Discussion: Contributor Compensation Revamp Proposal

[spencer]

Hello everyone, please review this proposal for an overhaul of how Warcamp handles contributor compensation.

I’m posting this here for formal feedback and discussion before bringing a formal DAO proposal for ratification.

There is a lot here, but I make no apologies for the length because this is such an important thing to get right.

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Purpose

Create an open, transparent compensation system for DAOhaus (Warcamp) contributors that

1. encourages consistent valuable contributions to DAOhaus
2. gives contributors flexibility to contribute in the way that works best for them and their circumstances
3. increases alignment between contributors and DAOhaus values, vision, and objectives
4. enables contributors to earn ownership and governance power
5. is sustainable

Overview

Each month, DAOhaus (Warcamp) contributors receive three levels of compensation:

1. Base
2. Bonus
3. Ownership

1. Base

At this compensation level, contributors can select between two tracks:

• commitment compensation, and
• retroactive compensation

1A. Commitment Compensation Track

Commitment compensation is determined by an intersection of commitment and expected value delivered to DAOhaus, giving a total monthly base compensation amount (measured in USD).

That USD compensation amount will be payed out in a mix of stablecoins (DAI) and the community token (HAUS).

20% of HAUS tokens received will be immediately available. The remaining 80% will vest linearly over 3 years, with a 1 year cliff.

Contributors may choose their desired mix of DAI and HAUS, within the following constraints:

• Must accept at least 10% HAUS
• Must accept no more than 40% HAUS

1B. Retroactive compensation Track

This is how Warcamp has been compensating contributors to date. At the end of each month, contributors describe the value they’ve delivered to their circle and request an appropriate DAI amount. Other members of that circle then vote on the proposal.

Contributors preferring greater flexibility can select this option, though they will earn less ownership (via the HAUS token) this way than if they made a more consistent commitment.

2. Bonus

Through Coordinape, contributors give each other bonuses in the community token HAUS. The DAO may also decide to distribute extra HAUS to outstanding contributions.

This level serves as an intersubjective measure of how engaged a contributor was and how valuable their contributions were during the month. In addition to incentivizing contributions, this measurement can be used retrospectively to help the DAO make decisions about contributors on the compensation track.

• For example, a contributor consistently receiving HAUS bonuses above what their base pay grade (value X commitment) would predict is a good candidate to move up to a high value level.

3. Ownership

From the HAUS received as a bonus, each contributor has the option to tribute (stake) up to 100% into the Warcamp DAO in return for additional shares.

• 1 share per 0.1 HAUS

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1A. Base Commitment Compensation

Value Level

Levels are based on expected value delivered to DAOhaus. This is a fuzzy concept which does not and should not have a precise definition. Value can come from many different places and in many different forms. It can, however, be measured by one or more of the following depending on the context: experience, skill, ability, talent, knowledge, etc..

With this in mind, we’ve included some examples of the kinds of proxy measurements contributors can use to assess their and fellow contributors’ value levels. These examples should not be interpreted as requirements for or definitions of the value levels.

Contributors self-assess their starting level and level up by contributing more through DAOhaus.

Level 1: Novice

For example:

• New to crypto, web3, and DAOs
• Some experience within their area(s) of interest
• Just beginning to gain knowledge

Level 2: Learning

For example:

• Some experience with crypto, web3, and DAOs
• Moderate experience within their area(s) of interest
• A little knowledgeable

Level 3: Solid

For example:

• Experienced in crypto, web3, and/or DAOs
• Medium quality experience in their area(s) of interest
• Pretty knowledgeable
• Shows promise, but needs practice and refinement

Level 4: Expert

For example:

• Expert in crypto, web3, and/or DAOs
• High quality experience in their area(s) of interest
• Very knowledgeable
• Very talented

Level 5: Master

For example:

• Mastery in crypto, web3, and/or DAOs
• Recognized leader in their area(s) of interest
• Extremely knowledgeable
• Highly talented

Commitment Level

Levels are based on the commitment the contributor makes to DAOhaus. Like value, commitment is a fuzzy concept which does not and should not have a precise definition. Commitment can come in many forms and look different for different people. It can, however, be measured by one or more of the following depending on the context: time, dedication, focus, prioritization, effort, etc.

