Approved Grant [Exchange-Committee-001] Exchange Listing Fee

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SamuelVanderwaal

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#1
GRANT PROPOSAL EDITED 2018-11-11:

The wording has been broadened slightly to allows us to cover more than just strict listing fees (e.g. liquidity injection for a new exchange, attorney fees, etc.).

New wording:

The Factom Exchange Committee seeks FCT tokens to be set aside in the grant pool to pay any fees required for Factom ecosystem tokens to be listed on various exchanges.


GRANT PROPOSAL EDITED 2018-10-30:

The amount of FCT requested has been reduced from 10k to 5k as a show of good faith to the community and in recognition of the fact that there are many worthy grant applications this round. We believe we can still make significant progress the next three months with the reduced budget.

****
This grant requests FCT for paying for exchange listing fees. The funds will be withheld in the grant pool until the exchange committee requests release for the purpose of paying exchange listing fees.

Executive Summary:
The marketable token of the Factom protocol, the Factoid (FCT) is currently listed on only a handful of reputable exchanges. This limits the number of potential buyers, especially in certain countries, and contributes to liquidity issues. The Factom Exchange Committee was created by a vote of the Authority Node Operators and tasked with getting FCT listed on additional exchanges.

Many exchanges require a listing fee and often the amount is substantial. The Exchange Committee has begun contacting a prioritized list of exchanges but now needs funds at its disposal should we come to an executable agreement. Rather than take immediate delivery of the FCT, we are requesting that the FCT be set aside in the grant pool specifically for the purpose of paying exchange fees. These FCT will be disbursed to specified FCT address(es) when requested by a statement signed by all members of the Exchange Committee.
This is the thread for grant proposal FACTOM-GRANT-Exchange-Committee-001.

The review process starts at 2018-10-29 00:00, so please refrain from starting public review or questions before that time to give everybody an equal chance. If you notice clear errors in the proposal you can contact the author of the grant proposal directly.
 

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Secured
#2
The grant amount roughly equates to $50K at the current FCT price. Some of the high volume exchanges like Binance apparently have a very high listing fee clearly beyond $50K. Can a list of specific exchanges be provided that will be targeted with this grant which can help the community make an informed choice w..r.t the grant decision ?
Second question , not really related to the grant but falls within the broader purview of the exchange committee. Many exchanges need adequate liquidity of tokens at the time of listing, probably in some cases included as part of the listing fee. What are the exchange commitees plans to provide acces to large liquidity to exchanges during listing ?
 

SamuelVanderwaal

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Secured
#3
The grant amount roughly equates to $50K at the current FCT price. Some of the high volume exchanges like Binance apparently have a very high listing fee clearly beyond $50K. Can a list of specific exchanges be provided that will be targeted with this grant which can help the community make an informed choice w..r.t the grant decision ?
Second question , not really related to the grant but falls within the broader purview of the exchange committee. Many exchanges need adequate liquidity of tokens at the time of listing, probably in some cases included as part of the listing fee. What are the exchange commitees plans to provide acces to large liquidity to exchanges during listing ?
Thanks for the questions!

Binance no longer has a large listing fee, instead with their new listing process they now require a donation to charity in lieu of a listing fee. They say there is no minimum amount of donation. Coinbase has no listing fee. There are other exchanges which do have listing fees but it's often unclear exactly how much they are until you're well into the negotiation period.

The reason for only requesting 10k FCT is that we're well aware of the high number of quality grants submitted in this round and know how difficult it is going to be for the community to decide which ones get funded and which ones don't. If there is strong support from the community to fund us more we will modify the grant at the end of the grant period to ask for a larger amount. We also plan to ask for grants regularly each round until we've achieved our listing goals, so we can save up multiple rounds to meet large listing fees if necessary.
 
Secured
#4
Thanks for the questions!

Binance no longer has a large listing fee, instead with their new listing process they now require a donation to charity in lieu of a listing fee. They say there is no minimum amount of donation. Coinbase has no listing fee. There are other exchanges which do have listing fees but it's often unclear exactly how much they are until you're well into the negotiation period.

The reason for only requesting 10k FCT is that we're well aware of the high number of quality grants submitted in this round and know how difficult it is going to be for the community to decide which ones get funded and which ones don't. If there is strong support from the community to fund us more we will modify the grant at the end of the grant period to ask for a larger amount. We also plan to ask for grants regularly each round until we've achieved our listing goals, so we can save up multiple rounds to meet large listing fees if necessary.
 

SamuelVanderwaal

Staff member
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Secured
#6
Sorry! It's the same response as the listing fee. We're asking for an amount we hope the community will fund and will save up as necessary to provide sufficient liquidity to exchanges. Unfortunately, I don't have specific liquidity requirements I can share. I can understand if this grant is frustrating from a community perspective in that it's not tied to exact amounts for exchanges. Ideally we would be able to write it like so:

Binance:
xxxx FCT for donation
xxxx FCT for liquidity

Coinbase
no listing fee
xxxx FCT for liquidity

etc.

