Polkadot Community Foundation (PCF) - Proposal for Renewed Funding for One Year

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:

• Expand governance leadership with directors selected based on expertise in blockchain governance, legal compliance, and operational execution.
• Strengthen community representation and ecosystem engagement by appointing directors who are actively involved in Polkadot’s ecosystem. Enhance accountability and decision-making processes by ensuring that PCF leadership aligns with community expectations and network priorities.

Implementation Strategy & Cost Considerations:

• The PCF aims to appoint directors to ensure broad global representation while adhering to regulatory frameworks.
• Budget allocation: $35,000 per year per director, covering:
  • Legal and compliance costs associated with director appointments and compliance covered in the PCF’s Funding.
  • Directors & Officers (D&O) insurance costs to protect leadership from legal liabilities.

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:

• Create a structured and accessible record of PCF-led proposals, including funding details, execution status, and outcomes.
• Increase community visibility by providing monthly updates on active and completed initiatives.
• Enable informed decision-making by offering historical insights into past projects and their impact.

Implementation Strategy:

• Develop a public-facing dashboard or website dedicated to tracking all PCF-related proposals.
• Integrate proposal details, funding, timelines, and impact assessments for full transparency.
• Facilitate feedback loops, allowing DOT holders and community members to discuss completed initiatives and suggest improvements.

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

Ledger Giveaway Proposal

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:

• Enhance Polkadot's social media engagement and community interaction.
• Promote secure asset storage practices among DOT holders.
• Increase brand visibility and adoption through strategic partnerships.

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:

• Follow both Polkadot’s and Ledger’s official social media accounts.
• Share or repost the giveaway announcement to increase visibility and participation.
• All unused funds were returned to the Polkadot Treasury.

Outcomes:

• Increase in Polkadot’s social media engagement, as measured by higher interaction rates, reposts, and discussions. 2.2M views / 4.8K comments / 15K retweets  best performing Polkadot post ever.
• Growth in Polkadot’s official social media following, further expanding its online presence. 20K new followers to the Polkadot account.
• Awareness of hardware security solutions for DOT holders, ensuring a safer ecosystem for asset storage and management.

Pain Points:

• Community Sentiment on Legal Fees: Some concerns were raised regarding the overall cost of legal services.
• Ledger Invoice Currency Issue: Ledger could not issue an invoice in USD, resulting in additional currency conversion costs.
• Extended KYB Process: The Know Your Business (KYB) process took longer than expected, adding operational delays.

Marketing Bounty Initiatives

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:

• Empower the Polkadot community to take part in marketing efforts.
• Foster creativity and engagement within the Polkadot ecosystem.
• Increase Polkadot’s visibility through community-driven campaigns.

Execution:

• Launched the first Marketing Bounty Proposal to incentivize content creation and outreach.
• Encouraged participation from a diverse group of community members, influencers, and content creators.
• Leveraged social media, video content, and blogs to enhance Polkadot’s online presence.

Outcomes 

• Ongoing support for current and future Marketing Bounty initiatives.

Pain Points: 

• Higher than expected legal spend due to the nature of initiative and items needed for execution.

These initiatives will lead to wider adoption and greater community participation, reinforcing Polkadot’s decentralized ethos.

Polkadot API Funding 2025

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:

• General maintenance to ensure optimal performance and reliability.
• New feature development, based on community feedback and strategic network requirements.
• Enhancements to scalability and interoperability, improving integration with various Polkadot ecosystem projects.

Execution: 

• Agreement, KYB and Payment were completed in a timely manner. 
• Unused funds were returned to the treasury as set out in the proposal.

Outcomes:

• Ensures developers have access to a stable and robust API for building applications.
• Supports ongoing network upgrades and feature enhancements.
• Strengthens Polkadot’s developer ecosystem by providing critical infrastructure for application development.

Pain Points: 

• Hold up on claiming funds due to insufficient USDC in the Polkadot Treasury at the time the claim window started.
• Increased legal spend due to re negotiations of terms as stipulated by the Polkadot-API team.

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:

• Ensure the Polkadot App is launched successfully and complies with all laws and regulations
• Collaboration with developers and ecosystem contributors to maintain app performance and reliability.

Execution: 

• Still ongoing.

Pain Points: 

• The scope of the proposal expanded beyond the original expectations.
• Setting up necessary memberships and subscriptions took more time than anticipated.
• Legal and compliance processes were longer and more costly than planned

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: 

• Invest in real-world assets (RWAs) to generate stable yields.
• Increase Polkadot's Total Value Locked (TVL).
• Diversify the DAO’s treasury.
• Strengthen RWAs within the Polkadot ecosystem.
• Support Centrifuge, a leading parachain

Execution and Resolution: 

• PCF coordinated with the Centrifuge team to overcome technical obstacles.
• Successfully implemented the proposal, ensuring that community-backed funding was effectively utilized.
• Introducing a system of quarterly return on investment (ROI) reports, which provide transparency and insight into the project’s progress and performance.

Outcomes:

• Funds were invested 07/04/2025
• https://pr2691-app-ff-production.k-f.dev/#/prime/polkadot

 

Pain Points:

• Proposal Timing: The proposal was submitted before the PCF was fully operational with established processes and guidelines.
• Onboarding Delays: Delays occurred due to extended KYB, compliance, and signer coordination processes.
• Technical and alignment Limitations: Multisig set up, signer alignment and necessary technical know how slowed the process.
• Ecosystem Concerns: Centrifuge’s proposal to migrate chains raised concerns about investing Polkadot funds into another ecosystem.

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:

• Legal and Liquidator Fees ($30,000): Required to ensure the PCF is properly dissolved while adhering to corporate governance standards.
• Administrative Fees ($16,350): Covers the costs of managing final operations, documentation, and compliance filings.
• Agreement Fulfillment Costs (Variable): Any outstanding obligations under current agreements must either be completed, terminated, or renegotiated at additional costs.

Disruption to Ongoing Initiatives

Without the PCF, several key initiatives currently being executed will be impacted, including:

• Marketing Bounty Programs: Efforts to expand Polkadot’s global reach, including influencer partnerships, content creation, and event sponsorships, will no longer have a structured mechanism for execution.
• Polkadot App Development & Maintenance: The Polkadot App’s development would be halted until a new entity is identified due to the lack of a legal entity to manage its intellectual property, updates, and security. This could lead to service disruptions, security risks, and loss of a dedicated team, ultimately impacting user experience

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:

• Increased complexity in coordinating real-world activities, as no dedicated entity will exist to manage legally binding agreements on behalf of the community.
• Delays in the execution of approved proposals, as new entities would need to be onboarded, vetted, and structured to handle operational responsibilities.
• Potential loss of community-driven initiatives, as certain programs and incentives may not find a replacement mechanism within Polkadot’s decentralized governance model.

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.

Current members of the PCF

Directors: G. Kennedy, M. Shaw & E. Noyons

Supervisor: J. Bain

Administrator: Autonomous Projects

• The largest and most experienced offshore foundation administrator in the industry
• Cayman-based multi-disciplinary team of 50+ multinational COOs, industry-leading accountants, and DAO/Crypto OGs across legal, finance, regulatory, operations, and investment management.
• Trusted by 85+ foundations, including L1s, L2s, DeFi, Gaming, Infrastructure, DePIN and NFTs.
• As the currently appointed administrators, Autonomous has spent the last year developing a deep understanding of the Polkadot ecosystem and refining their role to introduce tailored efficiencies. Given the evolving operational needs of the Foundation, Autonomous has evolved into a vital partner in ensuring continuity, efficiency, and accountability in the Foundation’s ongoing activities.