RRC-XX Tokenomics Working Group Proposal

Proposals Grant Proposals
, ,
#1

The latest version of this proposal can be found here

Abstract

This proposal aims to establish a Tokenomics Working Group (TokWG) within the RARI DAO for a period of three months. The ‘TokWG’ will operate for three months, with the primary goal of researching and recommending a set of tokenomics strategies to enhance the economic sustainability and growth of the RARI DAO ecosystem

Motivation

Effective tokenomics is critical for the long-term success and sustainability of any crypto product. With the rapid growth of the crypto space as well as the DAO, it is imperative to revisit and refine our tokenomics model to ensure it aligns with the community’s goals and fosters sustainable growth. Establishing a dedicated TokWG will provide the necessary focus and expertise to develop innovative and effective tokenomics solutions.

Rationale

Forming a TokWG will enable a concentrated effort on improving RARI’s tokenomics. By leveraging the collective expertise within our community and external advisors, we can create well-researched and tailored tokenomics strategies. This focused approach increases the likelihood of developing successful solutions that drive value for our ecosystem.

Key Terms

Tokenomics: The economic model governing the creation, distribution, and value of tokens within an ecosystem

Specification

Goals

  1. Conduct comprehensive research on current tokenomics models & identify best practices.
  2. Develop and propose a set of tokenomics solutions tailored to the RARI ecosystem.
  3. Provide detailed documentation on the recommended solutions, outlining the required resources and potential impact.
  4. Gather community feedback on the proposed solutions to refine & improve them.

Timeline

Month 1: Group formation and initial research
Month 2: Identification of potential tokenomics models & development and refinement of solutions
Month 3: Finalisation of recommendations, detailed documentation, and presentation to the DAO.

KPIs

#number of researched solution
#depth & detail of the proposed solutions
#ease/readiness for implementation

MoS

  • Successful community approval & adoption of proposed solutions
  • Clear documentation & actionable recommendations for future implementation

Multi-sig policies

  • Assuming a 5 member squad, the multi-sig will be structured as 3 out of 5
  • 10% of the compensation will be sent at the start of the project
  • 40% of the compensation will be sent upon delivery of the first draft of the tokenomics solutions
  • All remaining compensation will be sent upon submission of recommendation

Roles & responsibilities of each member

Project Lead/Steward: @jengajojo

Oversees the group, coordinates tasks, and ensures milestones are met.

Research Analysts: [Open Positions]

Conduct in-depth research on tokenomics models and trends.

Foundation representative: @addie

Works with the RARI foundation to coordinate efforts and resources

Scribe:[Open Position]

Prepares detailed documentation of the recommended solutions.

Budget

Role Quantitiy Compensation (RARI)
Steward 1 2500
Research Analyst 2 5000
Foundation representative 1 0
Scribe 1 2000
Buffer 500
Total ask 10000

Next Steps:

  • Collect feedback from the community
  • Signal your interest for open positions by commenting below
6 Likes
Agenda for Proposal Overflow Call June 11, 2024
RARI DAO Weekly Highlights - May 20-26, 2024
RARI DAO Weekly Highlights - June 10-16, 2024
RARI DAO Weekly Highlights - May 27-June 2, 2024
RARI DAO Weekly Highlights - June 3-9, 2024
#2

Hi @jengajojo , I like the concept of this working group. Can you provide some clarification of the purpose of what the problem that this TokWG is trying to solve?

What I understand from your abstract, is that this TokWG is a 3 month research and recommendations working group to determine if RARI’s current tokenomics strategy is still aligned to our DAO’s needs, and to identify and discover alternate tokenomic strategies with recommendations. Is that correct?

#3

Gm, @jengajojo , I would also like to signal my interest in being considered for the Scribe role for this TokWG. Thanks!

1 Like
#4

Thanks for expressing interest in the scribe role, we’d be glad to have you on board.

As for the purpose/problem, the WG helps the DAO progressively decentralize by providing a time & resource limited testing ground for community led research & suggestion on upgrades to the RARI ecosystem’s tokenomics

This is a good way to describe it too!

2 Likes
#5

Hey @jengajojo, is there any information about the original tokenomic model/distribution of the RARI token?

Are there any specific qualifications or expertise required for the Research Analyst role? I have researched the tokenomic models of various projects before, so it would be great if I could take this role.

Maple Finance fundamental report

1 Like
#6

Hi @Sixty! We have some tokenomics info linked in the RARI DAO docs here: DAO Constitution | RARI DAO knowledge base

2 Likes
#7

Thanks for presenting this proposal, @jengajojo

At first glance, I like the structure of the WG and the initial outcomes.

Providing recommendations to the DAO is very valuable, but IMO this is one of those things that gotta be put in action to see ROI.

My concern right now is that 3 months is a short time and I do see this as an ongoing need for the DAO.

Also, would love to see scheduled open sessions and publicly available documentation to discuss RARInomics and the WG findings with the community.
Default to public :slight_smile:

Looking forward to discuss more in detail in the next Proposal review call.

3 Likes
#8

Thanks for confirming my understanding of the work group. It will be a very interesting project, and thank you also for acceptance of my scribe submission, I’m very thankful!

2 Likes
#9

Maybe a bi-monthly updates in both in the proposal review calls, as well as posting updating on a forum post would provide community visibility?

