It's really simple. If we use funds to build applications on Hive those applications then market themselves from the players etc like we saw with Splinterlands. Idk why we even have a fund to be honest it's a piggy bank a select few constantly dip into for thousands for really no reason and nothing comes of it. Every application that has actully done something to improve hive and really onboard people didn't use the fund.
What Hive needs is more development to build applications that run on top of it. It should however be funded in a way where milestones have to be reached before payout. It's really that simple. What Hive lacks is development on things people would actully use and the few projects that have moved Hive. It kind of angers me how much is wasted and how many stupid marketing projects including this Justin Sun movie is costing. Totally going to be blunt about it because it keeps coming up.
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Although I agree we don't really have many examples to determine this to be the case over time considering it's mostly @splinterlands that has seen success and they existed/started up before there even was a DAO. I don't disagree though that a lot of the proposals out there wouldn't even need funding to begin with, some seem to just ask it cause "why not", some seem to ask it "as bonus motivation" for projects they were already building and maintaining before the DHF existed. I can only count a handful of them personally that I'd say truly deserved it, some of them asked for funding after the fact so maybe you know which one that is I'm referring to.
I don't agree with the last part but yeah, let's see how it goes from here, as mentioned in a comment above I'd really love to see some more transparency and activity from projects actively being funded rather than just "becoming active" before they need to renew their proposal.