# 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                           |
