Introduction
The Polkadot Community Foundation (PCF) was established to serve as a crucial bridge between the on-chain governance of the Polkadot network and real-world execution of community-driven initiatives. Its core purpose is to provide a structured and efficient mechanism through which DOT holders can influence and direct off-chain activities. By having a legally recognized entity capable of entering contracts, managing funds, and executing proposals, the Polkadot ecosystem benefits from increased coordination, accountability, and professionalism.
In its first year of operation, the PCF has undertaken a number of proposals aimed at bolstering the Polkadot network’s ecosystem and marketing outreach. A few key projects are described in more detail below. Please also refer to the Polkadot Wiki including FAQs on the PCF, all of which were put in place in its first year of operation.
Given these achievements and what's on the horizon for structured off-chain execution, this proposal seeks the continued funding of the PCF for another year to further develop its impact and reach.
The article below, to which the Polkadot Community Foundation (PCF) contributed, provides valuable insights that advance DAO standardization and offer a clearer understanding of the legal landscape surrounding DAOs.
https://www.blackvogel.com/_files/ugd/4a504d_5f3c19ef9c15433f9c8cf521c59611bc.pdf
Bridging On-Chain Governance with Off-Chain Execution
The decentralized nature of Polkadot’s governance is one of its greatest strengths, allowing DOT holders to vote on key decisions affecting the ecosystem. However, certain initiatives require execution in the real world, including legal agreements, financial management, and operational oversight. The PCF serves this role by providing a legally recognized structure that can act on behalf of the community while remaining accountable to it.
PCF Goals and Strategic Priorities for Year 2
The PCF remains steadfast in its commitment to transparency, accountability, and efficient execution of community-driven initiatives. Building on the foundation laid in the previous year, the PCF has identified the following high-priority objectives to further enhance its governance structure, operational effectiveness, and community engagement.
Appointment of two DOT Directors for PCF Operations
One of the most critical objectives for this year is the appointment of two DOT directors who will be responsible for overseeing the strategic direction and daily operations of the PCF. As the Foundation continues to establish itself as a vital bridge between on-chain governance and off-chain execution, expanding leadership with dedicated, experienced professionals is essential to ensuring sustainable growth. All legal and compliance fees associated with appointing DOT directors will be covered through the funding requested along with relevant Directors and Officers insurance for the appointed directors.
Directors and Officers (D&O) Insurance is critical to ensuring the PCF can attract and retain qualified leadership. This insurance protects directors, officers, and key decision-makers from personal financial liability arising from claims of mismanagement, breach of fiduciary duty, regulatory investigations, and other governance-related risks. By securing D&O coverage, the PCF ensures that its directors can act confidently in the best interests of the community, knowing they are protected against potential legal actions — even in cases where claims are unfounded.
Key Objectives:
Implementation Strategy & Cost Considerations:
By expanding leadership representation, the PCF empowers the Polkadot community with the governance mechanisms needed to drive long-term success.
The PCF’s approach reflects a moderate and responsible risk appetite. This governance structure will increase the Foundation’s ability to act as a trusted steward of Polkadot’s off-chain initiatives while remaining fully transparent to the community. By appointing DOT directors and securing D&O insurance, the Foundation acknowledges operational and regulatory risks but manages them through strong governance and legal protections. This shows a willingness to accept necessary risks to fulfill its mission, while maintaining transparency and safeguarding community interests.
Establishment and Maintenance of a Transparent Information Hub
To further enhance community visibility and transparency, the PCF will develop and maintain a centralized information hub that will serve as a repository of all proposals that have been processed and successfully completed under PCF oversight.
Key Objectives:
Implementation Strategy:
By implementing this initiative, the PCF will reinforce trust within the Polkadot ecosystem, demonstrating a clear commitment to openness, effective resource allocation, and community-driven execution.
Budget and Financial Breakdown for one year
To effectively execute the proposed initiatives, we request a budget allocation of $632,000 for the upcoming year. The breakdown of expenses is as follows:
Completed Proposals Year 1
The Ledger Giveaway Proposal was a strategic initiative aimed at increasing awareness of Polkadot and promoting best practices for cryptocurrency security. This initiative was executed in collaboration with Ledger, a globally recognized leader in hardware security solutions for digital assets.
Objectives:
Execution:
The campaign involved distributing 50 Ledger Flex devices to community members through a structured social media engagement campaign. To participate, users were required to:
Outcomes:
Pain Points:
To enhance awareness and drive adoption. The PCF in conjunction with prominent Polkadot Community Members are currently enacting the Marketing Bounty Proposals, a series of community-driven marketing initiatives.
Objectives:
Execution:
Outcomes
Pain Points:
These initiatives will lead to wider adoption and greater community participation, reinforcing Polkadot’s decentralized ethos.
