# How does each Drop allocate the funds?

**FigJam with our Design Thinking session on this -** [**https://www.figma.com/board/Ab9wysYpd8Bex8rkNFUvjn/DAO-drops**](https://www.figma.com/board/Ab9wysYpd8Bex8rkNFUvjn/DAO-drops)

**Mechanism**

* pass/fail proposals ('we should give $X to address A')
* pass/fail proposals with delegation (same as above + 'give address Y my voting power)
* staking on addresses ('give address Z my stake weight')

**Deliberation**

* dedicated discourse forum?&#x20;
* dedicated discord server?
* openly on twitter?

**Other considerations**

* Reference examples:
  * GovBase by Joshua Tan and Michael Zargham: open database of project and tools in online governance. [Introduction](https://thelastjosh.medium.com/introducing-govbase-97884b0ddaef) | [Database](https://airtable.com/shrgnUrj0dqzZDsOd/tblvk3EFzcoCFvXXi/viwTisATNcua7os4y)
  * [MetaGov](https://metagov.org/) - tools for self-organizing digital governance
* Existing gov frameworks:
  * Moloch
  * Aragon
  * Compound
  * Gnosis SafeSnap
* Incentive alignment
  * Do we need to reward people for participating to incentivize them to? How?
* Risk factors / attack vectors
  * [Known voting problems](https://vitalik.ca/general/2017/12/17/voting.html)
  * [Coin holder voting problems](https://vitalik.ca/general/2018/03/28/plutocracy.html) / plutocracy
* Set of questions related to allocation or discovery of what to fund:
  * We could limit this to retroactive public goods funding only
    * Drawback: It's difficult to identify and vet public good projects that have a scaling hurdle, unless you are an expert in that area. For example, small local grassroots climate/economic interventions have been highly effective, but with tiny sets of people affected due to lack of financial access. Would it be hard to capture projects of a similar kind relevant to the Ethereum ecosystem?
  * How find existing underfunded projects?
  * How generate new ideas or collaborations to fund?
  * For each DAO, is there a statement of what the quest or goal of this dao is? Do we want to try that with one drop, to see if pre-determining that assists in effective distribution?
  * Do we give participants tools (combo of a software tool and a process description or training), such as rapid prototyping to test, say, 3 top ideas in a dao, to see which is the best play?
  * Do we set any boundaries around what can't be funded? (for example, in Vitalik's talk he mentions de-fi, token trading, derivatives, yields etc.)
* Representation concerns that could be adjusted for in the game dynamics: gender gap... what else?
