Changes to Grants Mechanism and Alignment to Delivery: for discussion.
These changes align to Proposals 1,2 & 3 submitted previously by the same author.
This proposal means that all grants with existing funding lines be re-evaluated against the same criteria changes that would be applied to future funding proposals.
1. Milestone-Based Grant Delivery and Accountability
To ensure grants create measurable growth (and to protect the ecosystem), Terra grants under the BD program and going forward should be delivered as milestone-based tranches rather than a single upfront transfer.
Structure:
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Stage 0 — Onboarding tranche (small): released on acceptance to cover initial deployment/setup and public documentation.
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Stage 1 — Delivery tranche: released when agreed core functionality is shipped on Terra (mainnet contracts/feature live), with public links and basic operational readiness (monitoring, incident contacts).
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Stage 2 — Adoption tranche: released when the project demonstrates measurable adoption outcomes on Terra over a defined window (e.g., 2–4 epochs), using the shared BD metrics (net inflows, TVL, volume/fees, retention).
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Stage 3 — Expansion tranche : released for additional integrations (Eris/TLA eligibility, Creda market integration, Strategic/Competition Pool participation, partnerships).
Principles:
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Grants are earned through delivery and adoption, not promises.
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Milestones are clear, objective, and time-bounded.
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If milestones aren’t met, tranches are delayed or re-scoped—not politicized.
Why this helps Terra now: It makes “growth spending” survivable: we fund what works and stop funding what doesn’t—without drama.
2) Distribution & Ecosystem Contribution Score (Grant Value-for-Money)
Projects receiving BD support should be evaluated not only on shipping code, but also on distribution and ecosystem contribution—i.e., whether they actively bring users and activity onto Terra in a measurable way.
To avoid incentivizing spam, this proposal uses a Contribution Score based on outcomes and verifiable signals (not “likes” alone). This score is used to:
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assess whether follow-on grant tranches should be released,
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prioritize listing in Competition Pools,
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and justify continued BD support.
Contribution Score inputs (suggested weighting):
A) On-chain outcomes (primary, hardest to fake)
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Net new wallets interacting with the project on Terra
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Retention (wallets active again after 7/30 days)
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Net inflows attributable to the project’s onboarding path
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Volume/fees generated (with wash-trade filters)
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Liquidity quality: time-weighted TVL, not snapshots
B) Verified outreach (secondary, auditable, not spam)
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Number of unique referrals that complete a defined on-chain journey (bridge → swap → LP/supply), using tracked links/codes
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Educational assets shipped (guides, walkthroughs, short tutorials) that map to on-chain completion metrics
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Community events (AMAs, demos) tied to measurable participation (tracked sign-ups → on-chain completions)
C) Social presence (tertiary, capped)
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Social impressions/engagement can be included but is capped and only counted when paired with on-chain conversions (e.g., click-through → on-chain completion).
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No rewards for raw posting frequency.
Guardrails (to keep it respectable):
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The highest weight is always on-chain outcomes.
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Outreach signals must be verifiable (tracked links + on-chain completion), not self-reported screenshots.
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Clear disqualification for manipulation (fake accounts, wash volume, bot farms).
Reporting: Scores and underlying metrics are published via Terra Pulse weekly so the community can see which projects are delivering real value
**3.Governance ask (non-blocking)**Bottom of Form
- Approve changes to granting mechanics and distribution score