🏆Grant Allocation
Empowering open-source through merit-based funding.
Server Protocol introduces a community-driven grant system that allows open-source projects to receive funding in $SERVER tokens based on their merit and public support. The goal is to eliminate centralized decision-making and enable a transparent and decentralized funding flow.
🧾 Eligibility & Approval
To become eligible for a grant, a project must:
Be submitted through the Proposal System, which requires burning 1M of $BYTES and paying a fixed fee of 100 $SERVER.
Achieve a positive net voting score, meaning it must receive more upvotes than downvotes from users.
Once the proposal meets these conditions, a predefined amount of $SERVER tokens is allocated to the project as a grant.
💼 Allocation & Management
Upon approval:
The granted tokens are reserved by the protocol and locked to the project, meaning they cannot be reallocated or claimed by other initiatives.
These funds are meant to be distributed to developers contributing to the project — typically in alignment with the goals or milestones outlined by the project owner.
Developers can request payouts from the allocated grant as they deliver tangible contributions (e.g., commits, code reviews, new features). These claims are off-chain agreements, not enforced by smart contracts at this stage.
This mechanism allows each project team to define its own internal workflow and compensations, while the protocol ensures that funding only goes to community-approved projects.
🔁 Recurring Grants & Milestone Progression
The grant process is cyclical, meaning:
A project can reapply for a new grant once the previously awarded amount has been spent or the initial milestone (e.g., MVP, beta release) is completed.
The community will vote again based on the project's progress and relevance.
This system ensures that funding is not continuous or unconditional — each new phase must be validated again by the DAO.
Rather than releasing one large sum all at once, the project must earn continued support through results.
🔒 Grant Supply Limit
To maintain sustainability:
A strict on-chain cap enforces that no more than 50% of the total $SERVER supply can ever be allocated through grants.
This cap is hardcoded in the smart contract to prevent inflationary risk and preserve long-term balance.
✅ Why This Matters
This approach:
Ensures accountability from projects and developers.
Avoids risks associated with large upfront funding or inactive grantees.
Keeps the community in control of how capital is allocated — phase by phase.
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