Should VP requirements for Grants be reduced if grantees decide to receive MANA?

by 0x511a22cdd2c4ee8357bb02df2578037ffe8a4d8d (ginoct)

Currently, grantees can receive payouts in either DAI (a decentralized stablecoin pegged to the USD) or MANA (Decentraland's native utility token). The payouts are structured through a vesting contract with a maximum duration of 12 months. Currently, most grantees prefer DAI due to its stability compared to the more volatile MANA. The problem is that the DAO Treasury predominantly holds MANA. Funding grants in DAI require the DAO Committee to swap MANA for DAI, creating selling pressure on the MANA token and potentially impacting its market value negatively.

Proposal

To encourage grantees to opt for MANA over DAI and to reduce the selling pressure on MANA, this proposal suggests lowering the VP requirements for proposals that request payouts in MANA. This adjustment aims to incentivize grantees to invest in the long-term value of the project and its native token.

Example

Under the proposed system, a grant request of 10,000 USD in DAI that currently requires 2 million VP for approval would only need 1.8 million VP if the payout is requested in MANA.

Objective

This proposal aims to align grantees’ interests with the long-term value of Decentraland and its native economy. By choosing MANA, grantees demonstrate their confidence in the project, contributing to a more stable and robust ecosystem.

• Yes
• No
• Invalid question/options

This proposal is summarized due to technical limitations. To view it complete and vote on it, visit the DCL DAO Governance dApp