A number of changes have been made thanks to the amazing feedback on the previous draft:
- Removed references to stripping L2 status for non-participation
- Added participation requirements for L1’s and L2’s
- Reaffirmed that Guest Passes cannot allocate GIVE (for sybil resistance)
Coordinape is the product we use to distribute 4.5M BANK a season for contributor rewards. This represents around 15% of our total seasonal budget. This BANK is distributed monthly - 500K BANK respectively for Guest Pass, L1, and L2 contributors.
Contributors sign up for the coordinape round monthly and allocate GIVE to their fellow contributors. After a week, the GIVE amounts are tallied and then converted to percentages, which are then used to allocate the pot of BANK for each member circle (i.e. if you receive 1% of all GIVE, you are rewarded with 1% of 500K BANK, 5000 BANK).
The intent behind coordinape is to compensate contributors for their work the previous month. Put another way: the goal of coordinape is to encourage contributors to contribute.
- Coordinape is complicated, especially for BanklessDAO newcomers. There are 3 circles (one for each member level), and it can be difficult to understand how to use the system, much less how you should be allocating on each circle.
Coordinape doesn’t reward contribution
- The Ops Guild recently shared that there is only ~65% of L1 and L2s who signed up actually allocated GIVE. Because of the way GIVE translates to BANK, contributors are incentivized NOT to allocate, because they get a bigger piece of the pie when they don’t.
- Our L2s are our most active contributors, and it’s possible (and probable) that less active Guest Passes receive MORE in coordinape rounds than these extremely active contributors simply because there are more L2s sharing the same 500K BANK. I’ve personally dumped a ton of GIVE on a Guest Pass simply because I didn’t have anyone else to give it to.
Coordinape doesn’t encourage contributors to move up member levels
- In May’s coordinape allocation, the top Guest Pass and L1 each received around 2x more BANK than the top L2. I’ve even seen contributors refuse L2 nominations.
- Since Guest Passes can’t allocate GIVE, it’s desirable for them to stay as Guest Passes to benefit from coordinape without contributing to it.
- Convert the 3 circles into a single BanklessDAO circle.
- Only distribute rewards to L1 and L2 who allocate a certain percentage of GIVE. This doesn’t apply to Guest Passes are they aren’t allowed to allocate GIVE (to prevent sybil attacks)
- Use pirate math to weight rewards towards higher-level contributors: Guest passes get 2 shares, L1’s get 3 shares, and L2’s get 4 shares. How this works in practice is that after all GIVE is allocated, L1’s and L2’s will have their GIVE multiplied by 1.5 and 2, respectively.
An example using 1/1.5/2 multipliers and requiring 50% allocation of GIVE for L1’s and L2’s:
- 75% or more
- 50% or more
- 25% or more
- I don’t think L1’s and L2’s should have to allocate GIVE to get rewards
- The coordinape process will be simplified. Instead of having 3 circles, there’s just one, which makes it easier to teach people how to use it.
Coordinape will more closely reward contribution.
- With everyone in the same circle, it’s easier to align your GIVE with who you’ve actually seen contribute, rather than run out of GIVE in the L2 circle and have excess in the Guest Pass level.
- With a requirement to participate to get rewards, we’ll see more L1’s and L2’s participating in coordinape itself.
- Contributors will be encouraged to move up member levels because of higher rewards. This means contributors will be encouraged to hold onto BANK. We often talk about utility of BANK…this is utility!
- This could encourage L2’s to stick around longer. I can’t be the only person to notice that L2’s have a habit of reducing their commitment after a few months. These are, by definition, our top contributors. We need to encourage them to stick around and contribute.
In the previous post, the 1/1.5/2 multipliers were vastly preferred. Another way to look at this: Guest Passes get 2 shares, L1’s get 3 shares, and L2’s get 4 shares of the “loot”.
Here’s a little spreadsheet to see the impact of this change on May’s Coordinape (see May Coordinape 1/1.5/2 Tab). Note that this simulation doesn’t take into account how things would change if all contributors were in a single circle.
- Work with Coordinape Workstream in Ops Guild to see if it’s technically feasible
- Gather consensus in a forum post
- Draft a second forum post to solidify consensus
- Bring to Grants Committee to determine if we need to run a Snapshot
- create a Snapshot
- Implement the proposal for the next Coordinape round
I’d love your feedback!
- Yes indeed!
- No, and I’ll tell you why in the comments.