Tokenomics Workstream Renewal (02.01.24-07.31.24)
Summary
This proposal seeks community approval for the renewal of the Tokenomics workstream and its lead for 6 months (retroactive to 02.01.24 and ending 07.31.24). This proposal includes the renewal of FOX compensation for the role of Tokenomics Workstream Leader, to ProfMcCarthy, with a compensation of $14,000 (entirely in FOX) per month of (3-month) locked FOX compensation. The Tokenomics Workstream Leader will oversee the management and revitalization of the ShapeShift DAO tokenomics and create dashboards and publish updates regarding the ShapeShift DAO to forums and Medium.
Abstract
Over the last three months, I have had the opportunity to gain a deeper understanding of the tokenomics needs of the DAO. In addition to basic reporting, FOX holdings on different chains, grant and fee revenue, LP decisions, it is clear to me now that analyzing and providing insights to the TMDC and workstream leaders is crucial for them to function.
The DAO has made significant progress in the last three months in terms of its sustainability. This is the result of both the implementation of fees and the TWAPs. Fee parameter management continues to be a core focus of this role, however, identification and analysis of relevant KPIs must precede any TMDC fee parameter changes. After years of resistance, the DAO finally embraced TWAPs, which has allowed for the repayment of our Arbor loans with no impact on runway.
Alongside PTT and FBL, significant progress has been made on dashboard reporting. Some key features include identifying the number of transactions, average swap size, top pairs, and total fees received by the DAO. Dashboards are being developed in the following order of priority: fees and grant revenue accounting, treasury holdings, TMDC holdings, TMDC actions, liquidity analysis, and governance activity. In addition to these dashboards, I have been reporting twice weekly to the TMDC regarding our stablecoins, revenues, outstanding debt obligations, liquidity across chains, rebalancing efforts, and stablecoin generation activities.
Aside from highlighting some of the things that have been going well, I want to also acknowledge a few remaining opportunities. In the interest of transparency, I have listed the tasks I had previously proposed below and provided updates on where I stand with them. Having three months under my belt, I am clearer on the vision and goals. With revised timelines and tapping into the resources available to me, I am confident in my ability to complete these tasks in a way that provides the greatest value to the DAO and contributors.
Motivation
The motivation behind this proposal is to formalize the continuation of the Tokenomics Workstream under the leadership of ProfMcCarthy. ProfMcCarthy is an Associate Professor of Economics at a state college in the US with a PhD in Economics from Colorado State University. They have experience in managing the DAO’s treasury, as they have been on the TMDC since its inception in October 2021. This transition is imperative to address the evolving dynamics of our ecosystem and align our tokenomics with the community’s interests.
Specification
The Tokenomics Workstream Leader, ProfMcCarthy, task progress update:
Accomplishments
Please see the forum post for this table (omitted due to character limitations)
Additionally, the Tokenomics Workstream Leader will play a crucial role in assessing the impact of the expanded fee model on our tokenomics, fine-tuning the fee model parameters, gathering feedback, providing data-driven insights, ensuring integration with governance, and staying up-to-date with market trends and competitor fee models. Additionally, alongside TMDC, the workstream will focus on stewarding the FOX foundation loan and keep a keen eye on the DAO’s token revenues, stable revenues, and outstanding liabilities with rigor and transparency.
ProfMcCarthy holds office hours, presents at Tokenomics meetings, recruits new members to the DAO and the Tokenomics workstream and the TMDC, and makes themselves available async within hours should any community member have need of them, day or night, seven days a week. ProfMcCarthy monitors FOX price, liquidity, rewards programs, and the DAO’s LP positions.
ProfMcCarthy would keep his role on the TMDC but forgo compensation previously allocated to him for the TMDC role.
Proposed Goals and KPIs for the Tokenomics Workstream
In response to community feedback and to further align our efforts with the DAO’s strategic objectives, the following goals and KPIs are proposed for the Tokenomics Workstream under my leadership:
Maintain a Minimum of Three Months of Stablecoin Runway in Treasury: To ensure the DAO’s operational resilience, we aim to maintain at least a three-month runway in stablecoin reserves within our treasury at all times. This will provide a buffer against market volatility and ensure continuity in DAO operations.
Providing Data Support for the Fee Management by TMDC/DFC: A key focus will be on engaging with the TMDC/DFC and providing insights for their management and adjustment of fee structures to ensure that new volumes and features introduced to the DAO lead to increased revenue. This goal emphasizes the importance of providing information, analysis, and support to other parts of the DAO to better enhance their decision-making ability.
Revenue Optimization Across All Streams: Collaborating closely with the TMDC and other relevant workstreams, we’ll seek to identify, analyze, and implement strategies to optimize the DAO’s revenue streams. This involves not just maintaining but enhancing existing revenue models and exploring new opportunities in alignment with the DAO’s financial goals and community values.
Transparent Reporting and Goal Tracking: To foster trust and ensure accountability, regular updates will be provided on our progress towards these goals. This includes detailed insights into treasury management, fee adjustments, revenue optimization efforts, and any strategic decisions made by the workstream. These updates will be shared through forums, Medium posts, and during community meetings.
Monthly Revenue Reports: The first report will be a monthly revenue report, published by the 7th of each month in the forum which provides a comprehensive account and analysis of the preceding month's revenues.
Benefits:
Leadership Continuity: Endorsing this proposal ensures uninterrupted leadership within the Tokenomics Workstream, enabling ProfMcCarthy to execute the evolved fee model, revenue forecasts, and meticulous management of the TMDC assets over the next 6 months. This continuity is crucial for maintaining the momentum gained in the previous term and for the seamless implementation of strategies devised for the DAO’s financial sustainability.
Expert Oversight: ProfMcCarthy’s expertise in economics and previous contributions to the DAO provide a strong foundation for strategic decision-making and the ongoing revitalization of the DAO’s tokenomics. Their role is vital in navigating the complexities of tokenomics and ensuring that our strategies are data-driven and aligned with the latest market trends.
Enhanced Community Engagement: ProfMcCarthy’s commitment to fostering community dialogue and incorporating feedback into tokenomics strategies enhances our alignment with community interests. This approach ensures that the DAO remains responsive to the needs of its members and adapts effectively to the evolving blockchain ecosystem.
Support for Dynamic Fee Structures: The renewal of ProfMcCarthy’s leadership will bolster the development and refinement of dynamic parametric fee structures. Their analytical skills and market insights are indispensable in optimizing these structures for maximum effectiveness and sustainability.
Drawbacks:
Resource Allocation: Allocating FOX tokens for ProfMcCarthy’s compensation involves dedicating resources that could be utilized elsewhere. However, this investment is anticipated to yield substantial returns through proficient management and strategic enhancements to the DAO’s tokenomics.
Inherent Risks of Tokenomics: The field of tokenomics, being relatively nascent, carries inherent uncertainties. Despite rigorous analysis and risk mitigation strategies, there is always a possibility of unforeseen outcomes. However, ProfMcCarthy’s expertise and the adaptive approach of the Tokenomics Workstream aim to minimize these risks.
Vote:
For: A vote in favor signifies support for the continuation of the Tokenomics Workstream under ProfMcCarthy’s leadership, with compensation set at $14,000 per month in FOX tokens over a 6-month period. This renewal is vital for the ongoing management and strategic development of the DAO’s tokenomics, ensuring its long-term sustainability and alignment with community interests.
Against: A vote against indicates opposition to the proposed renewal, leadership continuation, and compensation structure.
Please cast your vote as “For”, or “Against" to express your stance on this proposal.
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