CP138: Centrifuge Education & Growth - Parallel Track By DoDAO

Centrifuge Governance Proposals
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1 
cp: 138
Title: Centrifuge Education & Growth - Parallel Track By DoDAO
authors: robinnagpal
contributors: DoDAO
uses-component: cp2
technical-proposal: no
requires-onchain: yes
impacts/modifies:
status: rfc
date-proposed: 2024-01-10
date-ended:

Short Summary

DoDAO will simplify and accelerate the adoption of Centrifuge for real-world asset (RWA) investments by educating fund managers, supporting investor awareness, and building key partnerships, making blockchain-based funds more accessible and efficient.

High level objective

RWA is one of the most relevant but challenging areas of blockchain. Managing an RWA project currently requires more effort than a DeFi project or a traditional fund. Fund managers exploring on-chain funds have to spend days learning the benefits of blockchain, months finding suitable partners, and additional months explaining the technology to investors. Investors also face challenges, including understanding asset custody and safeguarding private keys, etc. This effort is duplicated by every fund manager, with no onboarding documents or blueprints available for their help.

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To grow the space, we must first onboard high-quality fund managers by educating them and helping them form essential partnerships for running on-chain funds. Simultaneously, significant effort is needed to educate investors. They must understand where their money is invested, how yields are generated, and how to differentiate between good and bad funds.

DoDAO will support Centrifuge in addressing these challenges by creating detailed educational content in various formats, engaging in business development by connecting with traditional fund managers and introducing them to on-chain funds and Centrifuge, assisting in onboarding interested fund managers, and helping them establish critical partnerships for successful on-chain fund operations.

At DoDAO, we have extensive knowledge in this field and we share our insights at https://chainedassets.com. We are also developing an AI agent to generate reports summarizing key details of funds and opportunities, helping investors make informed decisions.

Background of Proposal

The tokenization of real-world assets (RWAs) or security tokens has been a topic of discussion for at least 5–7 years, but the market size has not grown that significantly. Meanwhile, online private fund platforms like Percent, Fundrise, RealtyMogul, and Yieldstreet, along with crowdfunding platforms for exotic assets like wine and art, have shown the potential of these markets and strong demand from investors. With price-to-earnings (P/E) ratios near record highs, many investors are exploring new opportunities in alternative asset classes. Trends in capital markets over the past decade clearly show that this demand is likely to continue growing.

When talking about RWAs, we often highlight the benefits of tokenization but overlook the extra work required by fund managers to create an on-chain fund. Centrifuge stands out as a leader in the RWA space, offering a straightforward way for traditional funds to transition to blockchain. While much progress has been made in developing the core technology, more effort is needed to standardize the process of creating and managing on-chain funds from start to finish.

Starting on-chain comes with unique challenges and limited available information. The diagram below outlines the extra steps required to set up on-chain funds.

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By reducing this additional effort, supporting traditional fund managers, helping them navigate the blockchain space, and building key partnerships, we can encourage more funds to join Centrifuge. Once high-quality funds are established on Centrifuge, it will become much easier to attract customers.

Description of Activity

The main goal of DoDAO is to help increase the number of funds on Centrifuge and make it the default platform for RWA (Real-World Asset) investments. Our work will focus on three key areas:

1. Educating and Onboarding Fund Managers

Currently, there is no single guide or documentation for fund managers to learn about:

  • The benefits of blockchain technology compared to traditional systems
  • All the features of Centrifuge
  • The full process of creating an on-chain fund
  • Global crypto regulations to help them pick the best jurisdiction for their fund
  • Options for KYC/AML, token structuring, custody of assets, and more

To address this, we will create educational materials, including:

  1. Tidbits Hub: A resource like the one we built for Alchemix - https://alchemix.tidbitshub.org/
  2. Detailed Documentation: A comprehensive site with clear, step-by-step guides
  3. Presentations, Flyers, and Banners: Easy-to-share materials for social media and other platforms

2. Business Development

This involves presenting Centrifuge and the process of building on-chain funds to both large and small private credit firms. We aim to:

  • Identify the challenges stopping firms from creating on-chain funds
  • Work on solutions to these challenges and document them

We plan to:

  • Conduct at least four presentations with relevant firms every month
  • Develop outbound channels and represent Centrifuge at various conferences

Challenges:

Measuring the success of this activity can be tough. Onboarding cycles are often long, taking over a year from the time a fund becomes aware of Centrifuge to when they actually try it.

3. Educating Investors

During the market downturn of 2022–2023, many RWA projects offering under-collateralized loans failed. A key issue was that users didn’t understand where their funds were invested or the risks involved.

Alternative investments (private investments) are often riskier but promise higher returns. Retail investors may not fully understand these risks, leading them to choose poor projects. To make Centrifuge the most trusted platform for RWA investments, we need to invest in user education.

