[quote="champ, post:2, topic:16990"] > The DAO should agree on limits for each category, so that the funds are distributed based on a targeted strategy. This will encourage initiatives in underfunded categories. :negative_squared_cross_mark: I think this part, by itself is too big a big change. We are essentially relying on the ability of the DAO to forecast future potential of different categories, and increasing friction in any quick changes that might be needed. Since in the current system, the DAO gets to individually evaluate each decision, and the overall budget naturally brings in competition and avoids overspending, I think we can do away with the category-wise budget entirely. [/quote] Yeah, there is a risk we are overthink it. However there are good points in favor of the budgets per category: 1. Set the expectations to the community and grantees on what is required. 2. Prevent the scenario in which most of the budget goes to a particular category. Today we are spending almost 50% of the total money on In-World Content, I find that number alarming TBH. 3. Encoraging competence in a particular category, instead of the overall budget. This will level up the bar on the popular categories and still leave space for the under developed ones. You mentioned a valid point about the friction to make a change in the budget for the next Q. I believe that should be a new proposal category that let us agree on the budget every 3 months. [quote="Tudamoon, post:4, topic:16990"] I agree with @Doug-NFTWorld there needs to be less sponsorship and more in-world content. [/quote] I agree too. I modified the distribution as suggested. 

DAO Grants Program - Budgeting System This proposal is now in status: PASSED. Voting Results: * Yes 96% 5,448,865 VP (43 votes) * No 4% 231,734 VP (1 votes)

I was told that this budget is able to be changed during the final draft. That is why I deleted my proposal for a different budget.

In-world content should be much more than sponsorship.

@Doug-NFTWorld I made another proposal reflecting the updated budget: https://forum.decentraland.org/t/dao-7fc1431-dao-grants-program-budgeting-system-different-budget/17019/2

I am not sure I agree with this budget [quote="dao, post:1, topic:16990"] * Platform 40% = $600,600 USD (per quarter) * In-World Content 15% = $225,225 USD * Core Unit 15% = $225,225 USD * Sponsorship 15% = $225,225 USD * Accelerator 5% = $75,075 USD * Documentation 5% = $75,075 USD * Social Media Content 5% = $75,075 USD [/quote] I agree with @Doug-NFTWorld there needs to be less sponsorship and more in-world content.

Only 15% toward In-World Content isnt high enough and 15% toward Sponsorship is too high. I also think Accelerator should be higher than Documentation.

:raised_hands: great proposal, I think this will help elevate the anxiety of the DAO about how much the grants program is spending and focus on evaluating the projects involved and their merits. > The DAO has an income of 1.8M MANA every month and it should set up a limit control to not spend more than 70% of such a stream. This will mitigate the risk of running out of funds in the next 7 years. :white_check_mark: Agree with this, 70% of the vesting amount each month is a good starting point, giving the DAO a reserve of the already vested mana + 30% vesting amount in future + the income generated. > The DAO should agree on limits for each category, so that the funds are distributed based on a targeted strategy. This will encourage initiatives in underfunded categories. :negative_squared_cross_mark: I think this part, by itself is too big a big change. We are essentially relying on the ability of the DAO to forecast future potential of different categories, and increasing friction in any quick changes that might be needed. Since in the current system, the DAO gets to individually evaluate each decision, and the overall budget naturally brings in competition and avoids overspending, I think we can do away with the category-wise budget entirely. > The DAO refreshes and recalculates the category budgets using the MANA price at the beginning of each quarter. It’s possible that many grant requests will be submitted when such limits are refreshed, looking to secure their budget before it’s allocated to other initiatives. This could be beneficial for the DAO, encouraging competition and ultimately leveling up the bar. :white_check_mark: This makes total sense to me. Getting a solid budget size at the beginning of each quarter will help the community plan sensibly while encouraging competition.