Problem
Due to the significant decline in token price, several grantees have raised concerns about the gap between the grant value at the time it was awarded and the current USD value of the tokens received.
| Project | Grant Awarded (B3TR) | Token Price (date of award) | USD Value (date of award) | USD Value (assume current token price of $0.01001) | Difference |
|---|---|---|---|---|---|
| ReUse | 372,730 | 0.06706 | 25,000 | 3,731.03 | -21,268.97 |
| ScoopUp | 434,982 | 0.06892 | 30,000 | 4,354.17 | -25,645.83 |
| B3TR Transit | 442,938 | 0.06772 | 30,000 | 4,433.81 | -25,566.19 |
| B3DTIME | 434,748 | 0.06898 | 30,000 | 4,351.83 | -25,648.17 |
| Sproutly | 303,060 | 0.08246 | 30,000 | 3,033.63 | -26,966.37 |
| Zeloop | 331,386 | 0.07846 | 26,000 | 3,317.17 | -22,682.83 |
| VeChain Energy | 172,539 | 0.06955 | 12,000 | 1,727.12 | -10,272.88 |
| Bikademy | 440,350 | 0.06904 | 30,000 | 4,407.90 | -25,592.10 |
| GronCard | 715,671 | 0.02096 | 15,000 | 7,163.87 | -7,836.13 |
^ The two rightmost columns are for illustration purposes only and show the difference in grant value based on today’s token price.
Under the current system, a fixed amount of B3TR is allocated from the treasury on-chain when a grant proposal is executed. Because the token amount is predetermined and committed upfront, it has not been possible to adjust payouts based on future price movements.
When the token price declines significantly, the USD value of the grant is reduced to a level where teams may no longer be able to cover their originally planned development costs.
Proposal Summary
Existing grantees will be eligible to receive additional relief funding from the treasury to address the difference between the grant’s original USD value (at the time of award) versus what the granted token amount is worth today.
This proposal suggests allocating a fixed sum from the DAO treasury to a wallet temporarily managed by the Foundation team. These funds will be deployed on a one-time basis for each project that actively continues to build meaningfully within the deployment period.
Relief funds will remain available for deployment until 1 Jun 2026. Any unused funds will be returned to the treasury.
Deployment Mechanics
Relief payouts are capped at up to 20% of the USD value of each grant. This totals $45,600 for the nine projects mentioned above. To provide a buffer for conversion, we propose allocating $50,000 from the treasury for relief funding.
This amount will be converted from B3TR tokens into USD stables at the current market price.
Every existing grant project may apply for this one-time relief payout by writing to grant@vechain.org during the applicable period. Projects may also choose not to participate if they do not require the funding, in which case their share will be treated as unused and returned to the treasury at the end of the relief deployment period.
Each request will be reviewed prior to approval, based on the following considerations:
1. Token price change
Is the current token price equal to or more than 30% lower than the original token price at which the grant was awarded?
- If yes, the project qualifies for the top-up.
- If no, the project may not receive a top-up.
2. Project activity and milestone delivery
Has the project remained consistently active (e.g. active users, user growth, etc.) and/or delivered a significant milestone during this period?
- If yes, the project qualifies for the top-up.
- If no, or if there are negative reports or feedback about the application, the project may not receive a top-up.
3. Community endorsement
Is the project currently endorsed by the community?
- If yes, the project qualifies for the top-up.
- If no, the project may not receive a top-up.
Payouts may be pro-rated, meaning a project may receive less than expected or no payout at all if it does not satisfy all the conditions above.
Payouts will be made to the wallet address specified in each project’s original grant proposal.
After the deployment period, the Foundation will publish a summary of the payouts awarded on Discourse. Any remaining funds from the $50,000 relief allocation will be returned to the treasury.
Rationale & Additional Notes
After extensive discussion, the Foundation opted for a simple one-time relief mechanism rather than a more complicated formula. This approach was chosen to avoid unnecessary complexity while still providing meaningful support to projects that have continued building and delivering in good faith.
The objective is to ensure that projects remain appropriately incentivized during a period of significant token price decline, without creating long-term dependency on the DAO treasury or the Foundation for additional funding support. By structuring the relief as a limited, one-time initiative, the proposal aims to strike a balance between supporting builders and maintaining responsible treasury stewardship.
This approach allows qualifying projects to receive support during periods of market volatility while maintaining clear expectations around continued delivery and progress. The payout cap also reflects a risk-sharing model, where market risk is shared between the project teams and the Foundation, while helping ensure that the initiative does not place unnecessary strain on the treasury.
This proposal is intended as a short-term measure to address the current situation. We will continue to explore a more sustainable, long-term approach together as a community.