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Catalyst is back with Fund 10

Published 25.5.2023

Project Catalyst is back. Cardano has one superpower. That is a committed community eager to build, and a project treasury from which anyone can raise funds if they convince the ADA stakers of their idea. Thus, the Cardano ecosystem is not dependent on VC funds. It has its own project and treasury to sustain itself. The Catalyst project has been put on hold to give the team time to fine-tune the processes and improve infrastructure. Fund 10 has been announced and is scheduled to start on 21 June 2023.

There are currently 1.26 billion ADA coins in the Cardano treasury. These coins are the property of all ADA stakers who can decide how they are used. We believe that at this point new projects are already in the pipeline to apply for Catalyst funding.

TLDR

Cardano is arguably the largest DAO in the blockchain industry thanks to Catalyst. 354K people voted in Fund 9. That's a quarter of all ADA stakers. The Catalyst team needed time to reflect and incorporate feedback from the Cardano community. After a break, it's back in an improved format.

A short look back

Catalyst runs in iterations called Funds. There have been 9 Funds and the newly announced one is number 10.

Together in all funds, 4,733 ideas were proposed. 1,155 projects received funding. A total of 38,391,449 USD was requested. The number of completed projects is 485. A total of 1.74M votes were cast.

To consider a project as completed, each generally needs to submit a close-out video and an accompanying report to demonstrate the outcome of their funded proposal.

The number of voters in each Fund steadily grows, making Catalyst arguably the largest DAO in the blockchain industry. 24K people voted in Fund 2, 237K people voted in Fund 5, and 354K people voted in the most recent Fund 9. At the time of the last Catalyst voting, there were roughly 1.2 stakers in the Cardano ecosystem. This means that roughly a quarter of all ADA stakers participated in the last round of voting.

The number of ideas is also growing. In Fund 5, 271 ideas were proposed. In the last Fund 9 it was already 1174 ideas. As the number of ideas grows, so does the number of funded projects. In Fund 5, 69 projects were funded. In Fund 9 it was 216 projects. It can be said that roughly one-fifth of the ideas get funding.

There is a budget allocated for each Fund. In the last two Funds, it was 12.8M USD. Individual teams bid for part of this budget with their ideas.

Catalyst needed a breather

It is important to mention that Catalyst is a large-scale experiment. Many processes are being modified by the team as they go along. Some things work better, some things work worse. Never in the past has it been possible for people to own a global decentralized protocol that has its own treasury. The team had (and still has) a very difficult task ahead of it, as it has to ensure that the principles of decentralization are respected, but at the same time that the number of fraudulent projects are kept to a minimum. ADA coins in the Treasury must be spent efficiently. High demands are also placed on the infrastructure, as Catalyst is an inherently global project.

The Catalyst team needed time to reflect and incorporate the valued feedback from the Cardano community. That's why Catalyst was paused after Fund 9 at the end of 2022. The pause was important for the continued healthy and sustainable growth of the Catalyst project. Before Fund 10, the team wanted to adjust processes, introduce new methods and build a better infrastructure. It was seen that some processes needed to mature, be simplified, more autonomous, while remaining inclusive and bringing value to the Cardano ecosystem.

Let's give one example of process improvement for all. In Fund 9, milestone-based reporting was tested. Selected projects that requested funds with a value higher than 75k USD, had to report requirements based on clear milestones and provide a statement of milestones and proof of achievement to continue to receive funding.

After a lot of hard work, the team managed to launch Fund 10, which is certainly good news for all builders. The team has prepared Catalyst for the next Funds.

What lies ahead

Fund 10 will be launched on 21 June 2023. In the first phase, people can propose their ideas. All proposals are public and the community can comment and rate them. Authors of proposals can answer questions and incorporate feedback from commenters.

At a date to be announced in advance, a snapshot of ADA coins will be taken and used for voting. After the review, all ADA stakers can vote (the stake from the time when the snapshot was taken will be used).

Don't forget to keep ADA coins in your own Cardano wallet. You cannot vote from centralized exchanges. The ADA must be in the wallet before taking a snapshot. Don't forget to claim staking rewards as this will increase your stake for voting.

Full details of Fund 10 are yet to be announced. Based on previous Funds, it is expected that there will be more categories with different amounts of budget. Projects that have the best upvote and downvote ratio will be funded until the category runs out of budget.

Once the voting is over, the Catalyst team will evaluate and publish the results. The winning projects will receive funding.

Conclusion

Most of the information on Fund 10 is yet to be published, including the dates of the Catalyst phases. Keep an eye on official sources and don't forget to vote. Every ADA staker can directly influence the development of the Cardano ecosystem with their vote and as a bonus get a reward for voting.

There are many teams in the Cardano ecosystem that have a good track record and will apply for funding. Support the best ideas.

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