RRC-XX: Q2 2025 Delegate Incentive Program Report

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#1

RRC-XX: Q2 2025 Delegate Incentive Program Report

Date of Submission:
July 1, 2025

Authors
jarisjames (Founder of daospace)

Abstract

This proposal requests approval for the disbursement of Q2 2025 rewards under the RRC-40 Delegate Incentive Program. The program aims to reward RARI DAO delegates for active onchain participation, rationale posting, and proposal authorship. This proposal includes a transparent point-based breakdown of qualifying delegates, final payout calculations in RARI based on the spot price at disbursal time, and allocation of the admin fee for managing the program.

Eligibility Criteria:

To qualify for rewards in Q2 2025 under the RRC-40 Delegate Incentive Program, delegates were required to meet the following conditions:

  1. Minimum Voting Participation:
    Delegates must have voted on at least 5 out of 7 proposals this quarter. This satisfies the 60% minimum voting participation requirement set in RRC-40.

  2. Voting Power Requirement (Amended):
    Per RRC-40, delegates must have at least 2,000 veRARI delegated to them on Ethereum Mainnet. However, to account for the dual-governance model introduced with Rari Chain, this requirement has been amended to also include delegates with at least 2,000 RARI voting power on Rari Chain.
    Mainnet Snapshot: Tally – RARI Foundation
     Rari Chain Snapshot: Tally – RARI DAO

  3. Active Delegate Thread:
    Delegates must maintain an active Delegate Thread on the RARI DAO governance forum, posting rationale for each vote during the quarter. Forum activity was reviewed to confirm compliance.

  4. Not already paid for delegate services by Foundation

Motivation

The Delegate Incentive Program was launched to ensure the sustainability and quality of RARI DAO governance. It rewards delegates who demonstrate consistent voting behavior, provide rationale, and contribute to shaping the DAO’s future. This payout proposal ensures trust in the program and incentivizes meaningful participation.

Rationale

The program aligns with RARI DAO’s goals by reinforcing transparency, decentralization, and consistent engagement. The incentive structure encourages thoughtful governance participation and empowers delegates to contribute long-term. Publishing a clear rewards breakdown also strengthens community trust in how governance rewards are administered.

Key Terms

  • veRARI: Voting-escrowed RARI
  • RRC-40: The passed proposal establishing the Delegate Incentive Program
  • Rationale: Delegate explanation of vote posted on the forum
  • Point System: Scoring method that determines payouts

Specifications

  • Program Admin: daospace
  • Pricing Mechanism: Spot price of $RARI at time of disbursal
  • Reward System: Based on onchain voting, rationale writing, and proposal authorship
  • Admin Fee: $500/month in RARI

Point System Overview

Rewards were distributed based on a total of 1,692 points earned across all eligible delegates. The Q2 reward pool is $30,000 in RARI, making the price per point:

$17.73 per point

(Rounded to the nearest cent)

Steps to Implement

Publish the Q2 report and proposal to the forum

Open a 5-day review period for community feedback

Submit proposal to Tally for DAO vote

Upon passing, disburse RARI to eligible wallets

Timeline

  • July 1, 2025: Payment Proposal published on forum

  • July 7, 2025: Submit the Payout proposal on Rari V1 Tally on mainnet after the 5 day review on forum.

Overall Cost

  • Q2 Delegate Rewards Pool: $30,000 in RARI
  • Admin Fee (daospace): $1,500 in RARI

TOTAL COST: $31,500 in RARI

Full Report & Payout Breakdown

(Final dollar payouts were rounded up or down to the nearest dollar for cleaner disbursement amounts)

============================================================

Delegate: @Jaf

Wallet: 0xca85c622d4c61047f96e352cb919695486a193e6

Votes: 7

Proposals Voted On (V1):

Proposals Voted On (V2):

RRC 41: Response to RRC 39 - Proposed Mechanics of Secondary Fee Collection

RRC-42: Q1 2025 RARI DAO Delegate Incentive Program Report

[RRC-43] Rari Staking Incentives Program

RRC-44: Response to Current Crypto Markets & DAO Strategic Workshop

Test Poposal DAO v2 - 1

Test proposal DAO v2 - 2 (Security Council veto test)

[RRC-45] Fund Phase 1 of RARI Staking Rewards

Rationales (RRC‑41, RRC-42, RRC-43, RRC-44, Test 1, Test 2, RRC-45):

→ Voter Points : 100

→ Rationale Points: 100

→ Proposal Author Bonus: 150

→ Total Points : 350

Payout: $6,206 in RARI

============================================================

Delegate: jarisjames

Wallet: 0xb04e6891e584f2884ad2ee90b6545ba44f843c4a

Votes: 7

Proposals Voted On (V1):

Proposals Voted On (V2):

