proposed

Title: Fair Sharing

Authors: Mike

Date Created: 2023.07.16

TL;DR

Fair Sharing aims to revolutionize human collaboration in the next generation.

It is to reshape the way human collaborate and distribute rewards within a decentralized, remote-first, digital era.

It ensures that contributions are transparently visible and rewards are distributed equitably.

This is achieved through a straightforward formula:

Your rewards = (Your contributions/Total contributions) * Total rewards

How does it work?

1. Each member of the community:
   1. Records their daily contributions manually.
   2. Evaluates and claims their rewards.
   3. Other members vote on the claimed rewards, providing attestation and validation.
2. Rewards are automatically allocated based on the proportion of validated contributions.

Mission:

Our mission is to redefine how humans collaborate and allocate rewards in the next generation.

Why us?

We have the experience and insights gained from over a year of experimentation with LXDAO. We have encountered pitfalls that DAOs often face. Our journey has provided us with valuable knowledge.

What sets us apart is our genuine passion for this field.

LXDAO’s mission is to gather the power of buidlers to buidl and support “LX” (valuable) Web3 projects sustainably and welcome 1 billion users into Web3.

Fair sharing is vital for empowering remote collaborators to keep building Public Goods.

Problems

The emergence of future work models, such as open-source communities and DAOs, has presented new challenges in measuring contributions and allocating ownership.

The processes involved in determining individual contributions and distributing ownership are often vague, diverse, and complex.

Consequently, achieving a sense of fairness in the allocation becomes challenging, as it becomes difficult to satisfy the majority and ensure their perception of fairness.

Existing web3 tools primarily focus on SBT, NFTs, and tokens. However, these tools tend to oversimplify the complexities of the real world and lack solid evidence or proofs.

Most centralized web2 tools designed for companies are ill-suited for the future. These tools are hierarchical in nature, owned by a select few stakeholders.

Like notion or gSheet are too centralized to address the challenges of contribution measurement and ownership allocation elegantly.

Real use cases

LXDAO Working Group and Projects.

Other potential use cases we have observed in other DAOs.

Similar products

Coordinape: Periodic social judgement determines the allocation (rely on human memory/impression)

SourceCred: Auto record and allocate the creds (e.g. Github, Forum, DC)

Govrn: Mainly focus on attesting contributions

More details of the products’ research:

Coordinape research

SourceCred research

Govrn research

Our Differentiations

1. Simple and straightforward:
   1. Just a simple and transparent formula for reward allocation: Your reward = (Your contribution/Total contribution) * Total reward.
2. Flexible and nuanced:
   1. Our approach allows each community member to actively participate in the process. Members record their contributions, evaluate them, and others in the community vote on the validity of those contributions.
   2. Through this deliberative process, a consensus is formed.
   3. Rewards are then automatically allocated based on the proportion of validated contributions, ensuring a fair and inclusive distribution.
3. Deliberate and multicultural fit:
   1. We understand the importance of accommodating diverse cultures and perspectives within a community.
   2. To facilitate this, our system allows for anonymous voting using Zero-Knowledge technology.
   3. This ensures that individuals can express their opinions and make decisions without fear of bias or external influences, fostering a more inclusive and equitable environment.

Timing

Now is the ideal time for this type of product, as there is currently limited attention being given to the non-financial use case.

EAS is nascent but grows rapidly, it will open up a lot of new possibilities, it is a great infra we are able to leverage.

Fair sharing will be an essential component for the success of DAOs and communities.

By focusing on this crucial aspect early on, we can position ourselves as leaders in the space and cater to the growing demand for solutions that address collaboration and reward allocation in non-financial contexts.

Product scope and iteration rhythm

One phase per month, one release per week.

