**🤡 Not much to review here actually**, consider this "troll proposal" to not take very serious or personal.
After a couple of months, It's becoming a fun habit to explore new ways to draw
the attention of council members to leave some feedback in our **Kreivo** [common good parachain
proposal](kp). As last week's click bait in the direction channel
didn't prove very effective this time I bring you all **1 != 19**.

This call sets the council collective to 1 member, the one and only Raul! 🙇  
This extrinsic might not even work as expected(never tried this before) and I imagine the elections pallet might override this setting, but in case people want to see what kind of chaos it unfolds if it passes, go ahead and support it!(some people just what to see the world burn 🦹😂).

Is this a joke? sure, you can also take it as a friendly criticism about the
perceived lack of involvement of many council members with the community
matters, something that might become irrelevant in the near future with [Governance v2][v2](will it?🤔). 

Happy week everyone!

[kp]: https://kusama.polkassembly.io/post/1520
[v2]: https://github.com/paritytech/polkadot/pull/5205


"1 != 19"

# Virto Kreivo

[lip]: https://virto.network/docs/whitepaper.html

**Creativity** is the virtue that pushes humanity's progress forward, its our 
rebellious instinct to think differently, question and experiment novel ideas.  
You guessed right, **Kreivo** means creativity, this virtue that 
already defines the Kusama ecosystem also fuels the Virto team and pushes us to
come up with innovative ways to bring Web3 technologies to the daily lives of 
regular people that are often neglected even though they are the ones that will
ultimately benefit the most from the founding values of the Web3.

Kreivo as a common good parachain in Kusama is our initial effort to bring the 
Dotsama ecosystem closer to a more general non technical audience by providing
a place where people can easily form/join communities to conduct real world 
economic activities that create **utility** for the ecosystem tokens, such
as setting up marketplaces where local merchants or service providers can make a
fair living transacting in KSM, or with stable coins like the aUSD.

Kreivo will be our test-ground and place to experiment with the first 
implementation of our [*Local Incentives Protocol*][lip], LIP focuses on making
decentralized local businesses be socially responsible without compromising 
their profitability, a dynamic tax system enables the collection of resources
that empower local communities to become their own autonomous micro-economies as
well as the fair usage of collected resources for other common good causes like 
addressing climate change or inequality among others.

From the start LIP was designed for a token-less, yet sustainable blockchain. We
believe the real value of the network shouldn't come from the protocol, which
might be bad to let it get monetized and allow few early players gain a great 
deal of control and power, instead the real value of the network will come from
the real world use cases that find their home in Kreivo(and later Virto) that 
will have the incentive to develop and sustain the common shared infrastructure.

## Some technical bits

### A parachain powered by `orml-payments`

In practice Kreivo would work in a similar way as Statemine which is built
around the `pallet-assets` and `pallet-uniques`. Our parachain instead has 
`orml-payments` as its core functionality, we built the pallet with the support 
of a Web3 grant and later brought to a wider audience by successfully merging to
the well known ORML community repository. This Substrate module is what makes 
possible to securely pay for products and services thanks to its built-in 
escrow-like system with refunds, disputes among other features that also include
the dynamic fee collection system that communities will use to generate local 
and global impact.

### Governance

Like other common good chains, Kreivo's governance would be delegated to the 
relay-chain, however as part of the LIP road map we will develop the 
`virto-communities` pallet used to create local communities, marketplaces and
unions of those that function as DAOs that we hope(since ultimately decided by
Kusama's governance) they will progressively gain more and more power to make
decisions that affect the whole system taking over functions of the governed by
the relay-chain or the core team.

### User friendliness

Slightly off-topic but worth mentioning that Kreivo parachain, although a crucial
part of the system is only a small piece of the puzzle in our mission to make 
Dotsama ecosystem very accessible to the masses, most of the team's work moving 
forward is enabling *progressive decentralization* with an ecosystem of super 
portable and simple to use Web2-like APIs that we have been developing and already
put a great deal of effort designing and prototyping. 
like the *Wallet API*, an embeddable, composable and 
installation-free *decentralizable API* built on top of the decentralized 
communications protocol Matrix and powered by Sube, Scales and Libwallet 
previously funded by the Kusama and Polkadot treasuries(more info in a previous
[Substrate seminar][ss]).  
All this to reiterate and show our commitment to be seen as the "noob friendly"
and go-to place for new users that want to approach the ecosystem or benefit 
implicitly from Dotsama's technology in their day-to-day lives.

[ss]: https://www.crowdcast.io/e/substrate-seminar-2/16

## Some use cases

### Desentralized on/off-ramps

Dotsama's current experience to attract new users is very lacking as most people
have to resort to centralized exchanges that are not easily available in every 
part of the world.
Virto team's first show case for the technology is *swap.cash*, a fiat-to-crypto
marketplace that benefits from the payments pallet and built-in decentralized 
communications to offer a seamless Uniswap-like experience and embeddable 
*Swap API* for developers that want to on-board new users to the ecosystem by
for example allowing fiat payments to merchants that are payed in a stable
coin like the aUSD.

### dCommerce

The most compelling use case for Kreivo and Virto in the long term is likely
decentralized commerce, which is not just traditional e-commerce plus crypto
payments, we see dCommerce as a way to put together under the same roof a
universe of composable real-world economies where people trade in a more
transparent and fair way that puts users and communities in control, where
there are clearly defined rules(in the form of code) on how wealth is responsibly
distributed for the overall community's sake, for common good causes and
ultimately for the users themselves that are owners of the very same products
the use.

[Bloque][bl] for example is an initial effort in Latin America we are supporting
that offers Instagram entrepreneurs a simple way to set-up a store, as a Kreivo 
native marketplace it showcases some of the benefits we mention,

- Allows newcomers to pay for products in fiat(thanks to swap.cash 
interoperability) while merchants receive payments in aUSD, a stable coin that
protects them form the high local inflation.
- Less intermediaries which translates in better/fairer rates than the Web2 
competition even after deducting "social impact taxes".
- Allocates the majority of its token supply to reward users who are progressively 
put in control of the platform.
- Serves as a platform for promotion of local merchants and small entrepreneurs 
who are incentivized to offer a great service and can be ranked thanks to the 
token curated registry properties of the marketplace.
- It's easy and feels very familiar as it integrates with the applications and
flows users already know without requiring installing extra software, people
will start using Kusama and bring value before even knowing what a blockchain is.