Regarding the 3 months, I agree, but I’m thinking that the completion of this WK would include next steps (and implementation) in a “2nd season” of the WK, maybe even with different participants and additional roles?

1 Like
#10

@Sixty , you would be an incredibly strong candidate for the Research analyst
role for this WK, as I know of your outstanding work at Push DAO.

1 Like
#11

Yes, a bi-monthly update would make sense since the working group will be in a research and analysis phase for the first iteration.

Depending on the options scoped in the first iteration, we could make a recommendation to the rest of the DAO or a vote between the most feasible options.

2 Likes
#12

Thanks for the proposal. I agree with the previous comments to be transparent about the workflow / public documentation.
I think and important part is the presentation of the results (even if the current strategy still is a good way to go), ans writing down recommendations / action points.

3 Likes
#13

Do you have a few examples of tokenomics models you plan to investigate? And will you be looking to a specific niche within crypto, or specifically to DAO tokens?

1 Like
#14

Thank you for the feedback everyone.

Glad to hear that @Sixty

Please join us in the next proposal review call to tell us a bit more about your interests and experience. If there are no objections from other delegates, we’d be happy to have you onboard.

I agree with this @Jaf The challange is that in the WG framework we specified 3 months as the max duration of a WG budget request. We could either reduce the scope of the first iteration of this WG or extend the max duration of budget for any WG. what do you think?

Thanks for the suggestion @coffee-crusher and @Sixty for seconding it. Do you think this is sufficient @Jaf ?

Definitely. Producing public documentation is a key deliverable of this WG.

The TokWG is free to venture into topics which it identifies as optimal for the DAO. Off the top of my head here are some potential areas the WG could look into.

  • Assessing the effectiveness of incentivizing liquidity provision through rewards in native tokens to enhance market depth and liquidity.

  • Incentivizing token holders to stake their tokens, thereby securing the network and earning rewards

  • Models that utilize bonding curves to dynamically adjust token price based on supply and demand

  • Deflationary models where tokens are burned to reduce supply & potentially minting new tokens under specific conditions to maintain a balance

  • Mechanisms where a portion of the DAO’s revenue is distributed back to token holders, aligning incentives & promoting long-term holding

  • Models which increase the utility of the token in the RARI chain or products built on top of it

My suggestion is to focus on investigating models that can enhance the economic sustainability & growth the DAO. However as mentioned before such decisions should be made by the WG after further research on the topic.

2 Likes
#15

With the idea that this hopefully becomes (after some iterations) a formal ongoing workstream for the DAO, I’d say the communications need to be more frequent, ideally bi-weekly. We have limited time during Community Calls and waiting a month or two to discuss progress can be bad.
This can be a very reduced report in the forum with bullet points.

And again, it’s important having the documentation & research that this WG is producing publicly available.

To kick things off, let’s stick to the 3-month plan. As we make progress, we can propose continuing the working group for another season or even discuss converting it into something that runs for longer seasons

3 Likes
#16

Thanks for the feedback @Jaf Based on your feedback to continue with the 3 month framework, it’s best to not overpromise for the first iteration. Hence I’d like to reduce the scope to:

Goals

  • Conduct comprehensive research on current tokenomics models & identify best practices.
  • Create a draft proposal for a possible set of tokenomics solutions tailored to the RARI ecosystem.
  • Provide detailed documentation on the recommended solutions outlining the required resources and potential impact.
  • Gather community feedback on the proposed solutions to refine & improve them

Timeline

Month 1: Group formation and initial research
Month 2: Identification of potential tokenomics models, development & gathering solutions
Month 3: Finalisation of first draft of the recommendations, clear documentation & presentation to the DAO.

KPIs

#number of researched solution
#biweekly WG updates
depth & detail of the proposed solutions
ease/readiness for implementation

MoS

  • Successful community approval & adoption of proposed solutions
  • Draft proposal with clear documentation & actionable recommendations for future implementation

Also as an FYI, there is room for 1 more analyst to join the squad. Is anyone interested?

2 Likes
#17

Thank you very much for taking everyone’s comments in consideration for this proposal @jengajojo.
IMO - this is a more secure foundation for something we want to expand into a larger project.

I would also like to express my interest in the Analyst position within the WG. Full disclosure, this would be my first time formally performing this role. However, I have conducted substantial tokenomics research in the past, both during my time as a Core team member with Push and through my participation in other DAOs.

3 Likes
#18

Thank you @Jaf We’d be happy to have you onboard

Based on the work done in the GC and the rationale stated there, I’d like to up the compensation to match that request.

Role Quantitiy Compensation (RARI)
Steward 1 3000
Research Analyst 2 6000
Foundation representative 1 0
Scribe 1 3000
Buffer 1000
Total ask 13000
3 Likes
#19

Hey @jengajojo, I will be there! The proposal review call will be on the RARI DAO Discord later today, correct?

I am also seconding the scope of this first iteration of the TokWG, considering the WG is only meant to operate for 3 months. We can hit all the promised KPIs in the recommended timeline.

Having personally worked with @Jaf, I can attest to his excellent eye for detail and diligent and in-depth research in any topic he sets out to study.

2 Likes
#20

Yes ser and thank you for your support and feedback

3 Likes