The feasibility study for K9 Finance DAO’s expansion to Polygon has been thoroughly completed, confirming its technical viability, financial potential, and strategic alignment with K9’s mission. The study’s “Overall Verdict” clearly states: “Proceed only if external grant funding of at least $90k is secured before Phase 1.” This establishes a clear mandate for the next step.
To move forward, the K9 Finance DAO needs a formal proposal to initiate this critical grant acquisition phase (Phase 0) and establish the necessary organizational structure for its execution.
Synopsis: This proposal seeks K9 Finance DAO’s explicit approval to initiate Phase 0: Feasibility & Funding of the Polygon (knPOL) expansion, specifically mandating the pursuit and securing of a minimum of $90,000+ USD in external grant funding by November 30, 2025. It also proposes the establishment of a dedicated Polygon Committee/Working Group to lead this effort, leveraging K9’s lean operational model and strategic advantages to become Polygon’s leading liquid staking solution, with tangible benefits directed back to the Shibarium ecosystem.—
Proposal: Initiate Grant Acquisition for K9 Finance DAO’s Polygon (knPOL) Expansion
(1) Introduction and Objective
A comprehensive feasibility study regarding the expansion of K9 Finance DAO’s liquid staking solution to the Polygon network (knPOL) has been completed. The study concludes that this expansion is technically feasible, financially viable, and presents a significant market opportunity following Lido Finance’s exit from Polygon. Crucially, the study’s “Overall Verdict” and “Deployment Roadmap” dictate that further progression hinges on securing substantial external grant funding.
This proposal formally requests the K9 Finance DAO’s approval to:
• Initiate Phase 0: Feasibility & Funding of the Polygon expansion roadmap.
• Mandate the active pursuit of a minimum of $90,000+ USD in external, non-dilutive grant funding from the Polygon ecosystem by November 30, 2025.
• Establish a dedicated Polygon Committee/Working Group responsible for leading this grant acquisition effort and initial strategic outreach.
The objective is to de-risk the knPOL deployment by securing essential upfront capital for audits, initial liquidity, and initial operational/development costs, ensuring that the full expansion is financially sustainable from external sources, thereby safeguarding the DAO’s treasury. (2) Benefits to K9 Finance Community
Initiating the grant acquisition process for knPOL offers multiple benefits:
• Financial Prudence: Aligns with the feasibility study’s recommendation to avoid using significant DAO treasury reserves for initial deployment. Securing grants minimizes financial risk and preserves the DAO’s runway.
• Strategic Market Capture: Positions K9 to fill the void left by Lido on Polygon, potentially capturing a substantial market share (estimated break-even at $10M TVL from Polygon’s $670M staked market).
• Cross-Chain Value Creation: Grants and future knPOL revenues can be strategically channeled back to the Shibarium ecosystem (e.g., POL yield converted to BONE for xKNINE lockers), demonstrating tangible benefits for Shibarium users.
• Ecosystem Diversification: Reduces K9’s sole reliance on the Shibarium ecosystem, broadening its revenue streams and influence across a major L1 network like Polygon.
• Enhanced Reputation & Brand: Elevates K9 Finance to a recognized multi-chain DeFi player, attracting new users and potential partners by leveraging its unique Shibarium connection and community-driven ethos.
• Structured Progress: Ensures a clear, milestone-driven approach to expansion, with defined “kill-switch” dates to prevent open-ended expenditure if funding targets are not met.
• Community Empowerment: Establishes a new avenue for community members to directly contribute to K9’s growth through participation in the Polygon Committee.(3) Proposal Details
(a) WHAT
This proposal initiates Phase 0: Feasibility & Funding of the knPOL deployment roadmap.
Key actions include:
• Grant Application Preparation & Submission: Develop and submit compelling grant applications to various Polygon ecosystem programs (e.g., Polygon Community Grants, Encode Club x Polygon Grants), emphasizing K9’s unique value proposition, technical readiness, and cross-chain benefits.
• Grant Readiness Audit: Verify the DAO’s ability to meet grant criteria, targeting a minimum of $90,000+ USD in secured funding.
• Preliminary Validator Outreach: Initiate discussions with Polygon’s validator coordination team or potential partner validators to explore slot availability or partnership opportunities.
• Strategic Partnership Development: Engage with key Polygon ecosystem projects (DEXs, wallets) to lay groundwork for future knPOL integrations.
(b) WHO
• K9 Finance DAO: Provides the mandate and ultimate oversight for Phase 0 activities.
• Management Council: Responsible for overseeing the entire initiative, providing strategic guidance to the Polygon Committee, and ensuring adherence to the roadmap’s exit criteria.
• Polygon Committee/Working Group:
• Composition: An initial group of 3-5 members with diverse expertise. Ideal expertise includes: grant writing, business development (especially in the Polygon ecosystem), technical understanding (to articulate K9’s solutions), and strong community engagement.
• Selection Process: A call for volunteers will be made on the K9 Finance DAO forum. The Management Council will review applications based on a defined scoring rubric (including experience, strategic vision, and past DAO contributions). The top candidates will then be presented to the DAO for a formal Snapshot vote to confirm their appointment.
• Mandate: Their primary mandate in Phase 0 is to lead the grant acquisition process, engage with Polygon ecosystem partners, and conduct preliminary validator outreach.
• Reporting: They will provide monthly progress reports on grant applications, Polygon ecosystem engagements, and preliminary validator discussions, shared transparently via the K9 Finance DAO forum.