[bl]: https://bloque.app

### Supercharging the Kusama treasury

It's a well known pain-point in Dotsama that treasuries are not being utilized
to their full potential, we think that adding Kreivo to the tool set of the
relay-chain can greatly improve its treasury spending experience and attract 
more teams to make use of the available resources. Some ways Kreivo with 
`orml-payments` could be used include,

- Using it as a multi-asset chain that can seamlessly import assets not only
from Statemine but from any other chain in the ecosystem to allow Kusama 
governance hold a more diversified portfolio of assets like stable coins that
are better suited to pay the community for their services.      
- Paying teams with our pallet allows the treasury to fund projects that receive
a payment they can not touch(money arrives as a reserved balance) until they 
complete the job, they could however use another protocol to borrow money using
the future payment as collateral.
- Payment requests allow people that have performed a service to the community 
to "invoice" the treasury that only needs to check the payment details and accept.
- Recurring payments feature(in development) with auto release of funds allows 
the treasury to automatically pay teams that provide a regular service to the
ecosystem like infrastructure costs.  
- Recurring payments can also be used with a fixed number of payments and require
manual release of each payment, a great way to fund projects with several 
milestones that should be reviewed independently as the Web3 foundation already
does well.
- Kusama as a Decentralized VC. Using ourselves as example, we love the support
we have received from the treasuries that funded some of our libraries and allowed
us to bootstrap our ideas, however once a team has to scale and build real products
it's hard to keep using the resources of the community, the "normal" course of 
action for teams that want to deliver something in a timely manner in this super
fast paced industry is to seek for traditional VC investment that often takes an 
important share of a project, this model might work well for traditional companies
but somehow feels it could better match the virtues of the Web3.  
If the option were to exist(it does) in the ecosystem to have a decentralized 
fund owned by the community that invests in projects in exchange for participation
in the form of a token allocation, it would easily become people's favorite option
to seek investment as we wouldn't feel we are giving away power to a few that 
might just want a quick profit but to a whole community that will support a project 
because they find it useful and will bring value to their lives. The treasury
getting a share in the ecosystem projects wouldn't be done for the profitability
of it but to create a deeper connection between the overall community and the 
builders.  
**TL;DR**: The treasury can issue a large payment to a team and not release it
until the team has transferred an agreed amount of the project's tokens and 
possibly also transfer issuing or admin permissions of a Statemine created asset.


## Closing thoughts

The Virto team is very excited about Kreivo and the impact it could bring to 
Kusama, we've had lot's of fun the last couple of years designing LIP and our 
tech stack(we encourage teams to give designing sustainable "token-less" chains
a try). We also hope some of the ideas in this proposal resonate well with the 
community and see how Kreivo can indeed be a good fit for a common good 
parachain slot.

That's all for now, everybody is very welcomed to join our [Matrix community][chat] 
and we look forward to all kinds of feedback.

[chat]: https://matrix.to/#/#virto-network:virto.community?via=virto.community


Kreivo common good chain by Virto

The Virto team, deeply committed to combating social inequality, has focused on developing tools that streamline the creation of decentralized applications for businesses. [Initially funded](<../referenda/77>) to achieve this aim, our efforts center on building decentralized infrastructure that empowers communities to operate real world businesses efficiently and cost-effectively, contributing to local economic development.

With the support of previous funding we developed different client side tools that are now taking the shape of the VirtoSDK, a comprehensive toolkit that simplifies interactions with Substrate-based chains to the point end users don’t need to have blockchain or Web3 specific knowledge.

Isolated tools with no usage are meaningless, that's why upon this foundation we are also building Kreivo, a common-good parachain that serves as the primary platform for experimenting with and testing these tools. Kreivo offers specialized functionality for managing decentralized communities and facilitating secure payments, providing a robust platform ideal for community-driven applications and real world financial transactions. We will keep expanding the capabilities of Kreivo by implementing functionality like the [*Local Incentives Protocol*](<https://virto.network/docs/whitepaper>), our initial motivation to start building in the ecosystem, that will allow the emergence of local communities which will have resources at their disposal to boost their local economy. This strategic development of Kreivo, along with the VirtoSDK, demonstrates our commitment to making blockchain technology more practical and accessible for a wide range of applications.

The Virto team, aspiring to be a leading success in the Kusama ecosystem, is here to stay, aiming to pioneer innovation and creatively use the ecosystem's technologies. We seek the community's support one more: for our long-term commitment to Kusama, our leadership in innovation, our team's expertise in Rust and Substrate, our dedication to working closely with the community to address their needs, and our focus on developing practical, user-friendly solutions. By supporting us, the community gains a partner deeply invested in advancing the ecosystem through collaborative and technically proficient initiatives.

### Summary

**Total asked**: 333 KSM / weely (every spend period)

**Recipient**: [`para:2281`](<https://kusama.subscan.io/parachain/2281>)

**Scope**: Service of community requests, Kreivo and VirtoSDK(inc. VirtoApp)

**Payment method**: Recurring scheduled spend via Treasurer origin every spend period.

**Milestones**: Quarterly community review to determine if the team should continue to be funded.

#### Links

- Full proposal (will be updated shortly)
- [Previous proposal](<../referenda/77>)
- [Forum post about Kreivo](<https://forum.polkadot.network/t/kusama-lives-and-makes-creativity-possible-by-virto/4539>)
- [Live roadmap](<https://github.com/orgs/virto-network/projects/11>)
- Presentation (to be updated)
- [Github](<https://github.com/virto-network>)
- [Website](<https://virto.network>)(in spanish)





### FAQ

<details><summary>What experience does the Virto team have?</summary> We have a skilled team of Rust and Substrate developers with several decades of combined software development experience, several PBA alumni, ex-Parity and Fellowship candidates. Daniel the team lead is member of the Polkadot fellowship, has 15+years of software development and computer security experience, 6+ years using Rust and 4 years building with Substrate. Other team members are even more awesome ;)</details>

<details><summary>What are the expected outcomes of the funding?</summary> The team will continuously deliver new features and updates(based on our roadmap) to the VirtoSDK, VirtoApp and Kreivo which includes a multitude of pallets and changes that we will try to upstream to repositories like the PolkadotSDK via the Polkadot Fellowship.</details>

<details><summary>How will the Virto Team engage with and contribute to the Kusama community?</summary> We will engage with the Kusama community through regular updates and establishing open feedback channels. We welcome expert curators to review our work on regular basis(e.g. quarterly) and if deemed necessary request to stop the continuous funding.</details>

<details><summary>How will the team ensure transparency and accountability?</summary> In 2023 we have already shown an exemplary management of our treasury funds which outlived their initial 6 months scope, we kept the team's KSM on-chain to secure the network, team members agreed to be payed in KSM even using the vesting pallet(which came with losses) and every <a href="https://kusama.subscan.io/account/EvoLanodoqDsgHb98Ymbu41uXXKfCPDKxeM6dXHyJ2JoVus">expense was annotated</a> for maximum transparency.

