KPI options to upgrade from Aragon v1 to Aragon v2

Summary

We propose using KPI options as a mechanism to incentivise the upgrade from Aragon v1 to Aragon v2. This initial vote will determine the amount of collateral ANT holders think should be allocated to incentivise this upgrade.

Motivation

ANT has now been added as a collateral asset to UMA (see Github merge here). This enables ANT to be used in the creation of KPI options for the Aragon community. KPI options are synthetic tokens that will pay out more rewards if the KPI meets predetermined targets before a preset expiry date.

Nearly all DAOs created with Aragon are currently on Aragon v1. With the launch of Aragon v2, we're proposing to use KPI options to incentivise this upgrade.

These KPI options will be distributed to all Aragon v1 DAOs immediately after the option creation. At the option expiry, Aragon v1 DAOs will then be able to redeem their options for the ANT collateral in the KPI option contract. The amount of collateral they can redeem will be dependent upon:

• The DAO's proportional share of assets denominated in USD relative to all Aragon V2 DAOs as of 30th June 2021
• How quickly the DAO upgrades to a v2 DAO relative to other v2 DAOs

The proposal below includes steps for an initial test of KPI options. Should it be successful, we'd propose increasing the collateral underlying the option to a much larger amount and expanding the use of KPI options to meet other targets deemed important by the Aragon community.

KPI option details

Contract Dates

The intended contract start date would be on the 14th April 2021 at 1pm UTC and end on the 30th June 2021 at 1pm UTC.

KPI Methodology

• The Key Performance Indicator (KPI) will be total value of assets, denominated in USD in all v2 DAOs by the 30th of June 2021.
• The KPI options will only be distributed to all v1 DAOs created before this Snapshot proposal was published.
• We propose to place the KPI option in a bonding curve to incentivise early adopters of Aragon v2.

Specifications

We will be undertaking the following community votes with the Aragon community to define the following inputs in the KPI option contract:

Vote 1) The value of ANT collateral (0 ANT - 150k ANT)

Vote 2) The upper threshold for total value of assets in v2 DAOs as of 30th June 2021, based on the value of ANT collateral (100 million USD - 1 billions USD) determined in "Vote 1".

** Vote 1: How much ANT do you think should be allocated as collateral to this KPI option?**