Executable EGP 32 - Establishing a Buffer Multisig for Sub-DAO Reward Discrepancies

Abstract

This proposal introduces a new multisig wallet dedicated to holding a buffer of funds to cover shortfalls in rewards distributed to contributors. These shortfalls can occur due to fluctuations in token price and/or insufficient initial funding buffers. The multisig will be used to retroactively compensate contributors who did not receive adequate rewards and to prevent future discrepancies by holding a buffer.

Motivation & Rationale

In previous funding rounds for contributors, such as Creed (Security Task Force) and Karma, token price volatility and underestimation of required buffers led to contributors not being fully compensated for their work. This undermines contributor trust and the relationship with the DAO. Creating a dedicated multisig ensures that the DAO can make good on its commitments and sets a precedent for responsible financial planning in future partnerships.

This proposal is aligned with Everclear DAO’s commitment to fairness, accountability, and sustainable growth. By proactively addressing past oversights and implementing a mechanism to prevent future reward shortfalls, we honor the contributions of our community members and strengthen the integrity of our ecosystem. It also reinforces our mission to create an inclusive and resilient network of contributors and sub-DAOs, as stated in the Constitution.

Specifications

• A new multisig wallet will be created to manage a dedicated buffer fund.
• This wallet will be used to cover reward discrepancies for contributors due to token price volatility or insufficient initial buffers.
• In this initial proposal, the multisig will be used to retroactively compensate:
  • *Creed DAO 1: $8,000 x 8 person-weeks = $64,000 worth of CLEAR
  • *Karma DAO: $2,700 worth of CLEAR as they received 902,431 CLEAR @0.0247126 (Price at On-Chain Execution on Mar-18-2025 02:07:47 AM UTC) = $22,300 instead of $25,000.
• The multisig will be funded with CLEAR tokens from the DAO treasury.
• The signers and threshold for this multisig will be 3/4, and it will include two team members from GTF and two additional delegates.
• Moving forward, this multisig will also serve as a buffer account for future partnerships. For example, right now the Security Council Multisig has ≈ $12K in CLEAR, but the commitments for the rest of the year ascends to $87K.
• The GTF will report any payment made, giving advance notice and explaining the nature and the details of the case. Considering that today we have the public Multisig Tracksheet, the Balance, and details about the payments will be available there.

Payments Flow

1. A specific-purpose multi-sig runs out of funds (this means that the available funds are not enough to cover the next committed payment)
2. One of the signers requests funds to the Buffer Multisig by doing a public request in a thread in the forum created for this purpose. The GTF itself can do this if it’s one of the signers in the specific-purpose multi-sig. If the submission is asking for funds for several payments in the future, the specific-purpose multisig signers will have to commit to refund any remaining CLEAR after all the payments have been made.
3. The Buffer Multisig Signers have to analyze the case, confirm the need for funds, and pre-announce the payment in the forum by answering the previous submission. All payments will be calculated by using a 7D VWAP CLEAR price with Coingecko as the source.
4. The payment is executed and reported to the DAO.

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Steps to Implement

1. Create Multisig
   • Determine signers for 3/4 multisig
   • GTF to set up the wallet using Gnosis Safe or similar tooling.
2. Fund Multisig
   • Transfer 12,130,530 CLEAR from the DAO treasury to the multisig.
     • Approximately 3,914,400 to compensate Creed and Karma
     • The rest is for future shortfalls (the current 75k gap in the Everclear Security Council Budget was included here).
3. Disburse Retroactive Rewards
   • Pay out $64,000 worth of CLEAR to Creed for Security Task Force work.
   • Pay out $2,700 worth of CLEAR to Karma.
4. Operationalize for Future Use
   • Document the conditions and process for future use of the buffer.
   • Add a governance process for any future disbursements.
   • Communicate transparently with the community on fund usage and balances.

Overall Cost

• Total 12,130,530 CLEAR
  • Retroactive Compensation:
    • Creed DAO: $64,000 worth of CLEAR ~ 3,755,945 tokens
    • Karma DAO: $2,700 worth of CLEAR ~ 158,455 tokens
  • Future buffer:
    • Security Council Gap: $75,000 worth of CLEAR ~ 4,401,500 tokens
    • Future shortfalls budget: $65,000 worth of CLEAR ~ 3,814,630 tokens

Note: CLEAR 7D VWAP on April 23th, 2025 = 0.01703965667 USD.

Note 2: The $65,000 represents 50% of the future obligations assumed by the DAO (Security Council and GTF)