[RRC-XX] Delegate Incentive Program

Authors: @jengajojo
Reviewers: @WinVerse, @Sohobiit, @coffee-crusher, @jarisjames, @dzonson.eth

Abstract

A six-month delegate incentive program aimed at incentivizing delegate participation and retention, and suggests a retroactive compensation model based on performance and minimum standards to be maintained by participating delegates.

Motivation

Cohort 1 of the delegate launchpad saw 33% delegate retention to the next cohort and saw 1 new initiative come out of the cohort. We wish to outperform these results in the current cohort and hold delegates to a higher standard. Highly engaged delegates with a true sense of ownership are imperative for decentralizing the RARI DAO and allowing the community to increase its participation in the decision-making at the DAO.

Rationale

Historically voter apathy has been an issue faced by many who have tried to venture in this direction and this usually stems from complexity in voting systems, lack of context or skills, and a general disconnect with the ongoing issues. While many DAOs have tried to counteract this with delegated voting systems, most token holders lack the time and means to engage in governance.

Delegates on the other hand aren’t just hobbyists, they are often people with deep knowledge and passion towards the DAOs that they are active in. Delegates can be individuals or teams that invest resources in deep research, data analysis, technical understanding, voting, and effective communication to execute their mandate as delegates effectively. Without this dedication, these critical tasks tend to be rushed or inadequately completed, which can have far-reaching consequences. In their post on ‘Why Pay delegates’, flipsidecrypto argues that compensation attracts talent which is essential for protocol security, and compensating experts ensures that malicious proposals do not lead the DAO and the underlying protocol in the wrong direction.

Key Terms

RARI Ecosystem - applications utilizing the Rarible Protocol

$RARI - ERC 20 token, used in the RARI DAO governance

Delegate - Someone who votes/participates in governance on behalf of themselves or their delegators

Specification

  1. Eligibility:

To be eligible, a delegate must:

  • Delegates must have =/> 2k veRARI to be eligible
  • Regularly attend proposal review calls
  • Have a verified governance identity
  1. Framework:

The incentive system consists of two tiers. Delegates can choose to participate in one or both tiers.

  1. Incentivizing Minimum Standards

Delegates will be compensated for ensuring minimum standards which include:

  • Maintaining an 80% onchain voting rate
  • Commenting on proposals
  • Communicating voting rationale
  1. Incentivizing Consensus

Governance moves forward in a DAO by coming to consensus on next steps and making decisions onchain. Thus, a delegate or group of delegates who lead initiatives that generate onchain decisions shall be compensated for offering this service to the DAO.

  1. Incentive Framework
  • 15,000 RARI will be equally distributed between all delegates who fulfill minimum standards at the end of the cohort.
  • All delegates who are eligible for the program shall be invited to participate in a coordinape round at the end of the cohort with a pool size of 5000 RARI.
  • Based on the proposal scope and implementation, each proposer can choose to include compensation for their proposal according to the following guidelines:
$RARI Implementation Squad Technical implementation
3000 one No
6000 one Yes
6000 several No
9000 several Yes

*compensation for the first two items will be done retroactively at the end of the cohort

Steps to implement

  • Gather feedback
  • Transfer funds to a new escrow address
  • Review performance and distribute rewards at the end of the cohort
  • Return unused funds to the treasury

Timeline

The incentive program shall run for the duration of 6 months.

Budget

23,000 RARI, which includes 20,000 RARI to be transferred to an escrow address as well as 3000 RARI to be transferred to the proposer

3 Likes

Thanks for the proposal. I agree with your elaboration that compensation attracts talent, the design of such programs, however, is a difficult task (ultimately, you want intrisically motivated people).

That definitely should be some kind of retroactive mechanism, so based on activity that has already happened. Your rules for that are straightforward, but could be more specific.

For the current size of the delegate program (I think 15 delegates?), the allocation seems to much for me. Maybe starting with a small round and see, if the incentivization has an effect.

Is it possible to lock the distributed tokens? Could be mandatory to incentivize long-term activity.

Is this for the proposal? Don’t see the neccesity to reimburse the proposer.

1 Like

Thanks for the feedback @bitblondy

  • Do you have any specific suggestions for the incentives?

As a general question to the community, is there a sustainable way to fund governance participation without having incentives?