All BTC and PTS donations are put in a trust that will use funds in a manner that it feels will grow the bitshares industry and secure the right to life, liberty and property for all mankind. A public transaction ledger that outlines how we are allocating the funds given to the trust will be maintained. That said, these are no-strings-attached gifts and should not be construed to place any legal obligation on anyone to provide anything in return. You should only give if you believe this is a good cause and you trust us to use the funds wisely.
Right now that means hiring developers for the purpose of developing the bitshares toolkit. It also means giving development grants to 3rd parties who operate autonomously to build some DACs. Right now we have given 2 such grants, Toast for DNS and Hackfisher for Lotto.
We will not be granting large portions of the funds to 3rd parties nor act like some kind of middle man between funders and innovators. We requested donations to help fund the vision of bitshares AS WE SEE FIT.
I know this approach is different than many collectivist, allocate-by-committee (or vote) folks would like. In my opinion centralizing funds to be allocated by committee is the worst possible approach to take. (Not suggesting this is what you meant Adam, merely addressing some opinions I have seen)
So the conclusion is that 100% of funds are used to support Invictus operations, legal, marketing, development, and partners.
Anyone with solid skills and a passion can join the team contribute in the open source development and if we have funds available we tip and hire.
Right now funds are being allocated to the following developers:
Eric Frias (C++)
Dan Notestein (C++)
Syncad (Polish+Indian Devs/Testers)
On the operations side:
Pam (books), Stan, Arlen, Brian + Accountant + Legal Consulting + Travel
So we have about 17 full time individuals and many part-timers and misc expenses. If you divide up the AGS funds among those people you see that we are operating with less than a 12 month runway (PTS funds are not liquid). So if you would like us to fund other parties then it will have to come at the expense of some of these individuals having job security for a minimum of 6 months.
If we are successful in the short run and our PTS balance grows then we can expand, until then we need to focus on the core team or die.