HIP04 - Investment process [OnGoing]


This post proposes the process for projects to raise fund from Hectagon Protocol.


The proposed process aim to achieve the following goals:

  • Ensures members of the community to have a strong voice in the selection of potential investments while not being bog down with making too many decisions.
  • Keep the fundraising process for Applicant as short and as closely resemblance from a normal fundraising process from VC as much as possible.
  • Scalable if the workload become too much, Hectagon’s Investment Team can easy scale up with contributors from our community.


The Investment Process consists of the following steps:

Step 1: Application form

Project team can:

  1. Fill in a simple application form and the project’s application will be put in a Waiting List for the Hectagon’s Investment Team to review, or
  2. Continue to complete the comprehensive form that contain detailed information of the project and go straight toward Community Upvote.

Step 2: Community Upvote

The project’s information will be automatically uploaded onto the Portal’s New Deal group where Community Members can upvote for the project they like. Two potential outcome will happen:

  1. With enough upvote, project will move to: Trending Projects section and get priority review by Hectagon’s Investment Team.
  2. If project does not received enough upvote after a period of time, it will be moved to the Tracking Database, where the project can decide when to promote itself with Hectagon community again for upvote or wait for a potential review from the Hectagon’s Investment Team.

Step 3: Hectagon’s Investment Team review

The Investment Team will review projects in the following priority orders:

  1. Trending Projects. (100% of the projects arrive here will be review)

  2. Projects in the waiting list with referrals from trusted source. (Hectagon’s partners or high ranking members)

  3. Projects in the Tracking Database

  4. Other project in the Waiting List

Step 4: Investment Council preparation

If a project passed the Investment Team review, a proposal of investment for the project will be prepared by the team to submit to the Investment Council. The Investment Council will have the power to review the decision of the Investment team to Veto if necessary, if not the proposal will pass. Before the IC meeting, the following actions will be taken:

  1. The project will be publish to a Reviewed Portal for Hectagon’s community to keep track of.

  2. Community members will have 48 hours to provide any information they might have on the project that they think may help with IC’s decision. These information will be kept private.

  3. The Investment Team will prepare an investment memo including any information provided by the community for the IC for each project.

Step 5: Community Review

If the Investment Council let the deal pass, it will goes through a final check which is Hectagon community vote. The goal of this vote is for the community to act as the final check and balance for Hectagon Protocol and review the decision of the Investment team. If the community vote to Veto the investment will be canceled, if not, the investment proposal will passed and the deal process will begin.

Step 6: Deal & Investment

The investment proposal will be announced to Hectagon’s community, the Investment Team will follow-up with the project to sign the necessary agreement and proceed with the disbursing the investment. A report documenting the investment decision will be submitted to Hectagon’s DAO for book keeping purpose.
If a project is rejected by the IC, their information will be taken out of Hectagon’s Tracking Database, along with other projects that opt out on their own will. Project can always choose to re-apply for funding in the future.

The current target length of the fundraising process for each project is:

  • 1 week in community upvote
  • 2 weeks between Investment Team review to Investment Council and Community Review.

This target will keep the total fundraising time for a project from Hectagon in under 3 weeks.

The comment will stop at: 16 Aug 2022 00:00PM UTC.
A snapshot will be available shortly afterward after all comments are consolidated.

Author: Everest

This proposal looks good, however I have few questions:

  • What is the criteria for Investment Council member?
  • How many people in Investment Council?
  • Is there a term for Investment Council? like 6 months
  • How to make sure Investment Council vision align with Hectagon’s benefit?

Thank you.