Polkadot-API Dev Team envisioned to provide a robust and flexible suite of libraries that prioritize composability, modularity, and a light-client-first approach. Our goal remains to equip dApp developers with powerful tools that simplify the creation of truly decentralized applications while continuously refining the developer experience. As the project continues to evolve, ongoing funding is necessary to support further development and maintenance throughout 2025. The PCF enacted referenda #1462 to fund the Polkadot API Team for the remainder of 2025.
Objectives:
Execution:
Outcomes:
Pain Points:
By securing funding for continued API development, Polkadot can maintain a competitive edge in blockchain technology and support the growth of its decentralized ecosystem.
Polkadot App Continued Development
The Polkadot App serves as a critical interface for users to interact with the Polkadot network. The PCF has played a key role in supporting its development and will play an ongoing role in its maintenance.
Objectives:
Execution:
Pain Points:
These efforts ensure that Polkadot users continue to have seamless access to essential tools for managing and interacting with the network.
Managing the Centrifuge Proposal
One of the significant challenges faced by the PCF was implementing the Centrifuge Proposal due to technical hold-ups and dependencies technical support.
Objectives:
Execution and Resolution:
Outcomes:
Pain Points:
Implications if this Proposal is Not Approved
If this proposal is unsuccessful, the PCF will be required to initiate the process of winding down its operations. As a legally established entity, the PCF has entered into various agreements and contractual obligations, all of which will need to be novated, cancelled, or fulfilled to ensure compliance with legal and financial responsibilities.
Key areas affected include:
Legal and Administrative Costs of Dissolution
The process of legally winding down the PCF will require compliance with relevant regulations, financial audits, and contractual terminations. The estimated costs associated with dissolution include:
Disruption to Ongoing Initiatives
Without the PCF, several key initiatives currently being executed will be impacted, including:
Need for Alternative Execution Mechanisms
If the PCF ceases operations, the Polkadot ecosystem will need to explore alternative governance structures or third-party entities to manage and execute critical off-chain initiatives.
This could lead to:
The PCF serves as a critical bridge between on-chain governance and real-world execution, ensuring that Polkadot’s community-driven initiatives are legally and operationally supported. If this proposal is not approved, the Foundation will be forced to allocate resources toward winding down rather than continuing to deliver value to the ecosystem.
To prevent unnecessary disruption, increased costs, and delays in community initiatives, it is in the best interest of DOT holders and the broader Polkadot ecosystem to approve this proposal and ensure the PCF’s continued operation.
Conclusion
Now that The Polkadot Community Foundation has established improved workflow and processes it strives to prove its value in effectively bridging on-chain governance with real-world execution. By renewing funding of the PCF for another year, we can build upon the solid foundation established over the past year and drive further growth, engagement, and success for the Polkadot ecosystem.
Approving this proposal would extend the types of proposals that Polkadot governance is able to enact beyond purely on-chain actions to include “real world” activities that require human actions, legal identity, and/or analog assets to execute.
This proposal requests only enough USDC to refile incorporation of the Foundation and operate it for 12 months. As the community thinks about how it would like to utilize the Foundation as it has done over the past year, it can vote on future treasury proposals to expand the scope and fund those activities.
Autonomous Projects is posting this proposal as administrators to the Foundation.
Directors: G. Kennedy, M. Shaw & E. Noyons
Supervisor: J. Bain
Administrator: Autonomous Projects
The Polkadot Community Foundation (PCF) is a bridge between the Polkadot network's on-chain governance and real-world actions. It helps DOT holders influence off-chain activities. In its first year, the PCF worked on projects to grow the Polkadot ecosystem and market outreach. Now, it asks for more funding to continue its work.
The PCF has goals for its second year, like appointing two DOT directors and creating a transparent information hub. It wants to expand leadership and community engagement. The PCF also needs money for legal and insurance costs.
If the proposal is not approved, the PCF will have to wind down its operations, which could cause disruptions to ongoing projects and the need to find new ways to manage off-chain activities.
In conclusion, the PCF wants to continue helping the Polkadot ecosystem grow by connecting on-chain governance with real-world actions. Approving more funding will allow the PCF to keep doing this important work.
Threshold
I might be tempted to fill the role of one of the two DOT Directors for PCF Operations
Edited
🚨🚨🚨🚨🚨🚨 GRIFT 🚨🚨🚨🚨🚨🚨
632 K USDC for this? While you still have another ref running ... we'd really be much better off closing this supermarket.
In fact, bruh, we’d get a better yield sending DOT to the Nigerian-prince-spam folder at least that scam only needs one guy, not 5 admins, 3 “operators,” and D&O insurance to tweet about a Ledger giveaway.
If Year 1’s highlight was mailing 50 USB sticks, maybe the Treasury should unsubscribe before the legal-fee auto-renew hits. Keep on-chain, kill the condo budget.