With this in mind, we’ve included some examples of the kinds of proxy measurements contributors can use to assess their and fellow contributors’ commitment levels. These examples should not be interpreted as requirements for or definitions of various levels.

Contributors select their own commitment level, as a percentage of the highest level (Full Commitment).

100% (aka “Full Commitment”)

For example,

• Full time: 35-40+ hrs/week (note: this is likely a minimum; some may want to work much more!)
• DAOhaus is top priority
• DAOhaus is the main point of focus*
• Willing to go above and beyond to make DAOhaus succeed

And some examples of lower commitment levels:

Example Level: 50%

For example,

• Half time: ~20 hrs/week
• DAOhaus is 1st or 2nd priority
• Focus split across a few projects

Example Level: 15%

For example,

• Fractional time: 5-10 hrs/week
• DAOhaus is 3rd, 4th, or even 5th priority
• Focus split across many projects

*We encourage contributors to carve out some time for themselves to explore and collaborate around the greater ecosystem.

Base Compensation Amounts

Monthly Base Compensation Max (Value Level 5; 100% Commitment): ==$12,000==

• Lower Value levels drop off from there
• Lower Commitment levels (eg 50%) are simple percentages of the max

See the Warcamp Contributor Compensation spreadsheet for details.

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2. Bonuses

Coordinape

Each month a pool of HAUS is funded. Using Coordinape, everyone gets 100 GIVE tokens to distribute around to all other contributors they have directly seen value creation. The pool of HAUS is distributed based on the inter-subjective results of the Coordinape Epoch.

Monthly bonus pool amount: ==300 $HAUS==

This is also a lever we can pull as we learn more about what works well. By increasing (or decreasing) the amount of HAUS distributed via Coordinape relative to the amount of HAUS distruted as part of Base compensation, we can acknowledge more (or less) need for intersubjective valuation of contributions.

Other

If a contributor is deemed undervalued by the community, the DAO can opt to drop extra rewards to them through a proposal to ensure that all value creation is rewarded appropriately.

3. Ownership

Share Progression System

Shares in Warcamp act as our DAOhaus XP, reputation, and voting power on Warcamp decisions. Stake your HAUS received through Coordinape into Warcamp DAO for direct power/ownership in Warcamp.

insert ‘share progression’ from other doc

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Initial Mechanics

Setup

Self-Assessment Form

At genesis, each commitment track contributor fills out a form to set the following for the next two months:

1. self-assess their Value Level
2. set a Commitment Level %
3. select a HAUS payment %
4. identify the circles they (wish to) contribute to
5. Sign off on Warcamp / DAOmission mission and values

This process is repeated again by each contributor every 2 months to reassess.

Buddy System

Each commitment track contributor must have a buddy.

Prior to filling out the self-assessment form, buddies should meet to review and discuss the following:

• Self-assessments
• Intersubjective community feedback from Coordinape bonuses (especially in comparison to the contributor’s expected bonus)
• Community health
• Any other concerns, recognitions, or points of order to raise with Warcamp

More ideas here.

Payouts

• retroactive track payouts are requested via proposals to the appropriate circles, as they are today
• commitment track payouts are bundled together as a single disperse proposal from a dedicated minion in the Warcamp DAO
  • collective responsibility of the commitment track contributors to get it right, otherwise it should be voted down by members
• Coordinape epochs proceed each month, as they do today

Flow / Order of Operations

For each compensation cycle (2 month period), here’s an illustrative example how things could proceed:

• Day -7: Circle leads request budget into circle DAOs for previous month for retroactive comp track contributors (proposal in Warcamp DAO)
• Day -7: Paladins request DAI and HAUS budget into Warcamp minion for previous month for commitment comp contributors (proposal in Warcamp DAO)
• Day 0: Previous cycle ends
• Day 1: Retroactive comp track contributors request base pay from respective circle DAOs (individual proposals in circle DAOs)
• Day 1: Commitment comp track contributors request base DAI pay from Warcamp minion (single disperse proposal against Warcamp minion)
• Day 1: Commitment comp track contributors request base locked HAUS “pay” into lock contract (individual proposals against Warcamp minion)
• Days 1-4: Coordinape epoch covering the previous month
• Day 4: Bonuses are paid out & contributers see Coordinape results (including whether they received more or less than expected)
• Days 4-6: All contributors meet with buddies
• Day 7: Commitment comp track contributors submit updated self-assessment form
• Days 8-10: DAO signs off on those submissions (including new Value and Commitment levels)???

