# Challenge Setting Process

### **Process**

The current process for allocating funding is the use of challenges that are set by the community. The process goes as follows:

1. Community members creates proposals outlining a challenge setting. Included is why it is important, what success looks like, key metrics to measure and a challenge brief outlining the challenge topic, directions proposers could take and the type of problems they are looking to solve. Challenge setting proposals will also include a budget requested which will come from the total available funding in the next funding round.
2. Community provides feedback to the challenge settings for two weeks after initial submissions.
3. Community members join as co-proposers for challenges they want to help support.
4. Challenge setting proposals are finalised.
5. Community upvotes, downvotes or abstains from voting for each of the challenge setting proposals in the governance phase of a funding round. Vote weighting is currently plutocratic where the total ADA from the registered wallets is used to determine the voting outcome.
6. The community challenges with the most upvotes are selected for the next fund to become challenges. The challenges must fit into the total budget allocated as each one is selected based on highest vote preference.
7. Challenge teams support explanation and operation of the challenge during the funding round


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