It’s about time to share with you the idea of a “StakeborgDAO Financial Committee”, a way through which contributors will be rewarded and ideas in our ecosystem can be financially supported to proliferate and add value to StakeborgDAO.
Before starting, it’s important to understand that this is 1 out of the 2 steps needed to start rewarding contributors in our DAO. This specific Committee will act as a prerequisite for the Grants Program that is scheduled to start in H2 of this year, given no delays.
In this initial setup, I propose for the SFC (StakeborgDAO Financial Committee) members to act as interim until the Grants Program is launched when we will come back and review the committee’s work.
For all the information written below, I have researched >7 Grants Committee Programs to learn about effective and successful programs and have been influenced by Balancer’s, Aave’s, Uniswap’s and Compound’s.
The aim of this proposal is to outline the framework through which the SFC will give contributor rewards and grants to projects, guilds and subDAOs. The committee will receive an allocation of $STANDARD tokens from the treasury to use for funding through a multisig and will return the excess (if any) at the end of the term to the treasury.
The StakeborgDAO treasury can only be called using a smart contract. For this reason, moving on-chain for every bounty, contributor reward makes no logistic and financial sense, hence the idea of a financial committee. They will oversee contributors’ work and reward them accordingly, and evaluate submissions for project funding, guilds and subDAOs alike.
Our ecosystem is ever-growing and, having multiple projects and potential guilds, we’ve noticed the need to support their growth. Given that our goal is to become an incubation community for the Web3 ecosystem, it only makes sense to have a dedicated support group for this.
As of 23.05.2022 , StakeborgDAO has reserves of 6M STANDARD meant to improve our ecosystem and empower developers, guilds and ideas to thrive. Offering these incentives and grants is the only way of properly scaling in the long term given the speed at which Web3 moves and how fluid work is.
I propose at first a pilot program through which both the committee members and community members will observe upcoming hardships, will overcome them and learn in order to finally reiterate the SFC in a later proposal with a more stable structure.
The committee will be transparent in their work and will keep track of funds flowing for future reference. They will work in mandates based on seasons of 3 months each - meaning 4 seasons per year. The first iteration, season 0, will continue until the launch of the Grants Program considering no delays. Should delays occur, we will revisit this proposal at the end of it and discuss possibilities.
Considering the opportunity cost of not spending in an industry highly influenced by network effects and the need for Blitzscaling, SFC will request at most 90.000 STANDARD tokens seasonally. In this manner, StakeborgDAO’s treasury will spend 1.5 % of its current holding of STANDARD every season and 6% annually, a rate at which we will be able to keep up with competitor spending and make effective use of our warchest. The types of grants will be split into two:
- Contributor rewards
- Amounts depend on the skill and availability of the contributor alongside project duration and activity (2nd step in contributor rewarding, more on this in the near future)
- Smaller checks: <10.000 STANDARD
For professional guilds and projects that will be proposed on our Agora page
- These will have to go through on-chain voting as the financial resources needed could be considerably higher and a token swap between the parent DAO and the subDAO is needed. The SFC will give their thoughts on the application but the vote will be up to the community.
The evaluation process of a project or guild proposal will take a maximum of 10 working days, a time in which the committee will assess the viability of the project.
The guild and project financing will be given in installments that can be done using the cliff method or vested (to be discussed within the application and with the grant committee), based on presented and discussed KPIs and their selected roadmap. When such milestones are achieved, contributors will be rewarded. If they fail to meet the criteria, the rewards will not be given and the situation will be reevaluated, with the possibility of terminating payments or applying penalties. For this reason, the grantees are encouraged to map their progress, deliverables and timeline.
Payouts based on KPIs/OKRs reported by the project/guild/subDAO teams:
|Below 50%||No payout|
|Between 50% and 100%||50%-70% of the reward|
|100%||100% of the reward|
All applications are required to present a business/strategic plan, a means through which they create value and capture it accordingly. It’s important to mention that value created is not necessarily just financial, it can also mean brand awareness/marketing & others.
There is also the possibility of gaining exposure for funded projects through existing social media platforms and help from business developers to integrate other tools or projects or reach out to whoever is needed.
Approving the grant following a thorough evaluation will then have to go through a multisig of 4/7, with 1 lead and 6 reviewers. For the amount allocated to be transferred to contributors and projects, 4 people out of the 7 will have to sign the transaction. This way, we enable enough room for discussions inside the committee and more opinions to emerge.
For this pilot season, I believe a team composed of 3 the bootstrapping team, 2 members from DMOB and 2 ambassadors/moderators will suffice to make sure that the grants are in the best interest of the DAO. In this way, more experienced members are part of the committee and 2 newbies (for this season - the ambassador and moderator) are trained and will be more knowledgeable by the end of the season so they can participate in the next election and, in turn, teach others.
In the future, the committee is willing to decentralize progressively away from the core team through community-based elections and meritocracy proved through skills, credentials and experience.
If the proposal passes, the SFC will start working on 01.06.2022 (1st of June 2022), season 0 will last for 4 months at most (1 month longer than the regular season length). This is influenced by the launch of the Grants Program and meant to provide a “clean” start for season 1 on the 1st of October, with an end date on the 31st of December 2022.
Should there be a vacant spot in the SFC before the season is finished, there will be a period where anyone can volunteer by submitting an application on the proposals section of Agora.
Insights about the ongoing proposals regarding the help of the finance committee will be discussed on our Discord channel, Agora page, and highlighted on StakeborgDAO’s Twitter page.
This pilot team will not be rewarded financially as it is mainly a subset of the bootstrapping team but once we reach decentralization, there will also be rewards.
Success metrics and KPIs
Although this is a pilot program, it is important to hold members accountable and the overall activity, therefore we will measure:
- Growth in the number of compensation/grant applications received season-over-season
- Growth in actual contributors/projects rewarded/funded
- Growth in community participation over proposals on Discord, Agora and Snapshot.
There is also the possibility to measure more subjective criteria, such as
- Improved sentiment within the community
- Improved StakeborgDAO brand and awareness in the market
Reviewer3: Bogdan Gheorghe - DMOB
Reviewer4: Alex Tudorache - DMOB
Reviewer5: RaluW - Moderator
Reviewer6: 1johnny - Ambassador