We will create materials such as:

  • Tidbits Hub: Similar to the one built for Alchemix - https://alchemix.tidbitshub.org/
  • Flyers and Banners: Shareable materials for social media and community outreach

This involves DoDAO complementing Centrifuge DAO and working on an ongoing basis, with its performance evaluated at regular intervals. Future engagements will only be renewed upon meeting the KPIs or delivering concrete outcomes.

Goals and Themes

Goals
This proposal focuses on the following goals:

  • Creating educational materials to help fund managers easily transition their funds on-chain and use Centrifuge.
  • Marketing to key audiences and institutions.
  • Increasing the usage of Centrifuge products and services.

Themes

  1. Grow Adoption:
    By simplifying the process for fund managers to bring their funds on-chain, we aim to directly increase the adoption of Centrifuge.
  2. Awareness, Education, and Community:
    Our strategy to raise awareness is through education and community-building. We will create extensive content that can be reused by anyone in the Centrifuge community.

Risk Assessment

The ideal approach for such an engagement is to work on a long-term basis. However, the risk lies in the what if DoDAO doesn’t deliver on its promises.

To manage this risk, the work done by DoDAO should be reviewed at regular intervals. Funds should only be released if DoDAO meets the expected outcomes or produces the desired deliverables.

Sustainability

  • How the project will be sustained after completion:
    The project will create educational materials and onboarding processes that can be reused by fund managers and investors. These resources will remain accessible, allowing continuous onboarding even after the initial project ends.
  • Will additional funding be needed in the future?
    Yes, small, additional funding may be required to update educational content, create new materials, and continue outreach efforts as the blockchain and regulatory environments evolve.

Collaborations and Partnerships

  • Will the project involve cooperation with other groups or DAOs?
    Yes, DoDAO will work closely with Centrifuge DAO and would want to collaborate with fund managers who have previously created funds on Centrifuge. Partnerships with key stakeholders, including legal and compliance experts, will also be very helpful.

Change or Improvement

  • What is the change or improvement that this mandate will bring?
    Its an improvement. This project will simplify and standardize the process of creating on-chain funds, making it easier for fund managers to adopt Centrifuge. It will also improve investor understanding of risks and opportunities, building trust in Centrifuge as the go-to platform for RWA investments.

Alignment to the Mission of Centrifuge DAO

  • Why this is important and aligned with the mission:
    Centrifuge aims to bridge the gap between traditional finance and blockchain. This project directly supports that mission by educating fund managers and investors, encouraging the adoption of on-chain funds, and fostering trust in the Centrifuge platform.
  • How will this project affect the DAO community?
    The project will strengthen the Centrifuge ecosystem by bringing more high-quality funds and engaged investors, ultimately increasing usage and adoption of Centrifuge products.

Description of Individual/Group Seeking Funding

Team:

DoDAO Team - https://dodao.io

DoDAO has been working on many tooling and educational initiatives in the blockchain space. We have been working with some of the top projects in the space and have been contributing to the ecosystem in various ways. We have been working on

Governance Tooling Initiatives

Educational Initiatives

References:
Uniswap
https://cointelegraph.com/news/uniswap-launches-educational-platform-do-dao

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Alchemix

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RWA Work
DoDAO has published extensive foundational content on real-world assets at Chained Assets. This initiative, is a work in progress, and was started a few months ago, serves as a public good aimed at expanding knowledge, improving verifiability, and enhancing the safety of investments. It strives to make the blockchain ecosystem more trustworthy and secure for all investors.

DoDAO’s Products

  • Tidbits Hub(Tidbits & Clickable-Demos/Simulations)
  • Academy Site Builder
  • AI Agent for Investment Analysis(In Progress) - V1 will target crowdfunding projects

We take a team based approach and for this initiative plan to have a team of 2-3 researchers.

Once approved, we can share the exact team members who will be working on this initiative.

Budget

Amount requested and how it is calculated:
DoDAO proposes dedicating 2-3 full-time members to this effort. The final budget will be determined after gathering initial feedback from the community and will be presented during the monthly community call.

Initial Budget Proposal
Collaborating with Centrifuge aligns with our strong interest in RWA. Given our expertise and past work, we believe we are the ideal team for this project.

  • Hourly Rate: $80/hr (discounted from $100/hr to be close to TAG rates)
  • Team: 2 members
  • Duration: Continuous with a 1-year initial commitment
  • Payment: Quarterly upfront or partial upfront; deliverables reviewed quarterly. Engagement can be terminated with a 1-month notice if unsatisfactory.
  • Working Days: 245/year (261 weekdays - 9 public holidays - 7 off days)
  • Total Cost (Annual): $313,600 (245 days * 8 hrs * $80/hr * 2 members)
  • Travel: Estimated $20K–$40K per annum, subject to TAG review and approval. Reimbursement based on actual expenses with receipts.