What we need

1. Summon a new Safe Minion for the Warcamp DAO – this will be the source for commitment track payouts
2. HAUS locking contract
3. Contributor self-assessment and selection form and worksheet (clickup?)
4. Calculate expected monthly payout totals
   • DAI
   • HAUS (base + bonuses)
5. Based on (4), request enough HAUS to cover the next 6 months of runway

Nice to have

• Disperse boost
• Locking contract compensation boost

[spencer]

My suggestion would be for this to go into place for compensation starting with the month of November. That will give us a few weeks to get everybody’s expectations settled, forms filled out, etc. – we’ll want to have everybody know what their comp will be by November 1 – and then also a few additional weeks to figure out the technical details, including the HAUS locking contract and (potentially) the boosts, which will be necessary at the end of November.

[dekan.eth]

THis is awesome, thank you @spencer

a few notes to consider:

@spencer

Commitment compensation is determined by an intersection of commitment and expected value delivered to DAOhaus, giving a total monthly base compensation amount (measured in USD).

That USD compensation amount will be payed out in a mix of stablecoins (DAI) and the community token (HAUS).

20% of HAUS tokens received will be immediately available. The remaining 80% will vest linearly over 3 years, with a 1 year cliff.

Contributors may choose their desired mix of DAI and HAUS, within the following constraints:

• Must accept at least 10% HAUS
• Must accept no more than 40% HAUS

I think doing a more straightforward token lock for 2-4 years from onboarding would be fine. this would reduce the complexity of dealing with vesting schedules and the need to have multiple contracts for members or having to make a custom contract for compounding bonuses.

Not sure we need the 20% released upfront because the p2p bonuses will already be immediately liquid.

also I don’t think we need to limit it to a 40% max, if a member would like to and is able to take 100% locked HAUS seems that would be ok.

[dekan.eth]

@spencer

Value Level

Levels are based on expected value delivered to DAOhaus. This is a fuzzy concept which does not and should not have a precise definition. It can, however, be measured by one or more of the following depending on the context: experience, skill, ability, talent, knowledge, etc..

Contributors self-assess their starting level and level up by contributing more through DAOhaus.

my note is in here from your working doc but for discussion, I don not think we even need level 1 or 2. Before doing a contribution a new member should be required to have some experience in your field and in crypto. At least for the commitment track, that may just mean noobs should build some experience up through bounties or retro funding before leveling up to the commitment track.

[dekan.eth]

On bonuses:

@spencer

For example, a contributor consistently receiving HAUS bonuses above what their base pay grade (value X commitment) would predict is a good candidate to move up to a high value level.

I wonder how this will work. Will be hard to set a base on this, is it compared to all other members? like if they recieve points in the top percentile compared to all others? Seems fairly subjective, which is ok but may lead to more overhead.

[dekan.eth]

@spencer

1A. Commitment Compensation Track

Commitment compensation is determined by an intersection of commitment and expected value delivered to DAOhaus, giving a total monthly base compensation amount (measured in USD).

That USD compensation amount will be payed out in a mix of stablecoins (DAI) and the community token (HAUS).

20% of HAUS tokens received will be immediately available. The remaining 80% will vest linearly over 3 years, with a 1 year cliff.

Contributors may choose their desired mix of DAI and HAUS, within the following constraints:

• Must accept at least 10% HAUS
• Must accept no more than 40% HAUS

Another thing on this. If members decide to take locked HAUS there should be some kind of multiplier. otherwise why not just take the stables and buy the haus to have it liquid. so maybe up to a 1.5x or 2x multiplier.

What would be really cool is some kind of multiplier based on consecutive monthly proposals. this creates the incentive to actually meet the monthly commitment you signed up for. Could potentially go off the amount off Warcamp shares because this is a direct relationship to reputation and skin in the game.

