DAO Grant Engine (DGE) - D-Points Performance System

The D-Points System (D-Metric) is the primary mechanism for measuring and tracking the performance of a funded builder/project. It directly influences both the disbursement of subsequent grant tranches and the status of the Builder Bond.

1. D-Metric Definition

• D-Metric (Decentralization Metric): A cumulative score that represents the builder's progress against agreed-upon, on-chain verifiable milestones.

• Purpose: To provide the DAO with an objective, real-time measure of project success and risk.

• Initial State: All projects start with a base D-Metric of 100.

2. Milestone Accrual

D-Points are awarded based on the successful completion of milestones as defined in the initial grant proposal (e.g., smart contract deployment, feature completion, community engagement goals).

Action	Points	Effect on Builder Bond
Milestone Completion	+10 to +50 D-Points	Triggers the release of the next grant tranche.
Failure to Meet Deadline	-25 D-Points	Requires a formal review and potential D-Metric floor check.
Negative Community Audit	-50 D-Points	Requires immediate DAO governance vote.

3. The D-Metric Floor and Bond Liquidation

The D-Metric establishes a Performance Floor that, if breached, signals project failure and triggers the liquidation of the Builder Bond.

• D-Metric Floor: 50 Points.

• Trigger Condition: If the D-Metric score falls to 50 or below at any point, the project is considered high-risk or failed.

• Consequence: The Builder Bond ($300) is immediately liquidated by the DAO. Funds are used to cover disbursed grants, with any remaining amount retained by the DAO as risk mitigation profit.

4. D-Points and Future Access

A high terminal D-Metric score allows the builder to access higher funding tiers in the future, bypassing the Builder Bond requirement for subsequent projects.

Terminal D-Metric Score	Future Access Level	Builder Bond Requirement
> 150 (High Success)	Tier 3 (High Value Grants)	WAIVED
100 - 150 (Standard Success)	Tier 2 (Standard Grants)	Required, but reduced to $150
50 - 99 (Underperformance)	Tier 1 (Minimum Grants Only)	Required, full $300
< 50 (Failure/Liquidation)	Banned for 12 months	N/A