This year we would take things a step further, funds would be payed to the Kreivo parachain sovereign account and with through the chain's local governance and advanced payment capabilities funds would be managed openly.
</details>
<details><summary>Are there any long-term plans beyond this funding?</summary> Our main goal of 2024 beyond delivering the outlined projects, is to attract as many communities to the ecosystem as possible, specially those with a real world commercial use cases.
The Virto team will be one more commercial community in Kreivo that will operate as an Infrastructure as a Service platform or better yet as a Decentralized Business as a Service provider that offers organizations everything they need to go form idea to revenue generating business in a fraction of the cost and time than a traditional start-up usually takes.

In other words we want to become sustainable and hopefully not have to come back for treasury funding in the future.</details>

Virto team - Kusama agents continuous funding

[🔗 To vote for the motion 🔗](https://kusama.polkassembly.io/motion/301)

## Background
My name is Daniel, senior Ambassador and head of the [**V**a**L**ibre**N**etwork](https://github.com/valibre-org/vln-node) development, this will be my first attempt to address the Kusama council for a spending proposal so feedback will be very much welcomed. 
The VLN has been initially created to serve as the future financial infrastructure of [Valiu](https://www.valiu.com/en), a company serving thousands of users in Latin America giving them access to stable and secure money. VLN is now an independent more general purpose project that aims to become the decentralized infrastructure for on&off ramps in the Kusama-verse becoming its parachain _"bridge to the real world"_.

While developing the VLN the past year we've identified and kept several pieces of our system generic so that they can work with any Substrate based chain that can benefit from our focus on usability(we don't have crypto-savy users), keeping components lightweight(our users tend to have low end phones and poor connectivity) and our need to stay censorship resistant like being light-node friendly and having off-chain tools and components being also decentralizable(to operate in authoritarian governments known to be censor heavy). 
This proposal is about the first stable version of one of those core building blocks.

# [Sube v1.0](https://github.com/valibre-org/sube/milestone/1) spending proposal
_**License**: Apache-2.0_ 
_**Requested amount**: 80 KSM_ 
_**Timeline for this milestone**: 4 weeks_ 

Sube is a library for **sub**mitting **e**xtrinsics to a Substrate based chain, unlike [subxt](https://github.com/paritytech/substrate-subxt), Sube focuses on being extremely lightweight and doing just one thing well, submitting extrinsics(well two things if querying storage feature is enabled). It leaves behind other functionalities that can be served by other more specialized tools(like key management and signing of extrinsics) or dependencies on runtime specific types making use of the upcoming version of frame-metadata to automatically encode/decode binary(SCALE) data to a human readable format(e.g. JSON). It is also developed with WebAssembly compatibility as a priority to not leave behind browsers and other light clients that are crucial to VLN's success.

## Budget detail and timelines
The requested **80 KSM** at an approximate current rate of **1KSM = 250€**, will go to **two engineer's time full-time** at an approximate rate of **60€/hour** plus minor infrastructure costs of the CI pipeline.

_Check the [Github milestone](https://github.com/valibre-org/sube/milestone/1) for more details and updates_
* Websockets backend + storage subscription interface **~ 1 week**
* Runtime agnostic auto encoding/decoding of SCALE<->JSON types **~ 2 weeks**
 - (Depends on [v14 metadata](https://github.com/paritytech/substrate/pull/8615) added to Substrate types to which we would be happy to contribute if needed).
* Documentation, tests, bug fixing and CLI adaptation **~ 1 week**

## Future Sube milestones
The following are future improvements to the project not covered by the current proposal.

* [**v1.1**](https://github.com/valibre-org/sube/milestone/2): Sube as a plugin of [Valor](https://github.com/valibre-org/valor) for "decentralizable" HTTP API support.
 - This would mostly depend on [Valor v1](https://github.com/valibre-org/valor/milestone/1). Valor is a lightweight plugin runtime that allows plugins to be exposed as HTTP APIs that can run in a server environment as well as in the browser thanks to "faking" the HTTP API using [Service Workers](https://developer.mozilla.org/en-US/docs/Web/API/Service_Worker_API). In the context of Sube this means that a simple client side application(e.g. a simple HTML form) can first be handled by a server running Sube as plugin and progressively enhance and decentralize the experience installing the runtime and plugin in the client side without the client application requiring any change. 
 - Higher level APIs can be developed as other Valor plugins that depend on Sube to offer even more convenience of use to users.
* [**v1.2**](https://github.com/valibre-org/sube/milestone/3): [Smoldot](https://github.com/paritytech/smoldot) backend for Sube for light-node support.
 - Smoldot is designed to be lightweight and composable without enforcing specific client facing APIs. Sube would become a wrapper of the node so it can be used as a library.
 - When using Sube as a Valor plugin clients would have access to the light node via the HTTP API. Following the idea of progressive enhancement/decentralization, after clients install the runtime with say the lighter weight HTTP back-end they could opt-in to swap the HTTP based Sube instance for a Smoldot based one which is heavier but offers greater decentralization.

# More of VLN and the longer term

VLN sits at an interesting intersection between the on-chain and off-chain world, which brings the challenge of keeping real world peer to peer interactions decentralized and easy to use, a regular user doesn't want to deal with any blockchain related complexity, they just want to freely interact with another party in a secure and simple way.

