The Tezos Foundation has given funds to the teams behind the StakerDAO project, can you expand on the reasons behind this grant and how their project will benefit the Tezos ecosystem?
StakerDAO is part of a global strategy of adoption/collaboration that the Tezos Foundation aims to build for its mid-long term, in line with building products on Tezos blockchain using FA1.2 tokens.
Several VC folks have observed that the excessive baking by the foundation which dilutes the proportional return of other bakers/delegators is a red flag and turns potential new ecosystem participants away. If there was an on chain referendum that resulted in consensus that the foundation should stop baking (decentralization), would the foundation turn their bakers off?
When the Foundation first started baking, it was an important factor to ensure the stability of the chain. Now, we are doing ongoing work and having ongoing discussions to determine how tez (Tezos tokens) should be used and how the Foundation should approach baking moving forward. Additionally, in a PoS system, the primary incentive to bake is to retain one’s proportionate share of the total money supply. Baking in Tezos directly transfers ownership from those who participate to those who don’t. The more stake that bakes, the less the rewards will be, but everyone still retains their proportionate share of the total money supply. So while rewards may go down as a result of TF baking, everyone still retains their proportionate share of the total money supply. In any case, all Foundation baking rewards will be distributed back to the ecosystem to advance our mission to support the long-term success of the Tezos project.
Is the Tezos Foundation actively seeking grant applications pertaining to Tezos based defi decentralized-apps? What sorts of dapps would The Foundation like to see on Tezos? Can a developer building a Curve or AAVE analogue on Tezos be the recipient of a grant?
The Tezos Foundation is absolutely seeking grant applications pertaining to Tezos-based dApps, especially those in the realm of DeFi. In addition to the multiple grants that we have given to DeFi projects to build out their products, including Dexter and QuipuSwap, we believe that our strategic focus on supporting teams building tooling and infrastructure to make it easier and more secure to build on Tezos will lay the groundwork for the emerging Tezos DeFi ecosystem. The recent Tezos + CoinList Hackathon also included a number of interesting DeFi proposals including DexAuction, Blockly Tezos, and AccessStaking. We continue to be open to funding additional research and development to improve the core protocol to enable DeFi applications to be built safely and efficiently on Tezos, and to funding key on-chain DeFi public goods. With regards to Curve or AAVE analogue, we are happy to review on a case-by-case basis. Send us a note at [email protected].
More details on what funding will be available to wallets in the grants process and what specific features are still missing from the ecosystem would be helpful to know going into the next grant round.
As we’ve mentioned before, we have allocated further funds for additional wallets to make Tezos even more accessible to users. We encourage wallet providers to reach out specifically about integrating Tezos and Tezos-based assets to their wallets and are eager to see more grant applications from popular and widely-used wallets, with a preference towards mobile-first wallets. Our upcoming grants platform will include a wishlist of areas in the ecosystem that we would like to more aggressively support.