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 and by retaining top contributors.
It’s important to note contributors are not employees, nor will they be, but will be acting as contracted members.
Each department will have a contributor budget within the total DAO $370k monthly allotment for contributor base allocations. 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 under this framework.
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. 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.
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 intentionally lowered on a monthly basis, and OKR bonus amount increased, to align incentives with the protocol and community. This ensures that total allocations will be lower for Council/Strategos if OKR goals are not met. Total max 6 month allocation/bonus disbursement for Council/Strategos is 2x the max General disbursement and 1.4x the max Engineering disbursement to reflect the added responsibility and tasks. For clarity, Council/Strategos will only receive Council/Stratego allocations and bonus, and are not eligible for department allocations or bonus. Contributor allocations remain the same, the only changes are the addition of bonus.
General and Engineering 6 month Bonus Max: $42,000
Content 6 month Bonus Max: $12,000
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.
The polling process begins now and will end at 16:00 UTC on July 1st 2022. After this, an OIP proposal may be added to Snapshot for final vote.
For: Adopt new compensation and bonus framework
Against: Reject and keep using current stop-gap