Seek Authority from the community to establish compensation and bonus framework.
The DAO has been operating under the framework introduced in stopgap budget proposal OIP-47A, since that time the DAO has added a governance council, and worked to reduce monthly spend. The stopgap budget proposal was never intended to be permanent, but allowed the DAO the bandwidth to flex and contract within the market demands of the time. Now we propose to adjust the framework, and add a longer term horizon and stability for contributors, so that the DAO can retain and reward contributors who help to push Olympus to its goals.
Historically there have been two schools of thought, both from within the DAO as well as from the community server:
No matter the plan that is presented, it is impossible for both groups to be fully satisfied. Therefore this proposal is based on months of effort with the aim of satisfying what makes the most logical sense, and keeping in mind what is best for the protocol’s overall health.
The aim of the plan is to induce stability and security for contributors, as well as for the protocol. Contributors want to forecast allocations, and budget accordingly. Likewise, the DAO benefits from being able to project out costs and expenses so that it can adjust when necessary.
It’s important to note contributors are not employees, nor will they be, but will be acting as contracted members.
Under the proposed setup there will be two groups of contributors:
Consistent contributors can be either full time or part time contributors. The key is that they are reliably present, have a set scope and expectations, and meet those standards when checking in with their lead.
Contributors must have two months of contribution at a certain level prior to being able to be offered a six month time frame. If a contributor fails to meet the expectation levels for two consecutive months, or if they stop contributing, they will be offboarded from this contract.
The benefits of contributing at a set level are predictability and stability in allocations from month to month.
Variable Contributors, as the name suggests, are variable. They are not able to contribute to the same level from month to month either because there is a fluctuating need from the protocol, or they have variability in their own availability.
Variable contributors will speak with their leads prior to or at the beginning of the month to set expectations for workflow and compensation. The output will then be evaluated at the end of the month to see if objectives were met.
Each department will have a budget within the total DAO $370k monthly allotment. There will be an allowance for a 25% max global budget flex increase in a month vs expected budget, to be used sparingly. This makes $462.5k the max monthly contributor allocation payout.
The disbursement of the flex increase will be limited by a max cap of 50% increase over a single department’s budget vs their expected budget, and must be agreed upon by all departments.
Allocation levels will follow a similar format from OIP-47. An amended table is included below to reflect the changes in departments. These levels will also factor into contributor bonus amounts.
Each month a contributor will be assigned a level. This level will equate their monthly allocation.
Bonuses are based on hitting DAO goals, on a sliding scale, to ensure that incentives are aligned between contributors and the community.
The goals and weight are as follows:
Council and Stratego allocations have been lowered and bonus increased to align incentives with the protocol and community. Contributor allocations remain the same, the only changes are the addition of bonus.
General and Engineering yearly Bonus Max: $84,000
Content yearly Bonus Max: $24,000
Total Bonus is calculated by level of contribution and achievement of OKR’s on a sliding scale and will be distributed in 6 months at the beginning of January 2023. Around that time we will assess if it makes sense to continue on a 6 month time frame or pivot to a 12 month frame.
Please keep this 6 month time frame in mind when reviewing the charts below that calculate yearly totals.
When creating this compensation plan a few factors were taken into account. One of which is Runway.
We will make a few assumptions:
1. Roughly $28M in the DAO treasury
2. Assuming 0 revenue or growth to this amount
3. Assuming 40 Contributors and 7 paid Council/Stratego positions
Costs can be broken down into these basic categories:
-Contributor compensation: $370k/month - $462.5k/month when flexed
-Monthly Expenses / Services: $500k/ year estimate
-Audits: $500k/year budget
-Legal: $500k/ year budget
With the previous assumptions in mind, this results of this proposal are estimated to output:
Edit to Add: All compensation and bonus will be paid out in gOHM. Currently compensation is paid out in gOHM, as it has been for over 6 months, previous to that compensation was in OHM.