Summary
ProfMcCarthy is seeking the ShapeShift community’s approval for the continuation of his leadership in the Tokenomics Workstream from August 1, 2024, to February 28, 2025. This proposal includes a request for compensation of $14,000 per month in FOX tokens and outlines strategic focuses on analytics, fee optimization, operational coordination, and enhanced dashboard development. It also introduces a shared bonus structure ($10k total of fox tokens) to recognize the contributions of all key team members involved in achieving the defined KPI. Additionally, this proposal introduces a $8,000 per term USDC allocation for dashboard work and other contracting needs for the tokenomics workstream.
Abstract
Under ProfMcCarthy’s leadership, the Tokenomics Workstream has made significant progress in enhancing operational efficiency, financial transparency, and dashboard development over the past six months. Despite challenges posed by volatile markets, the Workstream has adapted its strategies to improve DAO operations and lay a solid foundation for future growth. Moving forward, the focus will be on refining financial management strategies and further aligning with the DAO’s long-term goals.
Reflection and Strategy Adjustment
Acknowledging the successes and the areas for improvement over the past term, ProfMcCarthy has taken the opportunity to refine the Workstream’s approach by implementing new controls, policies, and procedures. Key adjustments include:
Refined Fee Models: Continuous adjustment of fee mechanisms to better align with market fluctuations, aiming to optimize revenue generation for the DAO.
Expanded Financial Dashboards: Further development of comprehensive dashboards for tracking revenue, liquidity, treasury, and rFOX activities, enhancing data-driven decision-making.
Improved Resilience Plans: Strengthening contingency strategies to manage unexpected financial scenarios and maintain DAO stability.
Enhanced Transparency: Ongoing efforts to simplify and improve documentation and communication around DFC meetings and decisions.
Motivation
This proposal leverages ProfMcCarthy’s expertise in decentralized finance, economic analysis, and DAO treasury management to continue guiding the Tokenomics Workstream. His deep understanding of DAO operations, multisig coordination, and decentralized governance challenges positions him well to navigate the evolving market landscape and implement effective tokenomic strategies.
Specification and Future Focus
In his continued role, ProfMcCarthy will concentrate on the following areas:
• Analytics and Fee Optimization: Working closely with the product team to refine fee models using detailed analytics of user behavior and market conditions.
• Operational Coordination: Facilitating smooth communication and coordination between the DFC, multisig signers, and broader DAO operations, ensuring efficient transaction processing and governance actions.
• Strategic Financial Management: Leading the development of advanced financial dashboards, overseeing asset diversification, and executing stablecoin strategies to strengthen the DAO’s financial health.
Revised Goals and KPIs
To align with the updated goals, the following KPIs will be tracked and reported regularly to the community:
Fee Optimization Effectiveness:
• Measure the percentage increase in total fees generated over the past quarter by refining fee models.
• Target: Achieve a 10% increase in fees generated by the end of the term.
• Report quarterly on changes made to fee models and their impact on revenue.
Dashboard Development and Utilization:
• Track the number of completed dashboard enhancements (e.g., new metrics, visualizations) and their adoption rate by the DFC and community.
• Target: Develop and implement at least three major dashboard updates by the end of the term, with a 75% utilization rate by stakeholders as measured by a survey of some kind.
• Report monthly on the progress of dashboard updates and utilization metrics.
Contingency Strategy Implementation:
• Track the number of contingency strategies developed and tested for unexpected financial scenarios.
• Target: Develop and implement at least two new contingency plans and test them through simulations or real-world applications.
• Report every two months on new strategies, testing results, and any adjustments made.
Transparency in Decision-Making:
• Monitor the frequency and clarity of communication around DFC meetings, decisions, and documentation. Also assess clarity of communication with survey?
• Target: Publish agendas, minutes, and summaries for 100% of DFC meetings, with a simplified format accessible to the community.
• Report after each DFC meeting with a summary document available on the community forum.
Community Reporting Frequency:
• Track the frequency and consistency of reporting KPI progress to the community.
• Target: Provide a comprehensive KPI report every month to the community, detailing progress on each of the above goals.
• Report monthly via the ShapeShift community forum, including any challenges, adjustments, or notable achievements.
Other Components to Track:
• Engaged rFOX Holders:
Measure the number of rFOX holders participating in trading activities on the platform.
• Cross-Utility Traders:
Track the number of traders who are also rFOX holders and the volume of their trades.
• Conversion to rFOX:
Assess the number of traders who purchase FOX and subsequently become rFOX holders.
• Active Usage for Fee Discounts:
Monitor the number of unique addresses using FOX for fee discounts, and measure the frequency and volume of their transactions.
• LP Engagement:
Track the number of token holders participating in liquidity provisioning (LPing) activities, and evaluate changes over time in the volume and diversity of LP positions held.
• Utility Diversification Score:
Develop a composite score that reflects the distribution of FOX usage across various planned tokenomics use cases (fee discounts, rFOX, LPing, etc.).
Shared $10k Total Bonus Structure to the DFC
The $10k bonus will be a shared reward system (split evenly among DFC members) recognizing the collective efforts of the Workstream Leader and key contributors, including DFC members. The $10k of FOX tokens would be distributed if and only if the DAO increases its stablecoin holdings to >$1MM by the end of this term.
Benefits
Continuing ProfMcCarthy’s leadership will ensure stability and continued innovation within the Tokenomics Workstream. His expertise in economic strategy and proven track record in decision-making provide a robust foundation for advancing the DAO’s tokenomics.
Drawbacks
There are inherent risks in allocating resources for compensation and pursuing dynamic tokenomic strategies, particularly in a volatile market environment. However, these risks are mitigated by the proposed shared bonus structure and a focus on diversified metrics that align with the DAO’s long-term goals.
Vote
• For: Endorse ProfMcCarthy’s continued leadership, supporting the strategic advancements and refined goals proposed for the next term, alongside the $10k of fox distributed reward system to the DFC and $8k of USDC for dashboard work.
• Against: Oppose the renewal, eliminating the Tokenomics workstream and ceasing progress on the above efforts for the DAO.