RRC 41: Response to RRC 39 - Proposed Mechanics of Secondary Fee Collection

RRC-42: Q1 2025 RARI DAO Delegate Incentive Program Report

[RRC-43] Rari Staking Incentives Program

RRC-44: Response to Current Crypto Markets & DAO Strategic Workshop

Test Poposal DAO v2 - 1

Test proposal DAO v2 - 2 (Security Council veto test)

[RRC-45] Fund Phase 1 of RARI Staking Rewards

Rationales (RRC‑41, RRC-42, RRC-43, RRC-44, Test 1, Test 2, RRC-45):

→ Voter Points: 100

→ Rationale Points: 100

→ Total Points: 200

Payout: $3,546 in RARI

============================================================

Delegate: @bitblondy

Wallet: 0x4d32d90d6535bd4e7eabaa27ee72932cb214bbfa

Votes: 7

Proposals Voted On (V1):
Proposals Voted On (V2):

RRC 41: Response to RRC 39 - Proposed Mechanics of Secondary Fee Collection

RRC-42: Q1 2025 RARI DAO Delegate Incentive Program Report

[RRC-43] Rari Staking Incentives Program

RRC-44: Response to Current Crypto Markets & DAO Strategic Workshop

Test Poposal DAO v2 - 1

Test proposal DAO v2 - 2 (Security Council veto test)

[RRC-45] Fund Phase 1 of RARI Staking Rewards

Rationales (RRC‑41, RRC-42, RRC-43, RRC-44, Test 1, Test 2, RRC-45):

→ Voter Points: 100

→ Rationale Points: 100

→ Total Points: 200

Payout: $3,546 in RARI

============================================================

Delegate: @Firefly808

Wallet: 0xbe3f82034778fbf474060f7d4a032f592559ab4d

Votes: 7

Proposals Voted On (V1):
Proposals Voted On (V2):

RRC 41: Response to RRC 39 - Proposed Mechanics of Secondary Fee Collection

RRC-42: Q1 2025 RARI DAO Delegate Incentive Program Report

[RRC-43] Rari Staking Incentives Program

RRC-44: Response to Current Crypto Markets & DAO Strategic Workshop

Test Poposal DAO v2 - 1

Test proposal DAO v2 - 2 (Security Council veto test)

[RRC-45] Fund Phase 1 of RARI Staking Rewards

Rationales (RRC‑41, RRC-42, RRC-43, RRC-44, Test 1, Test 2, RRC-45)::

→ Voter Points: 100

→ Rationale Points: 100

→ Total Points: 200

Payout: $3,546 in RARI

============================================================

Delegate: @forexus

Wallet: 0xd8936e602e38dfee5d6466865068b94b1943debf

Votes: 7

Proposals Voted On (V1):
Proposals Voted On (V2):

RRC 41: Response to RRC 39 - Proposed Mechanics of Secondary Fee Collection

RRC-42: Q1 2025 RARI DAO Delegate Incentive Program Report

[RRC-43] Rari Staking Incentives Program

RRC-44: Response to Current Crypto Markets & DAO Strategic Workshop

Test Poposal DAO v2 - 1

Test proposal DAO v2 - 2 (Security Council veto test)

[RRC-45] Fund Phase 1 of RARI Staking Rewards

Rationales (RRC‑41, RRC-42, RRC-43, RRC-44, Test 1, Test 2, RRC-45):

→ Voter Points : 100

→ Rationale Points: 100

→ Total Points : 200

Payout: $3,546 in RARI

============================================================

Delegate: @PGov

Wallet: 0x3fb19771947072629c8eee7995a2ef23b72d4c8a

Votes: 7

Proposals Voted On (V1):
Proposals Voted On (V2):

RRC 41: Response to RRC 39 - Proposed Mechanics of Secondary Fee Collection

RRC-42: Q1 2025 RARI DAO Delegate Incentive Program Report

[RRC-43] Rari Staking Incentives Program

RRC-44: Response to Current Crypto Markets & DAO Strategic Workshop

Test Poposal DAO v2 - 1

Test proposal DAO v2 - 2 (Security Council veto test)

[RRC-45] Fund Phase 1 of RARI Staking Rewards

Rationales (RRC‑41, RRC-42, RRC-43, RRC-44, Test 1, Test 2, RRC-45):

→ Voter Points : 100

→ Rationale Points: 100

→ Total Points : 200

Payout: $3,546 in RARI

============================================================

Delegate: @Sixty

Wallet: 0xc2971fe806ce4438da09e21fc7be7fb121cf7e13

Votes: 7

Proposals Voted On (V1):
Proposals Voted On (V2):

