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# Public Goods Funding | ||
Namada funds public goods by regularly minting NAM tokens into an on-chain PGF account and allocating certain amounts for certain entities. | ||
The inflation rate is a constant parameter `pgf_inflation_rate` that is mutable by governance. | ||
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The entities that receive such funding are approved either via governance or by a multisignature account known as a "public goods steward". | ||
Stewards must also be elected with a governance proposal and are meant to be trusted authorities for responsibly identifying good candidates to receive public goods funding. | ||
As such, a steward may submit a funding proposal that does not need to receive any yay votes to be passed, though a community veto mechanism does exist. | ||
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To incentivize high-impact authorities to seek stewardship, a steward also receives inflationary NAM tokens at a rate dictated by the constant parameter that is chosen by governance. | ||
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See the specs about the public goods funding [here](https://specs.namada.net/modules/governance/public-goods-funding.html) for more details. | ||
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This documentation will cover: | ||
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1. [Becoming a steward (and other rules)](./public-goods-stewards/electing.mdx). | ||
2. [How to submit a public goods funding proposal](./public-goods-stewards/proposing.mdx) | ||
3. [How to vote on steward elections](./public-goods-stewards/voting.mdx#voting-for-stewards) as well as [public goods funding proposals](./public-goods-stewards/voting.mdx#voting-for-pgf-proposals). |
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{ | ||
"stewards": "Stewards", | ||
"funding": "PGF funding proposals" | ||
} |
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packages/docs/pages/users/public-goods-funding/funding.mdx
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import { Callout } from 'nextra-theme-docs' | ||
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# Proposing funding | ||
Namada has two different types of public goods funding: continuous and retroative. | ||
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Recipients of continuous PGF receive tokens at the beginning of every epoch when inflation is minted. | ||
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Recipients of retroactive PGF receive tokens in a one-time transfer upon the successful execution of such a governance proposal, which also would occur at the beginning of an epoch. | ||
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In both cases of PGF, the recipient addresses can be either native Namada addresses or addresses on other IBC-compatible blockchains that have open channels with Namada. | ||
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## Submitting the funding proposal | ||
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A funding proposal can be submitted with the following CLI command: | ||
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```shell copy | ||
namada client init-proposal \ | ||
--pgf-funding \ | ||
--data-path funding_proposal.json | ||
``` | ||
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The structure of `funding_proposal.json` is demonstrated with the following example: | ||
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```json | ||
{ | ||
"proposal": { | ||
"content": { | ||
"title": "Fund Jonny's cryptography PhD", | ||
"authors": "[email protected]", | ||
"discussions-to": "forum.namada.net/t/jonny-cryptography/1", | ||
"created": "2024-01-01T00:00:01Z", | ||
"license": "MIT", | ||
"abstract": "Fund Jonny's cryptography PhD focusing on elliptic curves.", | ||
"motivation": "Jonny is the world's most promising cryptography prodigy.", | ||
"details": "It is important for humanity to support Jonny in his cryptography research.", | ||
"author": "tnam1v4ehgw36g4pyg3j9x3qnjd3cxgmyz3fk8qcrys3hxdp5xwfnx3zyxsj9xgunxsfjg5u5xvzyzrrqtn", | ||
"voting_start_epoch": 3, | ||
"voting_end_epoch": 6, | ||
"activation_epoch": 12 | ||
}, | ||
"data": { | ||
"continuous": [ | ||
{ | ||
"Internal": { | ||
"amount": "1000", | ||
"target": "tnam1v4ehgw36g4pyg3j9x3qnjd3cxgmyz3fk8qcrys3hxdp5xwfnx3zyxsj9xgunxsfjg5u5xvzyzaaaaa" | ||
} | ||
} | ||
], | ||
"retro": [ | ||
{ | ||
"Internal": { | ||
"amount": "1500", | ||
"target": "tnam1v4ehgw36g4pyg3j9x3qnjd3cxgmyz3fk8qcrys3hxdp5xwfnx3zyxsj9xgunxsfjg5u5xvzyzaaaaa" | ||
} | ||
} | ||
] | ||
} | ||
} | ||
``` | ||
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In the `"data"` section, both the `"continuous"` and `"retro"` fields contain a list of PGF targets. | ||
The `"Internal"` keyword is used to indicate on-chain funding in the native token, whereas for funding over IBC to another chain, the `"IBC"` keyword would be used. | ||
The attributes of an `"IBC"` object look like [this](../governance/proposal-types.mdx#ibc-pgf-proposals). | ||
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The value in the `"amount"` attribute is the raw token amount in that token's denomination. | ||
So in the example above for a PGF funding in the native NAM token, the amount `1000` corresponds to `0.001 NAM`, since the Namada token denomination is `6`. | ||
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## Voting on the funding proposal | ||
Voting on the funding proposal is done the same way as any other normal proposal, as described [here](../governance/governance-actions.mdx#vote-on-a-proposal). | ||
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If a funding proposal was submitted by a PGF steward, then voting on the proposal is not needed, as a steward funding proposal requires no `yay` votes to pass. | ||
However, this kind of funding proposal can be vetoed by the community if the proposal receives more `nay` votes than `1/3` of the total active voting power. | ||
Additionally, if the proposal receives at least as many `nay` votes as `2/3` of the total active voting power, then the steward account will be removed from the set of PGF stewards. |
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import { Callout } from 'nextra-theme-docs' | ||
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# Stewards | ||
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A public goods steward can consist of an arbitrary number of people or can be a single person. | ||
The only requirement is that the steward's multisignature account is elected by the community through a governance proposal. | ||
