Impact Measurement

Karma’s impact measurement system helps program operators define, collect, and analyze the outputs and outcomes of funded projects using standardized and custom indicators.

Karma includes built-in impact measurement features that help program operators and grantees track, verify, and communicate the real-world impact of funded projects.

The system is inspired by the Common Impact Data Standard (CIDS), a widely used framework for structuring impact around outputs, outcomes, and indicators. Karma adapts these ideas into a practical, onchain-native workflow suitable for web3 programs.

Core Concepts

Before configuring impact measurement, it’s important to understand the core concepts used in Karma.

Activities

Activities describe what was directly produced by a project using the funding it received.

Examples:

  • Code written

  • Features shipped

  • Research completed

  • Events organized

Activities answer the question:

“What did the grantee actually do?”


Outcomes

Outcomes describe the change or effect that resulted from those outputs.

Examples:

  • Increased network usage

  • Improved developer adoption

  • Economic growth

  • Environmental or social change

Outcomes answer the question:

“Why did those outputs matter?”


Indicators

In Karma, the metrics used to measure outputs and outcomes are called Indicators.

Indicators can be:

  • Predefined (automatically tracked by Karma)

  • Custom (manually reported by grantees)

Indicators make impact measurable, comparable, and verifiable.


Example: Activities, Outcomes, and Indicators

Imagine you fund a project to build an onchain application.

Activity Developer activity in your ecosystem

Activity Indicators

  • GitHub commits

  • Pull requests merged

Outcome Increased economic activity in the network

Outcome Indicators

  • Number of transactions

  • Total Value Locked (TVL)

This separation allows you to clearly see:

  • What work was done (outputs)

  • What change that work created (outcomes)

Step-by-Step: Setting Up Impact Measurement

Step 1: Categorize Funded Projects

Programs often fund many different types of projects, and impact indicators are rarely one-size-fits-all. The first step is to categorize your projects.

How to do this

  1. Go to Categories in your admin dashboard

  1. Click Add Category and add one or more categories (e.g. Developer Tools, Infrastructure, Community, Research)

  2. Assign one or more categories to each funded project

Categories determine which outputs, outcomes, and indicators are available later.

Step 2: Define Activities, Outcomes, and Indicators

Once categories are set up, you can define how impact is measured for each category.

How to do this

  1. Go to Impact Measurement page from admin dashboard

  2. Select a Category

  3. Add Activities by clicking on Create Activity/Outcome button

  1. Choose a name and description (this will be displayed on impact dashboard on your community page)

  1. Assign indicators from the dropdown by using the toggle.

  1. If an indicator is not found, you can Add new custom indicator

  1. Save the Activity

  2. Repeat the same to add more activities or outcomes

Using Predefined Indicators

If you select a predefined indicator, Karma will automatically pull the data.

Examples:

  • GitHub Commits, PRs merged

  • Onchain Txns

What grantees must do

  • Link their GitHub repositories

  • Link relevant smart contracts

Karma handles the data collection once links are provided.

Using Custom Indicators

If no predefined indicator fits your needs, you can create a custom indicator.

Examples:

  • Number of workshops conducted

  • Partnerships formed

  • Users onboarded offchain

How it works

  • Grantees manually input values

  • Data is submitted as part of project updates or milestone completion

This gives you flexibility without losing structure.

Step 3: View Impact at the Community Level

Once impact measurement is configured and grantees begin reporting, you can view aggregated impact data.

How to do this

  1. Go to Community Page

  2. Open the Impact tab

Here you can see:

  • Activity metrics across projects

  • Outcomes generated by the program

  • Indicator values over time


How Grantees Report Impact

When grantees:

  • Post project updates

  • Complete milestones

They are prompted to:

  1. Select relevant Indicators

  2. Enter or confirm indicator values

  3. Submit supporting context where required

This ensures impact data is:

  • Collected continuously

  • Tied to real project activity

  • Comparable across projects and rounds


Best Practices for Program Operators

  • Keep indicators simple: Fewer, high-signal metrics are better than many vague ones

  • Separate outputs and outcomes clearly: Avoid mixing activity with impact

  • Reuse categories across programs/rounds: This enables longitudinal analysis

  • Default to predefined indicators where possible: They reduce reporting burden and improve data quality

Summary

Karma’s impact measurement system allows you to:

  • Structure impact using industry-standard concepts

  • Automatically track onchain and offchain activity

  • Collect comparable, auditable data from grantees

  • Generate clear impact narratives for funders and stakeholders

Impact measurement is not just reporting — it’s how programs learn, improve, and earn trust.

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