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.