#dream-engine The Action Fund's purpose is to buy Actions. Littlefish Foundation is the first colony, it is the first buyer of Actions in this new ecosystem, establishing consant demand for Action. Deciding how the Action Fund will be utilized is a long term governance issue. ## Purpose LFF Action Fund has multiple purposes. 1. **Contingency** Proposals may not be funded. The activities in the proposals will still take place if we can account for this with additional funding. Action Fund will provide that funding if and when it is necessary. Thus, the Action Fund can be used to extend a module budget or fund an unfunded proposals’ module. 2. **Incentivizing further Action** We are creating a new economy. LFF is the first colony in this economy. Its members are producing Actions, the **supply**. But who will buy them? There is a need for stable **demand** for Actions to bootstrap this new digital economy. Action Fund provides this stable demand. 3. **Admin and other work** There is a lot of unmentioned work that goes into building the Littlefish Foundation. This includes general admin work like setting up meetings, scheduling, scribework, as well as other activities like community building. The Action Fund will prioritize buying those Actions that aren’t covered by the proposals. ## **Action Fund Sizing** The Action Fund allocation is sized at 1/4th of the total budget. This is common across all LFF proposals to provide financial safety to the project for the next 12 months, allowing us a healthy runway to create the new earning economy. ## Examples **Proposal: 5 modules, each worth 1000 USD** Module budget = 5000 USD LFF Action Fund = 5000 * 0.5 = 2500 USD Proposal Total = 7500 USD **Proposal: 3 modules, each worth 10000 USD** Module budget = 30000 USD LFF Action Fund = 30000 * 0.5 = 15000 USD Proposal Total = 45000 USD