Rewarding contributors from the DAO is an issue rn:
- A lot of people would contribute more regularly if they would receive funding for it
- Currently only a few people in the core-contributor community actually make those decisions as they feel comfortable about their DAO voting power
- Power is centralized and those people waste time on discussion about compensation , taxation instead of improving mango
I spent some time researching how ethereum DAOs are approaching the problem. I like coordinape, recommend to read about it. It’s off-chain, but on Solana it could be on-chain.
I’d like to deploy a similar program for Mango. We would start with a few core-contributors that have shown extreme determination, dedication and the ability to independently design and execute improvements to the project. I’d like to supercharge everyone of them with a respectable allowance so that we can quickly activate our community, hire more top talent as well as reward on-going contributions. Here’s the list:
- Sebastian Bor
- & myself
Everyone on this list will receive a budget allowance of 100 D tokens. They have the ability to award them according to the contributors they work with, as they deem fit. A strong recommendation is to evaluate only people you worked with.
Every D token that is awarded until the end of the month to a contributor gets converted into a R token. Unspent D tokens expire as worthless. There’s no need to distribute. R tokens can be redeemed at the end of the month for a share of the total compensation. MNGO rewards can be locked for longer periods of time. Only redeemable after 1 year.
Let’s run an example:
- The DAO allocates $50,000 USD and 1,500,000 MNGO
- 10 core contributors receive 1000 D tokens in total.
- By the end of the month 500 D tokens have been converted into R tokens.
- The receivers of the R tokens can convert each R token to $100. As well as 3,000 MNGO locked for 1 year.
A median compensation could be 20 D, roughly $2,000 + $20,000 (in MNGO in one year). This is still far below, what I would consider fair market value for someone, who can develop on solana. So numbers might need to be more generous in practice.
We should also extend the list of grant givers over time as we scale the organization.
I think having some structure around rewarding and incentivizing contributors is a great step forward, as well as having the ability to do it at regular enough intervals to be tangible.
Splitting the reward so that some is claimable immediately and some is locked also provides some additional stake and thinking about the future for the contributors.
I think this also acts as a great hiring funnel as Mango expands because if you are regularly distributing to certain contributors you already have a shortlist.
I think this is a reasonable approach. Mango needs to actively work on expanding/improving, and spending money/equity now is the best way. It needs to be rapid, and trusting the people who have already shown dedication to the project & are financially invested seems fine to me.
Based on a lot of feedback I got from member of different DAOs, I revised the above program for simplicity.
The above proposal was explaining a scheme in which all allocated funds would always get used. I don’t think that is ideal as it leaves uncertainty with the contributors receiving grants. We should rather offload this uncertainty to the DAO by over-allocating budget and let the DAO recover unclaimed funds after the end of the budget period. In the end we want happy contributors.
Here is a new example of how the whole scheme could work:
- The DAO allocates $50,000 USD and 1,500,000 MNGO
- The core contributors will receive in aggregate a total of 50,000 DUSD and 1,500,000 DMNGO. Each contributors allocation will be part of the DAO proposal and should be requested on this thread.
- A core contributor burns 500 DUSD and 50,000 DMNGO tokens so that another community member receives into 500 RUSD as well as 50,000 RMNGO tokens for his service. They can’t reward themselves and need to provide a note on each transfer.
- At the end of the distribution period every DAO member can inspect the final distribution of the tokens and open a proposal to freeze the R-token accounts of any recipient. This ensures that the DAO has veto rights and full control over the funds.
- After waiting for the end of the review period the rewarded community member can redeem a total of $500 USD as well as 50,000 MNGO. We can set an optional locking period for MNGO so that
- The DAO can withdraw the unused USD & MNGO funds through another vote as well after the review period back into it’s vaults.
The above logic is implemented in this anchor program: GitHub - mschneider/assembly
To get the discussion started on budgets:
I’d like to request $30.000 in USD as well as $100.000 in MNGO (locked for 1 year) as a monthly budget allowance distributed through me. I do see a lot of good work coming out of the community members working closely with me and I would like to be able reward it adequately.
It seems like this is geared mostly toward compensating people for work that is already completed, yes?
I think getting the system as-is in place asap is important for keeping the current talent around, but for the future is there a good way to allocate RUSD/RMNGO over a term longer than a month as promised compensation for larger works-in-progress? Maybe even allow portions of it to be redeemed as progress is made…
Really depends on the case here. If it is a long development project with considerable risk, I wouldn’t classify it as ongoing maintenance and community work.
In this case we probably want to have a different model. We have been discussing this a few times during the developer meetup, there is no clear guidance as there is simply no past example of this yet.
I personally think that those projects are best handled by independent entities (possibly for profit companies or a pod / squad) that get rewarded similar to a corporate buyout to acquire their IP from the DAO. Depending on the complexity and value for the DAO these offers might be very lucrative, but also come with milestones related to reach and maintenance attached.
Q: how often can this allowance budget be readjusted, seeked anew?
I would like to start with a budget of $3_000 USD and $10_000 in MNGO per month. My plan is to onboard some devs maybe using office hours or something (walking them through some of my own typescript code which builds on top of mango) and then reward them once they do a meaningful contribution.
First round will be one month. If you want to request more for next month, it’s probably good to ask a few days ahead here in the forums so the next budget dao vote can already be adjusted
This sounds good. If I request more than I end up allocating, is there a way to return or burn the D tokens in the revised program?
You don’t need to burn the D tokens, they simply are useless past the deadline and we can return all unallocated funds to the DAO (didn’t write it yet, but will write it, once we need it)
Awesome, excited to start rewarding some contributors who’ve helped Mango and set up some bounties on educational tasks and marketing initiatives.
I request $8,000 USD and $24,000 in MNGO (locked for 1 year)