LP-920: Community Development & Grants

Abstract

This LP establishes the framework for Lux Network's community development and grants program. It defines funding categories, eligibility criteria, application processes, and impact measurement requirements for ecosystem grants.

Motivation

Ecosystem development requires strategic capital deployment. Without a structured grants program:

1. Funding decisions become ad hoc - Lacking criteria leads to inconsistent outcomes
2. Impact goes unmeasured - No way to know if grants achieve intended goals
3. Community trust erodes - Opaque processes invite accusations of favoritism
4. Resources scatter inefficiently - Without strategy, grants fail to compound

This LP creates the framework for deploying ecosystem capital in ways that maximize positive impact while maintaining transparency and accountability.

Program Overview

Mission

Fund projects and initiatives that expand access to Lux Network, grow the developer ecosystem, and create positive social impact aligned with our Theory of Change.

Funding Allocation

Category	Allocation	Focus Areas
Developer Grants	40%	Tools, infrastructure, education
Ecosystem Grants	35%	Applications, integrations, services
Community Grants	15%	Events, education, regional growth
Impact Grants	10%	Social impact, inclusion, research

Annual Budget

Year	Budget	Funded Projects Target
2025	$5M	50-100
2026	$10M	100-200
2027	$15M	150-300

Grant Categories

Developer Grants

Purpose: Grow and support the developer ecosystem

Infrastructure Grants

Size	Range	Examples
Small	$5K-$25K	SDKs, CLI tools, testing frameworks
Medium	$25K-$100K	IDEs, debugging tools, indexers
Large	$100K-$500K	Major infrastructure, protocol integrations

Education Grants

Size	Range	Examples
Small	$1K-$10K	Tutorials, guides, translations
Medium	$10K-$50K	Courses, bootcamps, certification
Large	$50K-$200K	University programs, research partnerships

Ecosystem Grants

Purpose: Fund applications that drive adoption and utility

Application Grants

Size	Range	Examples
Seed	$10K-$50K	MVPs, proof of concepts
Growth	$50K-$250K	Launch support, user acquisition
Scale	$250K-$1M	Major applications, strategic projects

Integration Grants

Size	Range	Examples
Standard	$5K-$50K	Wallet integrations, exchange listings
Strategic	$50K-$250K	Major platform integrations

Community Grants

Purpose: Build and support the global Lux community

Event Grants

Size	Range	Examples
Micro	$500-$5K	Meetups, workshops
Standard	$5K-$25K	Hackathons, conferences
Major	$25K-$100K	Large conferences, multi-day events

Regional Grants

Size	Range	Examples
Ambassador	$1K-$10K/quarter	Community building, local support
Regional Hub	$25K-$100K	Regional developer centers

Impact Grants

Purpose: Projects with explicit social impact objectives

Financial Inclusion Grants

Size	Range	Focus
Standard	$10K-$100K	Remittances, microfinance, savings
Strategic	$100K-$500K	Major inclusion initiatives

Research Grants

Size	Range	Focus
Academic	$10K-$50K	University research projects
Applied	$50K-$200K	Applied research with practical outcomes

Eligibility Criteria

General Requirements

Criterion	Requirement
Legal entity	Registered entity or identifiable team
Open source	MIT/Apache for funded code (except application grants)
Alignment	Clear connection to Lux ecosystem
Capacity	Demonstrated ability to execute
No conflicts	Disclosure of any conflicts of interest

Category-Specific Requirements

Developer Grants

• Technical capability demonstrated (portfolio, GitHub)
• Clear technical specification
• Maintenance plan for ongoing tools

Ecosystem Grants

• Business model (for applications)
• User acquisition strategy
• Roadmap beyond grant period

Community Grants

• Track record of community building
• Local community engagement
• Sustainability plan

Impact Grants

• Clear impact thesis
• Measurement plan
• Beneficiary engagement

Exclusions

The following are not eligible for grants:

• Token launches or ICOs
• Gambling or high-risk DeFi without safeguards
• Projects with no clear Lux connection
• Individuals/entities under sanctions
• Projects that have misused prior grants

Application Process

Application Flow

1. Idea submission (brief form)
    ↓
2. Initial screening (1 week)
    ↓
3. Full application (if invited)
    ↓
4. Due diligence (2-4 weeks)
    ↓
5. Committee review
    ↓
6. Decision notification
    ↓
7. Grant agreement
    ↓
8. Funding disbursement

Application Requirements

Brief Application (All Grants)

Field	Description
Project name	Clear, descriptive title
Category	Developer, Ecosystem, Community, Impact
Amount requested	Funding amount in USD
Summary	200-word project description
Team	Key team members and backgrounds
Timeline	High-level milestones

Full Application (Additional)

