Proposal Overview
We propose to establish zkDAO, in order to support the longevity and expansion of zku.one (ZKU), which started in Dec 2021 as an informal study group for training web3 developers to build market-ready products using zero-knowledge proof technology (ZK). ZKU is not a legal entity. It charges no tuition fees and provides no binding, paid services. Instead, we have developed a learn-to-earn model by which students are incentivized with cash prizes to complete assignments on time, and to help each other learn. As of Feb 2021 we have successfully completed our first pilot cohort, with 9 ZK-products already launched by our students on mainnet or testnet (Final Projects by ZKU Genesis Graduates).
Here we seek funds to kickstart the DAO, to provide salary support for teaching assistants (TAs), and for building an organizational structure that can sustain the activities of ZKU in the long run; ZKU has the vision to eventually on-board as many as 10,000 developers to the ZK space. By 2024 we aim to launch 1,000 ZK-products on mainnet.
The immediate contributions of the DAO to the Harmony ecosystem are to increase the level of expertise in ZK within the community, to bring in talented developers, and importantly - to deliver timely zk-products through students’ final projects in ZKU.
Our longer-term vision is for the DAO to become financially independent by 2025. The growth of the DAO’s treasury will benefit from an investment plan that is informed by DAO members, who will have considerable expertise about ZK products and market trends. By delivering timely zk-products, DAO members will attract funds from Harmony’s Grant programs, and through fixed-income protocols we will in turn generate recurrent basic income for our members. This will at once showcase Harmony’s general commitment to the development of decentralized basic income (DBI) protocols, while also ensuring that our DAO members are engaged, and are incentivized to oversee the financial health of the DAO. Finally, we will promote ZKU and the DAO actively to the industry and beyond. We will accept external donations, as the successful training of developers from around the world, and onboarding them to the web3 and ZK space, should be considered a public good.
Mandates
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Education - The primary goal of zkDAO is to provide financial support to ZKU, to incentivize students to learn, and to pay salaries for the TAs. Members of the DAO will be former graduates from ZKU (see point 6 below, Deliverables), who will also contribute to providing advisory for the development of the teaching curriculum.
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Engagement - ZKU engages industry experts and researchers through the learning process, and in turn, we provide advisory and support for graduating students to launch their careers in the industry. As such, zkDAO can help by maintaining relationships with both Harmony.ONE as well as other potential employers within the ZK space. The DAO should showcase the scholarship and expertise within its community, to make it an attractive venue for knowledge exchange, recruitment, and different forms of voluntary financial contributions.
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Endowment - Although ZKU is not formally a university, to make a lasting impact we need to assure teaching staff of the financial longevity of zku.one, so that they can pursue teaching and product development at ZKU as a long term career aspiration, rather than a fleeting opportunity. All good universities need to raise funds, and to manage their own treasury. As we will explain in points 7 and 8 below (Deliverables), we will set up economic structures so that members of the DAO will have a stake in overseeing the healthy growth of our treasury. This will help the DAO to eventually become financially independent, by 2025.
‘Tweet-able’ version:
Education - support ZKU activities
Engagement - exchange ideas with industry experts
Endowment - grow our treasury through active investment within the ZK space
Deliverables
In the coming 3 months, we aim to provide support for ZKU, in order to:
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Onboard 150 new developers to the ZK space. Because each cohort takes about 2 months to graduate, by the end of the 3 month period we will only have 1 cohort graduated with their final product launches, with another cohort started but not yet finished by the end of the 3-month period.
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Launch 35 ZK-products by the end of the 3-month period, and hopefully over another 100 to be launched from the next cohort, during the next cycle.
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Support 50 graduates, TAs, and DAO staff to travel to conferences and to meet with industry experts.
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Recruit 5 new TAs (currently we have 7), likely from the next graduating cohort.
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Begin accepting external financial donations, via e.g. giveth.io
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Grow DAO membership to 40. This may sound modest but zkDAO needs to be selective in accepting members, because the DAO functions like a board of trustees & faculty advisory for ZKU. Besides the founding governors, all full members will be past graduates who have distinguished themselves by successfully meeting the milestones of a launch grant, with their own zk-product. In doing so, their launched project will attract funding from the Harmony Foundation’s Grants program, to be paid to our treasury. This allows us to implement a key feature of zkDAO, which we’ll discuss next (point 7).
