SUMMARY:
The ShapeShift community approved the creation and funding of the Tokenomics Workstream in November 2021 (SCP-40). This measure elected Kent as the Workstream’s leader, and provided a budget for the Workstream through March 31, 2022.
With that date quickly approaching, it’s time to outline the next phase. If passed, this proposal will fund the Tokenomics Workstream through June 30th, 2022, and re-elect Kent as its leader.
Note:
For deeper discussion about the Workstream's performance and initial goals, please see this proposal's Ideation post: https://forum.shapeshift.com/t/scp-69-funding-leadership-of-tokenomics-through-june-2022/1295
Q2 GOALS:
1a.) Reach our current goal of $10,000,000 worth of stablecoins in our treasury.
This seems very realistic! We’re averaging $100,000/day via our FOX/USDC bond, and already have $3.5M worth of stablecoins. Even factoring in $500,000/month for payroll, we should be able to reach $10,000,000 by the end of June assuming the current bond dynamics hold firm. There may be other ways to generate stablecoins as well, such as executing arbitrage strategies in our AngelVault.
1b.) Expand our diversification beyond stablecoins. Once we’ve hit our goal, we’ll be in a good position to add other tokens to our treasury. Reasonable initial targets would be “blue chips” such as ETH and wrapped BTC. (Note that we’re already accumulating ETH via our LP token buybacks).
2.) Complete the DAOshboard.
We’ve already got most of the components in place; let’s put it all together!
3.) Contribute to new value-accrual mechanisms.
This is intentionally broad, as it covers a multitude of initiatives, including FOXy, TMDC deliberations, and vFOX, as well as other strategic initiatives that will likely arise as a result of the Tokenomics and its many contributors (similar to how the Workstream contributed to new revenue streams in the prior quarter). I anticipate that this area will take up the lion’s share of our attention in the coming months.
4.) Continue to increase awareness of the DAO.
In our first term I was able to promote ShapeShift via a variety of channels, including speaking engagements at in-person events (ETHDENVER and Ethereal), as well as via media interviews (via Decrypt). This is arguably invaluable in terms of making both users and potential contributors aware of what we’re doing. As such, I aim to build further outreach momentum–with help of our newly-minted PR rockstar Lindsay–in Q2.
BUDGET STUFF:
I’m pleased to report that of the $50,000 allocated for Workstream bounties and contributions, only $4300 was spent during the initial phase. Thus, we currently have 45,700 USDC in the Tokenomics Colony sub-treasury. As such, I’m requesting 4300 USDC (to be allocated at the beginning of the term in April) to bring us back to an even 50,000 USDC for Q2. That gives us just over 16,500/month for the next quarter, which should be more than sufficient to accomplish our goals.
WORKSTREAM LEADER COMPENSATION:
The original Tokenomics proposal included a conditional performance bonus rather than a salary:
“The Workstream Leader has no associated salary for this first term. However, should the Workstream meet its goals over the following four months, the community will have the option of rewarding its Leader a $45,500 performance bonus.”
As described in the post I linked above, I believe the Workstream has executed on its original goals and performed in a manner that’s helped strengthen the DAO’s financial position. This proposal’s budget includes the payout of that one-time bonus.
This proposal also includes a monthly Workstream Leader salary of $14,000 for the following three quarters.
Total through June 30th, 2022: $4300 (Workstream contributor/bounty allocation, payable in April) + $45500 (Workstream Leader performance bonus, payable in April) + $42,000 (Workstream Leader monthly salary for three months) = $91,800.
POTENTIAL DRAWBACKS:
Imagine a ShapeShift DAO where there was only an unofficial, non-funded, Tokenomics Workstream. In this scenario, a lot of meaningful work would still get done; the TMDC would still function (its budget is not a subset of Tokenomics), and contributors could still find myriad ways to collaborate–all without needing to spend funds from the DAO treasury on Tokenomics functionality or leadership.
WHAT THIS VOTE DOES:
1.) Fund the Tokenomics Workstream with $91,800 as described above.
2.) Re-elect Kent as the Tokenomics Workstream Leader through June 30, 2022.
