Proposed by Paladins @ceresbzns and @spencer
Forward:
- This proposal seeks to introduce some modifications and additions to the existing compensation structure outlined in the Compensation v2 documentation and workbook. Unless explicitly stated otherwise, Compensation processes and values would remain as set in v2.
- Changes are proposed for the upcoming compensation cycle starting March 2022 (Cycle 3)
The goals for these changes are to:
- increase competitiveness of contributor compensation
- enhance flexibility and compensation for all contributors, regardless of compensation track
- reinforce long-term alignment between DAOhaus and War Camp contributors
Proposal A: HAUS Compensation 2x Multiplier and Lock-up
Current State :
- Contributors can choose to receive 0% - 100% of their total monthly compensation in HAUS
- HAUS owed is distributed directly to contributors during each month’s compensation distribution cycle on a 1:1 basis
- Contributors are implicitly expected to hold HAUS and not sell on the market
Proposed State:
- Contributors can choose to receive 0% - 50% of their total monthly compensation in HAUS
- Contributors are encouraged, but not required, to take at least 10% of their compensation in HAUS
- The monthly amount of HAUS owed to contributors is doubled . This 2x HAUS is then locked for one year.
- As a result, contributors can effectively receive up to 150% of their total compensation schedule, if desired.
Proposed Execution:
- To achieve the 1 year lock-up, we would use the Hedgey Finance OTC product
- HAUS compensation would be bundled into an OTC contract, represented on-chain as an NFT
- The OTC contract would be structured with a price of $0 and a lock-up period of 12 months from the compensation distribution date
- In other words, instead of receiving 100% of their HAUS owed each month directly, contributors would instead receive an NFT which can be redeemed any point (at no cost) after a year for 200% of their HAUS owed
- Hedgey’s OTC product launched on Gnosis Chain on Feb 28, 2022 and has been audited by Hacken
- To start, these NFTs would be created via proposal through the Safe Minion transaction builder, and then claimed by each contributor. Long term, we will explore whether this could be done in batch form or even via an easier-to-use boost
Proposal B: Maximum HAUS Compensation Mix
Contributors would be capped at taking a maximum of 50% of their compensation as HAUS.
Why cap it? If a contributor needs to take more DAI because of personal circumstances (e.g., they have bills to pay, can’t afford to lock up funds for a year, etc.), we don’t want to them to be at a major disadvantage by receiving less compensation in the long run compared to colleagues who have other sources of income or prior wealth. This tradeoff exists in our current compensation structure and would be furthered by the proposal above - we feel 50% was a reasonable point in the tradeoff.
Proposal C: HAUS for Retroactive Contributors
Retroactive contributors would be allowed take up to 50% of their compensation in HAUS token. This HAUS would receive the 2x modifier and be subject to the 1-year lockup as detailed above. As with commitment track, 10% minimum HAUS compensation mix is encouraged, but not obligated.
Implementing this particular aspect will require some operational work, especially for those contributing to multiple circles. But we believe that creating better parity between contribution tracks is fully worth the extra overhead.
Misc
- If this proposal is accepted, we (Paladins) will update the handbook docs with accordingly, including instructions for how to process and receive locked HAUS.