DFINITY’s latest move is raising eyebrows, and for good reason. The proposal to put the Neurons’ Fund on hold has sent ripples through the Internet Computer community. If this gets the green light, SNS proposals looking for Neurons’ Fund backing would be blocked, though SNS launches themselves would carry on as usual. The timing is interesting, given the broader discussions about decentralised funding and governance.
The Neurons’ Fund was meant to operate as a matched funding mechanism, adjusting its contribution based on swap activity. The logic was straightforward: if a project gets a lot of traction during its SNS swap, it must be promising. The problem? Dapp owners could, in theory, buy their own tokens, artificially inflating demand and making their projects seem more valuable than they actually are. That raised concerns about the integrity of the system, prompting calls for a rethink. Trust is everything in decentralised governance, and any loophole that undermines confidence in the process needs urgent attention.
The immediate fix being proposed is simple: stop Neurons’ Fund contributions altogether. No new SNS proposals requesting these funds could even be created. The SNS launch process would remain untouched, allowing projects to proceed, just without the extra financial boost from the Neurons’ Fund. It’s a clean break, giving the community breathing space to reassess the fund’s mechanics.
There was another way to handle this. Instead of blocking proposals outright, the NNS could have simply voted to reject every single one that asked for Neurons’ Fund contributions. Some in the community floated this idea, and DFINITY acknowledged it as a valid option. For now, they’re planning to vote down such proposals while the broader changes take shape. But a hard-coded block is arguably a more robust solution, removing any ambiguity for voters and ensuring that no proposals slip through the cracks.
Putting the Neurons’ Fund on pause doesn’t mean scrapping it forever. The aim is to buy time for deeper discussions on how to improve it. Community-driven changes could refine the mechanism, ensuring that future funding allocations are fair and resistant to manipulation. The next steps will likely involve multiple rounds of debate, proposal submissions, and governance votes.
This all comes at an interesting moment for ICP. The sentiment around the project has been shifting, with growing chatter about its potential to break out once major players wake up to what’s happening. The ecosystem has been expanding, and the technology stack is attracting attention, even if some corners of the industry remain slow to catch on. The Neurons’ Fund issue is a reminder that while the tech is advancing, the governance structures need to keep up. The community now has a window to rethink how funding should work in a decentralised environment.
It’s not just about stopping bad actors; it’s about reinforcing trust. The SNS framework relies on transparency and credibility, and any process that leaves room for doubt has to be scrutinised. That’s what makes this move significant. It acknowledges a flaw, takes immediate action, and sets the stage for a more resilient system down the line.
Whether this marks the start of a broader shift in ICP governance remains to be seen. What’s clear is that decisions like this shape the long-term trajectory of decentralised networks. While DFINITY proposes this immediate step, the bigger conversation is only just beginning. The next round of governance debates will determine how funding mechanisms evolve and whether the community can build something even stronger in the process.
