DAO Grant Engine (DGE) - Adaptive Quorum Logic

The Adaptive Quorum is a governance safeguard that dynamically adjusts the required majority for a grant vote based on the project's real-time risk profile, ensuring higher scrutiny for projects that are failing.

1. Quorum Definition

• Quorum: The minimum number of votes (or voting power) required to make a DAO vote valid.

• Quorum Requirement (Default): 51% of participating votes must approve a grant tranche release.

2. The Adaptive Adjustment Rule

The Adaptive Quorum (AQ) rule is tied directly to the D-Metric of the funded project. As the D-Metric decreases, the required Quorum for the next tranche release increases, making it harder for the project to pass future funding votes.

The Quorum Adjustment Formula:

The required approval percentage is calculated as:

$$\text{Required Approval Percentage} = 51\% + \text{Risk Penalty}$$

Risk Penalty Calculation:

The Risk Penalty is the difference between the starting D-Metric (100) and the current D-Metric, applied as a percentage increase to the quorum.

$$\text{Risk Penalty} = \frac{(100 - \text{Current D-Metric})}{2}$$

Note: The penalty is halved to prevent the quorum from immediately jumping to 100% on a minor point drop.

3. Adaptive Quorum Scenarios

Current D-Metric	Risk Penalty	Required Approval Percentage	Analysis
100 (Base)	0%	51%	Standard DAO vote for a project on track.
80 (Minor Failure)	$\frac{(100-80)}{2} = 10\%$	61%	Increased scrutiny; 10% more Manta is required for approval.
60 (High Risk)	$\frac{(100-60)}{2} = 20\%$	71%	Significant governance effort required to continue funding a struggling project.
50 (Failure Floor)	$\frac{(100-50)}{2} = 25\%$	76%	If a vote is even attempted at this floor, the project needs overwhelming support to survive.