal Hackathons/Grants on [DoraHacks.io] every year.

    From our experience, $100K worth of prize pool can incentivize 90+ teams to join and build in the Axelar ecosystem. Additional proceeds can be channeled to other hackathons, and dev-related events to help promote the Axelar Ecosystem in global developer communities.

    We aim to attract 150+ teams to join the hackathon and curate around 10-15 teams that will play an essential role in the Axelar ecosystem.

  2. 30% of generated proceeds will be used to invest/fund/grant 3+ best projects from the seasonal hackathons on DoraHacks OR crucial public goods in the Axelar Ecosystem. We will work together with the Axelar team to determine which teams they would like to see us further support with not only this funding, but with Dora resources which will help these early stage teams grow into key ecosystem projects.

  3. 30% of generated proceeds will be used as operating expenses, covering fees and hackathon operation. Standard fixed and variable costs include:

  • Machine cost for node operation
  • Devops overhead for validator setup, yearly maintenance, and performance monitoring
  • Operational expenses related to hackathon marketing and community building
  • Product cost for dedicated Axelar portal/landing page on dorahacks.io
  • Business development costs of establishing robust developer pipeline and network of the best Axelar developer teams

Benefit to the Ecosystem:
DoraHacks’ partnership with Axelar aims to enhance the Axelar ecosystem by fostering innovation and development. By hosting hackathons and supporting new projects, the partnership will attract fresh talent and ideas, contributing to the diversity and vitality of the Axelar ecosystem.

Goals, Milestones, & KPIs:
The goal of this partnership and relationship is to host various developer initiatives with the Axelar Foundation, such as hackathons, quadratic funding rounds, grant programs etc. over the course of the delegation agreement using the yield generated from the Public Good Staking Node. We also aim to invest in atleast 2-3 Axelar ecosystem projects who are core contributors to the Axelar ecosystem. The success can be measured by the number of quality submissions in hackathons, the viability of projects developed, and the impact of funded projects on the Axelar ecosystem as a whole.

Timeline and Deliverables:

Year 1 & 2: At a minimum, host two hackathons/developer activations in collaboration with the Axelar foundation per year; conduct multiple Quadratic Funding rounds post hackathon allowing the Axelar community to vote and further fund the teams that they like best; invest in 2-3 Axelar ecosystem projects.

Subsequent Years: Expand the number of hackathons and investments based on the success and feedback of the first year. Work with the Axelar team to improve upon the previous years initiatives in order to further increase developer engagement and dapp development.

Risks:
The unique structure of the partnership with Axelar, where the delegation comes from the foundation, inherently reduces financial risks, as there will be less financial burden on the foundation’s treasury when it comes to hosting and facilitating Developer Initiatives, and supporting ecosystem projects. However, there are small operational risks including lower-than-expected participation in hackathons, difficulties in identifying and nurturing high-potential projects, and the impact of market volatility on development and funding. These risks, while manageable, require careful attention and proactive strategies to ensure the success and sustainability of the initiative. This is why the Dora team works very closely with the Axelar team prior to and during the relationship to ensure that these risks can be carefully managed and avoided.

Motivation:
At DoraHacks, our aspiration to partner with Axelar for Public Good Staking is driven by our shared commitment to enhancing blockchain interoperability and fostering a thriving developer community. Axelar’s groundbreaking work in creating a secure, cross-chain communication network aligns perfectly with our mission to support innovative blockchain ecosystems through our global hackathons and developer engagement initiatives. We believe that by combining Axelar’s technological advancements with our platform and community resources, we can significantly contribute to the growth and sustainability of the Axelar ecosystem, empowering developers to explore new frontiers in cross-chain applications and solutions.

Bio & Past Work:
DoraHacks has a proven track record in supporting blockchain ecosystems, evidenced by successful partnerships and initiatives with networks like Injective, Akash, Archway, BNB Chain, and Aptos to name a few. Past events have attracted significant participation and yielded impactful projects, showcasing DoraHacks’ capacity to energize and cultivate blockchain communities. Over the past 2 years through the Public Good Staking initiative we have helped sustainably fund over 500 teams with $4M+ in grant funding using yield generated from our nodes.