Section	Contents
Problem statement	What problem are you solving?
Solution	How does your project address it?
Lux integration	How does this benefit Lux ecosystem?
Technical approach	Architecture, technology choices
Milestones	Detailed deliverables with timelines
Budget breakdown	Line-item budget
Impact metrics	How will you measure success?
Team	Full team bios and relevant experience
Risks	Key risks and mitigation strategies

Review Process

Initial Screening (Grants Team)

• Eligibility check
• Completeness review
• Duplicate/overlap check
• Basic due diligence

Due Diligence

Check	Method
Team verification	Identity, background checks
Technical review	Code review, architecture assessment
Financial review	Budget reasonableness
Reference checks	Prior projects, collaborators

Committee Review

Grant Committee Composition:

• Foundation representative
• Technical lead
• Community representative
• External advisor (rotating)

Decision Criteria:

Criterion	Weight
Impact potential	30%
Execution capability	25%
Technical quality	20%
Ecosystem fit	15%
Value for money	10%

Decision Timeline

Grant Size	Review Timeline
<$25K	2-4 weeks
$25K-$100K	4-6 weeks
>$100K	6-8 weeks

Grant Management

Disbursement

Structure	Application
Milestone-based	Standard for grants >$25K
Upfront	Available for grants <$25K with strong track record
Hybrid	30% upfront, rest milestone-based

Typical milestone structure:

• 30% on agreement signing
• 40% on MVP/mid-project milestone
• 30% on completion

Reporting Requirements

Grant Size	Reporting Frequency
<$25K	Final report only
$25K-$100K	Monthly brief + final report
>$100K	Monthly detailed + quarterly review + final

Report Contents:

• Progress against milestones
• Budget spend to date
• Challenges and risks
• Next period plans
• Impact metrics (if applicable)

Milestone Approval

Grantee submits milestone deliverable
    ↓
Grants team reviews (5 business days)
    ↓
Technical review (if needed)
    ↓
Approval or revision request
    ↓
Payment release (upon approval)

Grant Modifications

Change Type	Process
Minor scope change	Grants team approval
Major scope change	Committee approval
Timeline extension	Grants team approval (up to 30 days)
Budget reallocation (within total)	Grants team approval
Budget increase	New application required

Termination

Grants may be terminated for:

• Material misrepresentation
• Failure to meet milestones
• Misuse of funds
• Breach of grant agreement
• Grantee request

Termination process:

1. Notice of concern
2. Remediation period (30 days)
3. Final determination
4. Fund recovery (if applicable)

Impact Measurement

Required Metrics (All Grants)

Metric	Collection
Deliverables completed	Milestone reports
Budget adherence	Financial reports
Timeline adherence	Progress reports

Category-Specific Metrics

Developer Grants

Metric	Definition
GitHub stars	Engagement indicator
Downloads/usage	Adoption metric
Community contributions	External developers contributing

Ecosystem Grants

Metric	Definition
Monthly active users	Application usage
Transaction volume	On-chain activity
Revenue (if applicable)	Sustainability indicator

Community Grants

Metric	Definition
Event attendance	Participation count
New community members	Growth metric
Geographic reach	Diversity indicator

Impact Grants

Metric	Definition
Beneficiaries reached	Impact scope
User outcomes	Change achieved
Sustainability	Ongoing impact potential

Impact Reporting

Final Impact Report (required for grants >$25K):

• Project outcomes vs. objectives
• Metrics achieved
• Learnings and challenges
• Sustainability plan
• Recommendations for future grants

Governance

Grant Committee

Composition:

• Chair: Foundation Executive
• Members: Technical Lead, Community Lead, External Advisor
• Observer: ESG Committee representative

Meetings:

• Weekly for pipeline review
• Monthly for larger grants
• Quarterly for program review

Decisions:

• <$25K: Grants team (2 approvals)
• $25K-$100K: Committee majority

• $100K: Committee unanimous + Board notification

Conflict of Interest

Situation	Requirement
Committee member has relationship with applicant	Recusal from discussion and vote
Foundation has financial interest	Disclosure to Board
Prior employment/contract	Disclosure and possible recusal

Appeals

Declined applications may appeal:

1. Submit appeal within 14 days
2. Provide new information or clarification
3. Different committee members review
4. Final decision within 30 days

Transparency

Public Information

Information	Disclosure
Funded projects list	Public (grantee consent)
Grant amounts	Public ranges
Evaluation criteria	Fully public
Program statistics	Quarterly report

Reporting

Report	Frequency	Contents
Grants Dashboard	Real-time	Application stats, funding by category
Quarterly Report	Quarterly	Funded projects, outcomes, pipeline
Annual Report	Annual	Full program review, impact analysis

Related LPs

• LP-800: ESG Principles and Commitments
• LP-900: Impact Framework & Theory of Change
• LP-901: Impact Measurement Methodology
• LP-910: Stakeholder Engagement
• LP-930: Financial Inclusion Metrics

Changelog

Version	Date	Changes
1.0	2025-12-17	Initial draft

Copyright

Copyright and related rights waived via CC0.