Enabling the Community Pool and MANTRA Assistance Fund Framework

Original Proposal Text

# Enabling the Community Pool and MANTRA Assistance Fund Framework Dear Sherpas, As recently discussed in the MANTRA community connect, MANTRA Chain is entering an important new phase of ecosystem growth. With its core network infrastructure in place, the opportunity ahead is to expand onchain activity by supporting the liquidity, integrations, applications, and user experiences that allow the ecosystem to thrive. To support that growth and to focus on community centricity, we propose creating the **MANTRA Chain Community Pool**: a dedicated, onchain mechanism through which Sherpas can direct funding to initiatives that benefit the wider network. The Community Pool will be funded from a portionof existing staking emissions, with every drawdown subject to a separate governance vote. This initiative creates no additional issuance and does not change the current headline inflation rate. Further, as per the Community Connect, NVNM Chain’s transition to a sovereign Layer 1 creates an opportunity to establish a direct and continuing economic link back to `$MANTRA`: MANTRA will receive its own genesis validator slot on NVNM Chain. Stablecoin fee revenue from this validator will be wholly dedicated to programmatically purchasing `$MANTRA` on the open market. In order to receive and deploy this fee revenue, we need to first establish the **MANTRA Assistance Fund.** The two mechanisms support `$MANTRA` and its community in different but reinforcing ways. The Community Pool redirects a portion of existing emissions into community-governed funding for ecosystem growth. The MANTRA Assistance Fund directs external stablecoin revenue, first earned by MANTRA’s NVNM validator, and eventually other revenue streams, to open-market purchases of `$MANTRA`. One invests in network growth; the other creates a recurring external source of demand for `$MANTRA`. This proposal asks Sherpas to create the Community Pool, establish clear governance over its use, and endorse the MANTRA Assistance Fund framework. Further details can be found below. ## Proposal summary Voting **YES** approves and endorses the following: 1. Create the MANTRA Chain Community Pool and set its initial allocation at 25% of the staking-distribution pool. 2. Require separate governance approval and transparent reporting for every Community Pool drawdown under theecosystem-growth mandate defined in this proposal. 3. Endorse the MANTRA Assistance Fund framework, under which external stablecoin revenue will be used to purchase `$MANTRA` on the open market. ## Reasons for proposal ### 1. Create the Community Pool and set its initial allocation at 25% The Community Pool will direct a portion of existing emissions toward community-governed ecosystem investment, without introducing additional issuance or changing the headline inflation rate. | **Measure** | **Current position** | **Position following approval** | |-------------------------------------------------------------|----------------------|---------------------------------| | Headline inflation rate | 16% | 16% — unchanged | | Community Pool | Not established | Created | | Share of headline inflation rate accruing to Community Pool | 0% | 10% | | Share of headline inflation rate distributed to stakers | 40% | 30% | At current issuance levels, the Community Pool is expected to accrue approximately **140 million `$MANTRA`** during its first 12 months. This is indicative, not a guaranteed accrual or approved spending commitment. MCA-controlled wallets represent approximately **60% of all bonded tokens**. Based on today’s stake distribution, roughly 60% of the rewards redirected to the Community Pool would therefore be contributed by MCA, with the remaining 40% attributable to other stakers. This means that the Community Pool is a shared effort between MCA and stakers. ### 2. Require separate approval and transparent reporting for every drawdown The Community Pool will remain separate from MCA’s operational resources. Funds will not pass automatically to MCA or another recipient; every drawdown will require its own onchain spend proposal. | **Mandate area** | **Eligible initiatives** | |--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------| | **Liquidity and market development** | Initiatives that improve usable liquidity, market access and the efficiency of the MANTRA ecosystem. | | **Application and developer growth** | Support for applications, protocols, tooling and developer activity on MANTRA Chain. | | **Stablecoin, payment and settlement adoption** | Infrastructure and programs that expand the practical use of assets on the network. | | **Bridge, interoperability and exchange integrations** | Technical and commercial work that improves access to MANTRA Chain. | | **Technical reviews, audits and ecosystem security** | Work that strengthens the reliability and resilience of ecosystem infrastructure. | | **User growth, education and distribution** | Initiatives designed to bring new users, liquidity and activity onto the network. | | **Data, analytics and performance measurement** | Systems that allow Sherpas to evaluate network activity and approved spending. | | **Other qualifying ecosystem initiatives** | Proposals that demonstrate a measurable benefit to MANTRA Chain and remain consistent with the mandate established here. | Each spend proposal must identify the amount and its intended use. MANTRA will publish a standard template in the official MANTRA Chain documentation. ### 3. Endorse the MANTRA Assistance Fund framework **Maintain a direct economic link between `NVNM` and `$MANTRA`** NVNM Chain’s transition to a sovereign Layer 1 gives each network the ability to develop aroundits own technical and economic priorities. It also creates an opportunity to preserve a direct and visible source of value flowing back to `$MANTRA`. NVNM’s transition is not executed by this MANTRA governance proposal. This vote endorses MANTRA’s participation through the proposed genesis validator and the MANTRA Assistance Fund framework. Under that framework, MANTRA will receive a genesis validator slot on NVNM Chain. Revenue earned by the validator will be paidin stablecoins and the programmatically bought `$MANTRA` will then be routed to a publicly disclosed address for the MANTRA Assistance Fund. ## Implementation Following approval: 1. The MANTRA Chain Community Pool will be created and its initial allocation set at **25% of the staking-distribution pool** as a part of the success of this onchain governance action. 2. The Community Pool will begin accruing block by block. No balance may be withdrawn until a separate spend proposal is approved. 3. MANTRA and NVNM will finalize the operational arrangements for the MANTRA genesis validator and MANTRA Assistance Fund. 4. The MANTRA Assistance Fund’s administration, addresses, purchase policy, reporting framework and treatment of purchased `$MANTRA` will be published before the fund begins operating. ## Conclusion MANTRA Chain Association has the opportunity to establish two complementary mechanisms for its next phase of growth. The Community Pool will place a portion of existing emissions under community governance so Sherpas can support infrastructure, liquidity, integrations and applications. Under the endorsed MANTRA Assistance Fund framework, external stablecoin revenue is directed to transparent open-market purchases of `$MANTRA`. Together, these mechanisms are intended to strengthen MCA’s ecosystem, increase community oversight and preserve a clear economic link between MANTRA and NVNM as both networks develop. We invite every Sherpa to consider the proposal and participate in the vote. ## Additional Proposal Notes This is a parameter-only proposal, no binary upgrade is required. ### Parameter Updates 1. Removes the following message types from the circuit breaker disabled list, allowing them to be executed again: - `/cosmwasm.wasm.v1.MsgStoreCode` - `/cosmwasm.wasm.v1.MsgInstantiateContract` - `/cosmwasm.wasm.v1.MsgInstantiateContract2` 2. Sets the distribution module `community_tax` from 0% to 25%, so 25% of block rewards go to the community pool. All other distribution params are unchanged. 3. Grants `LEVEL_ALL_MSGS` circuit breaker management permissions, allowing security break-glass procedures on circuit breaker modules in the future. More details: ipfs://CID