RRC 41: Response to RRC 39 - Proposed Mechanics of Secondary Fee Collection

RRC-42: Q1 2025 RARI DAO Delegate Incentive Program Report

[RRC-43] Rari Staking Incentives Program

RRC-44: Response to Current Crypto Markets & DAO Strategic Workshop

Test Poposal DAO v2 - 1

Test proposal DAO v2 - 2 (Security Council veto test)

[RRC-45] Fund Phase 1 of RARI Staking Rewards

Rationales (RRC‑41, RRC-42, RRC-43, RRC-44, Test 1, Test 2, RRC-45):

→ Voter Points: 100

→ Rationale Points: 100

→ Total Points: 200

Payout: $3,546 in RARI

============================================================

Delegate: @coffee-crusher

Wallet: 0x6a39677F216D8Ea21BE5F95798Cd23d0c454E818

Votes: 5

Proposals Voted On (V1):
Proposals Voted On (V2):

RRC 41: Response to RRC 39 - Proposed Mechanics of Secondary Fee Collection

RRC-42: Q1 2025 RARI DAO Delegate Incentive Program Report

[RRC-43] Rari Staking Incentives Program

RRC-44: Response to Current Crypto Markets & DAO Strategic Workshop

[RRC-45] Fund Phase 1 of RARI Staking Rewards

Rationales (RRC‑41, RRC-42, RRC-43, RRC-44, RRC-45):

→ Voter Points: 71 (5/7 = 0.71)

→ Rationale Points: 71 (5/7 = 0.71)

→ Total Points: 142

Payout: $2,518 in RARI

============================================================

Admin Fee: 1,500 USD in RARI (500 USD/Month)

Daospace wallet: 0xd3EDA7aB6Ed6a1836EAB644D86E7f76ABAd75172

4 Likes
RRC-XX: Delegate Incentive Program v2.0 for RARI DAO Governance
RRC-XX: Delegate Incentive Program v2.0 for RARI DAO Governance
#2

I still support the Delegate incentive program.

3 Likes
#3

Thank you so much, @jarisjames for completing the report for Q2 of the Delegate Incentive Program. I did notice that my Delegate wallet address is incorrect in this report. I posted an update on the Forum with my new (and correct) wallet address here, and I’ve also updated my Tally profile with my new wallet address here.

Can you please correct the receiving wallet address with: 0x6a39677F216D8Ea21BE5F95798Cd23d0c454E818

3 Likes
#4

Hi @jarisjames , I do also have a question. With RARI V2 (RARI Chain) being live, are we voting on V2 or V1 for this Q2 proposal?

2 Likes
#5

No problem, @coffee-crusher. The wallet address has been updated. Appreciate you.

1 Like
#6

Great question! Since the RARI treasury still resides on Ethereum mainnet, this Q2 proposal will be voted on using RARI V1.

3 Likes
#7

This is the correct wallet address! Thank you for pulling all this data @jarisjames !

3 Likes
#8

Thank you so much, @jarisjames for the receiving wallet address correction and the clarification regarding which version we will be voting on.

3 Likes
#9

Hi, thanks for publishing the Delegate Incentive Report for Q2.

I have an objection. @jarisjames is accounting last report’s tally vote as an authored proposal, boosting his own compensation at the expense of others.

The program specifications are very clear that proposals that allocate funds to the authors do not count toward the program, particularly when the proposal author is already getting paid to do so.

For this reason, we think jarisjames should not account for the authored proposal and points rebalanced accordingly.

After the last Q2 report, we have concerns about the decaying performance of the program:

  • While initially well intended at increasing governance participation. Numbers show this goal has not materialized, as Q2 had 8 rewarded delegates for 12 in Q1. Therefore, delegate participation is decaying.
  • Compensation is disproportionate with the tasks and commitments for delegates. As the budget is denominated in $ with no RARI cap, we have run into the strange situation where after each quarter delegates are earning multiples of the required 2,000 RARI to participate. This creates an massive ROI for delegates with little operational burden: Vote in Tally and write a rationale.
  • Decaying governance activity: While by the time the program was proposed governance in Rari was more active. Ever since the proposals and forum activity has been decaying, also motivated by the operational reorganization in Rari Foundation. Even though the program encouraged delegates to submit proposals, this has not significantly materialized.
5 Likes
RRC-XX: Delegate Incentive Program v2.0 for RARI DAO Governance
#10

Thanks for the clarification @Jose_StableLab. I’ve updated the report and removed the author points from my tally to reflect that.

Appreciate the feedback, and always happy to keep improving the process.

2 Likes
#11

I agree with you Jose.

#12

Thanks @jarisjames for the Q2 breakdown. Makes sense to me that RARI chain delegations are included as well to account for the dual gov model. Hope the treasury access from RARI chain will launch soon.

I agree with @Jose_StableLab that the Q1 report is already is part of the operations of the program and hence would not generate author points, thanks for adjusting this @jarisjames.

