A proposal submitted by Yemel defined a budgeting strategy for the Decentraland DAO grant system. It went live on December 6th and closed on December 13th.
Yemel proposed a cap to the volume of funds the DAO can allocate to its Grant Program each quarter. The community heavily supported this proposal, with the vote count totaling 5,448,865 for yes, and 231,734 for no, with 43 votes and 1 vote, respectively. Now that the proposal has passed the draft stage, it is eligible to become a binding governance proposal.
Proposals submitted to the DAO must pass through three stages: pre-proposal poll, draft proposal, and binding governance proposal. This governance stratagem was introduced to grant DAO members more time to think of proposal implications and reduce the number of low-quality proposals.
The budgeting proposal acknowledges the grant program's effectiveness in driving Decentraland forwards. It notes that the DAO Treasury has been granted a 10-year vesting contract worth 222 million MANA which started in February 2020, equating to 1.8 million MANA per month.
Before this proposal, there were no limits to the number of funds that could be allocated quarterly. The long-term concern is that the DAO distributes funds too rapidly or poorly due to a lack of organization. And the introduction of a budget will increase the consideration given to each grant.
The idea of budgeting proved popular with DAO members, but there were more minor disputes about allocating each quarter’s budget. MetaRyuk argued that:
‘In-world content should be much more than sponsorship.’
And Doug NFTWorld corroborated this opinion and argued for greater distribution to the Accelerator:
‘Only 15% toward In-World Content isn't high enough, and 15% toward Sponsorship is too high. I also think Accelerator should be higher than Documentation.’
Yemel’s proposal suggested the following distribution per quarter:
In-World Content: 15%
Core Unit: 15%
Social Media Content: 5%
Overall this proposal will benefit the Treasury and allow for the Decentraland DAO to operate consistently over a longer timeframe and marks the introduction of financial accountability for the grant system.