Thanks for your question , I’ll answer them below but wanted to first put the context of this report and the reports of the series ( which are hyperlinked) below and they are also linked in the report.
Now to your questions. I’ll respond to each one and show how the series helps explore those themes:
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Area of Focus: This series explores allocation design, not program design, where allocation design refers to funding system architecture, while program design concerns the planning of individual initiatives or activities.
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What is this: A 4-part series that explores funding as a system-level design challenge examining how decentralized ecosystems allocate capital, where structural breakdowns occur, and what models can support more aligned, transparent, and sustainable funding systems.
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Why focus on funding design? This research investigates funding design architecture: how decentralized organizations structure and distribute capital from the top level (like the original funder) through internal layers such as grants programs, domain allocators, and partner initiatives. The goal is to understand how these layers work together or remain siloed. It identifies where the lack of shared lifecycle structures, role clarity, or coordination leads to inefficiencies, duplication, and misaligned outcomes. The aim is to design systems that connect intent, process, and outcomes without recentralizing control.
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What are these systems funding?
Many DAOs run multiple parallel programs; grants, hackathons, accelerators, and partner initiatives all aimed at ecosystem growth. These efforts often fund similar goals but with different assumptions and little coordination. The issue is not only what is being funded, but how those efforts are designed and connected. This research shows that without lifecycle planning or shared strategy, funding becomes fragmented and reactive. Funding design helps make the system visible and intentional. -
What are they funding for?
“Ecosystem growth” is the common goal, but it is often vaguely defined and interpreted differently across funding layers. Programs operate with overlapping mandates but no shared process or criteria. The research shows that the deeper issue is the absence of a clear model that links purpose to structure. Instead of just asking what to fund, this series asks who the funding is for, what phase of support it offers, and how to align that with long-term outcomes.
Relevance to Allo
This work is directly relevant to Allo, which is already exploring multiple funding streams such as Deep Funding, Cookie Jar, and Raids. Thinking in terms of funding architecture helps Allo answer core questions:
• How do these programs relate to each other?
• Who are they for, and what phase of funding do they support?
• How does capital move between layers without duplication or misalignment?
Cookie Jar proposal: Using your Cookie Jar proposal as an example ( which would be considered a funding layer or if a component it needs to be tied to something ( eg: grants, domain allocator))
Report 1 introduces the concept of a funding design layer—a way to map how capital moves from original funders through various internal programs. It shows that many ecosystems operate multiple funding layers without a shared structure, leading to overlap, duplication, and drift. Cookie Jar represents one of these layers. Thinking in terms of funding architecture can help clarify:
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What role Cookie Jar plays in the overall system
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Who it serves (e.g. phase of the builder journey)
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How it connects to or complements other layers like Deep Funding or Raids
The report:
Optimizing Capital Allocation with ESF (1/3): Organizational Structure & Funding Design )
Report 2 analyzes how program-level funding layers, like the Ecosystem Support Program (ESP), function downstream from the original funder. It shows what happens when these layers lack structured lifecycles, shared priorities, or coordination with other parts of the system. Cookie Jar, as a funding layer, can draw from this to clarify:
• What decision-making process will guide Cookie Jar funding, and how transparent or structured should it be?
• What part of the funding lifecycle does Cookie Jar serve—early exploration, experimentation, or community-led distribution?
• How will Cookie Jar coordinate with other layers to avoid duplication and ensure ecosystem-level learning and alignment?
The report:
https://drive.google.com/file/d/16HH9b3EB2e1uQSZ3_4Uq5nlHnvzqSuDu/view )