• Proposal

  • OIP-102 Compensation Plan with Bonus Structure

Summary:
Seek Authority from the community to establish compensation and bonus framework.

Motivation:
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.

Background:
Historically there have been two schools of thought, both from within the DAO as well as from the community server:

  • Contributors are over allocated

  • Contributors are under allocated

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.

Goals:
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.

Budget:
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.

Allocations:
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:
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.

Polling Process:
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

Should OlympusDAO adopt this proposed compensation and bonus framework?

This poll has ended.
    Wartull changed the title to OIP-102 Compensation Plan with Bonus Structure .

    The progress is really not there. No revenue. Even the current budget has to be questioned. Nothing done to generate revenue. Every days ohm looks like a set of people enjoying the money from every one else. Ponzi!

    Very reasonable compensation plan IMO.
    Especially when you consider that solid developers make anywhere from 180-250k a year easily with other projects.
    100% in favor of the upper limits on leads and principles.

    What happened to the dashboard improvement? What happened to increasing the RFV? executiontion of projects is slower than snail.

    hOHMwardbound 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:

    Info may have been accidentally cut here?

        MrE ty, cleaned it up. Removed the consistent/variable section for the OIP to make it shorter + more readable.

          I dont see project done to increase the income/revenue of DAO? No work done on it yet there is a proposal to increase the payout to the devs. Teams work on increasing revenue and are paid. This is the only place where people are paid even without no revenue increase. Give a example of a project which was done this year to increase the revenue for the DAO?

          Why is the bond revenue graph removed from the chart? that was indicating how much revenue was there from bonds. Now remove it and no one will know such a things existed.
          50 million dollar worth DAI was swapped for FEI or some other stable. But it never got reflected even after a month.

          With this kind of progress the budget for the devs and other teams has to be really questioned. No progress yet the push for industry leading pay? Not at all acceptable?

          REDACTED

          @puthinakattu I'm going to give you warning. Either discuss in good faith or you will be muted.

          8 days later

          After being involved in multiple DAO's and attempting to create my own project a couple of months ago the main problem I realised with compensation is that there is no actual solution to it. Whatever you do will not be right and you will make someone unhappy.

          With that out of the way support the idea of this proposal and think this is a good way to further incentivise members to work harder to achieve goals, however I do think there are somethings that you are missing. just writing my unstructured thoughts so please bear with me.

          in Trad world there are 2 ways that you get "incentivised" to work harder for the company you are in. 1 is the stock options 2 is the bonus once certain milestones are successfully captured. Putting it into the context of this proposal we do provide both 1 and 2.

          expanding:
          1- salaries are already paid using gOHM. meaning contributors are already aligned with the long term success of the protocol.
          2- Bonus paid out on gOHM on completion of certain OKR's which will further incentivise people to achieve their goals. + establish more long term alignment.

          My main question is: what happens when we have another bull-run for ohm and even those "3k" salary and "10-20k" bonus contributors received and didn't spent (if they are smart) are worth millions. How do you then plan on incentivising people to work after that? not everyone is good a samaritan or thinks about the future they will leave.

          or to ask it in another way, what is our goal? to create a long term relationship with contributors or to keep them here until the next upwards break?

          imho. the initial flaw here is that we double incentivise contributors for the success of the protocol, which eventually will lead to everyone getting filthy rich once the delusion kicks in and market tops on the next cycle. Which imho. would be ok if that meant the protocol was actually successful and all the work was done but as many of us know price in crypto is not an indicator of success or the work that is being done (not yet at least)…

          My incomplete naive proposal is:
          1: Payout 75% stables 25% gOHM on salaries. Gives everyone enough money to live and decent saving. (you can always buy gOHM with the stables if you want)
          2: Change the bonus structure to everyone can get max 100% of their salary every 2. quarter (doesn't matter which role you are). But the percentage depends on multiple factors

          • 10% bonus comes from completion of personal goals you set (Learn new language, improve comm. skills …etc.)
          • 10% bonus comes from completion of personal goals your team members set for you
          • 30% bonus comes from completion of team goals/OKR's (can be completion of features, marketing campaigns, research …etc. meaning actual solid/visible work that team put out together)
          • 50% bonus comes from completion of Olympus goals which indicate the success and the growth of the protocol (treasury growth, premium, ops, rankings …etc.). This 50% will also be divided in weights as in original proposal.

          Once this bonus structure is there I also would add the personal + team bonuses (50%) are paid in stables and Protocol bonus (the rest 50%) is paid in gOHM with 4y linear vest.

          I know the people most likely won't like this proposal but thats me thinking out loud. Give it a thought…

            crud Thanks for your reply, this proposal has since moved to snapshot but I did want to let you know that I've read through your ideas and appreciate the time you've taken to share them!!

            Paying out a % in stables was discussed and decided against because of the goal of becoming the reserve currency- it seems counter intuitive to pay in stables instead of gOHM with this endpoint in mind.

            You ask about a bull run and say that people wouldn't spend their allocations if they are smart, but the facts are that some contributors need to spend allocations on normal cost of living expenses. Additionally, many contributors have been around since last fall and have seen the value of their unsold allocations drop drastically in price. So while there may be a bull run at some point in the future, there's always that risk that something would happen to drive down the value of the tokens as well.

            I see contributors working towards the success of the protocol and agree that price is not always an indicator of the work being done, current price is a great example. Over time I anticipate the price to more accurately reflect the value add that Olympus brings to defi.

            I think your bonus structure has some great ideas but that it's hard for the community to agree to giving a bonus for personal development vs output, especially in a bear market. It would be great to revisit this when things are further established and market conditions more favorable.

            • crud replied to this.

                hOHMwardbound

                Also thank you for the reply. I knew it was moved to snapshot but wanted to put down my thoughts anyways. I do totally understand that not selling might come with a high risk and that there is contributors who need the cash to continue their daily lives. So far I've been amazed with what y'all are doing and you deserve to be rich, my only concern is that once you become rich there will be some among you that will retire (which is good for them) and those who retire will be key people since the key people are the ones getting paid the most and had possibility to save through bear market. I also know for those key people money is not the reason they work here… So in a way I am not sure what I am afraid of 🙂

                Regarding the bonus structure. I don't think that certain decisions should be agreed by the community. Community should be able to trust the core team to behave in the way that is best for the protocol long term. Rewarding contributors for getting better at what they do is a good long term investment imho. But im just a random person on internet 🙂 I hope you revisit this at better times.

                Thank you for reading all that. Keep up the good work

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