One of the main challenges with grants is that chains send funds to protocols without any guarantee that they will be used as promised. If rewards are misallocated or not distributed, there’s no assurance that the protocol will return the funds. Additionally, each protocol’s unique distribution system can lead to further misallocations, which undermines trust in the entire program.
With Merkl, the chain keeps custody of the incentives. There's no need to send funds to the protocols and to require them to complete a KYC. The chain directly sets up incentive campaigns on Merkl, with rewards allocated to each protocol accordingly.
Since each protocol tracks users differently, creating a unified ranking for grant programs is often complicated, making it harder to effectively incentivize top contributors. On the other hand, Merkl offers a unified frontend, allowing users to view all reward opportunities from the grant and enabling the creation of efficient leaderboards and ranking systems.
All data is available in Merkl's frontend and APIs at any time. Every transaction is transparent and verifiable. Merkl offers real-time insights into campaign performance, eliminating the need for the chain to hire a third-party company to track reward emissions.
Finally, the Merkl team can even write a grant proposal and post it on the governance forum. Merkl's experts will be available to answer users' questions on the forum and participate in any AMAs or events related to the grant.