KIP-85: Establish Criteria for Performance-Based Compensation

Summary

Establish a process for granting Core Contributors $KWENTA packages, which can fuel additional drive for development and growth.

Abstract

This KIP would necessitate collaboration between the adminDAO and treasuryDAO following the closure of the first governance epoch of the year. Their joint objective would be to assess performance & determine the feasibility of $KWENTA package increases for existing Contributors.

Motivation

As the Kwenta DAO grows, including the expectation that the Core Contributor team will expand and grow, performance-based compensation for core contributors can bring significant value to the DAO by attracting and retaining top talent and ensuring upside if Kwenta is successful. Currently, $KWENTA spent at the direction of the adminDAO or treasuryDAO is purely discretionary, making it difficult to ensure the use of incentives is effective.

The existing KSL should have explicit guidelines on the criteria, decision-making authorities, and timelines for determining when core contributors are eligible for bonuses and the corresponding procedural steps to be followed. Establishing a transparent process will provide a framework for fair negotiations between adminDAO and CCs rooted in tangible, demonstrable value brought to the KwentaDAO. The KSL should also include vesting criteria for larger token allocations to ensure long-term incentive alignment and prevent unexpected changes to token supply.

Specification

For more information, visit the: Kwenta State Log