How are mpDAO Grants Approved?

The approval process for mpDAO Grants is designed to be transparent and community-driven, ensuring that proposals align with the community's objectives and receive the necessary support:

• Proposal Funding Requests: Each proposal submitted to mpDAO specifies an amount of USD requested from the mpDAO Grants treasury. This amount represents the financial support needed to execute the proposed project or initiative.

• Community Voting: In the designated voting round, members of the mpDAO have the opportunity to participate by casting their votes. To vote, users lock their mpDAO tokens to get votes. The amount of funds approved from the mpDAO Grants treasury is directly proportional to the percentage of votes each proposal receives.

• Approval Threshold: Proposals must meet a minimum funding threshold equivalent to the amount they initially requested. For instance, if a proposal requested $1000 USD, it needs to secure at least $1000 worth of votes to be approved. If a proposal achieves this threshold, it will be funded.

• Excess Funds Preservation: When a proposal receives more funding by votes than it initially requested, the excess funds are retained within the mpDAO Grants treasury.

• Second Round for Unfunded Proposals: For proposals that do not meet the initial funding threshold but secure at least 20% of the total votes in a round, will have a second chance in the subsequent voting round. These proposals retain the funds they previously obtained. The preserved funds are saved in $stNEAR tokens.

Let's illustrate this with an example: Suppose the mpDAO Grants treasury has a total of $3,000 USD to distribute. If a proposal receives 20% of the votes, equivalent to $600 USD, and it requested $500 USD, it will receive $500 USD in funding, and the remaining $100 USD will be saved for the next round.

For a scenario with the same 20% vote support but a proposal requesting $700 USD, it will not be approved during the current round. However, it will have a second opportunity in the next round since it reached the 20% vote threshold and will preserve the previously earned $600 USD in $stNEAR tokens.

Proposals that fail to secure the minimum 20% vote threshold required for the second chance will be discarded.