Depth Protocol Grant Engine (DGE) - Core Financial Logic

This document outlines the core financial mechanism designed to balance builder access with DAO treasury protection, centered on the Builder Bond (BB) concept.

The DAO Grant Engine (DGE) operates on a tiered, milestone-based disbursement model designed to mitigate risk and ensure accountability.

1. The Builder Bond Requirement

Every new builder must post a non-refundable Builder Bond prior to receiving the first grant tranche.

• Bond Value: $300 USD (paid in the Depth Token ($DPT) or equivalent stablecoin).

• Purpose: The bond acts as collateral and a commitment mechanism. It covers the administrative cost and initial risk associated with the first tranche.

• Liquidation: The bond is liquidated immediately if the project's D-Metric (Decentralization Metric) falls below the predetermined performance floor (see D-Points System documentation).

2. Grant Funding Tiers

Grants are awarded in tranches tied to the achievement of defined on-chain milestones. Disbursement pauses immediately if a milestone is missed or the D-Metric is compromised.

Tier	Maximum Grant Value	Typical Tranche Count	Builder Bond Required
Tier 1 (Prototyping)	$5,000	2-3	YES ($\$300$)
Tier 2 (MVP & Scaling)	$25,000	4-6	YES ($\$300$)
Tier 3 (Launch & Adoption)	$100,000+	6+	Conditional (See D-Points System)

3. The Milestone Disbursement Process

1. Milestone Completion: Builder submits on-chain proof of completion (e.g., smart contract transaction hash, code commit).

2. D-Metric Check: The DGE verifies the D-Metric score is above the floor (50 points).

3. DAO Governance Vote: The DAO votes on releasing the next tranche, subject to the Adaptive Quorum rules.

4. Tranche Release: If the vote passes, the tranche funds are automatically transferred, and the project's D-Metric is updated (points accrued).