Our fiat-to-cryto specialized parachain runtime comes with a set pallets that enable those peer-to-peer interactions in a trustless manner like multi asset support, fiat and crypto oracles, escrow system, a rates pallet for users to agree on exchange rates, lending pools and several other conveniences. Then to make the lower level on-chain interactions simpler, Valor and its plugins will provide a decent level of abstraction that when paired with our [_Summa_](https://github.com/valibre-org/summa)(Substrate meets Matrix) initiative can help filling the gap between convenience of use and decentralization. Summa will be a particularly interesting concept to bring to the community for future proposals as it leverages Matrix as a well established decentralized communications protocol to for example have chat enabled wallets with abstracted blockchain account identifiers where users can send secure end-to-end encrypted data like payment information or files related to an off-chain transaction before they release an escrow. 
As a final step, with the VLN toolset maturing and having a compelling integrated on&off ramps experience we would bring the project to the scrutiny of the community to consider supporting it to become a Parachain via a crowdloan or as a common good Parachain as we believe it will greatly give Kusama exposure in local communities of non crypto-native users.

From VLN with love: Sube v1.0

# Virto Team trial run: The Summa stack

**Total requested:** $USD 282,785.00 | **9,373.05 KSM**(EMA30)

**Proposed call:** [`0x12030f0044b643bd4c21004896aa6b146417590bd0191a7fe9677e64347e5d6f3d70bca9ded984c2c5c84e`](https://polkadot.js.org/apps/#/extrinsics/decode/0x12030f0044b643bd4c21004896aa6b146417590bd0191a7fe9677e64347e5d6f3d70bca9ded984c2c5c84e)

This proposal is the result of our learnings form [Ref. 47](https://kusama.polkassembly.io/referenda/47) and listening to the community's feedback in [Ref. 68](https://kusama.polkassembly.io/referenda/68). Compared to previous proposals, this time we are leaving out the development of out *hardware wallet prototype* and the implementation of the *Local Incentives Protocol* to have a narrower focus, a shorter timeline and smaller team to give the community a better feeling of how the team works and what it can accomplish.

Virto is a technical team of creative people aiming to become a mini "Latin American Parity" , focusing on creating user-friendly technology and tools to bring Polkadot technology to the masses. Our team's long term vision is to reduce social inequality and improve the efficient allocation of public resources by empowering local communities with autonomous micro-economies through our *Local Incentives Protocol* (Not part of this proposal).

We are proposing to build a developer-friendly stack that brings the best of two decentralized ecosystems together, Substrate and Matrix, to create impactful infrastructure that empowers individuals and communities through user-friendly Web3 tools with minimal to no friction for the end user. We expect this technology to bring a whole new wave of users to the Kusama ecosystem that have no previous background or knowledge about blockchain or cryptocurrencies.

### Links

* [Full proposal](https://docs.google.com/document/d/1sh5w-d-0tiQjBg1nPj-9cl5LFFZ3s_M-9bl0Dko7y2Q/edit?usp=sharing)
* [Budget](https://docs.google.com/spreadsheets/d/1og1OMHyP4oarnK6inE9TrdYaOKltstT-DC6WExnsYq8/edit?usp=sharing)
* VirtoLIVE: [#2](https://youtu.be/wk-NWqBktV4) [#1](https://youtu.be/mX3_RcKsJvQ)

## Progress updates

The team aims to follow a 2 week sprint cycle where every sprint is closed with a VirtoLIVE(might not be live) that serves as a demo day.

- **Sprint #1 - feb 20-mar 6**: 
  - Libwallet.js and Sube.js **[highlight]**: We created JS bindings of our client libraries while still making breaking changes to the API 
  - Super app: On boarding to [Dioxus](https://dioxuslabs.com), our chosen front-end framework
  - Valor: Planning the re-write of our PoC runtime to be embedded friendly and built around [WASI](https://github.com/WebAssembly/WASI) with its upcoming component model.
- **Sprint #2 - mar 6-20**:
  - [Demo](https://www.loom.com/share/8d1e99ced7064ca695e4ba7b3541d8d4) working of Sube.js and Wallet.js sending transactions in the browser
  - App: integrating matrix rust sdk and troubleshooting issues with room synchronization.
  - Valor: Using Embassy the async runtime for embedded(desktop and WASM too) integrated with a WebAssebly abstraction to run WASI plugins in different platforms.   
- **Sprint #3 - mar 20-apr 3**:
  - After researching how we could build on top of the [Conduit homeserver](https://conduit.rs) as initially proposed we concluded that we can't really use it as the base of our WASM centric homeserver, 
  therefore we will be starting a new homeserver implementation called **[emma](https://github.com/virto-network/emma) from scratch**. Matrix homeservers are extensive multi-year developments
  but we plan to get to a PoC stage by the end of this proposal. 
  - The team if gaining speed with Rust, our junior, mid and senior developers didn't have Rust experience before but are getting more comfortable with the language over time after several sessions of pair programming and assisted problem resolution.  
- **Sprint #4 - apr 3 - 17**:  
  - Initial set up of [ksm.community](ksm.community) where we will host a dedicated Matrix homeserver and an instance of our "super app" to be used as test ground were we can showcase the Virto stack to the Kusama community.
  - [WIP](https://github.com/virto-network/sube/issues/28#issuecomment-1496307094) aligning Sube's Rust API with its JS version exposing a simple single `sube!` macro that can be used for both querying and submitting transactions to the blockchain.
  - [Merged](https://github.com/virto-network/libwallet/pull/30) still experimental API of the JavaScript version of libwallet + fix WASM compilation issues. 
  - Valor: solving execution of multiple concurrent WASM plugins in a single threaded environment
- **Sprint #5 - apr 17 -may 1**: ([goals of the sprint](https://matrix.to/#/!hjjaLvBFZianunvUCO:virto.community/$CTcvIwqCAABQ-7TodF93GrF1Tacddc_sCIeV-X1j7_U?via=virto.community&via=matrix.org))
  - PoC server exposing `.well-known` Matrix endpoint compiled to `wasm-wasi`, used to test a possible interface between the Valor runtime and WASM plugins and to kick-start the development of our future homeserver [emma](https://github.com/virto-network/emma)(embedded matrix)
  - Our experimental [Dioxus](https://dioxuslabs.com) based Matrix client can join rooms, send, receive messages and get notifications.
  - More Rust learning and sharing taking place within the team. 
- **Sprint #6 - may 1 - 15**: ([goals of the sprint](https://matrix.to/#/!hjjaLvBFZianunvUCO:virto.community/$WH5CrrafiXg2PbiIX14JCFEQlM4I8KDvTUxxDnT3yFo?via=virto.community&via=matrix.org))
  - Draft plugin interface, in other words, define the simplest way developers can create applications(Valor plugins) in the Virto ecosystem.
  -  Work in progress about integrating a "timeline" abstraction in the Matrix client to efficiently fetch text messages, also improve styles while final design is defined.

