Decentraland DAO: Transition to a New Structure and Strategic Development

This information is based on discussions presented at the Decentraland DAO Town Hall (Streamed in-World) on December 12, 2024.

Grant Program Transition

The Decentraland Grant Program is being phased out and will be replaced by a new structure featuring a council and an executive body. These changes aim to establish a more strategic and sustainable approach to project funding, aligning more closely with the DAO’s mission and vision, while ensuring the platform’s long-term growth and sustainability.

Dissolution of the Grant Super Squad

The Grant Super Squad, which has been overseeing the grant program, will cease operations by the end of 2024. Most remaining grants are expected to conclude within this timeframe. Team members Pablo and Fifi shared mixed emotions, expressing both sadness at the closure and gratitude for having contributed to the DAO as active community members.

Role of the New Council

The newly established Decentraland Council will serve as the central body for the DAO’s strategic governance. Its primary responsibilities will include:

• Defining the strategic direction for the DAO.
• Setting guidelines for funding projects.
• Overseeing the executive body in implementing the strategy.

The council will aim to balance the need for clear strategy and accountability with the desire to support a wide range of projects and initiatives.

New Funding Structure

While specific funding mechanisms within the new structure are yet to be finalized, initial discussions have explored the following proposals:

• Establishing an annual budget and allocating funds to projects aligned with the DAO’s strategic objectives.
• Streamlining the funding process for smaller projects, as the current bidding and tendering system is seen as overly complex.
• Developing compensation mechanisms for active community members, including content creators and developers who drive traffic and engagement. This could involve direct compensation, subsidizing operational costs, or assisting in monetizing their contributions.

Prospects for 2025

The year 2025 is expected to be a pivotal phase for Decentraland DAO’s development. Key milestones include:

Fully Operational Council

The council will formalize funding mechanisms and ensure that supported projects align with the DAO’s strategic goals.

Completion of Ethereum Accumulation Strategy

Initiated in 2024, the Ethereum accumulation strategy is expected to conclude in Q1 2025. The council will evaluate whether to continue or adjust this initiative based on its outcomes.

Content Creator Engagement

Efforts to attract and retain content creators will remain a high priority. An engaged and active community is crucial to Decentraland’s growth.

Long-term Goals

The transition from the grant program to the new structure is designed to create a sustainable funding mechanism better suited to the DAO’s objectives. This structure aims to enhance community engagement, support contributors, and foster conditions for the platform’s long-term growth.

The Decentraland Council will focus on maintaining transparency and strategic alignment while fostering a diverse range of initiatives and projects. These improvements are expected to solidify Decentraland’s position as a leading platform in the decentralized virtual world space.

Opportunities for Funding in 2025
The new funding structure presents significant opportunities for securing financial support from the DAO in 2025:

• Alignment with Strategic Objectives
  Projects that align with the DAO’s strategic priorities, including community engagement, technological advancements, and ecosystem growth, are likely to receive funding.
• Flexible Support for Contributors
  Developers, creators, and other contributors bringing measurable value to the ecosystem can benefit from streamlined funding processes, operational subsidies, or monetization assistance.
• Innovation and Ecosystem Expansion
  Innovative projects with the potential to expand Decentraland’s ecosystem or attract new users will be prioritized.

By adapting to this new structure, potential contributors can align their proposals with the DAO’s strategic vision, increasing their chances of securing support.