Reputation and Bounty System

In the interest of enabling our members to contribute autonomously to the development of materials and projects, as well as to recognize their contributions, we propose a Bounty and Reputation system for ATX DAO.

This system will extend the existing seasonal Committee Budgets to include an allocation of Reputation tokens (REP) for each Committee. REP will be awarded by Committee Heads to DAO members and community members who make contributions of their time and talents to our organization's ongoing projects and initiatives.

Note: Healthy token ecosystems have both faucets (ways in which tokens are distributed) and sinks (ways in which tokens can be spent or used). We expect more faucets and sinks may be developed in later proposals, but will be providing a baseline set of expectations in this proposal.

What are the uses for REP tokens? [Sinks]

At its core, REP is a way for us to track who has given to the DAO without receiving back from it. It is a way for us to track who should be most rewarded in the future when we have opportunities to give back to our community.

Membership

Held for access to membership minting or traded in for outright membership.

• Community members holding the [Access Quantity] of REP will have guaranteed early mint access in future membership rounds
• Community members will be able to swap the [Full Membership Quantity] of REP for a membership NFT (at no other cost)

Each future membership round proposal will include the [Access Quantity] and [Full Membership Quantity] values for that round. Initial values are recommended to be: [Access Quantity = 200 REP] and [Full Membership Quantity = 1000 REP], however the exact values must be voted on separately by the DAO in each new membership round proposal.

The past pricing and expected future pricing of our membership will allow us to approximate current value for REP. At the recommended rate of [Full Membership Quantity = 1000 REP], with our most recent round of Membership valued at 0.78704 ETH, and the current price of ETH (on 3/26/2022) ≈ $3100...

1REP ≈ $2.44 (for the purposes of obtaining membership)

Contributor Levels

A way to display and track contributor status. During future membership minting rounds, an additional minting portal will be opened for DAO members to convert their REP into Contributor Levels. These levels will be used to track who our most valuable contributors are and gate opportunities/access to these contributors. Contributor level will be displayed on discord and checked when assigning bounty tasks.

Contributor LVL-1 NFT

Value: 500 REP

Contributor LVL-2 NFT

Value: 1000 REP & LVL-1 NFT

Members holding a LVL-2 NFT can take on tasks with stablecoin based bounties.

Contributor LVL-3 NFT

Value: 3000 REP and a LVL-2 NFT

Members holding a LVL-3 NFT can take on tasks with stablecoin based bounties.

Members holding a LVL-3 NFT are official representatives of ATX DAO for the purposes of interviews and public speaking engagements (in addition to the currently elected Committee heads).

Note: While these are the base uses for the REP token, this system can be leveraged by the DAO in the future to provide a variety of other forms of recognition for stellar contributors.

How will REP tokens be distributed? [Faucets]

Bounty Board

1. Committee heads will use the bounty board to create tasks and assign REP bounties to them (sizing bounties according to the "Task Sizing" section below)

Note: Committee heads can also assign stablecoin based bounties to tasks using their stablecoin budget, however these tasks will only be available to members with Contributor Level 2 or above (see "Contributor Levels" under the "Sinks" section of this proposal).

2. Members apply for and submit tasks through the bounty board
3. Committee heads rate the completion success of submitted tasks (according to the "Task Success Ratings" section below)
4. Completion of these tasks can then be verified by users with the 'reviewer' role.
5. Rewards will be itemized + distributed by the committee in a cadence described on their committee page (monthly recommended)

Note: CSV backups of approved rewards must be submitted to and kept by the treasury committee until at least the end of the following season.

Task Sizing

• Small: Quick, simple tasks taking no longer than an hour or two
  • Rewards: 10-20 REP
• Medium: Tasks that require several days or specific skills to accomplish
  • Rewards: 20-100 REP
• Large: Tasks that require weeks, coordination of a team or very valuable skills to accomplish
  • Rewards: 100-500 REP
• Ongoing: Regularly occurring sets of tasks that are assigned as a role to a committee member, lasting over a month.
  • Rewards: 500-2000 REP

Task Success Ratings

• Excellent: 100% of Reward
• Adequate: 80 - 100% of Reward
• Minimum: 50 - 80% of Reward
• Lacking: 0 - 50% of Reward

In cases where work is rejected, we should consider a baseline reward for situations where a contributor tried to complete the tasks but the work wasn't up to par. This will hopefully incentivize a growth mindset across the DAO that encourages "leveling up" instead of "failing".