[spencer]

@dekan.eth

I think doing a more straightforward token lock for 2-4 years from onboarding would be fine. this would reduce the complexity of dealing with vesting schedules and the need to have multiple contracts for members or having to make a custom contract for compounding bonuses.

Not sure we need the 20% released upfront because the p2p bonuses will already be immediately liquid.

Oh, good catch! I agree, and I meant to update that before posting. I’ll revise the op soon.

@dekan.eth

also I don’t think we need to limit it to a 40% max, if a member would like to and is able to take 100% locked HAUS seems that would be ok.

I think this will be a function of how much HAUS we have. I’m planning to do some very simple modeling of how much DAI and HAUS we’ll need over the next 6-12 months to support this new program. Hopefully that gives us a sense of whether we need any constraints.

[spencer]

@dekan.eth

I don not think we even need level 1 or 2. Before doing a contribution a new member should be required to have some experience in your field and in crypto. At least for the commitment track, that may just mean noobs should build some experience up through bounties or retro funding before leveling up to the commitment track.

I agree, I don’t think the DAO should have level 1 and 2. I do think its helpful to include the full range, if only as a marker by which people can more easily understand what the higher levels are.

Another angle on this is that we don’t really know what might come up – maybe we want “interns” at some point?? – so good to keep the full range just in case.

[spencer]

@dekan.eth

I wonder how this will work. Will be hard to set a base on this, is it compared to all other members? like if they recieve points in the top percentile compared to all others? Seems fairly subjective, which is ok but may lead to more overhead.

I imagine it could look something like this:

• Each month, there is a total amount G of GIVE tokens (determined by the total number of contributors in the Coordinape circle).
• Also each month, there is a total amount B of $$ (DAI + HAUS) budgeted for commitment comp track base pay.
• Each month, an individual commitment track contributor i will receive …
  • g_i GIVE tokens, and
  • b_i base pay
• We can calculate i's share of G and B as the following
  • i_share_G = g_i / G, and
  • i_share_B = b_i / B
• So, if i_share_G is less than b_share_G, that’s a signal that i is “underperforming”, and vice versa

This isn’t perfect, because G will also include GIVE tokens given to retroactive comp track contributors, so we should expect that i_share_G would be a bit less than i_share_G. But its a good start IMO.

[spencer]

@dekan.eth

If members decide to take locked HAUS there should be some kind of multiplier. otherwise why not just take the stables and buy the haus to have it liquid. so maybe up to a 1.5x or 2x multiplier.

Good point. I think this would be a great addition. I left it out of the initial proposal, though, cause it adds a decent amount of complexity.

On the other hand, maybe its ok – or even desirable? – to have contributors market-buying HAUS?

@dekan.eth

What would be really cool is some kind of multiplier based on consecutive monthly proposals. this creates the incentive to actually meet the monthly commitment you signed up for. Could potentially go off the amount off Warcamp shares because this is a direct relationship to reputation and skin in the game.

Complexity had me leave this out too. Especially since there are a lot of implications of something like this, including the potential for it to create a bias towards concentration of power.

If we do this, then I think we would want to start the first month HAUS component relatively low so there’s room to grow without creating extreme power concentration or blasting past a HAUS budget.

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Would love to see others’ thoughts on both of these items. Might it make sense to add them in as a future iteration?

[a_sos]

Late to the conversation but just saw this proposal. It’s super cool and really like what this is starting to build.

I think this also could pair well with some of the work we’re doing in RG around the RAID token Operational Structure.

@spencer

I agree, I don’t think the DAO should have level 1 and 2. I do think its helpful to include the full range, if only as a marker by which people can more easily understand what the higher levels are.

Another angle on this is that we don’t really know what might come up – maybe we want “interns” at some point?? – so good to keep the full range just in case.

Could these levels not be used as a way to onboard and bring more people into the core group of contributors? Additionally, it might be worth entertaining a vesting schedule inversely correlated to the Level of member (that is to mean that the lower level or newer you are to contributing, you receive more immediate liquidity).

