1. Overview

Each DAO in Cohort 2 receives a $3,000 seed fund to support execution, learning, experimentation, and regeneration activities over the program period.

Funding is distributed via DAO-approved proposals, following the structure:

DAO-Wide Master Plan → Working Group Budget Envelopes → WG Proposals → DAO Vote → Fund Disbursement

This page explains how DAOs manage their seed funding responsibly, transparently, and in alignment with DEP 2 principles.

2. DAO Budget Structure in DEP 2

2.1 Seed Funding

• Each DAO receives: $3,000 USDT

• Funds are meant to support:
  • Execution of impact goals

  • Documentation and quality improvement

  • Regeneration experiments

  • Cross-DAO collaborations

2.2 DAO-Wide Budget Allocation

Once a DAO approves its Master Plan Proposal, the budget is divided into Working Group (WG) Budget Envelopes.

Example structure:

WG	Envelope
WG 1	$1,000
WG 2	$700
WG 3	$600
Documentation WG	$300
Communications WG	$200
Regeneration WG	$200
Contingency	$0–200

Each WG can request funds up to the limit of its envelope.

2.3 No Transfer Across DAOs

Each DAO manages its own seed fund.

Funds are not shared or transferred between DAOs.

3. How Funding Works (DAO Level)

Step 1 — DAO Approves Master Plan

The Master Plan:

• Allocates WG budget envelopes

• Establishes budgeting principles

• Defines regeneration expectations

No WG proposal can be funded before this approval.

Step 2 — WGs Draft Proposal

Each WG designs a proposal that includes:

• Budget request

• Purpose & expected outputs

• Timeline

• Roles & contributors

• Regeneration alignment

• Documentation plan

Step 3 — Review & Discussion

The WG presents the proposal during the weekly DAO sync.

DAO members:

• Ask questions

• Clarify scope

• Suggest adjustments

Step 4 — DAO Vote

Voting is done via:

• XDAO (preferred)

• Discord poll (for minor approvals)

Simple majority is the default unless the DAO defines otherwise.

Step 5 — Disbursement

Once approved:

• Funds are disbursed to the WG Lead or responsible member

• All expenses must be documented with receipts/screenshots

Step 6 — Execution & Reporting

The WG:

• Executes the activities

• Submits evidence + receipts

• Presents during weekly DAO sync

• Produces a Completion Report

4. What Funding Can Be Used For

Funding is approved based on DAO needs. Examples:

4.1 Allowable Costs

• Online tools: Canva, Figma, Miro, Notion, Zoom Pro

• Prototyping materials (for C&C, Exchange session scripts, Tokenomics dashboards)

• Documentation tools (scanning, editing, storage)

• Session-related micro-costs

• Venue rental only if explicitly approved (for Creative DAO local activities)

• Regeneration pilots (marketing materials, tamplates, printing)

• Micro-grants for facilitators, contributors, testers

• Logistics and admin costs necessary for DAO execution

4.2 Non-Allowable / Limited Costs

• No salary payments

• No financial rewards to members (Use KAT instead)

• No buying crypto or trading

• No personal reimbursements beyond approved activities

• No transfers across DAOs

• No unapproved tools or subscriptions

5. Budget Principles

5.1 Impact-First

Spending should directly support:

• Producing creative outputs

• Hosting meaningful 1–1 CED sessions

• Generating regeneration value

• Building tokenomics frameworks

• Delivering Participant-Proposed DAO outcomes

5.2 Lightweight & Justified

Because budget is limited:

• Use free tools when possible

• Subscription-based tools should be shared

• Avoid unnecessary costs

5.3 Regeneration-Oriented

Funding should help the DAO:

• Create assets useful for regeneration

• Generate stories/evidence

• Develop prototypes for revenue pathways

5.4 Transparency

Member visibility into:

• What is spent

• Why it is spent

• What the outcome was

Every WG keeps:

• A budget tracker

• Receipt folder

• Completion report file

6. Funding Workflow at a Glance

DAO Master Plan → WG Budget Envelope → WG Proposal → DAO Vote → Disbursement → Execution → Documentation → Completion Report

 

7. Documentation Requirements for Funding

Every WG Proposal must include:

• Budget breakdown

• Clear justification for each line item

• Person responsible for spending

• Evidence plan: Receipts, screenshots, invoices

• Expected outputs & how they relate to spending

• KAT recognition alignment

After execution, the WG must submit:

• Itemized receipts

• Folder of evidence

• Summary of results

• Budget actuals vs planned

• Lessons learned

8. Completion Reports & Accountability

What Completion Reports Should Include

• Objectives & what was accomplished

• Evidence of outputs

• Spend summary (with receipts)

• What worked / what didn’t

• Proposed improvements for next cycle

If Spending Is Not Documented

When evidence is missing or unclear:

• DAO can request resubmission

• DAO may delay approval of future proposals

• DAO may adjust WG budget envelope

9. Regeneration & Funding

Funding can be used to enable regeneration, but regeneration itself can also bring new value into the DAO.

Examples:

• Paid 1–1 Exchange sessions

• Sponsored storytelling

• Creative merchandise

• Collaborative events

• Regeneration-oriented prototypes

Regeneration WG proposals follow the same funding process, but must include:

• Expected regeneration value

• Audience/partners

• Risks

• Proof of regenerated value

10. Cross-DAO Transparency

A shared financial logbook is maintained by Program Coordinators (Kambria Core Team) to ensure:

• Cohort-wide visibility

• Proper tracking

• End-of-program reporting

However:

• Each DAO makes its own funding decisions

• Core team only ensures compliance & transparency

Summary

The DAO Funding Guide supports DEP 2 by ensuring:

✔ Fairness
✔ Transparency
✔ Responsible usage of resources
✔ Consistent funding process
✔ Strong documentation discipline
✔ Alignment with regeneration & KAT issuance
✔ Empowerment of decentralized decision-making