Phase	Add projects	Add contributors	Add contributions	Analytics dashboard	Best practice
1	Add/Edit a project/DAO	Creator is admin	Connect wallet, Disconnect	Proportions members owned	LXDAO best practice doc
1	Customize cred token name	-	Delete, Edit
1	-	-	Add/Show/Edit rules
1	-	-	Upvote/Downvote: Like or Suggest more/less
2	Add a sample project/DAO, anyone can start right away	Set admin role, customized roles, set base creds
2	-	-	Content: To (can exclude self); Proof; Creds claimed; Upvote/Downvote; Comment;	Auto allocate grant/budget: Gnosis safe or 0xsplit or self written contract
3	Set association relations of projects	Set deletion rules (TBD)	Add to-do capability, streamline the contribution and validation process
3	-	Allow outer community to contribute	Anonymous vote (TBD)

Tech arch (TBD and to be reviewed when get started)

• Frontend
• Minimal backend (ref: https://github.com/ethereum-optimism/ecosystem-contributions/issues/96)
• Contract
• AR/IPFS (TBD)
• EAS (P0)
  • Ref: https://github.com/ethereum-optimism/ecosystem-contributions/issues/79
• ZK (Leverage Semaphore)
• 0xSplit, Gnosis safe, Superfluid integration
• PGN integration
• AA integration (Onboarding UX)
• Gasless UX (tech TBD)

Team settings

• 1 Sr. Project Lead + Sr. Product manager for managing progress, handling everything, and defining/planning product
• 1 UI/UX Sr. Designer
• 2 Sr. Full Stack for website and integration
• 1 Sr. contract developer and tech architect
• 0.5 Sr. Operation (begin from late phase of project, their budget is included)

Duration and milestones (3-month long)

Time duration: July 24 - Oct 24

• 1 Week
  • Kick off, assemble the team, PoC of architecture
  • 1 Week, UI/UX finished design, Developers kick off coding
• 3 Weeks, finish phase 1 feature scope
• 1 week, bug fixes and launch product, one customers start using it in practice
• 4 Weeks, iterate phase 2 feature scope, one release per week
• 4 Weeks, iterate phase 3 feature scope, one release per week

Budgets and distribution

Around 5 people in total, around 20 hours/week/person, 25U /hour/person, 20x25x5 ppl x4 weeks = 1w U/LXP/month, for 3 months (Sr. operation’s budget included in this budget as well)

In TTL, 3w U/LXP (6:4 U:LXP)

• Product development: 70%
• Operation: 30%

Allocation principle: based on contribution and community consensus.

If the work hours can not meet the estimated amount, we will allocate rewards at a discount, e.g. Discount % = TTL hours spent/TTL hours estimated

Revenue distribution

What are the potential benefits and profits of this project's sustainable design?

• Grants from EAS, DAO*, GCC
• SaaS fee from DAO/users
• Donation to us for each allocation
• Reputation, as we are a public good that drives the development of Web3.

Most of the revenue will be used to iterate this project and cover BD costs.

If we gained any revenue in 3 months, we may consider to deduct the budget applied from LXDAO treasury.

With more revenue comes in, we will discuss sharing and ownership based on the contribution.

As a project initiated in LXDAO, LXDAO will have a fixed 20% ownership by default. The rest 80% will be allocated, but not limited to, early contributors, investors, and future new contributors, etc.

Key results

• Successful completion of the project, including the website, apps, best practice doc, showcase to potential users/communities
• All WG and projects in LXDAO are happy to adopt this product
• 5 outside projects/communities adopted this product successfully
• Impact: measured by the number of followers, subscribers, and overall influence
• Attend the hackathon at ETHGlobal Istanbul on Nov, gain good exposure on the conference.

Other goals:

• 3 DAOs adopted this product with good comments
• Enlist a prominent DAO KOL as an advisor for this product
• Gain some grants from DAO*
• Get listed in doc of EAS
• Win award at consensys Hackathon
• Seek for some investment (individual, VC, DAOs, etc.)
• Contribute on OP as Ecosystem Project Idea (Grant is possible thru RetroPGF, https://app.optimism.io/retropgf**)**