Scope
Establish the foundation for a community rewards system.
Link to previous [DAO Discussion]
[DAO Discussion] - Community Rewards Proposal
Objective
This proposal aims at introducing a community reward system that would reward anyone who brings valuable opportunities to the DAO. This is not a bounty system, and rewards are not paid immediately, but when profits have been locked in.
- Implement community rewards
- Yes, but see my comments below
- Make No Changes
High Level Overview
This proposal will provide guidelines on the following:
- Procedures
- Eligibility
- Reward distribution
Provide Low Level Details
Procedure
Community members will be able to present an opportunity via a ticket bot system.
Each ticket should include, at minimum, the following details:
- Project/Protocol name & official links
- A summary of the due diligence done (e.g. founders/management details, history, etc)
- Risk assessment and profitability estimation, including a realistic range of returns
- Timeline for profit taking estimations
For seed investments, a full project plan with all standard forecasts should be included.
Tickets will be reviewed, answered and recorded, to be released for transparency when needed, or to settle disputes.
Any seemingly valid strategy has to be properly vetted by the Risk Officer, voted by the treasury council and go through the proper governance process when applicable. Any community strategy implemented is to be managed and overseen by the applicable elected member(s).
Any tickets that do not meet the minimum requirements will be discarded with the reason why it was not considered. To be reconsidered, a new ticket with the missing information should be submitted.
Eligibility requirements and reward distribution:
The submitted opportunity must meet a profitability threshold of a minimum of 10% return for the protocol - this threshold may be reviewed and changed depending on market conditions via the established DAO treasury guideline votes.
Tickets will be eligible on a first come first serve basis.
Reward Distribution
Rewards for strategies must be gained within the estimated and negotiated timeline for profit taking. A reward of 3% based on applicable profits per opportunity is proposed. This main may be reviewed and changed via the established DAO treasury guideline votes.
If a strategy fails to achieve the minimum threshold within the agreed timeline, no rewards occur. If a strategy meets the goal within a delay of 25% the original agreed timeline, a reward of 1,5% shall be given.
If a strategy performs twice as well as expected, a bonus of 2% will be awarded. A bonus of 2% will be given if a strategy returns double or more than estimated.
These rewards will be distributed when profit is claimed and calculated on the total profit amount, before final distribution to the farm/treasury. Rewards are given in the claimed profit asset.
Business and technical requirements of the implementation of the proposal:
A bot to record submissions will have to be created as well as proper documentation for the distribution of rewards.
