Tipping Liquidity Proposal - 5000 $BANK to Every Level 2

Fueling the bDAO Tipping Culture through Season 1

Foreword

Shout out to @AboveAverageJoe for the idea of this proposal. Joe has really championed our tipping culture and is unsurprisingly the most prolific tipper in BanklessDAO. Huge thanks also to @McKethanor for scraping the tip data and the network graph and @paulapivat for coordinating the analytics guild request. The data and visualizations would not be possible without this support. :pray:

Purpose

The idea for this proposal is simple. Let’s keep the BANK :money_with_wings:flowing to incentivize participation at all levels and say thanks to contributors.

Background

BanklessDAO initiated the Collab.Land tip bot early in Season0 and contributors lined up for the sweet social/utility/gov token by undertaking meaningful work. Whether for bounties or just recognition tips, contributions are instantly incentivized when our operations team, key influencers, and motivated stakeholders have plenty of BANK at the ready on layer 2.

Guilds have now received Season1 funding. However, it will take some time for this newly issued BANK to achieve velocity within the DAO; the best practices of translating these tokens into services funded or bounties paid in a credibly neutral way are still being determined for most guilds. Not to mention these funds are almost exclusively on layer 1; they will likely be issued retrospectively in batch, to save gas.

Thankfully, we have a culture of tipping to recognize individual efforts in real time, especially for the smaller contributions that all members benefit from (like taking notes in meetings, for example). Our DAO has a core group of active tippers which are always spreading the wealth (thanks to all who continue to be active tippers - you know who you are). I also believe it’s likely there are more who would like to be more active tippers but don’t have a big !balance on layer 2.

Mission and Values Alignment

The proposal clearly aligns with our values. Tipping is an awesome part of the BanklessDAO culture, and we want to drive participation.

Specification

Does tipping need a boost? Let’s start with some statistics.

Stats on BanklessDAO Discord Collab.Land tips from June and July of 2021:

Number of transactions: 1,595
Number of unique tippers: 85
Number of unique recipients: 234
Total tips given: 417,854.7 BANK
Highest tip: 10,001 BANK
Lowest tip: 1 BANK
Average tip: 262 BANK
Median tip: 100 BANK

Network graph:

See the interactive version of @McKethanor’s network graph here: Bankless DAO Tips Network Graph

As you can see, tipping frequency and totals have been trending down in recent weeks. Let’s pump it up!

The Proposal

Let’s allocate 5,000 BANK from the general treasury to each level 2 contributor’s wallet, on layer 2, to be used for tipping.

Since gas is required to move BANK from mainnet to layer 2, there is an associated cost for members who would like to reload their balance available to the tip bot on layer 2. We want to increase the available market cap on layer 2 to increase tip velocity, and get more BANK onto layer 2 in a gas-efficient way. A small subsidy from the bDAO treasury to boost layer 2 balances should give a nice liquidity jolt to this tipping economy and get the BANK flowing!

Financial Implications

Based on current contributor-level membership, this proposal is estimated to require a total allocation of 180,000 BANK (5000 BANK times approximately 36 members at level 2 and higher) from the treasury in order to be implemented.

Success Metrics

A successful boost in the tipping economy would be expected to increase the tipping frequency (# of transactions per unit time) and potentially also grow the number of unique tippers. It is recommended that tip amounts in BANK not be considered a KPI at this stage, since many of the larger tips during the first 2 months were used for contributor remuneration for regular guild work, prior to the existence of guild funding.

If successful, this allocation could be repeated in future seasons to keep layer 2 balances topped up and the tip bot active.

Next Steps

This proposal will be live for a minimum of one week for voting and comments. If passed, the funds will be issued thereafter.

Do you approve this proposal to allocate:

a) gas funds for a single bulk migration to layer 2, and

b) 5000 BANK to every Level 2+ contributor,

for the purpose of boosting the BanklessDAO tipping culture?

  • Approve
  • Reject
  • Abstain, or more info needed (please explain in comments)

0 voters

5 Likes

Excellent Proposal @tomahawk Tipping Culture is Casual Good Vibes and brings utility to the token. On a personal note, I have not been tipping since the end of the coordinape experiment. Here’s why: when it was clear that my allocation was substantial enough to invite the love of my life and business partner Katarina, I market bought the amount that was allocated to me and sent it to her so she could join the DAO as L1 as she was already fully clued up with all things Bankless DAO. When the allocation was airdropped in my private wallet I was still underwater in terms of DAI as I bought the exact top to enter the DAO. I have not regretted it a single second, as it feels like a dream come true to finally life the DAO life full-time. However I do miss tipping (so far I tipped 15K I think) but my collab.land wallet has only 100 BANK left so I highly appreciate this initiative, the proposal and the epic number crunching done by @paulapivat and @McKethanor Also huge credit to @AboveAverageJoe for bootstrapping the tipping culture. In short: LFG

5 Likes

Agree with the principal and budget.