... following updates can be seen in our YT channel or in #dev:virto.community pinned messages

Trial fund for Virto team

Proposal for the first stable version of [Sube](https://github.com/valibre-org/sube) a lightweight client library(and CLI) for submitting extrinsics to substrate based chains. More info in the [full proposal post](https://kusama.polkassembly.io/post/616)

VLN: Sube v1.0

## The Incident

On Saturday, June 29, Kreivo stopped producing blocks after a runtime upgrade to version [0.13.0](https://github.com/virto-network/virto-node/compare/0.12.1...0.13.0). This upgrade aimed to introduce pallet contracts, enable bridged DOT reception from Kusama AssetHub, and update our PolkadotSDK dependency from version 1.5 to 1.12. The main goal was to prepare Kreivo for async backing, which would reduce block times from 12 to 6 seconds.

## The Issue

Despite thorough testing before the upgrade, the problem only appeared hours after enactment(at the end of the era). The current rapid development of the PolkadotSDK makes it challenging for small teams like ours to constantly update and migrate code. Our main issue stemmed from the significant version jump (1.5 to 1.12), likely missing crucial intermediate migrations.

## Impact

While most of our users (DAOs) are aware of Kreivo's beta testing stage and aren't critically affected, two key exceptions are:

1. Virto team: Our salaries are paid through the DAO's governance, which is currently inaccessible.
2. KSM Community: This decentralized voice in Kusama can't vote on OpenGov proposals.

## Proposed Solution

While this proposal is being voted on, we'll prepare an updated WASM of the runtime that fixes the issue. Unlocking Kreivo means the "manager account" will be able to do a `schedule_code_upgrade` to manually set the updated parachain's code in the relay chain to match the code manually set by collators with the `codeSubstitute` feature of the chainspec.

## Request

We ask Kusama governance and the Fellowship to approve unlocking the Kreivo parachain so we can restore functionality. After resolution, we'll conduct a public postmortem and implement additional safeguards for the future.

We are glad this kind of issue occurred this early in the lifetime of the chain when impact is manageable and are now more convinced builders need simpler ways to manage this kind of outages, ironically I believe a "governance parachain" like Kreivo where parachains can host their governance can be a great solution to this issue as people can vote to unlock a parachain even if it has halted.

Unlock para 2281 (Kreivo)

# Setting a realistic target for coretime sales

## Background

This proposal aims to adjust the parameter that controls the ideal target for coretime sales to a value that better reflects the expected demand of Kusama cores. This change will help stop coretime prices from being driven to near-zero and instead drive prices to a more realistic value, benefiting the Kusama ecosystem.

The main utility of KSM is to pay for coretime (which gets burned), but current prices are virtually 0, making it hard for the system to benefit from its main product offering. Elastic scaling will help grow demand for coretime and thus KSM, and there might also be new sources of KSM demand like Kreivo's memberships, but we need to adjust the core business model.

## Proposed Change

This proposal focuses solely on adjusting the `ideal_bulk_proportion` parameter:

* Setting `ideal_bulk_proportion`: From `100%` to `40%`

> The proportion of cores available for sale which should be sold.  
> If more cores are sold than this, then further sales will no longer be considered in determining the sellout price. In other words, the sellout price will be the last price paid, without going over this limit.

## Rationale

A previous proposal ([Referendum 507](https://kusama.subsquare.io/referenda/507)) included both this parameter change and an inflation reduction. However, community feedback, particularly from validators, raised concerns about the inflation reduction component. Validators expressed that reducing inflation would make validator operations unprofitable, potentially harming network decentralization and security.

This modified proposal addresses those concerns by focusing only on the coretime sales parameter, which has received broader support. By setting a more realistic target for bulk coretime sales (40% instead of 100%), we can help discover coretime's true value while maintaining the current inflation rate that supports validator operations.

Note that this number is not set in stone; it's a starting point that can help us better discover coretime's true value. The parameter can be adjusted in the future based on market response and ecosystem needs.

## Future Considerations

This proposal is part of a broader effort to optimize Kusama's economic parameters. A future proposal focused on inflation may be developed in collaboration with validators to ensure any changes to inflation include conditions for newly minted KSM that benefit both validators and the broader ecosystem.

As a Kusama community member, I believe this focused change represents a balanced approach that addresses immediate concerns while setting the stage for future improvements.


Adjust (only) ideal bulk proportion

# Reducing Inflation
Some time has passed since our wild cousin Polkadot successfully reduced its annual inflation to 8%(with gradual reduction), as a KSM token holder I believe our loved bird is due an adjustment of its inflation parameters as well. Instead of copy-pasting Polkadot's model, Kusama can try something different, some DOT holders were left wondering if inflation could be lower, I propose we reduce it to 5%. The high initial inflation was good for early bootstrapping and incentivizing participation, the ecosystem has matured enough to aim for long-term sustainability.

## Changed parameters
- Setting `MaxInflation`: From `10%` to `5%`
- `UseAuctionSlots`: From `true` to `false`.  
  From the [docs](https://github.com/polkadot-fellows/runtimes/blob/v1.4.2/relay/kusama/src/lib.rs#L687): 
  > With the move to agile-coretime, this parameter does not make much sense and should generally be set to false.

**NOTE:** As `IdealStake` is "75%", `UseAuctionSlots = true` had the effect of making the *real* target around 45%, this is intentional as it would increase the treasury income to around 10% with current staking levels.

