Allocation Strategy

Allocation Strategy

Every pool in Allo is managed by an allocation strategy, which determines:

  1. Recipients - Who is eligible to receive funding from the pool?
  2. Allocation - Who is eligible to decide on how the funds should be allocated, and how will they express their opinion? (grants committee, token voting, SBTs)
  3. Payouts - Based on the allocation inputs, how will payouts be determined? (Quadratic funding, direct grant, request for proposal)
  4. Distribution (lump-sum, milestone-based payments, stream)

Using the average Gitcoin Quadratic Funding round as an example, you get:

RecipientsGrantees apply and are approved by the admins
AllocationPeople donate to projects, which casts a vote for how much of the matching pool that project should receive
PayoutsQuadratic funding
DistributionDonations + lump sum: projects receive individual donations as they come, then receive a lump sum payment from the pool