GRS - Grant Shopping

Supports:

• Grants

Context:

In the context of DAOs distributing capital via grants, it is essential to efficiently select and support projects that align with the DAO’s objectives, ensuring resources are not wasted on initiatives that do not further the collective goals or that demonstrate a lack of commitment.

Problem:

A significant challenge in grant allocation within DAOs is the practice of “grant shopping,” where applicants seek funding from multiple sources for the same project or for projects that have already been completed elsewhere. This can lead to redundant funding, reduced resources for other deserving projects, and a lack of genuine engagement with the DAO’s mission.

Forces:

• Resource Optimization: The need to utilize the DAO’s resources in the most effective manner possible.
• Credibility and Commitment: Ensuring that the grantees are genuinely interested in adding value to the specific ecosystem of the DAO.
• Transparency and Accountability: Tracking the project’s progress and background to verify novelty and prevent duplications.

Solution:

Implement stringent vetting procedures that include checks against multiple submissions of similar projects to various grant organizations. Utilize blockchain technology to maintain immutable records of all grant applications and their statuses. Develop a shared blacklist or warning system among trusted partner DAOs, foundations, or ecosystems for tracking entities that frequently engage in grant shopping. Promote transparency by requiring detailed project plans, including milestones for fund release, ensuring projects supported are specific and verifiable with clear objectives and deliverables.

Therefore:

To mitigate the effects of grant shopping ensure due diligence and verification in the grant application review process. Utilize technologies for transparent and immutable tracking, and consider collaborative approaches with other organizations to identify and deter multi-application strategies for the same projects.