![inflation.png](https://subsquare.infura-ipfs.io/ipfs/QmPLVu1AjKvG9eekJets2BxHLn6bK5kfYP3KWJ7hsQbucK)


# Reducing ideal bulk coretime sales
The reduction of inflation should be balanced with an increased demand for the KSM, the main utility of KSM is to pay for coretime(which gets burned) but current prices are virtually 0 making it hard for the system to benefit from its main product offering. Elastic scaling will help grow demand for coretime and thus KSM, there might also be new sources of KSM demand like [Kreivo's memberships](https://forum.polkadot.network/t/sustainability-model-of-a-tokenless-protocol/8683) but we need to adjust the core business model.

A while back I [proposed setting a minimum price](https://kusama.subsquare.io/referenda/469) but it was pointed out by @seadanda that a better approach is to change the parameter that controls the ideal target for sales to a value that better reflects the expected demand of the Kusama cores to stop the price from further being driven to 0 and quite the opposite drive its price up to a more realistic value.

Note that this number is not set in stone, it's a starting point that can help us better discover coretime's true value.

## Changed parameters
- Setting `ideal_builk_proportion`: From `100%` to `40%`

>The proportion of cores available for sale which should be sold.
If more cores are sold than this, then further sales will no longer be considered in determining the sellout price. In other words the sellout price will be the last price paid, without going over this limit.

---
As self-proclaimed Kusama enthusiast#1, not only as KSM-only holder but as full-time exclusive builder on this network for several years, I hope this proposal well received and not seen as malicious as I only have the best intentions for this ecosystem :)

Reducing inflation and setting a realistic target for coretime sales

<h3 id="summary">Summary</h3>
The Virto DAO is building the most advanced and easiest to use DAO infrastructure, we aim to offer the simplest ramp for any team and organization coming to the ecosystem to get their business/communities started and ready to scale.
<h3 id="why">Why?</h3>
Modern organizations require modern infrastructure to operate effectively in today's digital world. Virto's DAO system provides this by offering tools for shared decision-making, clear record-keeping, and easy access to global financial services. This blockchain-based system helps groups make choices together, automate tasks, and use different types of money. It allows organizations to work better in a world that is becoming more connected and less centralized.
<h2 id="demo">Demo</h2>
<a href="https://www.loom.com/share/0f722d298377415ebd4b460aefd4d6e0?sid=4d0cdad0-2e2b-4587-a5c3-6011020989fe"><img src="https://subsquare.infura-ipfs.io/ipfs/QmWLCnooSTpsLpN4HKyhuWKigp7f7m5wJGCbxPzyZ4571K" alt="virto app" /></a>
<h3 id="whattoexpect">What to expect?</h3>
<ul>
<li>Our focus for Q3 is to offer a polished end-user experience for members of DAOs to easily manage and participated in their organizations without the need for wallets or fees thanks to the abstractions built on the Kreivo parachain.</li>
</ul>
<blockquote>
<h2 id="calltoactionforkusamaandpolkadot">Call to action for Kusama and Polkadot</h2>
We&rsquo;re running a MVP program with on/off ramps providers in the Americas region to empower our organizations with digital debit cards to manage their expenses online and on/off ramps from KSM/DOT to USD in US and Colombian Pesos to pay salaries or perform deals with tranditional entities in the Region.
If you&rsquo;re interested please apply to the program here: <a href="https://apply.virto.network/">https://apply.virto.network/</a>
</blockquote>
<h3 id="thevirtostack">The Virto Stack</h3>
Going forward we plan to evolve the experience we provide, putting together the tools we've built over the years into a unified solution: The Virto Operating System for autonomous organizations.
<img src="https://subsquare.infura-ipfs.io/ipfs/QmfLYqP41sxNM3WNKwGWiWLtK1gznyK9hL387XjD3zQehk" alt="virto_stack.png" />
<h2 id="links">Links</h2>
<ul>
<li><a href="https://docs.google.com/document/d/1vUG-UfeXDD3MK-hlwAwG-3o5Dp-B6wc7OvbGDdbeW98/edit">Full proposal</a></li>
<li><a href="https://kusama.subsquare.io/referenda/439">Previous proposal</a></li>
<li><a href="https://cotton-amber-2dd.notion.site/be82f1076ea0458e845e3323fd5916ba?v=60fa80d2a226442ab8f577b7bb73657d">Product research insights</a>(in Spanish)</li>
<li>Post: <a href="https://forum.polkadot.network/t/what-is-kusama-the-innovation-hub-of-polkadot/9931">What is Kusama?</a> (A vision for driving innovation)</li>
<li>Post: <a href="https://forum.polkadot.network/t/sustainability-model-of-a-tokenless-protocol/8683">Sustainability model of a tokenless protocol</a></li>
</ul>
<h2 id="virtofaq">Virto FAQ</h2>
<ul>
<li>How does Virto keep track of its expenses?</li>
</ul>
All treasury funds are kept on-chain using KSM, ensuring full transparency. This approach allows stakeholders to easily verify expenditures and maintains a clear, immutable record of all financial activities.
<ul>
<li>What defines productivity for the Virto team?</li>
</ul>
Productivity is measured by the strategic value provided to the Kusama ecosystem, rather than just the quantity of tools produced. This focuses on creating specialized tools that address critical needs within the network.
<ul>
<li>How much funding has Virto raised from the treasury?</li>
</ul>
Approximately $671,754 USD has been raised, with about $350,000 USD effectively available over 3 years due to market volatility, limited DEX liquidity, and tax obligations. This averages to roughly $120,000 USD annually for a team of 6-10 members.
<ul>
<li>How does Virto ensure accountability within its decentralized structure?</li>
</ul>
While maintaining flexibility for innovation, Virto is open to adopting clear milestones and deliverables. The team welcomes suggestions for improving accountability while balancing the needs of a decentralized project.
<ul>
<li>Is the funding request by Virto too ambitious?</li>
</ul>
The funding request reflects the project's scope and ambition. It's designed to ensure continued significant contributions to the Kusama ecosystem, with potential long-term benefits justifying the current funding levels.
<ul>
<li>How to increase payments pallet adoption?</li>
</ul>
Virto is working on improving usability and maintenance of the payments pallet. Broader adoption is expected as the ecosystem evolves and the need for such tools becomes more apparent.
<ul>
<li>Should the Virto team take on more economic risk?</li>
</ul>
The team has already taken considerable economic risk, including opportunity costs and personal resources. However, they're open to exploring hybrid models that balance community funding with self-sustainability.
<ul>
<li>Are documentation and usability issues hindering the effectiveness of Virto's tools?</li>
</ul>
Efforts are being made to improve documentation and usability, with some intentional delays to ensure API stability. The team acknowledges these areas as crucial for broader adoption.
<ul>
<li>How does Virto measure the success of its outputs?</li>
</ul>
Success is measured by the potential of tools and projects to shape the future of the Kusama ecosystem, not just by immediate usage. This considers the long-term impact of innovations that may be ahead of their time.
<ul>
<li>Is the current development structure of Virto effective for delivering meaningful results?</li>
</ul>
The decentralized, flexible approach allows for innovation and adaptability. While open to adjustments, the team believes this structure is conducive to producing high-quality results in a rapidly evolving ecosystem.
<ul>
<li>Could a bounty system or self-funding model improve the project's outcomes?</li>
</ul>
A bounty system could align incentives with measurable results, but must be implemented carefully. The team is exploring various models to ensure alignment with Kusama's goals while maintaining innovation flexibility.
<ul>
<li>Why hasn't Virto developed a self-funded model for Kreivo's development?</li>
</ul>
Developing a self-funded model is complex in the evolving Web3 space. The Kreivo protocol is designed for self-sustainability(see linked post) and the Virto DAO is exploring ways to further monetize the underlying infrastructure.
<ul>
<li>How does Virto plan to ensure the long-term maintenance of its projects?</li>
</ul>
Plans are in place to gradually transition projects to more sustainable models, potentially involving collaborations with other ecosystem participants or through community-driven maintenance efforts. e.g. we have members in the Core Polkadot Fellowship and the Polkadot Tooling Collective that could fund parts of our stack in the future.
<ul>
<li>What steps is the Virto team taking to improve the usability of its tools?</li>
</ul>
The team is actively enhancing user experience by refining interfaces, improving documentation, and incorporating community feedback. Usability improvements are an ongoing priority to make tools more accessible to a broader audience.
<ul>
<li>Why should the community continue to support Virto?</li>
</ul>
Supporting Virto is an investment in Kusama's mid-to-long-term success. The team is committed to learning from past experiences and improving to ensure future deliverables have a broader impact.
<ul>
<li>What value does Virto provide to the Kusama ecosystem that justifies continued funding?</li>
</ul>
Virto provides critical infrastructure and tools supporting the growth and development of the Kusama ecosystem and its organizations. These contributions are essential for the long-term health and expansion of the network.
<ul>
<li>How does Virto prioritize its development goals to align with the community's needs?</li>
</ul>
Development goals are prioritized based on community feedback, strategic needs of the Kusama ecosystem, and the potential impact of each project.
<ul>
<li>Is the decentralized approach to Virto's development limiting its effectiveness?</li>
</ul>
While a decentralized approach presents challenges, it offers advantages in innovation and adaptability. The team believes this approach suits the Web3 space's demands but is open to introducing more structured elements if beneficial.
<ul>
<li>What safeguards are in place to ensure that Virto's funding is used efficiently?</li>
</ul>
Regular updates, community reviews, and detailed reporting on fund usage help ensure efficient resource use. The team is exploring ways to implement more robust accountability measures aligned with the project's decentralized nature.
<ul>
<li>How does Virto plan to increase the adoption of its tools and projects?</li>
</ul>
Increasing adoption is a top priority, involving improving usability and documentation, active promotion within the community, collaboration with other projects, educational initiatives, and targeted outreach to demonstrate the value of Virto's contributions.