Committee Budgets

• Each Committee will receive a REP budget per season (seasons are defined by Committee Chair terms, currently split into a Spring/Summer and a Fall/Winter season). This allocation will be determined via a 'Budget Allocation' meeting between Committee chairs at the start of a season (after elections) and then introduced as a proposal for the community to pass.
• This budget can be increased for a particular Committee in the current season via a 'Budget Increase' proposal. Budget increases carry forward to subsequent seasons.

Committee Head Salaries

Committee Heads will be paid the first half of their REP salary when they are elected or continue in their role at the beginning of a season. The other half of their REP will be distributed on a sliding scale based on community voting at the end of their term.

The total salary for Committee Heads will be determined in the 'Budget Allocation' meeting and proposal.

How will this system be rolled out?

We suggest the following transition

• Committee Heads will create tasks with associated REP rewards (tallied and tracked until token launch)
• Onboard DAO members onto our internal bounty board.
• Launch REP tokens and open our bounty board up to external community members
• Announce our Fall round of membership minting where REP can be exchanged for access+membership

Token Technical Details

• REP will be launched as an ERC-20 on an EVM based Network.
• Initial Token Supply : 1,000,000 REP Tokens (held by the DAO)

A Technical Implementation group will be formed and tasked with developing a strategy for launching this token and deciding on a tech stack for DAO operations moving forward. This group will consist of Roberto, Malcolm, Jon, Jesse and Joseph.

FAQ

Q: Is there any expectation of implementing REP as the new measure for voting power?

• A: No. In fact, to prevent this from occurring through the conversion of REP into membership NFTs (which currently provide one vote each to the holder), we suggest the following change to our snapshot system:
  • Every member has one vote, regardless of the number of membership NFTs they hold.
  • Genesis members who were recognized for their contributions with multiple membership tokens can give them away to add new members or convert them back into REP points by donating these tokens back to the DAO.

Q: What about all the work that folks did before the Reputation system? Will there be a retroactive airdrop?

• A: REP will be used as a measure of all work going forward from the Austin On-Chain event. Efforts have been made by the core team to track and quantify the work done before this event.

Q: Why is Reputation a transferable token? Wouldn't reputation be better suited to being non-transferrable?

• A: Technically all of our membership NFTs are transferable, so preventing the transfer of Reputation would only slow the transfer of value.
• We want DAO members to be able to swap their REP for rewards in the future, such as Membership and Contributor Levels.
• The transfer of Reputation is a way to vouch for another member of the community. It also leaves the door open for a system to form at some point in the future where community members can fund their own bounty tasks with Reputation rewards.

Note: We will not be contributing to or endorsing the creation of a liquidity pool. Given the low circulation of these points and regular conversion of them back into NFTs, we expect that if a liquidity pool should form, slippage would make it unusable.

Q: What happens when bounties are not completed satisfactorily?

• A: See the "Task Success Ratings" section.

**Q: What is the value of REP for people that are already DAO members? **

• A: See the "Contributor Levels" section.

Q: How would tasks be added to each committee’s backlog?

• A: Committee heads are responsible for creating bounty tasks and maintaining their backlog according to the approach described in the "Bounty Board" section

Q: Will there be a dedicated project owner to run our REP points bounty program?

• A: Each Committee head will be responsible for creating, reviewing, and rewarding bounties for their Committee. Jesse Paterson (RealityCrafter) will head the rollout of this program over the next season.

Proposal Contributors

Significant contributions were made by Nick Casares (0xMega) and Joseph F (JosephF) for the "Task Success Ratings" and "Task Sizing" concepts. Discussion and input from CrystalGravy, Brennan Mulligan, Mason Lynaugh, Roberto Tamalas, Sam Padilla and Weaver informed some of the thinking and language throughout the rest of this document.