@nearweek.near [Posted on DevHub](https://near.social/#/devgovgigs.near/widget/Post?id=1641) ## Idea: ON-CHAIN FUNDING STANDARD # PROPOSAL: NEAR ECOSYSTEM ON-CHAIN FUNDING STANDARD **Tl;DR**: Dear ecosystem, after dialogue with a great number of stakeholders within the ecosystem we have co-created to put forward this proposal for how we can allocate, spend and monitor allocation of funding in a compliant and on-chain verifiable on-chain. **Ask:** We ask for collaboration & feedback on the proposal, working together and understanding requirements of the community is essential to bring more efficient & transparent funding to the NEAR Protocol ecosystem. **Overview of Payment Types & Customised DAO User Interface** This section provides an overview of the various payment types available in the NEAR Ecosystem and details the interface through which DAOs and users interact for mutual benefit: * *Community Triggered Payment*: “**Proposal**” This is a payment type initiated by community members. Users submit a proposal for project funding through the customised DAO user interface. * *Project Triggered Payment*: “**Bounty**” This payment type is triggered by project-related tasks where DAOs publish bounties specifying tasks and associated rewards, utilising the customised user interface to manage the process. * *Off-chain Triggered Payment*: “**Subscription**” This is a distinct operational payment type agreed upon upfront between counter-parties for services. This does not require third-party voting or submission of a payout request, streamlining operational payments within the ecosystem. # User-journey example **0. Monthly Funding Top-up** 0.1. Mechanism: The funding body initiates a top-up according to the cadence outlined in the agreement. 0.2. Frequency: On demand or otherwise according to the agreement. 0.3. Example: DAO x receives 30k USD upfront in USDC at the start of each month. **1. Customised BOS DAO User Interface & Escrow System** 1.1. Users can submit proposals, respond to bounties, and manage subscriptions through a tailored interface. 1.2. DAOs can publish bounties and subscriptions and review and approve proposals efficiently. 1.3. For each created bounty or subscription, and for each approved proposal, the specified payment is locked in an escrow contract to ensure solvency and seamless payment experience post-completion. **2. Upfront KYC or KYB Requirement** 2.1. Users wishing to submit a payout proposal must complete the Fractal KYC in advance. 2.2. The KYC requirements should be on par with what NEAR Foundation mandates today. **3. Payout Approval and Invoice Issuance** 3.1. Completion: Once the task/job is finished, the DAO examines the output. 3.2. Invoice Preview: Before approval, the involved party can preview the invoice to confirm all details. 3.3. Approval Mechanism: On pressing the approval button, the invoice gets auto-generated and issued. 3.4. Payment Transfer: On approval, funds are released from the escrow to the concerned party. **4. Transparent Financial Record** 4.1. DAO Funding Page: This page reflects the financial dealings of the DAO. 4.2. Visibility: Everyone can access and see: 4.2.1. Amounts paid out. 4.2.2. Payment recipients. 4.2.3. Indexation of specific funding types. 4.2.4. Average turnover rate of the DAO. 4.2.5. Compare budget versus actual spending, both in terms of amount but also for each label. **5. Accounting & Tax Compliance** 5.1. Export Feature: Both DAOs and freelancers can export invoices and all other relevant accounting details. 5.2. Objective: Facilitate ease in filing tax returns and ensure financial compliance. **6. Controlling and repeat** 6.1 All stakeholders within the NEAR ecosystem can verify that the approved funding for a DAO has been spent according to the plan on an on-going basis and if all good will repeat the process by topping up again according to step 0. # Labelling system to compare the costs and targets across the ecosystem# **Level 1: Team Type** - Categorises the involved teams. - E.g.: Development, Marketing, Operations. **Level 2: Expense Type** - Nature of the expense. - E.g.: Salaries, Software, Hardware, Marketing. **Level 3: Chart of Accounts** - Precise tracking line items. - E.g.: Travel, Utilities, Rent, Services. **Level 4: Additional Grouping** - More specific classifications. - E.g.: Recurring vs. One-Time, By Vendor, By Region.