Also agree that the impact of the incentive program is disappointing so far (with even less participants than Q1…), I would have expected more delegates were attracted to the ecosystem by now, and thus dividing the rewards.
Now it looks like tying the rewards to activities instead of a fixed amount per quarter would have been the better option (i.e. a silent quarter would be less costly).

Is there an update regarding the new delegate cohort? I think this could really drive delegate engagement, given the participants are potentially eligible for rewards and existing delegates have enough RARI themselves by now.
Also, I’d suggest some marketing efforts around the delegate incentives, @Anria is that something foundation could have a look on? This could be a good addition to present the new gov model.

If delegate participation remains on that low level in the next quarter, and thus the incentive program does not serve its purpose, I’d suggest lowering the 30k per quarter, or completely halting the program. Evaluation is part of the process.

4 Likes
#13

We could also lower the 30k for this quarter already, it does feel disproportional.

#14

Great idea, I believe now is the time to start that marketing now that staking is live. Staked RARI numbers will rise if this gets out

2 Likes
#15

I continue to support the Delegate Incentive Program, but I believe we need to place caps on individual rewards to ensure sustainability and fairness. In Q1 and Q2 2025, only a handful of delegates received payouts, with some earning over 2,000 RARI (~$2,000–$3,000 USD). That’s generous to the point of being excessive and creates the wrong incentive structure.

I propose we cap rewards at 500 RARI per delegate per quarter, with a maximum of 2,000 RARI per year. This still provides meaningful rewards while ensuring proposal submission rights (5K RARI) aren’t too easily accumulated. A hard cap helps shift the program from a high-reward system for a few into a broader incentive model that invites more delegates to participate.

Importantly, a cap also creates aligned incentives: if the value of RARI increases, so do our earnings, without inflating token supply or distorting governance incentives. Healthy governance depends on a diverse, active delegate set. Over-rewarding a small group risks centralization and weakens long-term decentralization goals.

This isn’t about limiting quality — it’s about ensuring opportunity, fairness, and a healthy ecosystem for all future participants.

4 Likes
#16

I will support this proposal, 500 RARI is fair.

2 Likes
#17

Hello @bitblondy, thank you so much for your feedback! We completely agree that the program needs to be adjusted and better aligned with the activities. We’ve added this proposal as an agenda topic for our upcoming governance call. The strategy for the next delegate cohort is still a work in progress and will depend on the outcome of Phase 1 of the staking program.

5 Likes
#18

Hey guys, just wanted to add my 2 cents here.

Q2 has not been a great quarter to use as a reference, as the governance migration from mainnet to RARI Chain brought about a lot of uncertainty and unexpected hiccups. The loss of voting power due to veRARI voting power decay led to a dropoff in participation and proposal creation as it was uncertain if proposals could even pass quorum.

Many prospective delegates who showed interest were also unable to participate due to the governance migration, as the only option to gain voting power was to lock up RARI for veRARI while this governance system was being phased out.

The compensation was originally set with the number of delegates who meet the 2,000 veRARI threshold in mind (38 delegates, as per the v1 RARI DAO delegates page). At $10,000 per month, this would equate to a little over $250 of RARI per delegate if all the delegates were actively voting (which is lower than the average delegate compensation compared to other DAOs. As with all incentive programs, the individual rewards received would decrease over time as more people joined the program.

As mentioned above, Q2 is not a great reference quarter as for most of the quarter, there was uncertainty whether proposals would even reach quorum due to the decay of voting power of most of the delegates, and the governance migration, which was slated to happen early in Q2. Reduced activity is to be expected during a time of transition, and hopefully with RARI Chain governance and RARI Staking now live, we will see a pick up in activity.

3 Likes
#19

Agreed that if participation falls further in the next quarter, incentives should definitely be reworked. As for now, I do believe, we should wait and see how participation shapes up in Q3 now that we the transition to RARI Chain governance is complete.

It has never been more accessible to participate in the incentive program, as now that the veRARI model is gone, 2000 RARI staked gives you 2000 RARI voting power. As opposed to the previous system, where you would need to lock up 2000 RARI for 2 years to get an equivalent amount of voting power.

3 Likes
#20

And as a final thought, while the compensation might seem high as it is distributed quarterly. At 8 delegates for Q2, it still averages out to about $1250 a month which is still below the industry standard (1, 2) for delegate compensation.

There are currently 20 delegates on RARI DAO v2 who meet the 2000 RARI threshold after RARI Staking has gone live, and since there is no voting power decay, we should see an uptick in delegate participation.

I do think we should definitely raise the amount of RARI required to submit a proposal from 5K to around 12-15K RARI, as the transition from the veRARI model has significantly lowered the capital requirement to acquire the same amount of voting power.

5K made sense for v1, thanks to the veRARI model, but this should be raised for v2.

1 Like