005 - Use TRAX for Compensation

Proposal Summary: The Contrax DAO needs a way to incentivize work platform and DAO work until funding or revenue can allow USDC payments. Until then, Notion tickets for DAO tasks should have generous TRAX token bounties, priced in USD at a $10m fully diluted valuation.

Details: TRAX token payment incentives should be made with the following principles and rules:

Token-based payment should be viewed as a temporary necessity and as a way to reward those who worked earliest for the project. As soon as possible, payments should be in USDC, with tokens perhaps being an added bonus. This would likely be possible with funding, or once the platform has significant revenue.

The token has yet to launch, so token payments will be recorded for a later time. Their recording will be in the bounty for them on Notion.

The token bounty should be stated in USD, and should consider the ticket's complexity and value to the DAO . At current, there is no USD price for the token, so an assumed valuation should determine the USD payout. I propose $10 million USD, a valuation which has been used over the past year in development agreements for the Contrax platform. With the approved 800 million supply, this would price 1 TRAX token at $0.0125 USD.

The bounty price will be set by the creator of the ticket in Notion. Given the risk associated with efforts for tokens in the future, it is recommended to overestimate a bounty. This will also work to mitigate any value lost if the actual token price is less than even the assumed market valuation.

Example: if it is fair to offer $100 USD for fixing a small bug, the token bounty could be $300 USD worth of tokens. There is the added risk of taking payment in a non-existent token that will not be tradeable in the near future. The multiplier doesn’t have to be 3x, but as with any bounty, it should be enough for someone to take up the task.

Given that tokens are not yet created, these tickets will keep track of token payments to be made. As soon as tokens exist, the amounts will also be transferred over for all completed tickets. The DAO member will then be able to see the payment in their wallet and on the Contrax dApp, but they will not be transferrable until a later time (per proposal #3).

Note for countering abuse: Creators can take up their own tickets, but the DAO can challenge any self-accepted bounty price to be re-calculated based on a single member taking the bounty price to a committee vote.