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What role does a Allocation Strategy play in Allo? |
Every pool in Allo is managed by an allocation strategy, which determines:
- Recipients - Who is eligible to receive funding from the pool?
- 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)
- Payouts - Based on the allocation inputs, how will payouts be determined? (Quadratic funding, direct grant, request for proposal)
- Distribution (lump-sum, milestone-based payments, stream)
Using the average Gitcoin Quadratic Funding round as an example, you get:
| Phase | Discription |
|---|---|
| Recipients | Grantees apply and are approved by the admins |
| Allocation | People donate to projects, which casts a vote for how much of the matching pool that project should receive |
| Payouts | Quadratic funding |
| Distribution | Donations + lump sum: projects receive individual donations as they come, then receive a lump sum payment from the pool |