However, we can't provide specifics for a variety of reasons. I realize this is us asking you all to trust us that we will use the FCT wisely and expeditiously, but I'm willing to put my reputation on the line here. After spending time applying with exchanges and reading listing forms and NDAs I can say this is just the nature of this space and at this time I don't see a better way to do this.
 
Secured
#9
My first question is a more generic one: since this grant would potentially be issued to the Exchange committee and there is no multi-sig txs on the Factom blockchain, who will be the custodian of the funds and how will you ensure that this person doesn't run away with the money? What kind of guarantees does the wider community have that the coins would be used for their intended purpose?

I see that you haven't specified a payout address for this yet, so I'm guessing the plan to resolve the above for now would be to just "block" the funds in the grant pool without doing a transfer. However, at one point the tokens would have to be transferred. I would like to hear the process you have outlined for that internally before I would be comfortable approving this grant.

Please don't take the above in a negative way. I fully support the work of the Exchange Committee and I think liquidity and network stability are tied for the most pressing issue that needs to be resolved ASAP in order for the ecosystem to grow (with decentralization of development a close second). However, I also think that custodianship of grants issued to the committees is a point we should clarify in general.
 

SamuelVanderwaal

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Secured
#10
@SamuelVanderwaal I like the proposal BTW.

Can you give us any insight into how many exchanges you are currently in discussion with, and how many of these you think will be onboarded within the period of this grant proposal?
We have one submitted application with an exchange that we haven't heard back from yet. They may require a listing fee or liquidity but they haven't given us any specifics yet.

We are working on resolving some items in our community so we can apply for a Coinbase listing, e.g. the development of the roadmap this Friday. We plan to apply with them before the next grant round.

We also plan to apply to Binance in the next three months but there are complications there that we are working through because of their listing requirements.

In addition, we are currently in discussions with three smaller exchanges who are interested in listing FCT and I have contacts for several more I will be following up with in the next few days.

We successfully negotiated a listing with SWFT and FCT was listed there on Friday. (Much thanks to Paul Snow and Inc for being the ones to find them, sell them on Factom, help them with integration and then connect them with the Exchange Committee.)
 

SamuelVanderwaal

Staff member
Guide
Canonical Ledgers
Secured
#11
My first question is a more generic one: since this grant would potentially be issued to the Exchange committee and there is no multi-sig txs on the Factom blockchain, who will be the custodian of the funds and how will you ensure that this person doesn't run away with the money? What kind of guarantees does the wider community have that the coins would be used for their intended purpose?

I see that you haven't specified a payout address for this yet, so I'm guessing the plan to resolve the above for now would be to just "block" the funds in the grant pool without doing a transfer. However, at one point the tokens would have to be transferred. I would like to hear the process you have outlined for that internally before I would be comfortable approving this grant.

Please don't take the above in a negative way. I fully support the work of the Exchange Committee and I think liquidity and network stability are tied for the most pressing issue that needs to be resolved ASAP in order for the ecosystem to grow (with decentralization of development a close second). However, I also think that custodianship of grants issued to the committees is a point we should clarify in general.
Thanks for asking the question, I think it's an important one to consider and I appreciate that you are willing to go out on a limb to do so. You are correct that we are planning on "blocking out" the funds in the grant pool rather than allocating them. This was something we asked the community about some time ago to ensure it was acceptable and we had positive support for it.

Our goal is to negotiate with exchanges to accept FCT directly so we do not have to deal with custodianship. In cases where this is not possible we have yet to determine our approach and are open to suggestions/best practices from the community. Without multi-sig wallets this is tricky as you know. The good thing is that this grant does not actually require payout of FCT so it's more of a statement of intent from the community to payout at a later point but could always be reneged on if the community does not believe we have a proper custodianship process in place.
 

DChapman

Staff member
Factomize
Secured
#13
This is a fantastic initiative and I applaud all involved. The reality is, this initiative risks not being funded this round because of the highly competitive nature of the current grant submissions which would be unfortunate.

I ask that those working on this grant please communicate internally to see if there's a lower number you can come back to the community with to increase the chance of this grant being funded.

If you can't reduce, I understand, but please let us know that. If you can and others do the same, it creates the opportunity for other projects to be funded as well.

Thank you.
 

DChapman

Staff member
Factomize
Secured
#20
GRANT PROPOSAL EDITED 2018-11-11:

The wording has been broadened slightly to allows us to cover more than just strict listing fees (e.g. liquidity injection for a new exchange, attorney fees, etc.).

New wording:

The Factom Exchange Committee seeks FCT tokens to be set aside in the grant pool to pay any fees required for Factom ecosystem tokens to be listed on various exchanges.
 
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