"RFPs put people in competition with each other, they do not encourage collaboration"

- panelist at a public health event I am attending

But doesn't any funding mechanism that has a fixed amount of money to give away put people in competition with each other? What are the best ways to minimize this?

I’d argue the competition in using an RFP framework isn’t necessarily   bad and something DAOs specifically could benefit from. If you look at the ENS endowment proposal (which used an RFP) the quality and competition from service providers in that bid created one of the more healthy selection process I’ve seen.