How Does the Distribution of Developer Grants Influence the Long-Term Sustainability of a Protocol?

The distribution of developer grants, typically managed by a DAO or foundation, is crucial for long-term sustainability as it funds external teams to build tools, infrastructure, and applications on the protocol. A well-managed, decentralized grant program fosters a diverse ecosystem, reducing reliance on the core team and promoting organic growth.

Poor management, however, can lead to wasted funds and a lack of critical infrastructure development.