Revitalizing Kusama: The DAO Hub

## UPDATE: Superseded by [Proposal 77](https://kusama.subsquare.io/referenda/referendum/77)
### Based on your feedback we won't be pursuing the current amount of funding, instead we will go for a "trial run" requesting less funds for a shorter period of time leaving out the parachain development and the hardware wallet. 

---

Hi, fellow community! Thanks for the feedback on [referendum 47](https://kusama.polkassembly.io/referenda/47), we learnt a lot and are now resubmitting our proposal to fund us The [Virto](https://virto.network) team. We are a group of creative and competent individuals with an extraordinary track record of building multiple projects in the ecosystem with funds from the treasuries and Web3 foundation. We aim to become the _"Latin American Parity"_ team of builders, focusing on creating user-friendly technology and tools to bring Polkadot technology to the masses.

We are proposing to build a **developer-friendly stack** to build impactful Web3 infrastructure for Kusama to empower individuals and communities through _user-friendly Web3 tools_ and **increase** decentralized technology adoption in the Kusama and Polkadot ecosystems. The team is requesting `20,000 KSM` in funding to continue our work towards reducing social inequality and improving the efficient allocation of public resources. Our team's vision is to reduce social inequality and improve the efficient allocation of public resources by empowering local communities with autonomous micro-economies through our Local Incentives Protocol (LIP).

Given our previous work helping 350k+ families in Venezuela to keep their money value using crypto, we have a deep understanding of the ecosystem and, most importantly, first-hand experience building and deploying real use case solutions using web3 technology. By making it accessible to regular users, we can solve real-world problems with social impact and reduce inequality by providing a more efficient allocation of public resources.

You can check a short slideshow where we expose the problem and our proposed solution [**here**](https://docs.google.com/presentation/d/1-W13YnDHDfen7KIC0vALXbvHupEomqhg9nYUaJyxy9g/edit#slide=id.gf87435e6da_0_183), and our full proposal document [**here**](https://docs.google.com/document/d/1b48eTa9GU7s0_Xf4hkyc7M1netZvNbGONJ8D_IgoknA/edit#).

**Edit - Extra content:**
- [First VirtoLIVE stream](https://youtu.be/mX3_RcKsJvQ) with team's intro and projects explainer
- [VirtoLIVE Q&A #1](https://youtu.be/wk-NWqBktV4) (17/01/23): Addressing Pokassembly questions.

Developer friendly stack to build Impactful Web3 Infrastructure for Kusama (funding the Virto team)

Funding the Virto team

This is a "tip" for Pablo, a member of the Polkadot fellowship and the Virto DAO for developing the <a href="https://github.com/pandres95/RFCs/blob/main/text/00xx-referenda-confirmation-by-candle-auction.md">"Confirmation Candle"</a>(<a href="https://github.com/virto-network/polkadot-sdk/pull/4">draft PR</a>) feature, that protects against sniping referenda during confirmation period.
Edit: This feature will be first tested with the KSM Community DAO in Kreivo to showcase and possibly adjust the feature before proposing it to Kusama via a wish for change.