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Provide decentralized basic income (DBI) for entitled full members (i.e. members who launched zk-products that met the milestones of a Harmony Launch Grant). With support from the Harmony Foundation’s Grants program for each launched zk-product, we’ll inject endowment into our treasury to allow $15,000/year to be paid out in a sustainable, recurrent manner, to each recipient. This DBI will be payable so long as the recipient remains an active voting member of the DAO. Students who launch multiple successful projects will also attract, linearly, higher levels of basic income. So, for example, with 10 successful launches of different ZK-products, possibly achieved over a period of several years, it can lead to a total stable income of $150,000/year, comparable to the salary level of a tenured professor at a top-tier research university in the United States.
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Develop an investment plan to focus on projects within the ZK space. Because of our obligation to DBI, much of our treasury should rely on low-risk fixed-income protocols, such as anchorprotocol.com. However, for both engagement purposes and for the longer-term growth of the DAO, we will set aside a small part of our treasury for more active investment - the proportion will be determined in order to always conservatively set our DBI obligations as primary. For the investment plan we will take input from all DAO members, which will in turn incentivize them to engage and participate more in industry activities (e.g. conferences, discussion of market-product trends). Should the treasury grow beyond a certain level, the DAO can elect to pay dividends to the active full members, and/or to engage in new activities consistent with our mandates.
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Begin inviting experts to give seminars at zkDAO. This will be different from normal teaching or lectures at ZKU, where students are still learning the basics of ZK. We expect some industry experts will find it more stimulating to discuss their latest work with a highly selected group of developers who are already active in the zk space. These would be similar to graduate seminars at a university setting. We will develop mechanisms for DAO members to vote to choose the industry experts or researchers with whom they would most like to interact. The recorded sessions can then be used for regular ZKU teaching purposes.
Budget (Proposal Ask)
For the coming 3-month period, we request $1,000,000 for the following items:
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Studying incentives, $500,000 - Currently at ZKU we plan to pay students who successfully finish all assignments on time up to $5,000 for the entire course, over a 2-month period. Based on the pilot cohort, we feel that this is a feasible and effective way to retain the best students, at up to about up to over $1,000 per outstanding assignment, and for students who go out of their way to help others solve challenging problems. For normal, on time completion, this would be at $500 per assignment. Importantly, this prize money would only be payable for students who complete nearly all assignments and the final project on time, which facilitates the retainment process. So, for 100 students (first cohort within the 3-month period), this adds up to $500,000.
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Partial salary for TAs, $96,000 - At the recommended rate of at least $75/hour, at 20 hours/week, each TA costs about $8,000/month when taken into account potential bonuses. Because the current cohort has just started, we hope to continue to pay the current (7) TAs as contributors at Harmony. However, for ZKU to eventually become an independent entity, we will eventual start paying all TAs (12) through the DAO during the 3rd month of the current cycle, as the next cohort starts. This will lead to $8,000 x 12 TAs = $96,000.
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Salary for administrative staff, $72,000. At the recommended rate of at least $75/hour, at 20 hours/week, each staff member costs about $8,000/month when taken into account potential bonuses. For 3 months, this adds up to $8,000 x 3 staff members x 3 months = $72,000.
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Funds for auditing selected students’ project launches, $150,000. To allow outstanding students to meet the milestones for a launch grant, often their codes need to meet auditing requirements. This is especially so in the context of ZK, if their ZK-circuits require the setup of a unique trusted ceremony; if the circuit turns out to contain bugs the entire ceremony needs to be redone. Audits are expensive, at about $10,000 on the cheaper side. To allow at least 15 out of the 50 projects to benefit, we request a budget of $150,000.
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Travel and meeting expenses, $75,000. We plan to fund scholars for a minimum of $1,000 each. For international travelers, we may need to add further supplements. Also, we need to budget for group gatherings and dinners, at an additional 50%. So in total, we request: (50 scholars x $1,000) X (1+50%) = $75,000.
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Endowment ‘bootstrap’ funds for treasury development, $107,000. To allow item 7 above (Deliverables) to be a meaningful exercise, we wish to allocate some funds to set up an initial investment portfolio. Eventually this should be sustainable via capital gains and external donations.
So, in total, $500k+ $96k + $72k + $150k + $75k + $107k = $1M.
We understand that we are requesting a relatively large budget. To grow at the current rate (1,000 developers by 2024) in this highly competitive space, the funding support for student incentives and TA support is necessary. However, some of the funds and activities will also go towards making the DAO financially independent by 2025, by growing our own treasury through investments (see point 8 in Deliverables) and by accepting external donations. Importantly, we will set out strict criteria for the continued funding of the DAO, as we will describe next.
