Summary
This proposal establishes and funds a new KeepKey workstream, and elects @pastaghost and @highlander as workstream leaders. The workstream will utilize a hybrid funding strategy, with 50% of the funding being contributed by KeepKey, and 50% of the funding being contributed by the ShapeShift DAO. The primary efforts of the workstream will be directed toward building applications to support KeepKey users as well as the ongoing maintenance of the KeepKey integrations in existing ShapeShift products. Revenues from KeepKey device sales will be shared equally with the ShapeShift DAO for the period of this workstream.
Links to the original and incubation and ideation posts can be found here:
incubation | ideation
Abstract
As of Jan 1, 2022, KeepKey is now owned by @pastaghost and @highlander. Despite KeepKey now being independently owned and operated, the overwhelming number of KeepKey users are also ShapeShift users, as ShapeShift is currently the only deFi platform providing first-class KeepKey support. The total amount of assets in orbit currently held on KeepKey devices is quite large (~$2.3B as of March 2021), and so it is in the mutual interest of both KeepKey and ShapeShift to work to migrate those users to the v2 web application and provide a high-quality UX that promotes customer retention and trading activity across the platform. This document proposes a workstream, led by @pastaghost and @highlander, that will assemble and manage a joint engineering effort to build and maintain the KeepKey integration in the ShapeShift v2 platform and expand the product offerings in the KeepKey ecosystem. The ultimate goal of the workstream is to ensure that the ShapeShift platform is the number one place to use KeepKey devices and that KeepKey is the number one wallet to use on the ShapeShift platform.
This proposal seeks to fund the proposed KeepKey workstream for a six-month term, after which the viability of the workstream will be reassessed and its funding recalculated based on feedback from the ShapeShift DAO. The workstream will utilize a hybrid funding strategy, with 50% of the funding being contributed by KeepKey, and 50% of the funding being contributed by the ShapeShift DAO. The workstream will be operated as a profit-generating enterprise, and sales revenues will be shared equally between KeepKey and the ShapeShift DAO treasury for the duration of the workstream. The portion of generated revenues allocated to the ShapeShift DAO treasury is only of supplementary benefit to the ShapeShift DAO; the primary financial benefits of this workstream to the ShapeShift DAO are the potential earnings generated by increased user traffic and increased valuation of the FOX token as a result of the efforts of the workstream. With estimates of assets held on KeepKey devices exceeding 2.3 billion dollars, there is a large potential for KeepKey to be the ShapeShift DAO’s largest revenue generator if users successfully migrate to the new platform.
The KeepKey workstream shall be responsible for the following:
- Maintenance of KeepKey integration on legacy and v2 platforms
- Customer support for KeepKey issues raised through the ShapeShift support channels
- Development of KeepKey related features requested by the engineering workstream in v2 web application
- Technical support for the portions of future bounties accepted ShapeShift DAO involving KeepKey
- Technical support for partners of the ShapeShift DAO building with KeepKey
- Negotiate and organize opportunities with external partner organizations to the benefit of ShapeShift, KeepKey, or both. This includes, but is not limited to, adding native support for deFi platforms to KeepKey, adding support for new assets to KeepKey and its related products, or any other relevant bounties proposed by external partners.
Motivation
In order to maximize the success of the ShapeShift platform, users of the legacy ShapeShift web application need to be able to seamlessly migrate to the v2 application. Since the overwhelming majority of legacy ShapeShift’s assets in orbit were held on KeepKey devices, it follows that maximizing user migration to the v2 app requires that first-class support for KeepKey be provided by the new application. With KeepKey, we are able to tailor the hardware wallet UX to the needs of the ShapeShift user base in order to provide existing users of both ShapeShift and KeepKey with the best hardware wallet experience available online. Doing so is of mutual benefit to both KeepKey, by providing users with quality services that promote customer retention, and ShapeShift, by promoting KeepKey user activity on the platform and driving revenue to the ShapeShift DAO through the existing affiliate revenue programs.
Specification
Goals
- Retain existing KeepKey users
- Drive new and existing KeepKey users to the ShapeShift v2 platform
- Drive KeepKey user activity on the ShapeShift v2 platform
Success Metrics
Measured KPIs:
- Targeted 8% month-over-month increase in device sales
- Targeted 8% month-over-month increase in new device setups
- Targeted 8% month-over-month increase in average daily active users
- New device setups and average daily active users to be measured using Pendo on Alpha platform
Funding
150,000 USDC contributed by KeepKey
150,000 USDC contributed by ShapeShift DAO
Funds are to be transferred to a treasury service controlled by the workstream leaders.
Budget
| Position |
Monthly Expense |
6-Month Total Expense |
| Leadership |
$4,638.33 |
$27,830.00 |
|
$4,638.33 |
$27,830.00 |
| Sr. Firmware Engineer |
$16,666.67 |
$100,000.00 |
| Engineering Bounty Allocation |
$15,000.00 |
$90,000.00 |
| Discretionary Engineering Funds |
|
$3,000.00 |
| Marketing Manager |
$2,500.00 |
$15,000.00 |
| Discretionary Marketing Funds |
|
$24,340.00 |
| Support Agent / Fulfillment |
$2,000.00 |
$12,000.00 |
| Total |
$50,000.00 |
$300,000.00 |
*Notes:
- Any unused funds remaining at the end of the workstream period will be divided evenly and returned to the KeepKey/ShapeShift DAO treasuries.
- Funds allocated for the above-listed engineering positions may be used to hire short-term contractors anytime during the duration of the workstream that those positions are vacant.
Leadership Compensation
Leadership may not take any income directly from this workstream that exceeds minimum wage, with minimum wage being defined as $55,660 annually or $27,830 total over the duration of this proposal.
Benefits
- 10% of KeepKey sales revenue will be used to purchase FOX, which will then be sent on a monthly basis to the FOXy contract to increase rebasing rewards for all FOXy holders. This will continue in perpetuity, so long as KeepKey and the ShapeShiftDAO maintain a productive working relationship.
- For the period of this proposal, the ShapeShift DAO treasury will receive direct monthly payments from KeepKey in the amount of 50% of the remaining KeepKey sales revenue. An itemized sales report will be made publicly available to all members of the ShapeShift DAO.
Drawbacks
It cannot be guaranteed that this Workstream proposal will be profitable for either KeepKey or the ShapeShift DAO. The profitability of the workstream depends directly on KeepKey sales revenue.
