---
type: decision
entity_type: decision_market
name: "COAL: Establish Development Fund?"
domain: internet-finance
status: failed
parent_entity: "coal"
platform: "futardio"
proposer: "AH7F2EPHXWhfF5yc7xnv1zPbwz3YqD6CtAqbCyE9dy7r"
proposal_url: "https://v1.metadao.fi/coal/trade/DhY2YrMde6BxiqCrqUieoKt5TYzRwf2KYE3J2RQyQc7U"
proposal_date: 2024-12-05
resolution_date: 2024-12-08
category: "treasury"
summary: "Proposal to allocate 4.2% of mining emissions to a development fund for protocol development, community rewards, and marketing"
tracked_by: rio
created: 2026-03-11
source_archive: "inbox/archive/2024-12-05-futardio-proposal-establish-development-fund.md"
---

# COAL: Establish Development Fund?

## Summary
Proposal to establish a development fund through a 4.2% emissions allocation (472.5 COAL/day) to support protocol development, reward community contributions, and enable marketing initiatives. The allocation would increase total supply growth by 4.2% rather than reducing mining rewards. Failed after 3-day voting period.

## Market Data
- **Outcome:** Failed
- **Proposer:** AH7F2EPHXWhfF5yc7xnv1zPbwz3YqD6CtAqbCyE9dy7r
- **Proposal Account:** DhY2YrMde6BxiqCrqUieoKt5TYzRwf2KYE3J2RQyQc7U
- **DAO Account:** 3LGGRzLrgwhEbEsNYBSTZc5MLve1bw3nDaHzzfJMQ1PG
- **Duration:** 2024-12-05 to 2024-12-08
- **Daily Allocation Proposed:** 472.5 COAL (4.2% of 11,250 COAL/day base rate)

## Significance
This proposal tested community willingness to fund protocol development through inflation in a fair-launch token with no pre-mine or team allocation. The failure suggests miners prioritized emission purity over development funding, or that the 4.2% dilution was perceived as too high. The proposal included transparency commitments (weekly claims, public expenditure tracking, DAO-managed multisig) but still failed to achieve market support.

The rejection creates a sustainability question for COAL: how does a zero-premine project fund ongoing development without either diluting miners or relying on volunteer labor?

## Relationship to KB
- Related to [[futarchy-daos-require-mintable-governance-tokens-because-fixed-supply-treasuries-exhaust-without-issuance-authority-forcing-disruptive-token-architecture-migrations]] — COAL attempted to add issuance authority post-launch
- Related to [[MetaDAOs futarchy implementation shows limited trading volume in uncontested decisions]] — this was a contested decision that still failed

## Full Proposal Text

*Source: futard.io, tabled 2024-12-05*

Since its fair launch in August 2024, $COAL has been a community-driven project with no pre-mine or team allocation. While this approach has ensured a fair start, it limits our ability to scale the project and reward community contributions.

To ensure the long-term sustainability of the project, we propose establishing a **Development Fund through a 4.2% emissions allocation**.

This fund will:
- Support on-going protocol development and innovation
- Reward community-driven initiatives and contributions
- Enable marketing and growth initiatives to expand the $COAL ecosystem

**Details:**
The emissions allocation will be 4.2% of the current mining emission rate: 11,250 * 0.042 = 472.5 (development allocation per day).

To avoid reducing mining rewards, this allocation will result in a 4.2% increase in total supply growth. Future emission rate adjustments will integrate this allocation into the base rate.

The development allocation will be claimed weekly and transferred to a DAO-managed multisig wallet. All expenditures tracked and shared publicly.