• Existing K9 Development Team: Will provide technical insights and support required for grant applications and initial technical planning during Phase 0, without diverting resources from core knBONE development.
(c) WHERE
• Grant Applications: Submitted to official Polygon ecosystem grant platforms (e.g., Polygon Community Grants portal, Encode Club).
• Strategic Outreach: Engagement with relevant Polygon projects, foundations, and community channels (Discord, Telegram, X).
• Internal Coordination: The Polygon Committee will coordinate closely with the K9 Finance Management Council and relevant internal teams.
(d) WHEN
• Proposal Approval: This proposal should be reviewed and voted on as soon as feasible.
• Phase 0 Kick-off: Immediately upon DAO approval.
• Phase 0 Deadline (Grant Acquisition “Kill-Switch”): November 30, 2025. If the mandatory grant funding target of ≥$90,000+ USD is not secured by this date, all knPOL expansion efforts will be automatically paused, pending a new DAO proposal for alternative strategies or deferment.
(e) HOW
• Resource Allocation for Grant Pursuit: The Polygon Committee/Working Group members will initially volunteer their time, leveraging their expertise. Should grants be secured, a portion of the grant funds can then be allocated to compensate dedicated personnel for their ongoing efforts in Polygon expansion (as outlined in the estimated implementation costs). No additional operational budget from the DAO treasury is requested at this time for Phase 0 beyond potential future contingency.
• Treasury Contingency Framework: The DAO acknowledges the feasibility study’s recommendation for a fallback of at most $15,000 USD from DAO reserves only if grants land below the $90,000+ threshold and specific critical items (e.g., audit deposit) need to be covered to prevent a full stall. This specific allocation would require a separate, explicit DAO vote at that time, and is not part of this proposal.
The overall deployment budget, as per the study, is not recommended to be covered by current treasury funds.
• Mitigating Overextension & Protecting Shibarium Operations:
• Clear Delineation of Responsibilities: The Polygon Committee’s mandate is clearly defined for Phase 0 (grant acquisition, preliminary outreach), ensuring core K9 Finance and knBONE operations remain the primary focus of existing core teams.
• Phased Resource Commitment: No significant development resources will be dedicated to knPOL implementation until Phase 0’s funding exit criteria are fully met. The estimated $25,000 for 2x additional developer resources will only be deployed post-grant.
• Strategic Communication: The Polygon Committee will consistently communicate how knPOL’s success will create a positive feedback loop for Shibarium, addressing community concerns about divided attention.
• Leverage Expertise: Utilize existing K9 expertise in validator operations and monitoring (e.g., by repurposing forked matic-jagar tools) to ensure efficient setup when deployment proceeds.
(4) Impact Assessment
• Short-Term Impacts
• Initiation of active grant applications, potentially leading to substantial external funding for K9.
• Establishment of a dedicated Polygon Committee, fostering new leadership and community engagement.
• Increased visibility for K9 Finance within the Polygon ecosystem through targeted outreach.
• Formalized “kill-switch” date and funding targets provide clarity and financial discipline.
• Long-Term Impacts
• Successful grant acquisition enables the secure and funded launch of knPOL, expanding K9’s liquid staking presence to a major L1.
• Diversifies K9’s revenue streams and reduces reliance on a single ecosystem.
• Establishes K9 as a multi-chain DeFi leader with strong ties to both Polygon and Shibarium.
• Attracts new users and capital to both K9 and the Shibarium ecosystem through cross-chain synergies.
• Strengthens K9’s reputation for strategic planning and prudent financial management.
• Risks and Mitigation
• Risk: Failure to secure sufficient grant funding (≥$90k+ USD target).
• Mitigation: The proposal explicitly sets a “kill-switch” date (Nov 30, 2025). If the target is not met, all Polygon expansion efforts are paused, avoiding unfinanced commitments. Multiple grant programs will be pursued simultaneously to maximize success rate.
• Risk: Overextension or distraction of existing K9 resources.
• Mitigation: The Polygon Committee will primarily handle Phase 0. Significant new development work will only begin after grant funding is secured. Clear delineation of responsibilities will protect core Shibarium operations.
• Risk: Grant focus shift (e.g., Polygon CEO’s focus on payment solutions).
• Mitigation: The Polygon Committee will adapt grant narratives to align with Polygon’s priorities, emphasizing knPOL’s role in driving POL utility, increasing staked liquidity, and supporting developer activity on Polygon.
• Risk: Market downturn impacting perceived value of grants.
• Mitigation: Focus on long-term sustainable growth and lean operations. Grant funds will primarily cover fixed costs (audits, core dev) rather than continuous, high-burn incentives.
• Metrics for Success
• Grant Funding Secured: Obtain signed grant LOI(s) totaling ≥$90,000+ USD in funds received by the DAO multisig by November 30, 2025.
• Grant Applications Submitted: Number of grant applications successfully submitted to Polygon ecosystem programs.
• Polygon Ecosystem Engagement: Documented outreach and preliminary partnerships with key Polygon projects and validators.
• Polygon Committee Activity: Regular and transparent reporting of progress on the K9 Finance DAO forum.
Next Steps: Upon community approval of this proposal, the Management Council will formally announce the call for volunteers and initiate the selection process for the Polygon Committee/Working Group to begin Phase 0: Grant Acquisition.
Karma