XCM case studies wanted!

[rich]

@natalie

natalie@parity.io

@rich

an innovative new model for using XCM related to funding parachains such as Kabocha - a purely on-chain developed and funded project (via Edgeware) with no lead team / legal entity.

Imbue’s parachain has received a c.£250k grant from the treasury, but there is no direct upside for the treasury in this deal, nor voice in the network they are helping bootstrap. XCM can address this.

The high level example:

• Kabocha requests funding from Kusama treasury and pledges some KAB which is transferred to Statemine treasury account.
• This KAB is currently illiquid, but grants the Kusama treasury the proportional right to future dividends in the form of fees from Kabocha.
• The onchain terms within an NFT held in the treasury, and represents a new kind of collateral (with Kusama’s latest NFT upgrade this is now possible).
• Kusama also now has the ability to leverage its voice in Kabocha governance via XCM, with the Kusama collective being representing as a collective (proxy) on the Kabocha chain.

An XCM3 experiment - Kusama treasury account taking stake in the Kabocha parachain

There have been discussions for around a year about alternative approaches for incubating parachains, whilst also making use of relay treasuries and better aligning long term interests of voters and proposers. This in discussion post for funding grass-roots teams aims to create guidelines, but its off-chain structure means it will always be limited since funding will remain subjective and therefore prone to friction - per this comment. we probably should have funding policy and programs that…