[spencer]

@a_sos

Could these levels not be used as a way to onboard and bring more people into the core group of contributors?

Possibly!

I suspect, though, that the best way to organically onboard new contributors will be via the retroactive comp track. It’s much more flexible and allows a contributor to take on as much as their interest and bandwidth allows.

Where I see the commitment comp track being used for onboarding is primarily in the context of something that looks more like a traditional “hire”. But maybe that’s too limited. What do you think?

[spencer]

Per discussion in today’s Warcamp, we’re leaning towards starting simply with…

• No hard vesting or lockup. Instead, social contract that contributors “lock” (stake, LP, or hold) the HAUS they receive as base pay (if you really need cash, take a higher percentage of DAI).
  • as a result, no multiplier for locked-up HAUS
  • this also means we do not yet need a locking contract
• No minimum DAI, but encourage contributors to take at least 10% in HAUS
• No multiplier (yet) for consistent contribution

As more mechanisms emerge (eg bonds a la Olympus Pro) and as we learn more about what does / does not work for us, we can iterate.

[James]

This thread is an amazing testament to decentralised coordination, the experimentation within DAOhaus and how amazing @spencer is as a human.

+100 to everything above.

[spencer]

Alight, here is the final proposal! I’ve simplified as much as possible for ease of viewing the whole program. That includes removing a bunch of the rationale, context, and explanations; those can be viewed in the op and throughout the rest of this thread.

I will leave this here for 24 hours, then put it up for a signal vote in the Warcamp DAO. If / when that proposal passes, we’ll put in a proposal to UberHaus to request the necessary amount of $HAUS to make this all work.

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Warcamp Contributor Compensation Revamp Proposal

Purpose

See the op

Overview

Each month, DAOhaus (Warcamp) contributors receive three levels of compensation:

1. Base Compensation

At this compensation level, contributors can select between two tracks:

• a) commitment compensation, and
• b) retroactive compensation

1A. Commitment Compensation Track

Commitment compensation is determined by an intersection of commitment and expected value delivered to DAOhaus, giving a total monthly base compensation amount (measured in USD).

Commitment Level

Levels are based on the commitment the contributor makes to DAOhaus (see op for more detail and fuzzy examples for how to think about the levels).

Contributors select their own commitment level, as a percentage of the highest level (Full Commitment, denoted by 100%).

Note: Full Commitment should include some carve-out for non-DAOhaus projects.

Value Level

Levels are based on expected value delivered to DAOhaus (again, see op for more detail and fuzzy examples for how to think about the levels).

1. Novice
2. Learning
3. Solid
4. Expert
5. Master

Level Assessment Process

A Commitment Track contributor’s levels are set through a combination of self-assessment, discussion with a buddy, and finally sign-off by the Warcamp DAO.

Self-Assessment Form

At genesis, each commitment track contributor fills out a form to set the following for the next compensation cycle:

1. self-assess their Value Level
2. set a Commitment Level %
3. select a HAUS payment % (see Compensation Mix)
4. identify the circles they (wish to) contribute to
5. Sign off on Warcamp / DAOmission mission and values

This form will be finalized once the proposal is accepted by the Warcamp DAO. More ideas here

This process is repeated again by each contributor at the beginning of each compensation cycle.

Buddy System

Each commitment track contributor must have a buddy.

Prior to filling out the self-assessment form, buddies should meet to review and discuss the following:

• Self-assessments
• Intersubjective community feedback from Coordinape bonuses (especially in comparison to the contributor’s expected bonus)
• Community health
• Any other concerns, recognitions, or points of order to raise with Warcamp

This system will be finalized once the proposal is accepted by the Warcamp DAO. See initial ideas here.

Compensation Amounts

Monthly Base Compensation Max (Value Level 5; 100% Commitment): $12,000 per month

See the Warcamp Contributor Compensation spreadsheet for the full base compensation schedule.

Compensation Mix

The USD compensation amount will be payed out in a mix of stablecoins (DAI) and the community token (HAUS).

