The DHF seems to give the opposite incentive to projects and then many (not all) then seem to stop developing and just relax with their new funding.
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First DHF is considered as a help, then project rely on this income and then they realize that they can touch the DHF only as long as they are developing. If they finish their product they have no argument for ongoing DHF payments. That's the problem in my opinion.
Yeah, its not an easy thing to resolve. I do think the DHF should be supporting the blockchain development, but the DHF governance has been a failure in this regard.