Clarification - Assignment rules for STIP due requests exceeding budget

It is now clear that the overall amount of funding requested for the round 1 of STIP far exceed the 50M arb that were put on the budget through voting. While the final number is still subject to change due to protocols adapting their proposals to the feedbacks of delegates, and so the overall number will probably trend down, we are currently north of 100M arb for the total amount, and chances are that we will stay way above the 50M funds assigned to the program.

All users probably want a clarification of the above screenshot, taken from the STIP main thread. If possible, with practical examples.

It would be also interesting to start discussing about the DAO unlocking further funds looking at the success of this program.