P-16: Ratify the Early Contributor Allocations of $CODE

Author: willblackburn.eth, Coordinape Working Team View the Forum Vote thread.

Summary

Many DAO members have been core early contributors to the DAO without the expectation of reward. The $CODE issuance will set a percentage of tokens aside for early contributors. We held a Coordinape circle to distribute these tokens. Founding Team members & advisors are not be eligible for Early Contributor rewards.

The epoch for the Early Contributors circle ran for 10 days from March 7 to March 17th 2022. The circle ended with 305 total members receiving GIVE.

Motivation

As discussed in Town Halls, Governance meetings, and discord, a strategy is to be applied to the raw results of the Coordinape epoch to align the results with the ratified purpose of the Early Contributor rewards.

Overview of Strategy for Final Distribution

The following strategy was applied to the raw Coordinape results.

1. First, any GIVE send above 10 was capped to 10. For example - if Alice sent Bob 15 GIVE, Bob only receives 10 GIVE. If Bob sent Alice 9 GIVE, Alice receives the entire 9 GIVE.

   1. This widens the distribution of the Coordinape epoch and guards against members giving all of their GIVE to one recipient.

2. Second, early core contributors are verified by contribution leaders in the DAO. You can read more about this process and see the verification results on our wiki.

   1. Many of the unverified members participated in the community, but did not meet the threshold of a verified early core contributor. Read below to see that unverified contributors are not excluded from early contributor rewards.

3. Third, a GIVE cap is placed on unverified contributors. The GIVE cap was decided as 10 GIVE.

   1. This equates to 602 $CODE. This more than doubles an active members initial $CODE claim if they just held the NFT at snapshot, while keeping the distribution below that of many verified contributors who contributed significantly more time.

   2. Because the cap is performed at the GIVE level, the $CODE is redistributed to verified contributors (since $CODE is distributed as a percentage of GIVE held for the epoch).

4. Fourth and finally, a $CODE cap is placed on verified contributors. The $CODE cap was decided as 40,000 $CODE.

   1. This cap applies to only 3 contributors.

   2. This cap is applied to ensure the allocation fits within the broader tokenomics of Developer DAO. (P-5: Governance Token Proposal, P-10: Governance Token Allocation Amendment for Founding Team & Advisors)

   3. The extra code (~12,743 $CODE) will be reclaimed by the treasury.

You can view data, including final allocations, in the Developer-DAO/member-and-early-contributor-rewards repo.

Vesting of Early Contributor Allocations

Any $CODE amount above 20,000 $CODE will be subject to vesting. The vesting applied will be the same vesting applied to the Founding Team & Advisors allocations. Just as with the Founding Team & Advisors, this is to slow the accumulation of $CODE into single hands. 8 early contributors will have $CODE vesting applied to the amount of $CODE from their allocation that is greater than 20,000 $CODE. For example, if Alice was to receive 25,000 $CODE, they would be able to claim 20,000 at launch of claiming with 5,000 subject to vesting.

Vesting will occur monthly for 24 months (2 years) in the form of claimable $CODE tokens via a separate vesting contract that is in development. If $CODE is launched before the vesting contract is completed and audited, $CODE subject to vesting will be held in the Treasury until transferred to a vesting contract.

Vote

For - Ratify the Early Contributor Allocations of $CODE Against - Do not ratify the Early Contributor Allocations of $CODE Abstain - Abstain from the vote