We introduce an Experimental Incentive System aimed at the ArbitrumDAO delegates with a duration of six months. The goal is to assess the incentives' impact on the delegates' active participation and involvement in the DAO's governance. This proposal is subject to changes.
This proposal is the final result of the proposal published and voted in favor of option 2 in snapshot. It contains some minor changes.
We've allocated an initial trial period of 6 months. This timeframe should allow us to gather initial metrics to gauge the system's functionality and its anticipated impact.
We have set the number of eligible delegates to 50. This figure isn't based on specific reasoning, but we believe it's a good starting point, these ranking is based on the score they achieve each month.
Total: 1,580,000 ARB
Based on the feedback received, we've opted for a single-tier instead of a multi-tiered program, allowing a wider array of participants, the requirements would be as follows:
Note:* So following this model, the top fifty delegates - defined by their final score - within the range, would be compensated* The 5000 ARB per month is the max amount a delegate could earn, but this amount could be lower depending on their score.* Certain votes won't be counted towards the Tally Participation Rate, as detailed in the following links:1. Core Test Proposal1. Treasury test proposal1. [OLD] AIP-1.1 - Lockup, Budget, Transparency
Delegates matching the requirements must confirm their participation in the Incentive System in the forum (a dedicated channel will be established for this). They must post using the template provided below, within a 14-day application window.
Incentive Program Confirmation Template:
Note:* Failing to send a confirmation message will exclude you from the incentive system, regardless of eligibility.* Applicants should ensure accuracy in numbers and links, facilitating quicker verification.
Eligible delegates for the incentive program will be announced on the forum.
To determine which delegates will be paid monthly, we will use a point system and a framework. Please note that this framework will be developed by Karma. Delegates can track their activities using this template.
Framework - Experimental Incentive
We explain in detail the framework and points system:
The activities that have been considered in shaping the framework and scope are measurable activities that we believe can positively impact governance.
We have distributed the weight according to the type of activity, as we believe this is the fairest way to do it at the moment.
Surely both the activities and the weightings are far from being the final parameters, ideally after these 6 months we should have a clear idea of how to modify certain parameters or which ones to add/remove.
Note: We have not included the governance call in the list of activities because we feel that it may be difficult for delegates in different time zones to attend because of the specific timing of the call. Plus some delegates might not want to dox their voices.
The 50 delegates who conclude the month with a TP score of +60% will be the ones to receive incentives based on the result provided by the PARB parameter.
Should more than 50 delegates have a TP score of +60%, only the top 50 scores will be selected.
If fewer than 50 delegates have a TP score of +60%, only those meeting the criteria will be compensated
Note: In the exceptional circumstance where scores are identical or more than 50 delegates exceed +90%, the entire month's budget may be distributed amongst all delegates with such scores. This decision is at the discretion of the program administrator.
Should a delegate propose or actively participate in an enhancement proposal for Arbitrum DAO and execute it, like the Arbitrum’s Short-Term Incentive Program (Arbitrum Improvement Proposal), they will be granted an additional +30% to their TP score for making a valuable contribution to the DAO. This could also be a governance process enhancement proposal or a template for grant selection.
We understand that this is one of the weakest points of the proposal and we believe it is very objective. To assess this point we will try to answer these questions
When evaluating the bonus points we will try to answer these questions and the administrator will have to upload a post to the forum with the answer and a justification of why he/she grants the bonus point. We also look forward to hearing the community's opinion on the matter.
When we refer to a month, we consider from the first day of the month 00:00 UTC to the last day 23:59hs UTC of each month. Within these days and hours, delegates have the opportunity to perform all actions to meet the parameters. The month's activities conclude on the last day of the month, so delegates must be punctual.
On the last day of each month, the incentive system administrator is responsible for collecting and carefully reviewing the data provided by Karma. During this initial stage, several inconsistencies are likely to be identified and corrected. Subsequently, the administrator should announce on the forum the names of the delegates selected to receive incentives, as well as the amounts allocated to each. This procedure must be completed within 10 days.
