Grant Funding Distribution Mechanisms Explained
In one sentence
Different funding goals require different distribution mechanisms.
Short answer
Funding programs use mechanisms like milestone-based payments, one-time grants, and retroactive funding depending on the nature of the work.
Common mechanisms
- One-time grants: Upfront funding for defined scope
- Milestone-based: Staged payments tied to execution
- Retroactive: Rewards for completed work
- Streaming: Continuous payments over time
Why flexibility matters
No single mechanism fits all projects. Rigid systems distort incentives and force projects into unsuitable structures.
Choosing the right mechanism
- Known scope with clear deliverables → milestone-based
- Exploratory or early-stage work → one-time grant
- Proven impact already delivered → retroactive
- Ongoing operations → streaming
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Karma's role
Karma supports multiple distribution mechanisms so funding models align with how work is actually done.