Update to the Compensation Model Proposal

Context

This document presents a small update to the current compensation model for RAW.

Proposal

Short-Term Compensation

The proposed steps for short-term compensation of member contribution are as follows:

1. Each area of the DAO shall have its general activities and responsibilities predetermined (refer to RAW Organizational Design)
2. The compensation period will happen on a monthly basis
3. Goals will be chosen and agreed upon via a soft vote for each area before the start of each month
4. At the start of each quarter, the community will approve a compensation budget for each area of the DAO, with a split between fixed and performance-based compensation for each area (e.g. 60% fixed, 40% performance-based) a. budgets may be set in either ETH or USDC b. budgets must be approved with a discord poll in the #governance channel with minimum duration of 24 hours and at least a 10 member quorum, and should preferrably be voted in tandem
5. Work happens
6. At least 10 discord interactions in each area's channel are required for a member to qualify for compensation in that area every month (i.e. qualification must happen on a monthly basis for each area individually)
7. At the end of each period, total compensation of each area is calculated based on its achievements, like so: Total Compensation = Fixed Comp. + Performance Comp. × Goals achieved / Goals set
8. Contributors inside each area then vote among themselves (using Coordinape.com) for the division of compensation, where each contributor starts with 100 votes to assign to other contributors (can’t assign to themselves). Individual compensation is then assigned proportionately based on the share each member got from the total votes a. moderators will be able to assign up to 300 votes
9. Compensation is paid (via disperse.app) a. the floor for compensation payments is 250 USDC or equivalent b. total funds earned for contributors below the floor will be aggregated and distributed proportionally to contributors above floor based on votes earned
10. Total compensation paid during the year shall not exceed the yearly compensation budget

Long-Term Compensation

The proposed system for long-term compensation is the following:

1. The total votes obtained by members in the short-term compensation system through the months will be normalized and summed and used as a live ranking to grant $RAW tokens and extra Coordinape points to top performing members
2. The following Discord Role hierarchy will be established to identify members by their level of contribution:
   • Top Contributor
   • Honorary Member
   • Core Member
   • Active Member
3. Role awards and grants will take place according to the following table:

4. The maximum amount of Coordinape votes any member can wield will be capped at 300, and the minimum will be 100 Coordinape placement in the bottom 20% or absence in any one month will result in full role demotion and Coordinape vote reset to the minimum amount of votes
5. Contributors can negotiate a total aggregate vacation period of 1 month per year to avoid inactivity demotions
6. Top contributors can pledge to become full-time employees, to be approved by the community
7. The community will be able to award members honours to identify and reward those who have accomplished remarkable acts of contribution to our organization a. a one-off extra compensation grant can be included with the Honour b. honors can be awarded by a discord poll triggered only by members with Active Member contributor roles or greater c. minimum quorum is 10% of the authenticated member base d. the following honors can be awarded, in descending order of importance:
   • (1) Most Excellent Order of RAW
   • (2) Medal for Outstanding Contribution
   • (3) Medal for Notable Feat