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For this reason, the first step to becoming a steward is to create a multisignature account. | ||
This can be done using the commands found in the [multisignature documentation](../transparent-accounts/multisignature.mdx). | ||
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No more than `maximum_number_of_stewards` are allowed to exist at any given time; this parameter that controls the upper bound on stewards can be changed via governance. | ||
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## Becoming a steward | ||
Once the multisig account is created, the steward can submit a governance proposal to nominate themselves for election as a steward. | ||
A steward proposal to elect a multisig account may only be submitted by that same account. | ||
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### Submitting a steward governance proposal | ||
A special governance proposal must be submitted in order to elect a steward. This is done with the following command: | ||
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```shell copy | ||
namadac init-proposal \ | ||
--pgf-stewards \ | ||
--data-path $PATH_TO/steward_proposal.json | ||
``` | ||
where `$PATH_TO/steward_proposal.json` is the path to the `steward_proposal.json` file. | ||
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The structure of the proposal `steward_proposal.json` looks like a default proposal but with an altered `"data"` section: | ||
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```json | ||
{ | ||
"proposal" :{ | ||
"content": { | ||
"title": "Stewie for Steward", | ||
"authors": "[email protected]", | ||
"discussions-to": "forum.namada.net/t/stewies-manifesto/1", | ||
"created": "2024-01-01T00:00:01Z", | ||
"license": "MIT", | ||
"abstract": "Stewie is an expert in zero-knowledge cryptography that would like to identify influential cryptographers to receive funding to continue their work.", | ||
"motivation": "Funding cryptography research will help Namada and other blockchain projects innovate and flourish.", | ||
"details": "We will describe here certain areas of ZK research that should receive funding." | ||
}, | ||
"author": "atestatest1v4ehgw36g4pyg3j9x3qnjd3cxgmyz3fk8qcrys3hxdp5xwfnx3zyxsj9xgunxsfjg5u5xvzyzrrqtn", | ||
"voting_start_epoch": 3, | ||
"voting_end_epoch": 6, | ||
"activation_epoch": 12 | ||
}, | ||
"data" : { | ||
"add" : "atestatest1v4ehgw36g4pyg3j9x3qnjd3cxgmyz3fk8qcrys3hxdp5xwfnx3zyxsj9xgunxsfjg5u5xvzyzrrqtn", | ||
"remove": [] | ||
} | ||
} | ||
``` | ||
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The `"data"` field contains the structure that allows either the addition or removal of | ||
a multisignature account from the list of stewards. In this case, the `"action"` is `"add"`, | ||
and the `"address"` is the address of the multisignature account that will be elected as a steward. | ||
In this case, the proposal does not call to remove any stewards, and so this field is an empty list `[]`. | ||
A steward proposal may propose to remove more than one steward at a time. | ||
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<Callout> | ||
In the motivation and abstract field, it is important to make clear what type of | ||
public goods funding the steward will be focusing on. | ||
The *areas of public goods funding* can be found in the | ||
[public goods funding specs](https://specs.namada.net/modules/governance/public-goods-funding.html#funding-focuses). | ||
</Callout> | ||
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### Becoming elected | ||
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Once the proposal is submitted, it will be voted on by the community (see [voting](./voting.mdx)) like any other governance proposal. | ||
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Once a multisignature account is elected (which occurs at the beginning of the `activation_epoch`), it will be able to submit proposals to the public goods funding pool (see [submitting proposals](./proposing.mdx#proposing-funding)). | ||
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## Removing stewards | ||
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There are 4 ways that a steward can lose their stewardship: | ||
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#### 1. Resign as a steward | ||
A steward account may resign their position at any point. Through the CLI it can be done with the command: | ||
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```shell copy | ||
namadac resign-steward --steward $STEWARD_ADDRESS | ||
``` | ||
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#### 2. Funding proposal veto with removal | ||
If a steward submits a funding proposal that receives at least as many `nay` votes as `2/3` of the total active voting power, then the steward is immediately removed in addition to the veto of the proposal. | ||
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#### 3. Removal through a governance proposal | ||
A steward may be removed by a steward governance proposal as described [above](./stewards.mdx#submitting-a-steward-governance-proposal). | ||
For removal, the `"remove"` list within the `"data"` field of the json file would contain the relevant steward address. | ||
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#### 4. They reach the end of their term | ||
TODO: are stewards elected for a certain term? | ||
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## Steward inflation | ||
A PGF steward also receives inflationary NAM tokens at the beginning of every epoch. | ||
The steward inflation rate is a constant parameter `stewards_inflation_rate` that can be changed via governance. | ||
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Each PGF steward receives an inflation amount according to `stewards_inflation_rate`; this amount is given to each steward and not divided among them. | ||
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#### Steward's reward distribution | ||
A steward may also designate certain portions of its steward inflation to be minted to other addresses. | ||
This distribution can be set with the following steward commission CLI command: | ||
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```shell copy | ||
namadac update-steward-rewards --steward $STEWARD_ADDRESS --data-path $PATH_TO/steward_rewards.json | ||
``` | ||
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The file `steward_rewards.json` contains the desired reward distribution with the structure: | ||
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```json | ||
{ | ||
"reward_distribution": { | ||
"tnam...aaa": "0.3", | ||
"tnam...bbb": "0.3", | ||
"tnam...ccc": "0.4" | ||
} | ||
} | ||
``` |
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