New Methods for Supporting the Entire Ecosystem
The Solana Foundation has traditionally relied on grants to support public goods in the Solana ecosystem. Public goods refer to projects that make it easier to build and develop on Solana, and projects that other developers can reuse in their own projects.
Grants
Historically, grant-eligible projects have been limited to open-source, non-commercial projects. These projects require financial support to get off the ground, as they are the least likely to attract external capital. Developer tooling is a perfect example of a project that is vital to the health and growth of Solana, but in many cases would be unlikely to exist if not for grant support.
Convertible Grants
Convertible grants are a new funding method that will convert to investments only if a project reaches certain milestones, such as raising a priced round or completing certain growth objectives. This will allow projects to build a viable business, with Solana Foundation support, without the restrictions associated with traditional grants. For instance, some good candidates for a convertible grant could be a project that needs support in building a totally novel proof of concept before being able to raise venture funds, or an infrastructure company that operates closed-source.
Investments
Investments are simply investments from the Foundation into a company. This option is more appropriate for for-profit companies building on Solana that have a commercialized product and are actively raising a funding round. These are projects the Foundation believes could either directly or indirectly forward its goals to advance the adoption, utility, decentralization, or security of the Solana network, but may not be public goods.
Investment Approach
Investing in commercial ventures comes with its own set of challenges and risks. That’s why the Foundation will be taking a thoughtful and deliberate approach, and will only invest in companies that align with its values and demonstrate a commitment to public goods in the Solana ecosystem. Any and all investment returns will be cycled back into the grants program, so that the Foundation can sustainably support builders in the future. This ensures that investments are creating a positive impact on the Solana community and supporting its long-term growth and success.
How to Apply
If you are interested in applying for a convertible grant or investment, please use the application form at solana.org/grants. In the form, you’ll have an option to note that you will or are actively raising investment funds for your project. If interested, the Foundation will discuss what funding option makes sense for the specific situation.
Conclusion
The Solana Foundation is committed to fostering open-source development on Solana, while also recognizing the importance of closed-source products that can deliver public goods to the ecosystem. The introduction of convertible grants and investments will greatly expand the Foundation’s ability to support the development of the greater community, and we look forward to supporting you in your endeavors.
FAQs
Q: What is the primary mechanism the Solana Foundation uses to support public goods in the Solana ecosystem?
A: The primary mechanism is grants, which have been used to support open-source, non-commercial projects.
Q: What are convertible grants?
A: Convertible grants are grants that will convert to investments only if a project reaches certain milestones, such as raising a priced round or completing certain growth objectives.
Q: What are investments?
A: Investments are simply investments from the Foundation into a company, which are more appropriate for for-profit companies building on Solana that have a commercialized product and are actively raising a funding round.
Q: How will the Solana Foundation approach investments?
A: The Foundation will take a thoughtful and deliberate approach, investing in companies that align with its values and demonstrate a commitment to public goods in the Solana ecosystem. Any and all investment returns will be cycled back into the grants program.
Q: How do I apply for a convertible grant or investment?
A: You can apply using the application form at solana.org/grants. In the form, you’ll have an option to note that you will or are actively raising investment funds for your project.
