The grants program funds Decentraland creative projects, platform, community, and gaming projects and has allocated $2.6 million dollars in MANA to community initiatives to date. The proposed pause would see a two-month hiatus on grant proposals allowing the Decentraland community to pay more attention to key governance decisions.
The initial poll proposing the temporary suspension to the grants program described it as one of the “most important governance decisions,” this year, in its publication on November 16, 2022. The DAO community voted 79% in favour.
On November 29, a further proposal was drafted which aims to add focus to the final plans, this closes December 6. The final governance vote should happen before December 20, 2022.
In the latest proposal, the motivation listed upcoming governance decisions pending for Restructuring of the Community Grants Program, the Grant Revocation Committee, Implementing a Bidding and Tendering process, Denomination of Names, and Land Concessions, “to point out a few,” items that also require the attention of DAO voters.
Voting on grants requires constant, “arduous,” contributions to the DAO, per the text, the proposal seeks time for voters to “breathe,” and reflect on their decisions and the outcomes. It states:
Remember; within a DAO, you are far more similar to a parliamentarian than you are to a citizen within a state. Decision fatigue is a serious risk, that we would be intelligent to avoid.
The aim is for the pause to take effect for a maximum of two months and have a limited effect on Decentraland’s creative community.
The initial poll detailed a breakdown of the $2.6 million dollar granted so far, of which 32% of the 65 projects in total were over $50,000, to community-led and community-backed initiatives adding:
“Whilst this system has generated quite a few success stories over the last twelve months, we are now facing new growing pains and paradigms that are not currently described and defined in our governance systems.”
Part of the goal is to take a data-orientated approach to understanding the outcome of the millions in community investment, as well as “applauding our community’s successes, and learning from our collective mistakes.”
The process of funding grants in USD, exchanging from MANA, also puts pressure on MANA as an asset by reducing its liquidity.
Decentraland DAO voters are so far supportive of the new proposal with 92% in favour, at the time of writing. However, some members of the community are still looking for clarity of goals during the two month pause, as well as reassurance that the grant program will resume.
Community grants come from a MANA fund set aside for projects that aid the growth of the Decentraland platform and the program was voted in place by the community initially.One of the other governance issues requiring the community’s attention is that of the Grant Revocation Committee. A proposal that ran to November 7, 2022 proposing structure and guidelines for the new committee was ultimately rejected.