RGS - Right Size

Supports:

• Grants
• Community Involvement
• Scalable Decision Making

Context:

In the ecosystem of DAOs, particularly those focusing on distributing capital through grants and bounties, efficient resource allocation is paramount. Managing a vast number of small-scale projects often does not correspond effectively with the effort and resources invested in their oversight.

Problem:

The allocation of a disproportionate amount of resources (time, administrative effort, review processes) to manage small or minimally impactful grants and bounties reduces the overall efficiency and potential impact of funding programs.

Forces:

• Resource Limitation: Limited time and administrative resources available to review and manage grants and bounties.
• Dilution of Focus: Smaller projects might divert attention and resources away from more impactful or strategic initiatives.
• Administrative Overhead: High overhead in managing multiple small-scale initiatives can outweigh their potential benefits.
• Desire for Impact: A preference to fund initiatives that promise significant or scalable impact relative to their resource requirements.

Solution:

Implement a “Right Size” approach in grant and bounty programs focusing on funding projects that balance the potential impact with the administrative effort involved. This approach involves setting thresholds for minimum funding amounts, prioritizing projects based on their alignment with strategic goals, and possibly aggregating smaller initiatives into more substantial, cohesive projects. Streamlining the evaluation process by establishing clear criteria that focus on scalability, potential impact, and strategic alignment can further enhance efficiency.

Therefore:

Adopt a “Right Size” strategy in capital distribution by supporting projects that align optimally with administrative capacities and have the potential to deliver disproportionate impact relative to their size, thereby maximizing the efficacy and reach of the grant or bounty programs.