[EP 5.18] [Social] ENS DAO Steward Compensation Structure - Term 6
| Status | Posted on Snapshot |
|---|---|
| Author | 5pence.eth |
Background
The ENS DAO Working Group Rules place the responsibility for steward compensation on the Metagov working group.
Working Group Rules: [EP0.4] [Social] Proposal: Creation of Foundational Working Groups and Working Group Rules [EP12][Social] Working Group Rules
With the passing of this social proposal in Term 4, these two rules were added:
10.4. The Meta-Governance working group are responsible for defining standards for fair compensation ('Compensation Guidelines'). 10.5. The Compensation Guidelines shall be defined prior to the Nomination Window for each term and can only take effect for the following term.
Summary
In accordance with rule 10.5, This post outlines the proposed compensation structure for ENS DAO stewards during Term 6. The structure builds upon previous compensation models but includes several important changes. Notably, this compensation proposal will be put to a DAO vote for approval.
Proposed Compensation Structure
USDC Compensation
The total USDC compensation is the same as Term 5. The base compensation structure remains similar to previous terms, with some adjustments:
| Role | Quantity | Per Steward Per Month | Per Steward Per Term | Total per Term |
|---|---|---|---|---|
| Steward | 6 | $4,000 | $24,000 | $288,000 |
| Lead Steward | 3 | $5,500 | $33,000 | $198,000 |
| Secretary | 1 | $5,500 | $33,000 | $66,000 |
| Scribe | 1 | $3,000 | $18,000 | $36,000 |
| Total | $588,000 |
(previous structure linked here for reference)
Key changes:
- The discretionary amount has been removed.
- The $3,000 previously allocated to each WG for discretionary compensation has been split evenly among the stewards of that working group.
- Regular stewards will now receive $4,000 USDC per month (up from $3,000).
- Lead stewards will now receive $5,500 USDC per month (up from $4,500).
$ENS Token Distribution
We are introducing a new structure for $ENS governance distribution to stewards:
- Each steward will receive $ENS tokens equal in value to their total USDC compensation for the year.
- The $ENS tokens will be distributed on July 1st, via 2-year linear vesting contracts.
- The $ENS token price used to calculate the number of tokens each steward receives will be derived from the average daily price of the token between January 1st and July 1st of the term.
- The vesting period will start from the beginning of the term (January 1st), meaning 6 months of vesting will have already occurred at the time of distribution.
Example calculation:
- A regular steward receiving $48,000 USDC for the year would also receive $48,000 worth of $ENS tokens.
- If the average $ENS price is $12 when calculated on July 1st, the steward would receive 4,000 $ENS tokens in a 2-year linear vesting contract.
- At the time of distribution (July 1st), 25% of the tokens (1,000 $ENS) would have already vested.
This structure ensures that stewards' token compensation aligns with their USDC compensation and incentivizes long-term commitment to the DAO.
Success Criteria
For this social proposal to pass, the following quorum and voting requirements must be met:
-
Quorum: The proposal must receive a minimum of 1% of the total supply of $ENS (1 million votes) in the form of "Yes" and "Abstain" votes combined. "No" votes do not count towards quorum.
-
Approval: Once the quorum is reached, the proposal requires a simple majority (>50%) of "Yes" votes among the "Yes" and "No" votes to pass. "Abstain" votes do not count towards the approval calculation.
If approved, this structure will be implemented for Term 6. If not approved, the Metagovernance Working Group will reassess and propose an alternative structure based on feedback received.