Metrics for Success
To a large extent, the above 9 Deliverables serve as metrics for success for the short term. However, one critical and recurrent milestone is that with every 1M DAO funding, we aim to train enough developers with final products launched that will attract 10M in grants from the Harmony Grants Program, which has independent metrics for success. This roughly corresponds to training 100 developers who will meet all the milestones of a launch grant, per 1M invested into the DAO. Or, in other words, we request a 10% operational cost (1M DAO funding) for generating zk-products that are worth 10M of grant money. This will be the guiding principle for the longer-term financial planning of the DAO.
Personnel
The proposed governance team will consist of mainly current TAs (5) who we consider to be the biggest stake-holders of ZKU. In addition, the instigator/main organizer of ZKU (Lau) will also join as an unpaid member (i.e. at zero salary from the DAO), together with another 2-3 paid administrative staff who will oversee the administrative operations of the DAO. Overall, the team reflects a geographically diverse background, based in 5 different continents. This reflects the needs for coordinating for the global demands of the student body of ZKU.
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Hakwan Lau, D.Phil has over 14 years of experience in tertiary education. He was formerly a tenured full professor at UCLA, and prior to that, an associate professor at Columbia University in the City of New York. His graduate training was conducted at Oxford University, funded by a Rhodes Scholarship. He has published over 100 academic papers, as well as a book on the neuroscience of consciousness. He oversees and advises on the operation of ZKU. He has also written an academic paper on DBI - [2107.14312] Decentralized Basic Income: Creating Wealth with On-Chain Staking and Fixed-Rate Protocols
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Cathie So, Ph.D. is a neuroscientist and a physicist by training, but has been working as a data scientist for multiple Fintech and EdTech Startups in the past five years. She is a public speaker and instructor on the topics of machine learning, blockchain, and web3 development in Hong Kong. She will contribute to the DAO with her expertise in learner engagement and management, as well as zk-product launches. She is also currently a TA at ZKU.
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Semar Augusto is a software engineer and current TA at ZKU. He holds a bachelor’s degree in computer science from Universidade Federal de Minas Gerais.
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Aleksandar Hadžibabić is a master’s degree student and TA at the Faculty of Technical Sciences at Novi Sad, Serbia. Web3 enthusiast and Zero-Knowledge researcher and developer. He is also currently a TA at ZKU.
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Kousik Rajesh is a final year bachelor’s degree student in Computer Science at Indian Institute of Technology Guwahati from India. He is a cryptography and zero-knowledge enthusiast keen on pursuing a Master’s degree in the same. He is currently a TA at ZKU.
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Tosin Shada is a software engineer at a leading bank in Africa and currently a TA at ZKU with expertise and interest in Web3, Zero Knowledge and Blockchain technologies. He is also very interested in launching ZK focused products.
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Brian Felsen helped launch the Blu3DAO at Harmony, establishing its infrastructure with a focus on fair governance and participation, as well as minting the DAO’s social tokens and premier NFT collection. His previous industry experiences include serving as President of CD Baby, the world’s largest online distributor of independent music; helming AdRev, the leading YouTube music administration service and Content ID Network Partner; founding the book distributor BookBaby; and running a web2 performance marketing agency.
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Kayuet Liu, D.Phil is currently a tenured associate professor at UCLA. She studies social networks, and has previously worked with Harmony on research about data marketplace and privacy. She will contribute to the DAO with her expertise in university-level administration and funding management. (Potential COI declaration: Hakwan Lau and Kayuet Liu are in a domestic relationship.)
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James Fang will represent KuCoin Ventures in zkDAO governance. KuCoin Ventures will provide grants and investment funding to selected ZKU projects, whenever terms are mutually agreeable. KuCoin Ventures has agreed to set up a 2 million ZK Co-Investment Funds for the projects coming out of zkDao. They will also help to co-market ZKU in the Chinese developer community in order to promote zkDAO and ZKU.
We will also invite several non-governing advisors to help with investment and financial planning.
External Links
On-boarding 10,000 Developers for ZK Products: https://www.notion.so/harmonyone/On-boarding-10-000-Developers-for-ZK-Products-9eeb5f83a097499289ca5e9fd113f2f5
Zero-Knowledge University main page: zku.one
Discord: zku.ONE (over 300 members, including over 100 verified students who completed the Background Assignment, as of Mar 3 2022)