I'm happy to see a discussion started regarding value plan and the DHF in general.

Accountability and reporting

First of all, I believe that all supported projects need accountability and reporting. I don't know any other place where people get financial support without needing to deliver results and a clear financial reporting.

DHF is not value it's inflation

People fail to understand that when the DHF distributes funds it's not real value. We simply increase the circulating supply of HBD and Hive and therefore anything that is paid out is actually financed by all the token holders through dilution of their assets. The more the DHF pays out, the more the sell pressure on Hive increases. If demand for Hive doesn't increase, it will automatically lead to lower hive prices.

Wrong incentives

It seems that once a project is financed by DHF or value plan, this becomes their business model and there is no incentive of creating a finished product and a different business model. The longer the 'construction' of the product last, the longer the funding. It sets wrong incentives.

My suggestion

The DHF damages the Hive economy and I honestly don't have the feeling that many funded projects really add value to the blockchain. It also prevents existing projects from finding other business models.
Therefore, I believe that the DHF shouldn't finance projects, it's purpose should be to strengthen the hive economy. A fund should be created to invest in other blockchains that provide a regular return. This money should then be used to purchase Hive. 40% of this hive should then be burnt, 50% should be used to fund projects. 10% would be used to fund the work of a group of people that are employed by the fund. They would be employed according to their competences. These people would define the criteria to be eligible for funding according to accountability, funding, use for hive and reporting plan. Only projects that are eligible could then be voted for by hive stake owners. If a project doesn't comply with the initial plan or doesn't deliver, the fund can cut the funding on a monthly basis. The employees would document all their work and their decisions in hive posts so that everybody can follow the process.

Why it is different?

We would have a situation where the money distributed is not financed by inflation but by generated value coming from outside. The 'risk' for hive would be smaller and the money distributed would be according to the profits that the fund makes. It wouldn't impact hive inflation and actually be a real tool develop the blockchain.