Cloudless Labs Development And Funding Proposal

This proposal formally engages Cloudless Labs (formerly Fluence Labs) to continue development of the Fluence platform. Cloudless Labs is uniquely suited to develop these features and others, to also increase awareness of Fluence and to drive adoption.

Determination of benefits:

Fluence requires additional development before it is a fully functional network:

  • The network should add staking functionality to provide trust
  • The network also should add Docker integration to support a wider range of use cases than is possible with WASM.
  • Adding GPU support is important to address the fast growing AI market.

Terms:

  • Cloudless Labs will be paid $400,000 per month to cover operational expenses
  • Marketing expenses will be reimbursed as incurred with a cap of $250,000 per month
  • Fluence DAO will make a one time payment of $1,000,000 to reimburse Cloudless for expenses involved in setting up the DAO
  • Fluence DAO will grant Cloudless Labs 20 million FLT and will grant and additional 500K FLT for achieving each of the following three Deliverables

Deliverable 1: Staking for hardware

  • Deliver network scalability required for onboarding up to 10,000 CPUs and enabling staking for new hardware.
  • Build UX for FLT holders to discover staking availability and stake tokens to hardware

Deliverable 2: Virtual machines / Docker integration

  • Develop ability for the Fluence platform to support other execution runtimes alongside WebAssembly to enable customers’ workloads in Docker containers.

Deliverable 3: GPU support

  • Add compute marketplace features for GPU hardware. Enable staking for GPU hardware and ability to rent it from the marketplace by customers.

Funding process:

  • Upon approval, the $1 million one time payment and six months (two quarters) of the $400K monthly payment ($2.4 million) will be transferred to Cloudless Labs.
  • Upon approval, 20 million FLT will be transferred to Cloudless Labs
  • The DAO governance committee will be responsible for determining the successful completion of the Deliverables
  • Additional payments of $1.2 million per quarter will be transferred by the DAO at the beginning of each quarter.
4 Likes

Where does one vote? Have you considered splitting up the proposal into seperate asks?

Couple questions:

  • Deliverable 1: UX for FLT staking, I’m looking forward to this, but I’m curious if there’s more information on if staking to hardware generates yield, if at all? Or is it purely a basis of open monetary market-driven trust based on resources? Can you get staking to prevent recieving resources from bad sources of capital? Can hardware operators use this money for to borrow against to build out their provisioning? Will this create opportunities for slashing bad behviour or downtime?
  • Deliverable 1: Deliver network scalability - what is the current load on the market in the present? Should the idea be to enable decentralized provisioning of compute (like ETH 1.0 Miners), like community workshops, centralized distribution of parts, etc.

Is Cloudless Labs open to community members developing a role in the community with the DAO? :pray:

Will these 20m FLT just be sold on the market? Don’t you think there will be a lot of pressure on the price then? At such a stage of project development and price behavior, wouldn’t it be easier to find an investor who would purchase such an amount of FLT? For example, instead of an airdrop the developers could find an investor + conduct a larger round at IEO and this money would definitely be enough for a year of development and would not create a big pressure on the price. I just want to hear an answer from the team, because this is very important. If at this stage you sell 20m FLT to the market, even if gradually, then this will impact the price.

Yields will be clear after it is launched publicly. The pre-staking campaign starts next week. The mechanism of how staking will work is described here.

Providers will be able to specify addresses that are eligible to stake to them if they are not open to receive the stake from anyone.

Staked money are not available for providers for use. But we have some ideas around how to help providers be pre-paid / pre-funded so it is easier to start the business.

Slashing initially is very limited. Need to reach network maturity to enable fully functional slashing.

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We agree that selling 20 million even gradually would impact the price, and we do not think the current price is attractive to be selling. If this proposal passes, Cloudless Labs will have sufficient cash to fund operations for over two years so will not need to sell tokens to fund operations. Additionally, the owners and investors in Cloudless Labs hold significant tokens and so are aligned with the community. We have also received interest from outside investors who would like to acquire FLT from Cloudless, but we do not think the current price is attractive to sell.

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Please see the service agreement document, which captures my original proposal and accomodates the legal and compliance related off-chain requirements.

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