# Depth Protocol Grant Engine (DGE) - Core Financial Logic

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).
