[DAO:65f4410] Financial Reporting for Decentraland Grant Projects

by 0x2ae9070b029d05d8e6516aec0475002c53595a9d (CheddarQueso)

Linked Draft Proposal

Financial Reporting for Decentraland Grant Projects


This governance proposal seeks to establish guidelines for monthly financial reporting from grantees/projects receiving DAO funds. The objective is to enhance transparency, accountability, and data-driven decision-making within our community.


The Decentraland DAO grants program, initiated in 2020, has made significant investments, allocating approximately 12 million dollars in funds to various projects. To ensure that these resources are utilized optimally and in alignment with our collective goals, it is imperative to evaluate the impact and effectiveness of our grants. Monthly financial reporting is a foundational step toward achieving this goal.


The emphasis on financial reporting is not just to track expenditures, but to enable continuous improvement of our grants program, encourage grantees to reflect on their spending, share insights on how they can optimize their use of funds, and carve a pathway to success for future grantees to follow.

Currently, there is no mechanism for standardized and uniform financial reporting. This lack of basic oversight leaves the door open to abuse or misuse of DAO funds. By requesting that grantees provide a monthly accounting of funds released and expenses, we have a better foundation from which to ask questions, seek more information, determine the whether or not a grant should be paused/revoked, and most importantly, compare the effectiveness of funds used amongst different grant projects and across categories. The more information we have at our disposal, the better equipped we will be to help future grantees succeed, and make decisions about future iterations of our grants framework.


This proposal aims to achieve four key goals:

  1. To Increase Transparency: Each community member will have direct access to monthly financial reports through each grant’s monthly updates. Grantees can upload reports without the need for a request or intervention from the GSS, facilitating direct communication with the community and further decentralizing our grants accountability system.
  2. To Help Us Evaluate the Effectiveness of Our Grants Funding: The community can utilize this information, coupled with the required metrics reporting, to better evaluate the outcomes of our grant projects from an objective perspective. This evaluation focuses on making improvements in future iterations of the grant framework based on the lessons learned.
  3. To Enhance Data Reporting: Our squads work diligently to compile data that informs our future decisions. It is equally important for the community to have the ability to manipulate and compile information for their own research, as many projects stem from data originating from grant projects. Reports should be provided in a standardized spreadsheet format to facilitate ease of analysis and comparison across different projects.
  4. To Improve Spending Categorization: Financial reports will offer a more detailed breakdown of how funds are being utilized. This breakdown can provide the community with insights into the primary areas of fund allocation, such as development, marketing, community events, and more.

Overall, these goals will collectively contribute to a more transparent, accountable, and data-driven ecosystem within the Decentraland DAO.


  1. Improved transparency, reducing the opacity of fund allocation and expenditure.
  2. Data-driven decision-making, enabling the community to make informed judgments about grant projects.
  3. Enhanced accountability, fostering responsible fund management and allocation.
  4. Valuable historical data for trend analysis and informed planning.

Implementation Pathways

To implement this proposal, the following steps will be taken:

  • Creation of a dedicated mechanism within the grant updates section of the DAO website for grantees to upload financial reports.
  • Development of a standardized and easily accessible method for grantees to conduct monthly reporting.
  • Regular communication and guidance to assist grantees in understanding and fulfilling their reporting obligations.


In order to build a robust, decentralized, and effective DAO grants program, it is imperative to foster open and community-driven accountability for our grant projects. For every disbursed fund, we must maintain a detailed record of its allocation, enabling us to objectively assess the impact of our grant projects. This information will serve as a foundation for refining future initiatives and enhancing the efficiency of our grants framework. There is an abundance of resources available to develop Decentraland, provided we exercise prudent financial management. However, our first step must be gaining a clear understanding of how these resources are allocated.

Vote on this proposal on the Decentraland DAO

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1 Like

Hi Cheddar, thank you for following through and bringing this to the Governance stage. I would have preferred that language was included to cover those Grantees who have been revoked and will still receive funds after the fact, like Biennale. They should also be required to provide reporting and I am not sure there is any language indicating they must also follow through. Not sure if it matters though, once they receive funds, they can just skip town anyway.

Either way, this is absolutely a step in the right direction.

1 Like

Thank you… yes, I agree… we should be closely inspecting each individual grant budget and all categories collectively to determine where our money is going and where it is most effective. It’s unfathomable that we are 2 years and 12mil deep in a grant project with multiple squads and comittees and talking about hiring financial advisors, diversifying, and safeguarding measures… yet lack basic monthly accountability, budgeting and expense analysis. We have the horse chasing the wagon. Safeguarding our treasury starts with knowing where our money is being spent and exactly what we are buying with it. I believe the community, despite all the weekly meetings we have, has really no clue even what happened to 80% of all grant projects funded… most of which have produced very little to benefit Decentraland or the DAO.


I endorse this; it’s greatly needed.

1 Like

Financial Reporting for Decentraland Grant Projects

This proposal is now in status: PASSED.

Voting Results:

  • Yes 99% 9,178,733 VP (101 votes)
  • No 0% 0 VP (0 votes)
  • Abstain 1% 1,456 VP (1 votes)