Having managed grants at scale (Head of Grants at Gitcoin, Optimism Grants Council) and served as delegate across multiple DAOs, I’d like to build on the excellent discussion so far with some practical insights:
- Structure & Scaling
- Strong support for @PGov builder/growth track split - this has proven crucial at Optimism for maintaining focus and appropriate evaluation criteria
- Recommend starting with quarterly cycles but implementing a “fast track” for smaller grants (<$50k) that can be reviewed monthly by committee to maintain momentum
- @Constantin point about DeFi-specific metrics is spot-on; suggest focusing on:
- TVL impact vs grant size
- Integration depth scoring
- Sustainable yield generation
- User acquisition cost compared to alternative token distribution methods
- Impact Measurement & Funding Mechanisms
- Rather than traditional “grants vs incentives” framing, consider blended approaches:
- Retroactive funding for verified impact (similar to Optimism’s RetroPGF but scoped to protocol-specific metrics)
- Results-based tranches where additional funding unlocks based on achieved milestones
- Impact certificates that could be traded/priced by the market
- Create standardized impact tracking from day one:
- Real-time dashboard of active grant outcomes
- Comparative analysis against alternative token distribution methods
- Regular impact/cost analysis to inform future grant decisions
- Clear methodology for attributing protocol growth to specific grants
- Risk Management & Operations
- Milestone-based funding is essential but consider standardized structures:
- 20% upfront maximum
- Clear technical/growth milestones for remaining 80%
- Final payment tied to measurable impact metrics
- Start with a small (3-5 person) committee focused on specific domains before transitioning to full governance involvement
- Regular public reporting on grant outcomes to build institutional knowledge
- Evolution Path
- Begin with builder track to establish baseline processes
- Add growth track once initial framework is proven
- Transition to elected committee as volume increases
- Implement cross-ecosystem coordination (especially important given Morpho’s position in the lending space)
Would be particularly interested in the community’s thoughts on balancing traditional upfront grants with more experimental funding mechanisms. From our experience at Gitcoin, we’ve found that hybrid approaches often work best - using traditional grants for early-stage projects while reserving larger retroactive funding for proven impact.