Previous Dora Hackathons:

  • BNB Grant - 1: 216 submissions
  • Solana Hyperdrive Hackathon: 111 submissions
  • ETHDenver IRL: 171 submissions
  • KlayMakers23: 155 submissions
  • Injective Illuminate Hackathon: 109 Submissions
  • Hack-A-Ton: 233 submissions

Dora GrantDAO Case study

INJECTIVE

Injective Foundation delegation: 400,000 INJ tokens (around $14 million)

Hackathons/Developer initiatives

Dora Factory supported the first Injective Hackathon in 2023 by providing all of the $75K Prizepool using node proceeds. The hackathon was a success with many great teams entering the Injective Ecosystem.

Recently completed is the Injective Illuminate Hackathon which DoraHacks proudly supported on our platform. DoraHacks has specifically helped onboard various developers and teams without the DoraHacks community to participate in this Injective Initiative, as there are many cosmos developers within our community who are eligible and have the knowledge to pivot their existing projects, or incorporate/integrate with Injective, making this partnership a great success for the Injective team.

We are also key contributors to the prize pool and Quadratic Funding Matching Pool for this hackathon utilizing the yield generated from the node. The Quadratic Funding round will allow finalist teams that are unsuccessful in being a prize winner, to receiving funding from the Injective community via this QF round, together with earning themselves a share of the matching pool which is being contributed by the Injective team and the yield generated from the Dora Node.

Investments

DoraHacks is finalizing investments into two injective ecosystem projects using 100% yield generated from the node. Both projects are supported and funded by the Injective Foundation, who have also recommended these teams to us and requested us to provide additional funding and incubation support to help these teams become crucial ecosystem projects.

Hydro Protocol: Hydro Protocol is the infrastructure protocol for LSD’s and RWA’s, offering the first and only real yielding assets platform on Injective.

Neptune Finance: Neptune Finance is a collateral-based lending and borrowing platform built using Rust and the Cosmos SDK, a development kit designed for interoperable networks.

APTOS

Aptos Foundation delegation: 16.7 million APT tokens (around $125 million)

Grant Initiative

We are rewarding the best builders in the Aptos ecosystem. We have concluded three rounds of Aptos GrantDAO on DoraHacks, using over 32,000 APT tokens generated from the validator as a partial funding pool.

We have received more than 325 project applications, verified 200+ as official participants, and selected 60 best teams from them as finalists.

Investments

Econia Labs: Econia is a decentralized, open-source, order book trading protocol developed on the Aptos chain. in addition to being a hyperparallel on-chain order book for the Aptos blockchain that aggregates liquidity in the digital marketplace, more importantly, its interface is also a rich API suite on which anyone can build their custom implementation.

MSafe: the first multi-sig, non-custodial digital assets management solution built on Move

1 Like

Hi,

Thank you very much for the detailed proposal! We are reviewing and discussing this internally and will circle back on this.

Thank you!

Thankyou Ben - Looking forward to your feedback here

Thank you for this proposal. We, LunaNova, consider that it could be a great way to resource the promotional work needed to foster development & adoption.

We are impressed by the work DoraHacks is currently doing to incentivise Web3.0 developers which means that you should have the requisite experience to make this a success. Consequently, and given that the GrantDAO would be co-managed by DoraHacks and the Axelar team, we are supportive.

Is the intention to run the node at 100% commission, diverting all staking rewards to fund the DAO?

Hi Mike,

Thanks for your support and kind words!

To answer your questions, yes, the new node we spin up for this purpose would be run at 100% commission similar to all of our other public good staking partnerships. Our intention here is that the Axelar Foundation will provide a delegation (interest free loan essentially) to our node, and all of the rewards will then fund the DAO, which will then be used to fund various developer initiatives and support the Axelar ecosystem as mentioned in the proposal.

The Node that we are currently running for Axelar at 10% commission is for retail stakers to stake with us and earn rewards and to continue supporting the security and decentralisation of the Axelar Network.

I hope this answers your question

That does answer our question - thank you.

1 Like