Methodology may be tricky since we would need a dummy account to be the “DAO” or otherwise someone to take the 180k BANK and distribute it via Collab.land bot (which also takes a fee, so make sure to include that cost in the proposal).

Not sure there is another way to airdrop funds since we don’t know the actual kchannel addresses etc.

1 Like

Agree the mechanics are clunky to implement this. The current plan is to have AAJ do the gas transaction and disseminate to the level 2s via tips but I hadn’t considered the 0.5% fee. Personally it doesn’t seem like that Collab.Land fee is actually live at the moment. Balance is always a round, whole number in BANK, no decimals in the balance ever. I pretty much tip out everything I get and have never had a problem tipping the balance to zero. Has anyone else noticed their layer 2 balance getting charged for fractions of a BANK?

2 Likes

I am an active and constant small amount as perhaps my only current role I feel competent to accomplish. It was one of the first skills I learned. I was even successful in moving my bank from MetaMask but the first reload took AA Joe’s help. It is a most important part of my DAOing at least until get smarter.

2 Likes

Hey thanks for the incredible network graph. Really amazing!

I totally agree with this implementation.

When I started out writing forum proposals. Tipping small amounts really brought a lot of people to come and help to collaborate. And it was incredible, people were definitely putting in so much more than I can tip them.

And that was when I learnt my first life lesson about “DAO-ing”.

totally, LFG, this is the gwei.

2 Likes

I could implement the tip.cc bot for it potentially, though I anticipated being on collab’s l2 for this action. Tomahawk asked if I would be willing to apply the distribution on l2, and I agreed. Not a big need to factor in the cost, as it’s 50 bank/contributor. I can absorb that in the spirit of the initiative.

3 Likes

This data is awesome; I’d sensed a drop-off in the tip culture but wasn’t sure if it was just in my pockets of the DAO… love the clear picture data provides.

I’m in favour of the experiment and as a level-2 would be totally down with stepping up my tipping game again to help recognize contributions.

1 Like

I would nominate Joe for this.
He contributed around 100k to the tipping economy at the start of the DAO, and that history gives him the stamp of distribution approval for me.

4 Likes

Fully support this excellent initiative & many thanks to ALL the contributors who are making BankLESS DAO so AWESOME!!

2 Likes

Definitely support this proposal! Tipping is a direct token of appreciation to another person, which makes working inside the DAO more vibrant and more rewarding. It’s also a great way to distribute BANK tokens to the people contributing to the DAO. The amount seems reasonable.

P.S. Great job on the graph! :fire:

2 Likes

My hesitancy is to make sure that this is not violating any US regulations. Can we get a Legal Guild opinion on this matter?

Perhaps there can be alternative to tipping BANK tokens, like custom NFTs or POAPs? They can be redeemed for Bankless Swag or sold on OpenSea. We need a Pachinko-like solution.

Gr8 proposal. Diligent research. Thank you.

Hi everyone, I want to first cross-ref to my comment on the token sale thread, since my concern here is similar (and everyone in the Legal Guild is very aware of my twitchiness on this topic) that using BANK as a compensation mechanism isn’t ideal if trying to argue that it isn’t a security.

That said, in the hierarchy of bad, tipping BANK seems lower than using it as salary or bounty payments. Characterizing a tip as “bonus points” to give them a relatively bigger voice in voting since they culturally align with the DAO’s mission and not “thanks for the work, here’s a dollar” is probably less risky. I still don’t think it’s ideal, but I do think it’s less bad

2 Likes

I don’t see it violating any laws but it could be considered a taxable event if the amount is high enough for a US tax payer…

3 Likes

im still passing out bank, love it

2 Likes

‘5000 BANK times approximately 36 members at level 2 and higher’ → @tomahawk proposal is to allocated to lvl2 only or lvl2 to lvl4?

It was level 2 only, good catch in the wording.

Moving to archive. Please reply to reopen.

We have soft consensus on this. Has this moved forward anywhere? I haven’t seen it on snapshot, is it going directly to another committee for funding?