Funds distribution:
Funds will be allocated based on the evaluation of deliverables and achieved outcomes.

Measurement and Evaluation

  • Key Performance Indicators (KPIs):
    • Educational content created and shared.
    • Presentations delivered (minimum 4 per month).
    • Number of funds enquiries who will be interested in using Centrifuge.

Delivery and Reporting

  • Timeline and reporting:
    • First 3 months: Develop educational materials and documentation.
    • Next 6 months: Conduct outreach, presentations, and onboarding.
    • Ongoing: Provide monthly/quarterly reports on progress and achievements.
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Thank you for your proposal @robinnagpal. I have added the header and the relevant tags in this post.

  • Amount requested and how it is calculated:
    DoDAO proposes dedicating 2-3 full-time members to this effort. The final budget will be determined after gathering initial feedback from the community and will be presented during the monthly community call.

I would recommend to add an initial budget before our governance call next Wednesday (this proposal is on the agenda) and then it can be adjusted afterwards, if needed.

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Ambassadors Group were discussing future education delivery process potentially including Accreditation Testing Prep as part of the curriculum for US markets.

DoDAO appears to be legit product team from Canada, with appropriate credentials. Excited to see what they present.

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Interesting proposal can DoDAO Team share more details and metrics on:

  1. How many people are regularly visiting these Educational Initiatives and complete the training.
  2. Growth achieved and improved community engagement
    RWA is a different area but in general the outreach and metrics can helps members to take a more informed decision
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Thank you, @Rhano, for guiding us through the process.

We’ve added the initial budget, ensuring it aligns with other Centrifuge DAO initiatives.

The one-year engagement budget should be divided into and paid in parts based on reviews of DoDAO’s work.

One key point to emphasize, which others might ask, is why continuous involvement is necessary.

To create an impact, we plan to first develop helpful content in various formats. Next, we will engage with fund managers to understand their concerns about creating on-chain funds and build a pipeline of those interested in using Centrifuge.

In most cases, the full adoption process—from awareness to launching an on-chain fund—will take at least 9–12 months.

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Thank you, @theoyster for your great feedback!

Over the last 7–9 months, we have studied and researched RWAs from the ground up. Many of our findings are published here: https://research.chainedassets.com.

Our key takeaway is that as blockchain builders, we can’t assume people will adopt the technology just because we create it. Users need to see a clear reduction in overall effort and costs.

Creating a fund is already challenging, and building an on-chain fund adds complexity, additional work, and costs. Our goal is to simplify and templatize the process to make it easier for fund managers to adopt blockchain technologies.

We also observed during the last bear cycle (2022/2023) that investors lost money with some centralized blockchain funds and projects. We want to ensure investors are protected, understand how their funds are used, where the yield comes from, and the risks involved.

These are the areas we’ll be focusing on! :blush:

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Thank you for the kind words @Tradesman and confidence in DoDAO!

Would love to know more about “Accreditation Testing Prep” that you guys are planning.

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Thanks, @Eshwar, for reviewing the proposal.

We’ve observed both similarities and differences in responses to the educational sites we’ve created so far:

Similarities:

  1. All teams loved the high-quality content and appreciated the effort we put into it.
  2. On sites with a rating feature, content and experience consistently scored 4.5+/5.

Differences:

  1. Traffic varied significantly, largely depending on how much the partner teams promoted the sites.
  2. Sites like Compound, Uniswap, and Arbitrum performed well due to promotion or being featured on their main pages.
  3. A one-time experiment with token incentives led to traffic of 5,000 completions in 1 hour. But we observed most of it was bot traffic and this approach we have avoided since it didn’t align with our vision.

Learnings:

  1. Shorter Content: Users prefer quick, concise content over long-form material. Our new product, TidbitsHub, addresses this need. Alchemix (https://alchemix.tidbitshub.org) is live, and content for Safe (https://safe-global.tidbitshub.org) is in final stages of testing.
  2. Continuous Engagement: Success depends featuring tidbits/academy sites prominently (e.g., on home pages) on active promotion. Moving forward, we’ll focus on at lease one is done.
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Thank you, everyone, for taking the time to review the proposal. We feel that one of the things lacking is clear, measurable milestones on the BD side.

We will try to work with Jon or other Centrifuge members to determine how we can address this.