Retroactive funding: Confirmation Candle (sniping protection)

The Virto team, deeply committed to combating social inequality, has focused on developing tools that streamline the creation of decentralized applications for businesses. [Initially funded](<77>) to achieve this aim, our efforts center on building decentralized infrastructure that empowers communities to operate real world businesses efficiently and cost-effectively, contributing to local economic development.

With the support of previous funding we developed different client side tools that are now taking the shape of the VirtoSDK, a comprehensive toolkit that simplifies interactions with Substrate-based chains to the point end users don’t need to have blockchain or Web3 specific knowledge.

Isolated tools with no usage are meaningless, that's why upon this foundation we are also building Kreivo, a common-good parachain that serves as the primary platform for experimenting with and testing these tools. Kreivo offers specialized functionality for managing decentralized communities and facilitating secure payments, providing a robust platform ideal for community-driven applications and real world financial transactions. We will keep expanding the capabilities of Kreivo by implementing functionality like the [*Local Incentives Protocol*](<https://virto.network/docs/whitepaper>), our initial motivation to start building in the ecosystem, that will allow the emergence of local communities which will have resources at their disposal to boost their local economy. This strategic development of Kreivo, along with the VirtoSDK, demonstrates our commitment to making blockchain technology more practical and accessible for a wide range of applications.

The Virto team, aspiring to be a leading success in the Kusama ecosystem, is here to stay, aiming to pioneer innovation and creatively use the ecosystem's technologies. We seek the community's support one more: for our long-term commitment to Kusama, our leadership in innovation, our team's expertise in Rust and Substrate, our dedication to working closely with the community to address their needs, and our focus on developing practical, user-friendly solutions. By supporting us, the community gains a partner deeply invested in advancing the ecosystem through collaborative and technically proficient initiatives.

### Summary

**Total asked**: 333 KSM / weely (121 repetitions every spend period)

**Monthly estimate:** 333 ,33KSM\*38USD = 12666.54 \* 5 = **63 332 USD/month** (10-12 FTE)

**Recipient**: [`para:2281`](<https://kusama.subscan.io/parachain/2281>)

**Scope**: Service of community requests, Kreivo and VirtoSDK(inc. VirtoApp)

**Payment method**: Recurring scheduled spend via Treasurer origin every spend period.

**Milestones**: Quarterly community review to determine if the team should continue to be funded.

#### Links

- [Full proposal](<https://docs.google.com/document/d/10T0K6G2KvO5Ed-tTRJyA-qIfyfKKp7RzHm7V-nFHzPI/edit?usp=sharing>)
- [Previous proposal](<77>)
- [Forum post about Kreivo](<https://forum.polkadot.network/t/kusama-lives-and-makes-creativity-possible-by-virto/4539>)
- [Live roadmap](<https://github.com/orgs/virto-network/projects/11>)
- [AAG prev. work presentation](<https://twitter.com/TheKusamarian/status/1752046147114242542>)
- [Github](<https://github.com/virto-network>)
- [Website](<https://virto.network>)(in spanish)


### FAQ

<details><summary>What experience does the Virto team have?</summary>

We have a skilled team of Rust and Substrate developers with several decades of combined software development experience, several PBA alumni, ex-Parity and Fellowship candidates. Daniel the team lead is member of the Polkadot fellowship, has 15+years of software development and computer security experience, 6+ years using Rust and 4 years building with Substrate. Other team members are even more awesome ;)</details>

<details><summary>What are the expected outcomes of the funding?</summary>

The team will continuously deliver new features and updates(based on our roadmap) to the VirtoSDK, VirtoApp and Kreivo which includes a multitude of pallets and changes that we will try to upstream to repositories like the PolkadotSDK via the Polkadot Fellowship.</details>

<details><summary>How will the Virto Team engage with and contribute to the Kusama community?</summary>

We will engage with the Kusama community through regular updates and establishing open feedback channels. We welcome expert curators to review our work on regular basis(e.g. quarterly) and if deemed necessary request to stop the continuous funding.</details>

<details><summary>How will the team ensure transparency and accountability?</summary>

In 2023 we have already shown an exemplary management of our treasury funds which outlived their initial 6 months scope, we kept the team's KSM on-chain to secure the network, team members agreed to be payed in KSM even using the vesting pallet(which came with losses) and every [expense was annotated](<https://kusama.subscan.io/account/EvoLanodoqDsgHb98Ymbu41uXXKfCPDKxeM6dXHyJ2JoVus>) for maximum transparency.

This year we would take things a step further, funds would be payed to the Kreivo parachain sovereign account and with through the chain's local governance and advanced payment capabilities funds would be managed openly.</details>

<details><summary>Are there any long-term plans beyond this funding?</summary>

Our main goal of 2024 beyond delivering the outlined projects, is to attract as many communities to the ecosystem as possible, specially those with a real world commercial use cases. The Virto team will be one more commercial community in Kreivo that will operate as an *Infrastructure as a Service* platform or better yet as a *Decentralized Business as a Service* provider that offers organizations everything they need to go form idea to revenue generating business in a fraction of the cost and time than a traditional start-up usually takes.

In other words we want to become sustainable and hopefully not have to come back for treasury funding in the future.</details>

<details><summary>How to cancel the schedule?</summary>

Anyone in the community can create a referendum that calls the`scheduler.cancelNamed` like in [this example](<https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Frpc-kusama.luckyfriday.io#/extrinsics/decode/0x1d03566972746f207465616d20636f6e74696e756f75732066756e64696e67202020>)</details>

<details><summary>Will such a big amount empty the treasury?</summary>

First of all, it's only a "big amount" if the community allows it, it could well be a short lived fund if the team doesn't deliver. We chose the recurring payment option not only to give the community more control over how long the team should be funded but more importantly to be in sync with the treasury spend cycle to get funds from what would otherwise be burned KSM. TL;DR: The Virto continuous funding doesn't impact the size of the treasury.
</details>

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Superseded by <a href="https://kusama.subsquare.io/referenda/342">ref#342</a>
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