Contributors may choose their desired mix of DAI and HAUS, within the following constraints:

• No minimum, but we recommend at least 10% HAUS
• No more than 50% HAUS (this parameter may be adjusted over time)

1B. Retroactive Compensation Track

At the end of each month, contributors describe the value they’ve delivered to their circle and request an appropriate DAI amount. Other members of that circle then vote on the proposal.

2. Bonus Compensation

Through Coordinape (or similar), contributors give each other bonuses in the community token HAUS. The Warcamp DAO may also decide to distribute extra HAUS to outstanding contributions.

This serves as:

• An intersubjective measure of how engaged a contributor was and how valuable their contributions were during the month
• An intersubjective, bottoms-up signal that a contributor is performing either above or below expecations

Monthly bonus pool amount: 600 $HAUS per month

3. Ownership

From the HAUS received as a bonus, each contributor has the option to tribute (stake) up to 100% into the Warcamp DAO in return for additional shares.

• 1 share per 0.1 HAUS

Note: Many of the parameters in this proposal are greatly simplified from what is likely to be the optimal approach. Once we begin this program and learn more about what works and what is needed, the parameters are likely to change.

Mechanics

These mechanics, like other parameters of this program, will likely change as we learn more and optimize.

Compensation Cycles

Each compensation cycle will last for 2 months. Compensation payouts will occur once per month.

Payouts

• retroactive track payouts are requested via proposals to the appropriate circle DAO
• commitment track payouts are bundled together as a single disperse proposal from a dedicated minion in the Warcamp DAO
  • collective responsibility of the commitment track contributors to get it right, otherwise it should be voted down by members
• Coordinape epochs occur each month

Requesting $HAUS From UberHaus

To fund the next 6 months of $HAUS base and bonus compensation, we recommend requesting ~30,000 $HAUS from UberHaus. This request would constitutes 3% of the total $HAUS supply, and is valued today at ~$540,000.

This is the likely maximum we would need. If we end up needing less $HAUS, Warcamp will either put that to use for subsequent periods or return it to UberHaus.

[Jord]

Looking great. Sorry I’d replied so late. I think this would be very useful if I was trying to bring someone on.

Here’s a few things I’d like to nitpick if I could:

Value Metrics:

Years experience working a profession has a correlation with value added, but it’s certainly not the whole story. Many will come to DAOs because they’re disillusioned with the endless Indeed ads and trad-org HR bugaboos like ‘years xp’. Maybe instead of that, we go with ‘quality of experience’?

Same could be said about time served in crypto, however with this being a niche and complicated industry, I could see why time might have some extra weight here. I still think quality of experience would apply.

Time Cap

It seems like the time caps off at 35-40hrs per week. I get that we’re trying to promote a healthy work/life balance, but maybe we need a blurb for the people who work overtime or just like to work a lot.

Given the challenges that we face in terms of ‘competition’, it wouldn’t be the worst thing in the world to have some those people who really want to get stuff done.

Levels 1 & 2

I agree with the point Dekan made about this. This seems like bounties and retrospective stuff to me.

[spencer]

Thanks for the input @Jord! You make some important points. I think we’re in complete agreement, so it might just be about clarifying the language a bit.

@Jord

Years experience working a profession has a correlation with value added, but it’s certainly not the whole story. Many will come to DAOs because they’re disillusioned with the endless Indeed ads and trad-org HR bugaboos like ‘years xp’. Maybe instead of that, we go with ‘quality of experience’?

Those bullet points are meant to be examples for how to think about the value levels, not criteria or definitions. There are (and should be!) many ways to measure value, so those examples are there to give people some sense of how to assess themselves.

@Jord

It seems like the time caps off at 35-40hrs per week. I get that we’re trying to promote a healthy work/life balance, but maybe we need a blurb for the people who work overtime or just like to work a lot.

Same idea here. 35-40 hours is an example for t

hose interested in using time as a proxy for commitment. But good point about individual differences here.

In both these cases, I’ll add a blurb to clarify that these are fuzzy examples rather than criteria (or even guidelines). Let me know if that helps!

@Jord

Levels 1 & 2

I agree with the point Dekan made about this. This seems like bounties and retrospective stuff to me.

Agreed. I suspect in practice that’s what’ll happen, but I think its important to include the whole thing for this framework.