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Thank you very much for your proposal, sorry today in the gov call I don’t have opportunity to ask you directly because of the time limitation, here are some of my questions:

  1. While the proposal highlights DoDAO’s plans for educational content and fund manager onboarding, I noticed limited social media presence and community engagement metrics. Could you clarify the current size and activity of your community, as well as how you plan to measure and expand outreach impact to ensure the proposed initiatives significantly benefit Centrifuge?
    maybe can share any successful work you have done before? I think the educational content and fund manager might be two different direction, one would need to have high quality and broad impact, another one would need special connection, so it would be good if you can specify which one is your main focus
  2. The proposal mentions support from top blockchain companies such as NEAR, but I couldn’t find public confirmations or endorsements from these entities. Could you provide more details about your core team members, their backgrounds, and any formal partnerships with the mentioned blockchain organizations to ensure transparency and accountability?
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Hi @DrCAO,

Thank you for reviewing the proposal and attending the session.

  1. We don’t have a community focus or work on community efforts. Our past work has been in education and tooling, with references for educational content shared above. Currently, we’re collaborating with Compound on various efforts and with Safe(Tidbitshub). We can assist the right person from CFG in gathering feedback on our efforts from them.

  2. We worked with NEAR and Harmony on DAO onboarding efforts and had a DAO onboarding product. However, both NEAR and Harmony discontinued their DAO efforts because of lack of a viable market. Due to a lack of product-market fit, we eventually phased out the product as well.

  3. We agree that education and business development (BD) for fund management are distinct areas. While we specialize in education, BD with asset/fund managers is new to us. However, we have deep domain knowledge, which is detailed here: https://research.chainedassets.com.

In the coming days, we will aim to connect with members who have worked in the BD of CNF to evaluate whether our proposed efforts add value and are fully relevant.

Based on their feedback, you can expect either a more refined proposal with a clear path to success and concrete actionable items and milestones or, if the CFG members feels that our BD-related proposals do not add value, we will consider removing the BD effort, which constitutes a significant portion of the overall engagement.

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Hello @Rhano @0xjulcaesar @martin @joncasterline

If we bring in relevant leads (asset/fund managers) who would be interested in learning about Centrifuge and trying Centrifuge, before fully setting their fund onchain, what is the current onboarding process for them?

For New Funds

  1. Who provides them with a walkthrough of the platform and explains the full setup process?
  2. What type of support do they receive from CFG?

For Fund/Asset Managers Interested in Moving Existing Funds On-Chain

  1. For traditional asset managers who have been using Excel or similar basic tools, what does their adoption process look like?
  2. What happens to their existing legal documents with investors?
  3. Are there any examples or case studies they can refer to?

For Both Cases

  • How much do they need to pay now or eventually (later)?
  • What type of new investor base can they expect?
  • How can we determine if they are the right type of fund for Centrifuge?
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Thank you for sharing your proposal with the Centrifuge community!

As the Treasury Advisory Group, we’re excited to see DoDAO’s initiative and appreciate the comprehensive approach you’ve taken. Your proposal addresses some pain points effectively, and we’ve been researching your work with interest. There was a lot of feedback raised during the Centrifuge Governance Call on 15 January and we’re curious about how that has affected your perspective and this proposal.

  1. Educating and Onboarding Fund Managers - we have a question about whether fund managers need to be educated? What will they be educated on? Who in your team has fund management experience?

  2. Does your team have sufficient capability? Please include information from the background check and credibility section in the CP2 template. The DAO will want to see if the team is truly capable of delivering this work within the proposed budget.

  3. Are you bringing any Funds to onboard

  4. Which funds will you pitch to?

  5. What strategy do you plan to follow that differs from the Centrifuge BD team?

  6. Budget: 300K - this seems very high for non-technical work for a one year duration. Can you comment on this?

  7. As TAG had researched DoDAO’s previous education and similar concept (except fund concept) proposals at different Web3 DAOs, we identified that the amount of funding requested by DoDAO has been very different in, has been very different at every one of them. Harmony (36,000$) / Ocean Protocol (2,800$) / SafeDAO (24,000$).

  8. Why do you think there are significant differences?

  9. Why should CentrifugeDAO give that amount for experimental work?

  10. Team: Is it 2 or 3 full-time team members?

  11. The “Measure and Evolution” and “Delivery and Reporting” sections could benefit from additional detail. In particular, we’d like to see analytics and traction metrics from your previous collaborations with Uniswap and Alchemix. While the proposed efforts look impressive, the outcomes could be more precisely defined, as the current action items and deliverables appear somewhat high-level. Milestones and outputs are especially critical for your requested budget. Breaking down your efforts into milestones with tangible goals could be more effective in helping the DAO make a decision.

  12. What will be your success metrics?

  13. In general, you could provide more detailed information about the efforts you plan to put forward, namely around your expertise in addressing a highly specialised area of finance.

Many aspects have been thoughtfully addressed, and we sincerely appreciate the effort you’ve put into this work.

Please feel free to elaborate on the points we have raised.

As TAG, we share comments to help you improve your proposal. Once the proposal is in its final form, we will submit our report with a non-binding opinion for DAO members to make their decision.