Grant Token Lock Explainer

Grants from the GovFund given directly to builders, projects, and protocols are required by the Board to be locked for a year. There are two reasons:

  1. This creates long-term incentive alignment with Collab.Land. The Co-op will be most successful with a community of builders and users who care about the Co-op’s vision and are on board with the work required to get there. Locking grants helps prevent grantees from treating the GovFund as a short-term fix and aborting.
  2. COLLAB is a governance token. It is not intended to fund operations or the cost of running a business. Locking token grants helps communicate to interested parties that the primary purpose of COLLAB is for governance and incentive alignment, not for cash. Importantly, it also mitigates legal risk for both the Board and grant recipients.

Why isn’t there an expiration of the “no-sale” rule for growth experiments?

Grants in the “Growth experiments” category are intended to be used to drive consumer interactions with and usage of Collab.Land. The “no sale” rule is included to make an implicit guideline explicit: that grants in the “growth experiments” category should not be sold by the project that receives them; instead they should be distributed to drive consumer usage in line with the experiment outlined in the grant.

Collab.Land plans to use Hedgey Finance for locked and vesting token grants.