[DRAFT] Increase the May & June Short-Term Allocations for Retaining Core Staff Due to Market Changes

👩🏽‍⚖️ Proposals
1

Increase the May & June Short-Term Allocations for Retaining Core Staff Due to Market Changes

Authors: tonyolendo, willblackurn.eth

Summary:

This proposal seeks to amend the terms of the proposal P-9: Short-term Treasury Allocation to Retain Core Staff to adjust and immediately release their allocations to insulate against further market volatility.

Motivation:

Gitcoin was an early partner to Developer DAO and gave the DAO a grant whose purpose was to retain full-time core staff. Proposal P-9 sought to effect the Gitcoin grant by rewarding the full-time contributions of with-heart, Kempsterrrr, and RyanCoordinator in the form of 1,000 GTC per month, starting February 1, 2022, through the end of June, 2022. When the proposal was being contemplated, the price of GTC was $10, at the time of the passing of the P9 proposal, the price of GTC had dropped to $6, almost half the value. The spirit of P9 was that GTC would trade at around $10 and thus the Retained Core Staff would receive a compensation of roughly $10,000 per month ($10 x 1000GTC). The current price of GTC is now $2.33 meaning that the projected monthly income for Retained Core Staff has fallen from $10000 to $2330. That’s a 76.7% drop in income, that would make anyone uncomfortable. As Ryan stated in his comments on P-9, “Using GTC in this way is a short term measure to get us on stable footing and keep the lights on.”

Scope:

This proposal seeks to adjust June payments to 3500 GTC per full-time contributor and to retroactively adjust the payment for May by an additional 2500 GTC per full-time contributor on top of the already distributed 1000 GTC per full-time contributor. We further propose that these payments for June and May be released immediately upon governance approval in one transaction to mitigate the risk of any further drops in prices due to market conditions.

To complete this, it would require a total of 18,000 GTC = (2500 GTC * 3) + (3500 GTC * 3) . In our partnership with Gitcoin (P-4: Partnership & Mutual Grant with Gitcoin), we committed to holding no less than 50% of the initial token grant through 2023. This means that we can only use 13,000 GTC for this proposal.

We plan to use ETH held by the treasury to cover the value of the remaining 5,000 GTC (18,000 GTC - 13,000 GTC) . As of this proposal, this would require 6.0565 ETH from the treasury which has a balance of 11.603 ETH. The final calculation of ETH to distribute will be completed at time of the transaction once this proposal has passed Governance, but it should not exceed a total of 6.5 ETH regardless of the ETH to GTC price.

This proposal does not seek to expand the period of time set in P-9: Short-term Treasury Allocation to Retain Core Staff. Rewards beyond this time period will require a new proposal with updated context for contributions.

Benefits

The continued full-time commitment of with-heart, Kempsterrrr, and RyanCoordinator to the DAO.

Drawbacks

This utilizes all of our liquid GTC from the treasury and dips into ETH received from NFT sale royalties. We believe it is worth it at this time to ensure our full-time contributors are taken care of and are able to focus on Developer DAO.

10 Likes
2

imo it’d be more helpful to link to the ratified snapshots rather than the forum proposals for P-4 and P-9

P-4 Snapshot
P-9 Snapshot

1 Like
3

You see the vote sentiment, but lose all discussion. Could include both.

4

I am in favor of this proposal. Even though it dips into our treasury, it is essential to keep these core members of the team and at the current rate(due to the slump in the market), they are not being paid a fair rate for their contributions.

Looking at the treasury it does seem better to not use all of our GTC and get a mix from ETH. We should probably work on diversifying our treasury more so we have more stablecoins for situations like these too.

100% this should happen. Since it is only for two months of contribution, its easier to avoid this problem next month.

Side note

In the original proposal and for future proposals we should include how much they are getting paid in USD per month. GTC was the only currency used so even though I can check the price at the time with CoinGecko, it would be simpler to have it outlined in the proposal.

It would be worth adding it to this proposal too so people are aware of how much USD they are actually getting paid.

5 Likes
5

I’m in favor of this! The opportunity cost is way too high to not do it.

2 Likes
6

Is there a job description associated with this compensation?

Ryan and Kemp do invaluable work, and we should make sure they aren’t having to sacrifice their financial well-being for the good of the DAO, but unless I am missing something, a description of the roles and responsibilities is long overdue.

4 Likes
7

I agree 100% percent . declines in market can affect token price … so the amount in USD would be preferred against conditions like this IMO

1 Like
8

Agree with this. Am also in favor of retaining core staff.

2 Likes
9

In favor of retaining withheart, Kemp, and Ryan. I appreciate the work they’ve done.

2 Likes
10

Unfortunately no, we missed that step when we were doing the P-9 proposal, I feel weird about introducing in this proposal in particular because that would be significant change from the P-9 proposal. Nevertheless, we do need to structure that moving forward so that subsequent seasons will make things clear.

1 Like
11

You have my full support on this proposal.
My concern is how we’re moving forward, we need more discussion on our treasury diversifying and treasury refilling.

1 Like