IIP-14 - Proposal for Adjusting IPORIAN Budget Allocation

Summary To strengthen the collaboration between the IPOR DAO and the Iporian group, this proposal suggests a refinement in the IPORIAN budget allocation. The proposal recommends a total monthly budget of *$6,000, to be distributed as a fixed budget + flexible IBI based on the IPORIAN count, subject to quarterly reviews.

The proposal focuses on approving the budget for the specific period mentioned, allowing Iporians to present their quarterly review afterward and apply for a new, adjusted budget if necessary for the subsequent period.

Additionally, the proposed allocation advocates for the use of a multisig gnosis safe to bolster fund management and security within the group.

Note: All quoted $ are in USD. It is proposed that these values would be converted and allocated as IPOR tokens, based on market value at the time of distribution, with a minimum IPOR token price limit of $0.6. All quoted $ are in USD. It is proposed that these values would be converted and allocated as IPOR tokens, based on market value at the time of distribution.

*All proposed budgets are subject to approval from DAO approval.

Problem/Issue The existing budget structure may not adequately address the value that the IPORIANS group provides to the IPOR ecosystem, thereby necessitating a clear reevaluation and reallocation strategy.

Solution The proposed solution involves a revised budget allocation as follows: Fixed IBI (Income-Based Incentive): 40% to ensure stability and fairness, with each IPORIAN (based on 10 members) receiving a fixed $240 per month. Self-Reported Logged Tasks: 40% to allow members to earn based on their contributions, reviewed by the IPORIAN group members. Consensus Recognition: 20% for recognising significant contributions beyond regular tasks through peer review voting.

A multisig gnosis safe is proposed to facilitate secure and efficient fund management [Multisig address: TBD].

Rationale for Budget Increase:

Growing Responsibilities: The IPORIANS have witnessed a significant surge in responsibilities within the evolving IPOR ecosystem since they were first offered an IBI. In addition to actively participating in workgroup meetings, IPORIANS engage in diverse tasks such as protocol research, proposal drafts, community outreach, and the facilitation of discussions on critical topics. As the crypto ecosystem experiences heightened activity and IPORIANS anticipate increased engagement, the scope of responsibilities is expected to broaden further. Tasks like supporting new protocol and feature integrations, strategic planning, and comprehensive community support are becoming increasingly vital. To effectively navigate these expanding duties and sustain the group's impactful contributions, a budgetary expansion is proposed, providing the necessary resources for IPORIANS to meet both current and future demands.

Enhanced Value Provision: The proposed increase in the budget aims to enhance the value provision by enabling IPORIANS to focus on providing high-quality contributions and support to the IPOR ecosystem without concerns about financial constraints, fostering a thriving and sustainable community.

Competitive Retention Strategies: In order to retain top talent and encourage active participation among the IPORIANS, it is essential to provide competitive compensation that reflects the dedication and commitment of community members, fostering a sense of appreciation and motivation.

Product Services Expansion: As IPOR continues to expand its product services and take on a more extensive range of tasks and initiatives, an increased budget will enable the IPORIANS to explore new opportunities, undertake more significant projects, and contribute to the growth and development of the IPOR ecosystem effectively.

Sustainable Growth: By ensuring a sufficient and adequate budget allocation, the IPORIANS group can plan and execute long-term strategies for sustainable growth, community development, and ecosystem expansion, fostering a resilient and robust foundation for the future.

To provide more transparency and justification for the proposed budget level, we offer the following rough calculations as a basis for determining the budget allocation.

Please note that these figures are estimates and can be subject to adjustments based on further discussions and community feedback:

Hourly Wage Estimates: Discord Moderators: $25-$30 per hour Workgroup Members: $50 per hour

Estimated Services and Time Commitments: Discord Moderation: 10-20 hours per month (for each assigned moderator) Workgroup Participation: 10-20 hours per month (for each workgroup member)

Calculation: Total Monthly Compensation for Discord Moderators: hourly rate * hours * Number of Moderators

Examples:

1. $25 * 10 hours * 1x Moderator = $250 per month
2. $25 * 20 hours * 1 x Moderator = $500 per month

Total Monthly Compensation for Workgroup Members: hourly rate * hours * Number of Workgroup Members

Examples:

1. $50 * 10 hours * 1x Workgroup Member = $500 per month
2. $50 * 20 hours * 1 x Workgroup Member = $1000 per month

These calculations, along with estimates for other services such as translations or marketing, provide a foundation for the proposed budget allocation. It's crucial to recognize that these are illustrative figures, and the actual distribution may vary based on specific requirements and assessment.

Moreover, in response to the desire for ongoing documentation, we commit to maintaining detailed records of services rendered by IPORIANS. This documentation will include a comprehensive overview of tasks performed, time invested, and any additional relevant details. Regular updates on these records will be shared with the DAO and the IPORIAN community, ensuring accountability and transparency in budget utilisation.

In summary, the proposed budget increase is aimed at not only acknowledging the valuable contributions of the IPORIANS but also supporting the continuous development and progression of the IPOR ecosystem, ensuring its competitiveness and relevance within the ever-evolving DeFi landscape.

KPIs Key Performance Indicators include: Successful adoption of the new budget allocation. Increased member participation. Enhanced motivation and retention of IPORIANS. Enhanced value provision to the IPOR ecosystem.

Timeline & Reporting The proposal seeks to initiate the new budget allocation from the 1st of January 2024, subject to approval from the IPOR DAO. Regular reporting on the budget allocation and its impact will be provided through an IPORIAN-specific Dework board on Discord.

Discussion Pros: Improved motivation and fairness in compensation. Opportunities for all members to earn based on contributions. Encouragement of active participation and potential attraction of new members. Transparent and adaptable fixed budget strategy. Enhanced fund security and management through a multisig gnosis safe. Clear focus on delivering value to the IPOR ecosystem.

Cons: Potential challenges in adapting to the revised strategy. Ensuring effective communication and understanding of the proposed changes within the IPORIAN community.

Open Questions How will leadership roles be assigned within WGs? What tools or platforms will support the new structural model? How will the quarterly review process ensure accurate adjustments to the fixed budget? What mechanisms will be put in place to monitor and evaluate the impact of the revised budget allocation on the IPOR ecosystem's growth and development?

Resources Skills in budget management and community feedback analysis.

How You Can Help Your feedback and active participation in discussions and polls regarding this proposed budget adjustment are vital for shaping the IPORIAN community's future. Further Information

References:

Example Budget Scenario

Scenario 1 (20% increase of current budget [$5,000 -> $6,000] - as per above proposal)

For a total budget of ($6,000) with 10 IPORIANS, the potential earnings per IPORIAN range from:

Distribution: 40/40/20 a minimum of approximately $240 (IBI + 0% performance budget + 0% consensus votes) to a maximum of approximately $3,840 (IBI + 100% performance budget + 100% consensus votes) with an equal distribution of $600 (IBI + 10% performance budget + 10% consensus votes)

Discussion, KPIs, etc.: see open governance discord forum: https://discord.com/channels/832532271734587423/1183786397958688790