After the publication of these results, the delegates will have a period of 2 days to present any dispute, in case they disagree with the amounts or the selection made.
Delegates have a 2-day window to dispute if they disagree with the results presented by the Incentive System Administrator.
To raise a dispute, they must do so via a forum post with the following template:
The system administrator must promptly address the issue, resolving it within a maximum of 2 days.
Should a delegate or any community member attempt to deceive or game the incentive system, they will be banned. This decision is at the discretion of the program administrator.
We must remember that this system is experimental, and we hope for community members' cooperation for its success.
If all goes according to plan, the delegate payments are expected to be executed from the programs multisig, with full details of the payments posted on the forum, between the 13th and 14th. This will be repeated for the duration of the program. Payments are made in ARB tokens.
Like every new and experimental system, there may be delays, so please be patient.
Given the short duration of the program and the lack of a DAO Facilitator, SEED Latam is willing to assume the administration of this program. This means that our delegation won't participate in it and that the administration won't be carried out by myself, but by the organization SEED Latam.
However, we're also open to a group of delegates or potentially a third party administering this program, in which case we would provide any assistance necessary.
For the administration of said program the budget would be 20,000 ARB. This payment will also be divided into 6 months and will be sent in the proposal to Tally along with the payments to the delegates.
Karma will develop features to enhance administrator efficiency and provide transparency to the Arbitrum community. Given the experimental nature of this program, they have committed to implementing any modification necessary to the program, including new parameters. The features that will be built include:
arbitrum.karmahq.xyz/delegate-compensation
.This automation eliminates the need for delegates to manually report their monthly activities.
Karma payments will also be executed from the DAO and tracked by the program administrator.
Since it would be very complicated to KYC 50 delegates (or more) for this program, and following the Foundation's recommendation, we're going to proceed with a multisig to manage payments.
We propose to use a configuration similar to that of Plurality Labs. Having a 3/5 multisig where apart from myself, there would be a mix of DAO delegates + contributors, each receiving a 1,000 ARB payment per month for the duration of the program.
Zodiac module: https://www.tally.xyz/gov/arbitrum-delegate-incentives-zodiac-module
We propose that the signatories be:
Multisig: 0xff1f38f8cDae7C1B1B289FCF6f5C1AA234DF1443
Seed Latam is committed to monitoring the proper functioning of Karma and collecting feedback from the community on the dashboard's performance. We also commit to collaborating with Karma so that the dashboard meets the needs of the incentive system.
We will also assume the responsibilities of the incentive system administrator, as mentioned in the previous points.
SEED Latam does not have any commercial relationship with Karma nor does it receive any payment from them for incorporating them into this proposal.
The only link between SEED Latam and Karma is that both want the success of the Arbitrum ecosystem.
Duration of the incentive system
Total Number of Delegates to Receive Incentives
Selection process
Eligible delegates must confirm their participation in the incentive system by posting a message on the forum.
Scoring
Minimum score to receive incentives
Bonus Point
Parameter Snapshot
Dispute
Payments
Incentive system administrator
Note Costs may vary, since we probably won't give the max amount to every delegate every month, so the cost mentioned would be the max this program would cost assuming we compensate 50 delegates per month for 6 months with the maximum allocation.
SEEDLatam commits to deliver two reports, one after the third month and one after the sixth (and final) month of the program with metrics on its impact, delegates' performance, and expenditures. They will also collect feedback from both the community and participating delegates.
The reports will be a detailed forum post and also accompanied by a community call explaining the metrics and feedback collected.
ArbitrumDAO has the power to:
Please note that this initial incentive system is experimental and is not intended to be the final version. With this initiative, we aim to evaluate the performance of the DAO and determine its impact. We also anticipate collaboration from both the DAO and facilitators to ensure its success.
At the end of the six months, SEED Latam commits to delivering a report containing the gathered data and feedback from the governance.