Multiple Funding Distribution Mechanisms

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

Related

→ Grant fund disbursement→ The grant lifecycle

Karma's role

Karma supports multiple distribution mechanisms so funding models align with how work is actually done.