DUIP-2: Allocate 10% of supply to active contributors

In token projects, it’s common that a part of the token supply vests to active contributors over a time period of several years. The purpose of this is to incentivize the contributors to create ecosystem value, which benefits all token holders.

Currently, 40% of the initial UNION supply is allocated to DATA token holders to enable the spin-off, while the remaining 60% is as of yet unallocated, and should be eventually decided upon by the DAO.

To move forward, I propose the following:

• 10% of the initial UNION supply is earmarked for team building
• The Streamr team is mandated to install a Project Lead and Project Co-Lead / Deputy, and negotiate their compensation packages, including an allocation of tokens that vest over a period of several years, provided that the persons continue to contribute to the project
• The Project Lead and Co-Lead are mandated to allocate the rest of the 10% to new contributors that join along the way

We’ve been in discussions with a suitable Project Lead and Project Co-Lead, who are ready to take an active role in the project. To finalize their onboarding, this proposal should be passed, enabling token incentives to be put in place.

Pros

• In order to deliver on the project and create ecosystem value for everyone, proper incentives should be in place
• A vesting program keeps the key people engaged for several years

Cons

• 10% may not be enough to incentivize all contributors. On the other hand, if that turns out to be the case, the DAO can always vote to allocate more if needed
• An allocation to active contributors leaves less tokens for other uses, such as fundraising and incentivizing builders. That being said, 10% is certainly on the modest side compared to team token allocations of most projects.