# 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. |
