[1IP-X] Governance Community Participation Incentives

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Author: @Bobbay_stablenode

References

Governance process
Hop example
Idle Finance example
MakerDAO

Simple Summary

To boost governance activity on 1inch, we would like to incentivize community members to present proposals and receive rewards.

Abstract

We have outlined the workflow for the incentive system that can attract governance participation from community members. It provides an objective way to evaluate eligible and ineligible proposals that can be rewarded.

Motivation

An active governance culture is an essential aspect of every DAO’s operations. Active governance means that the community is dedicated to improving the protocol’s operations, which builds a culture of iteration around the protocol. However, governance work is continuously under or unpaid, making it an unattractive role.

By incentivizing an active governance culture at 1inch, we can attract participants to become more involved in 1inch DAO, thus enabling more opportunities for 1INCH to decentralize.

Specification

Contents

  1. Aims
  2. Allocation
  3. Eligibility (Eligible Proposals & Ineligible Proposals)
  4. Eligible Recipients
  5. Distribution
  6. Administration
  7. Accountability
  8. Reflection

Aims

1INCH governance is new and in these current market conditions, it is even harder to attract governance participation. We hope that some form of incentives will attract users to engage with the 1inch DAO.

We would like to present this program for 6 months.

Allocation

The total amount for the 6 months, $12k will be distributed upfront to avoid any potential multi-sig issues in the future.

This proposal would allocate 2,000 USDC per month to a newly-made community multi-sig. Each successful proposal would receive 500 USDC. If there are more than 4 proposals, then the rewards will still be distributed based on the 2,000 USDC.

At the end of each month, the community multi-sig will distribute rewards to the eligible authors. If all USDC is distributed, this would cost the DAO a total of 12,000 USDC for 6 months.

Since 1INCH earns protocol revenue in USDC, it is easier to distribute governance rewards in USDC.

Eligibility

Eligible Proposals

All proposals that follow the outlined governance workflow within 1inch DAO and successfully pass Phase 4.

Ineligible Proposals

  1. Proposals requesting budgets or grants are excluded.
  2. Proposals making minimal amendments to previous proposals (e.g. fixing only typos) are excluded from this program.
  3. Proposals that have no direct, actionable outcome (e.g. establishing a mission statement) are excluded from this program.

Eligible Recipients

The original authors of a proposal are considered the eligible recipients of the reward. Those who initiate the Snapshot vote will not be eligible for a reward. If there are multiple authors of a proposal, it will be assumed that the reward will be evenly split unless explicitly stated otherwise to the community multi-sig disbursers.

Distribution

@RoundElephant , StableNode (@Bobbay_stablenode) and @DAOplomats.eth can form the newly made community multi-sig for these community incentives.

Distribution will occur at the beginning of the following month.

Authors of a proposal should communicate with community multi-sig signers to provide the correct wallet information for distribution. Wallet information can be communicated in private, but all transactions are public since they are on the blockchain.

StableNode, 1INCH Core Contributors and DAOplaomats will be exempt from this program and will not be eligible to receive any rewards.

Administration

  1. StableNode provides a monthly update of eligible proposals in the current month.
  2. Community multi-sig distributes funds in the first week of the following month.

Accountability

StableNode will document a record of all successful proposals providing the following information:

  1. Link to Proposal
  2. Summary of Proposal
  3. Authors
  4. Transaction Payments

This will help us review this proposal and consider whether 1INCH DAO should continue to provide governance incentives or pause the program.

Rationale

Without these incentives, 1INCH DAO will continue to lack community participation. The community can review these governance incentives after 6 months to evaluate their success and whether to let it continue or pause the program.

Considerations

Completion of all phases might be a potential deterrent for beginners. The reward might not attract long-term participants.

Next Steps

Due to previous feedback on my other thread [RFC] Governance Community Participation Incentives I will leave this open until Friday till I move to Phase 3

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Temperature check was successful and will be moving this to Phase 4.

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