Milestone-based proposals
These Guidelines are intended to inform proposers how milestone-based funding works for proposals submitted as part of the Fund12 cohort.
How to submit Project milestones
Milestone-based funding enables projects funded by Project Catalyst (Funded Projects) to lay out their critical path to delivering the promises set out in their proposals, highlighting each key milestone, output, acceptance criteria, costs, and what evidence of achievements will be demonstrated at each stage of the project. In this context, a milestone is an important event or action in any project or business journey that marks a crucial stage of progress. It is a crucial reporting tool to inform the Catalyst team and the community of the project's progress and to ensure the accountability of Funded Projects within a fair and unbiased decentralized funding framework. Funded Proposer submit Statement of Milestones using the Milestone Module.
What should be included in the Statement of Milestones?
Once a Fund12 Proposal is approved for funding by the community, the Funded Project must complete an onboarding process, including formalizing the project and deliverables into a Statement of Milestones.
The Statement of Milestones (SoM) is document submitted by Funded Projects during the onboarding process which, as a minimum, must include:
A list of all the Milestones of the project
The proposed Milestone Achievement Date for each Milestone
The Milestone Funding Amount for each Milestone
The outputs to be delivered by Funded Projects for each Milestone
The acceptance criteria to be used by the Catalyst Team and Milestone Reviewers to determine whether a Milestone has been successfully delivered, and
The evidence to be submitted by Funded Projects to show that the acceptance criteria have been fulfilled and the milestone has been completed.
Each Statement of Milestones must include a minimum number of Milestones depending on the size of the Grant Amount as set out below, plus an additional Final Milestone
*If FP wants to increase the number of milestones in the Milestone Module, a request should be sent to catalyst@iohk.io
For Grant Amounts of up to 75k ada, at least 2 milestones, plus the final one, must be included
For Grant Amounts between 75k ada and 150k ada, at least 3 milestones, plus the final one, must be included
For Grant Amounts over 150k ada up to 300k ada, at least 4 milestones. plus the final one, must be included
For Grant Amounts exceeding 300k ada, at least 5 milestones, plus the final one, must be include
Each Milestone, excluding the Final one, included in a Statement of Milestones must be at least one (1) month and maximum three (3) months in duration and must include the information set out in paragraph 2 above. Each Milestone Funding Amount must equate to between 5% and 30% of the Grant Amount expressed in ada. Milestone 1 must equate to no more than 75,000 ada or 30% of the Grant Amount. For Milestone 1, if the 75,000 ada is lower than 5% of the Grant Amount, then the maximum amount you can enter is 75,000 ada. For complete clarity, in such a case, a minimum of 5% does not apply for Milestone 1.
In addition to the Milestones set out above, each Statement of Milestone must also include a Final Milestone that must be allocated a Milestone Funding Amount of no less than 15% of the Grant Amount and last one (1) month.
The Final Milestone represents the last step for Funded Projects before their project is considered complete. The Final Acceptance Milestone will be considered achieved upon (i) approval by Milestone Reviewers and the Catalyst Team of all other Milestones in the Statement of Milestones, (ii) approval by Milestone Reviewers and the Catalyst Team of the Project Close Out Report, and (iii) approval by Milestone Reviewers and the Catalyst Team of the Project Close Out Video.
Once a Statement of Milestones has been completed, the Funded Project must submit the same for review and approval using the Catalyst Milestone Module Interface.
Approval of the Statement of Milestones
Once a Statement of Milestones is submitted, Milestone Reviewers will receive email notification that a Statement of Milestones is ready for review.
At least 2 Milestone Reviewers will be assigned to verify that the Statement of Milestones is in line with the project proposal and complies with the requirements set out in these Guidelines concerning outputs, acceptance criteria, and evidence of milestones completion.
A Milestone Reviewer may ask for clarifications from Funded Projects if the deliverables or requirements set out in the Statement of Milestones are unclear or incomplete. Funded Projects will be able to refine the Statement of Milestones and address any clarifications accordingly.
If one Milestone Reviewer does not approve the Statement of Milestones, the Funded Project has to resubmit it considering the comments provided and go through the review process again. Once both Milestone Reviewers reach a consensus, the Catalyst team will provide their final review and approval.
Funded Projects are only considered LIVE once the Statement of Milestones has received all approvals from Milestone Reviewers and the Catalyst team. Funding disbursements cannot commence until a Statement of Milestones is approved, and the project is LIVE.
Once a Statement of Milestones has been approved, it can only be changed by following the Change Request Process. Milestones can be delivered out of sequence if Funded Projects submit a Change Request to amend the delivery schedule and expected deliverables at each milestone review checkpoint.
The Catalyst Team and Milestone Reviewers approve the Statement of Milestones as part of the onboarding process.
Once the onboarding process is complete, Funded projects will receive the first monthly Milestone Funding Amount allocated to Milestone 1.
Approval and payment of Milestones
Upon completion of the Onboarding process the project is considered LIVE and the project can begin. After the receipt 80% of the 1st Milestone Funding Amount, Funded Projects may submit Proof of Achievement as evidence that one or more Milestones in their Statement of Milestones have been completed.
Proof of Achievement must be submitted using the Milestone Module Interface. It must provide (a) evidence of the outputs to be delivered for that Milestone, and (b) evidence that the acceptance criteria in the Statement of Milestones for that Milestone have been fulfilled. Funded Projects are responsible for coherently and comprehensively demonstrating that a Milestone has been completed.
Upon submission of a Proof of Achievement, Milestone Reviewers will receive notification that a new Proof of Achievement has been submitted for review.
Milestone Reviewers will verify that evidence supplied for Proof of Achievement meets the expected achievements stated in the Statement of Milestones, considering expected outputs, acceptance criteria, and evidence of completion. If achievements have not been met, the Reviewers will record what is missing from the Proof of Achievement submission.
Once all reviewers form consensus, the Catalyst Team makes a final check and provides final approval. Approval by the Catalyst Team unlocks the Milestone Funding Amount attributed to the next Milestone on the Statement of Milestones.
80% of Milestone Funding Amounts will be paid in equal monthly installments depending on the proposed Milestone Achievement Date for each Milestone. In other words, if a Milestone is scheduled to be completed over a period of 3 months, the Milestone Funding Amount for that milestone will be paid in 3 equal monthly installments. The remaining 20% will be paid upon Milestone completion.
As a general rule, 80% of Milestone Funding Amounts are paid in advance to support Funded Projects in the delivery of a Milestone and 20% upon completion. By way of exception, the Milestone Funding Amount associated with the Final Milestone is paid in arrears upon achievement of the Final Milestone as per point 6 above.
The first Proof of Achievement submitted by Funded Projects must prove that Milestone 1 has been completed.
Funded Projects may submit more than one Proof of Achievement in the same month if required.
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