Title: [Season 3] Reduce Membership Threshold
Date Created: 12/8/2021
Reduce the Season 3 membership threshold to 10,000 BANK for Level 1 and 100,000 BANK for Level 3.
We’re in the final stages of planning for Season 3. The Season 3 temp check allowed people to vote on the membership thresholds. Here are the results so far:
While the general sentiment is to keep the threshold unchanged, this post outlines the argument for why we should reduce the threshold and make Bankless DAO more accessible for individuals.
The 35,000 BANK threshold was initially set at Genesis as this was the nearest round number that users who held the 2021 Bankless Badge received in BANK. The intention was for the threshold to adjust on a seasonal basis to ensure the DAO remained accessible & all members were sufficiently aligned with the DAO (via skin in the game). However, we have never changed the threshold.
(It’s funny as this threshold reduction was proposed within the first week of Bankless DAO’s launch).
Bankless DAO is meant to act as a permissionless community that anyone can join and contribute to. We achieve this through BANK memberships and guest passes. However, the current threshold of 35,000 BANK is limiting a lot of individuals from becoming full members and causing an overreliance on guest passes.
We’re at the point where there’s a good case to change it now given the high barriers to entry which has led to some issues around Talent Onboarding and Guest Passes.
The core problem is that the current threshold creates a high barrier to entry for new participants, limiting our ability to onboard new talent while relying heavily on guest passes as a workaround. We now have tons of contributors who are responsible for renewing and managing guest passes, which has led to a significant amount of overhead for those individuals.
We want to create a broad community for the DAO to build on; however, the current threshold is limiting this.
We can see this as membership growth has stagnated. This is seen in our member graphs where the amount full members has largely gone sideways while the 0-35K BANK range has experienced a majority of the growth in holders.
People who are interested in the DAO simply aren’t accumulating or earning the necessary amount of BANK to become full members & active contributors. This could be because they may not think it’s worth the price tag for full memberships or they’re perfectly comfortable leveraging the guest pass for access.
Number of Full Bankless DAO Members
Number of <35K BANK holders
A lot of these point still apply, and even more so given some of the issues we’ve seen as outlined above. Adding to this, there’s a ton of benefits right now for reducing the threshold to 10,000 BANK.
Reducing the threshold would substantially lower the barriers to entry for joining Bankless DAO.
First, we’d immediately lock in ~500 new full members to DAO (per the stats above) while making the membership significantly more accessible for the 1700+ individuals in the 1-10K BANK range.
This would drive a lot more talent in the DAO while simultaneously reducing the amount of guest passes that we need to distribute on a daily basis. Given the growing issues surrounding guest pass management, I think this is worth noting as the threshold reduction would increase the conversion rate for active contributors who rely on these temp passes.
The second aspect of the reduction is arguably pretty valuable. A lot of individuals are constricted with the Level 1 threshold and especially Level 3, limiting them to LP or tip their BANK given they’d lose access to the membership.
By reducing both thresholds, it would open up a substantial amount of BANK to be used for tipping, payments, liquidity provisioning, lending & borrowing (soon ), and other activities that benefit the DAO. As a result of the reduction, the amount of BANK flowing through the Bankless DAO economy would increase, allowing us the generate more value across the board.
- Get consensus around threshold change
- Move to Snapshot in early January with budget requests
- Reduce Threshold to 10,000 BANK + 100,000 BANK
- Keep Threshold at 35,000 BANK + 150,000 BANK