What is the Decentraland DAO Revocations Committee & How Does it Work?

By Decentraland DAO, , in Announcements

In the user-owned virtual social world of Decentraland, a decentralized governance model strives for transparency and accountability—cornerstones of the Decentraland DAO. The DAO plays a crucial role in managing the grants program, designed to nurture the metaverse's growth through accessible community funding for both creative and technical projects. With over 200 projects funded so far, the introduction of the Revocations Committee in April 2023 marked a significant stride in upholding these principles by monitoring the ongoing relevance and integrity of ongoing projects.

The Genesis of the Revocations Committee

The idea for the Revocations Committee stemmed from a 2022 dialogue within the community addressing concerns about the potential over-concentration of power in the grant allocation process. Community members and the Grant Support Squad, recognizing the need to protect the DAO’s treasury and maintain fiscal responsibility, proposed a mechanism to pause or revoke grant vesting. This was seen as a critical step towards enhancing the robustness of the grants program. Through extensive discussions and community input, the Revocations Committee was established to independently oversee grant revocation cases, ensuring each project met its milestones and adhered to Decentraland's core values.

Following a transparent 3-step governance process based on a pre-defined framework—including an application period, interviews, and a community poll—the first members of the Revocations Committee were elected on April 27, 2023 for a one-year term.

The committee began its oversight of the grants program in 2023 following a procedure that allowed for revocation based on milestone achievement, project performance, and other critical factors. Over their first year, the committee has focused on learning and adapting their approach to manage the grant lifecycle as effectively as possible.

How the Revocation Process Works

The revocation process is started with a concern submission form available to any community member to submit. Upon submission, the Grant Support Squad reviews the concern, engaging with the project owner to see if the issue can be resolved. If the issues cannot be addressed, the case is escalated to the Revocations Committee, which decides the appropriate action, which could include stopping grant payments, adjusting payment schedules, or in cases where issues are resolved, resuming payments.

Review of Key Cases in 2023

The Revocations Committee inspected 6 cases last year. Three of them resulted in the revocation of grants totaling DAI 251,630, with an additional DAI 30,370 allocated for one-time payments under special circumstances. These decisions addressed issues ranging from grant misclassification to concerns over project performance and deliverables.

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  • Decentraland X

     In July, DAI 64,000 was revoked due to concerns with smart contract security. Read More.

  • DCL Brasil (Growth and Maintenance of Decentraland Brazil Community)

    DAI 27,700 was revoked due to a misclassification error as the proposal was one of the first of its kind under the new grants program. With a subsequent one-time payment of DAI 11,000, the project was approved for reclassification under the new grants program. Read More.

  • Metaverse Biennale

    Revoked DAI 66,680 in October due to technical issues, with a one-time payment of DAI 19,370. Read More.

  • Beattrekkers (A Multi-Platform Entertainment Series Designed to Boost DCL Brand Awareness)

    DAI 93,250 was revoked in November over budget and performance concerns. Read More.

  • In the case of both the Duel Arena & A Continuum of Entertainment & Education for Women & Minorities projects, upon review and certain conditions being met by the grantees, no grants were revoked.

Lessons Learned and Future Directions

Each case reviewed by the committee has provided valuable insights into improving communication with grantees, avoiding conflicts of interest, and refining grant categorization and performance metrics. These lessons are vital for the continuous improvement of Decentraland's governance and funding mechanisms. 

The Committee is also now doubling down on the importance of consistently implementing the Decentraland DAO’s branding across all projects. Key to their process was their collaboration with the Grant Support Squad, with whom they were able to fine-tune processes and standardize the principles for grant assessment and analysis.

Looking Ahead to 2024

As the Revocations Committee moves into its second year, it aims to refine its review processes further and enhance the efficiency of its operations. A significant structural change includes reducing the committee size from seven to five members, reflecting a streamlined approach to governance based on a proposal. 2024 will also see a temporary pause in the grants program, with the exception of the Platform and Core categories, allowing both the Grant Support Squad and Revocation Committee to deepen their focus on optimizing project evaluation practices.

A Commitment to Transparency

The work undertaken by the Decentraland DAO Revocations Committee in 2023 underscores a shared commitment to accountability and continuous improvement across the Decentraland ecosystem. By saving the treasury substantial sums and refining governance processes, the committee ensures that Decentraland remains a model for decentralized governance in the metaverse.

Additional Resources

The metaverse is full of yet unrecognized potential and opportunities. Do you have an idea that could benefit the Decentraland community? Learn more about the DAO’s grants here.

Do you know of a cool Decentraland community project that you think should be next in the Community Highlights series? Contact the Decentraland Foundation team @decentraland on X.