Requests for Proposals

TL;DR

RFPs are structured, formal funding mechanisms used to solve known problems by inviting competitive proposals. They work well in strategic, high-stakes, or technically complex contexts—but require time, clarity, and a strong evaluation process.

Requests for Proposals (RFPs) are a skeuomorphic but powerful capital allocation tool, adapted from traditional procurement processes. They’re used when a funder or organization has a clear, predefined need and wants to solicit detailed proposals from external contributors who can fulfill that need.

The RFP process begins with the creation of a document that outlines:

• The problem or opportunity
• Detailed requirements
• Objectives and success criteria
• Budget and timeline
• Selection criteria and process

Once published, the RFP invites individuals or teams to submit proposals. These are then reviewed against preset criteria, allowing for a competitive and accountable selection of the best-fit provider.

While not native to Web3, RFPs have been successfully adopted by leading ecosystems like Uniswap, Optimism, and the Ethereum Foundation to coordinate complex work—especially where technical scope, vendor evaluation, or milestone accountability is critical.

RFPs work well alongside open rounds, but are distinguished by their strategic directionality: they begin with a clearly defined need and move toward solution proposals, rather than funding emergent work.

Best For

• Complex or specialized scopes of work
• Funding protocol upgrades, audits, tooling, or infrastructure
• Projects that need detailed review and milestone-based contracts
• Competitive bidding across qualified teams

Good At

1. Soliciting high-quality responses to specific, complex needs
2. Encouraging competitive bids and multiple approaches to a defined goal
3. Creating accountability through scoped contracts and deliverables

Dependencies / Requirements

• Clear requirements and well-scoped objectives
• Capacity to manage a multi-step process (drafting, reviewing, selecting, etc.)
• A capable review or evaluation body
• Willingness to invest time in project oversight

Not Good At

• Surfacing unknown opportunities or bottom-up innovation
• Fast, low-governance funding
• Early-stage or emergent ideas
• Situations where needs are vague or community input is still forming

Who Should Use It?

Organizations or DAOs that:

• Know exactly what they need
• Want to compare vendors or teams based on quality, cost, and fit
• Require milestone accountability and formal deliverables
• Are coordinating ecosystem infrastructure, research, or technical services

Who Uses It?

• Uniswap Grants Program (UGP): For funding protocol enhancements, dev tooling, and education
• Optimism: To commission strategic infrastructure aligned with the ecosystem roadmap
• Ethereum Foundation: For protocol R&D, security audits, and research topics

A Typical RFP Process

1. Preparation & Planning: Define scope, goals, budget, and timeline
2. Drafting the RFP: Write requirements, submission guidelines, and evaluation criteria
3. Issuing the RFP: Publish and distribute the call
4. Vendor Response Period: Open time for proposals and clarifications
5. Proposal Evaluation: Review based on criteria, possibly with scoring or interviews
6. Vendor Selection: Choose the most suitable team or solution
7. Contracting: Negotiate terms, sign agreements
8. Execution & Monitoring: Start the project and track deliverables