[DAO:f22e14c] Reducing the current maximum grant amount from $240,000 to $100,000

Governance
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by 0x447c9058be5c164e0c4aae380381e7a5215052d4 (DHINGIA)

Linked Pre-Proposal

Reducing Grant Caps to $100,000

Summary

Goal: To propose reducing the current maximum grant amount from $240,000 to $100,000, enabling more diverse and safe funding.

Abstract

Key Points:

Enhanced Diversity: Lowering the cap will allow funding for a greater number of projects, promoting innovation and inclusivity.

Broader Impact: A lower cap could lead to funding a wider range of impactful projects, rather than concentrating resources on fewer, larger initiatives.

Reducing the grant cap to $100,000 will diversify and maximize the impact of our funding, supporting more projects and encouraging measurable success.

Motivation

Given the current lack of engagement on the platform, it’s essential to reassess our funding strategy. By lowering the grant cap from $240,000 to $100,000, we can allocate funds more efficiently and effectively. This adjustment is particularly crucial as we aim to conserve funds following the successful launch of the client.

Specification

Review and Adjustment: The impact of the lowered grant cap will be reviewed periodically, and adjustments may be made based on the effectiveness of the new policy.

Effective Resource Allocation: The primary goal of lowering the grant cap is to allocate resources more effectively, supporting a greater number of projects and promoting innovation and inclusivity within the community.

Conclusion

By reevaluating our funding strategy and prioritizing inclusivity, we can drive measurable success and foster a more vibrant and engaged community.

Vote on this proposal on the Decentraland DAO

View this proposal on Snapshot

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how many grants above 100k have ever been passed?

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Based on Transparency, 51 Grants have been enacted that were over 100k. But lots of them have been revoked and funds were recovered by the DAO. Probably @Zino or @fifitango have the amount of revoked grants out of that grand total.

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From my point of view, just reducing the amount won’t fix the issue, 100k is still A LOT of money. Even though after all the work the Grant Support Squad has done to enhance the follow-up of the projects and the work the Revocations Committee does every month to make sure that the funds are being used properly, there is work to do. That’s why we’ve been working alongside the Facilitation team to present a revamp of the governance design of the DAO that includes a specific section for the Projects funding mechanisms. I’ve read you don’t support that initiative, but I think it has some interesting ideas that could fix the underlying issues.

2 Likes
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4 grants were revoked over 100k and 237,380 were recovered.
2 of those were revoked by the Revocations Committee

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The VP thresholds to obtain 100k should also change then, too

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How does reducing a grant amount make for safer funding? The last-minute voters and DAO drainers will just continue to vote on whatever amount gets passed by their votes. This is not a fix to the overall issue. This is why I voted NO but if you provided an Invalid option I would have voted that way.

1 Like
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I vote yes since taking into account the few visitors that DCL currently has, approving such high grants would be too high a risk. So for me it doesn’t make much sense to maintain it at the moment.

In any case, I think that the DAO should worry about trying to get improvements at more competitive prices, I have not yet fought much with this idea to know how it could be achieved, but it is obvious that there have not been changes that have improved the platform enough to make it attractive to new users.

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Reducing the current maximum grant amount from $240,000 to $100,000

This proposal is now in status: PASSED.

Voting Results:

  • Yes 83% 7,539,668 VP (57 votes)
  • No 16% 1,520,971 VP (9 votes)
  • Abstain 1% 60,071 VP (5 votes)
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This does not solve any issue, @ginoct is correct. None of the Key Points in the abstract are impacted by a reduction in the grant amount limit.

  • Enhanced Diversity - a lower limit does not mean more projects will get funded
  • Broader Impact - same language as first bullet point, so it gets the same response
  • Reducing cap helps diversify and maximize impact - there is no correlation between grant amount and impact, nor is there a correlation between grant limit and # of different projects.

This should not get enacted and/or needs to be voted out.

2 Likes