# PIP Requirements

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**Note:** The list below is a living document at this early stage. The Council plans to refine and extend it as they review the various PIP Drafts.
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### 1. Formatting

1. A PIP should include all nine sections outlined in[Creating a Proposal](/knowledge-base/governance/creating-a-proposal.md), as well as additional phase requirements for each phase if it is a [Comprehensive PIP](/knowledge-base/governance/creating-a-proposal/comprehensive-pips.md).

### 2. Dependencies

1. A PIP draft cannot rely on another PIP that has not yet been approved through the legislative process.

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Note: You can start the ideation of two PIPs—one of which relies on the other—simultaneously. However, you can not move both to the draft stage at the same time.
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### 3. Referencing Parties

1. All parties mentioned in a PIP must be clearly identified as individuals, groups of individuals, DAOs, or registered organizations.
2. Any parties assigned roles in a PIP must consent to their responsibilities within the proposal.

### 4. Recurring Payments

PIPs proposing recurring payments from the treasury or the ecosystem fund must have a clearly defined term of no more than 1 year. To continue funding beyond one year, a new follow-up PIP must be submitted and approved through the governance process.

### **5. Proposals requiring funding exceeding the Ecosystem Fund**

At this early stage, only PIPs under the Ecosystem Fund will be eligible for funding. Any proposal exceeding this amount must be formatted with the [Comprehensive PIP ](/knowledge-base/governance/creating-a-proposal/comprehensive-pips.md)format rules.

### 6. Ecosystem Fund Payment Structure 

PIPs requesting Ecosystem Fund financing must structure payments around verifiable milestones or completion:

1. Single milestone: Payment is released only upon project completion
2. Multiple milestones: Minimum of three milestones required for any upfront payment
3. Upfront payment cap: Maximum 25% of total funding (flexibility granted case-by-case)
4. Milestone spacing: At least one month between payment milestones

Timeline requirements: Section 7 must specify deliverables, payment amounts, verification criteria, and payment dates for each milestone


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