[SEP #10] OBRA strategies and budget

Title: [SEP #10] OBRA strategies and budget

Authors: Andre Geest, Dmitriy Klimov, Bernard Schmid, Lukas Schor, Christoph Simmchen

Created: 2023-12-04

Please refer to the full proposal text on the SafeDAO forum. Some parts needed to be removed to fit within the character limit on Snapshot:​​ https://forum.safe.global/t/sep-10-obra-strategies-and-budget/4459 ​

Abstract

This proposal outlines five strategies and a wildcard strategy under OBRA with their respective budgets, which are aimed at pushing forward the goals in the SafeDAO constitution.

Proposal types

State which proposal type this proposal belongs to.

[X] SEP: Resource allocation strategies

[X] SEP: Resource allocation budget

Proposal details

The overall budget mentioned here is for Season 1 and Season 2 according to the governance framework and OBRA. The budget acts as an upper threshold, allowing any unspent amount to be carried over to the next season.

Strategy 1: Research and implement Safe token utility

1. Which goals does the strategy look to drive progress in?

Tokenize value (Goal 3): SAFE should represent the value of the Safe Ecosystem. Mechanisms should be created to link the growth of the Safe Ecosystem to the growth in utility of SAFE.

2. Which metrics and KPIs could initiatives under this strategy be measured against?

Disclaimer: KPIs should always be considered in relation to each other and not in isolation. For instance, the number of token utility contributions should be evaluated in conjunction with their quality. We would always prefer two high-quality contributions over five low-quality ones.

• Quality level of token utility contributions (via individual assessment)

• Specific Token Utility Participation Rate

• Increase in activity regarding utility

3. Outline the execution strategy or thesis

This is just an overview to give guidance on how to develop further token utility use cases:

1. Research phase: Conduct comprehensive market research to understand current token utilities in the market.

2. Development phase: Create use cases for Safe Token, focusing on user and developer value proposition and ecosystem growth.

3. Implementation and iteration phase: Gradually roll out new utilities, monitoring user adoption and feedback.

4. What are some example initiatives that would fall under this strategy

Disclaimer: The initiatives mentioned below are just examples for discussion and should not be taken as confirmation of their actual implementation.

1. Locking mechanisms: Implement locking mechanisms to reward long-term holders.

2. Governance participation: Utilize Safe tokens for voting on resource allocation and product governance.

5. Detail around existing data or evidence to support this thesis

• Arbitrum (ARB): Functions as a governance token, allowing holders to vote on network upgrades. While it's not possible to directly attribute the growth to token utility, following the token launch, the active user base increased by 44% from 1.8m to 2.6m in three months. The number of token holders increased by 112% from 285k to 604k, showing a steady ecosystem growth.

• Optimism (OP): Primarily used for governance, transaction fees, and to incentivise network and user engagement. Token launch allowed the protocol to increase the number of active addresses by 166% from 138k to 368k per month.

• Polkadot (DOT): Utility involves governance, staking for network security, and locking DOT for parachain slot auctions to support ecosystem development and growth. The total volume of staked reached 663m in 23Q3, showcasing a strong token utility.

6. Detail around any risks associated with this strategy

• Low user adoption: Risk of low engagement or adoption of new token utilities through misaligned token utility or overly complex utility.

• Market conditions: Potential impact on usage of token.

• Legal and regulatory constraints: Compliance with crypto regulations.

7. If this strategy succeeds, what is the happy case?

Tangible, applicable models for token utility and strong community engagement with higher participation rates in governance

8. If this strategy fails, what would be some reasons?

"Random" collection of token utilities / not tailored to SAFE / not feasible

9. Assessment of the strategy’s maturity and if there is additional data that needs to be collected for the validation of this strategy

• The strategy is designed to be less mature and more experimental, reflecting the research mission's nature (exploring what constitutes effective token utility) and the methodology for achieving impactful outcomes (we encourage various approaches to reach an outcome).

• Implementing a supportive legal framework to pre-vet token utilities could add significant value to keep contributions efficient and prevent non-regulatory compliant ones.

10. What budget should this strategy be allocated for?

Disclaimer: Please be aware that the final numbers might change based on the market price of the stablecoin allocation proposal.

200.000 USDC

---

Strategy 2: Foster module ecosystem

1. Which goals does the strategy look to drive progress in?

Foster vibrant ecosystem (Goal 1): SafeDAO benefits from a vibrant ecosystem built on shared components and standards. SafeDAO supports and empowers new and existing projects integrating with the Safe Protocol or initiatives supporting the usage of Safe Protocol.

2. Which metrics and KPIs could initiatives under this strategy be measured against?

Disclaimer: KPIs should always be considered in relation to each other and not in isolation. For instance, the number of modules developed should be evaluated in conjunction with their quality. We would always prefer two high-quality contributions over five low-quality ones.

• Quality level of proposed modules (via individual assessment)

• Usage of modules, e.g. value driven through modules / transaction volume / number activation / percentage of Safes with modules activated

• Integration of modules (actual traction and individually assessed via former cases/benchmarks)

• Developer satisfaction score (for improvements, via rating mechanism)

3. Outline the execution strategy or thesis

Developers are encouraged to create new modules focusing on new use cases, robust implementation, and thorough auditing. Creation of libraries and further developer tooling. Execution should have a strong emphasis on boosting the security of the module ecosystem, possibly through sponsored auditing. Prioritizing the development of Safe modules is crucial for the ecosystem's growth, as it enhances Safe's core functionality and drives onchain compatibility. For non-module-related development efforts, there is an alternative source of funding through the SAFE grants program.

4. What are some example initiatives that would fall under this strategy

• Creating new modules, e.g. recovery module, passkeys, security guard

• Make existing modules more accessible for developers and end users

• Porting existing modules

5. Detail around existing data or evidence to support this thesis

The Zodiac toolkit by Gnosis Guild is utilized by 239 entities, and has 19 active GitHub contributors, indicating its significant engagement and adoption

6. Detail around any risks associated with this strategy

• Curation and quality control: Risk of subpar module development without proper quality control

• Discovery problem and fragmentation

7. If this strategy succeeds, what is the happy case?

• Diverse and robust ecosystem: A vibrant ecosystem with a wide range of functional modules

• User satisfaction leading to development demand: Positive feedback from users leads to increasing demand for module development

• Strong market position: Enhanced competitive advantage through modularity in the industry

8. If this strategy fails, what would be some reasons?

• Poor quality modules: Development of low-impact or redundant modules with no clear value proposition

• Insufficient developer engagement: Lack of participation or interest from the developer community

9. Assessment of the strategy’s maturity and if there is additional data that needs to be collected for the validation of this strategy

The strategy has been assessed as mature as developing modules is a key growth driver, and it's already showing initial traction in execution.

10. What budget should this strategy be allocated for?

Disclaimer: Please be aware that the final numbers might change based on the market price of the stablecoin allocation proposal.

300.000 USDC

---

Strategy 3: Increase awareness of Safe Ecosystem

1. Which goals does the strategy look to drive progress in?

Foster vibrant ecosystem (Goal 1): SafeDAO benefits from a vibrant ecosystem built on shared components and standards. SafeDAO supports and empowers new and existing projects integrating with the Safe Protocol or initiatives supporting the usage of Safe Protocol.

2. Which metrics and KPIs could initiatives under this strategy be measured against?

• Social media reach/engagement (for content pieces)

• Cost-per-activation (Number of attributable wallet connections ("users added"))

• Retention of attributable wallet connections

• Quality of content (via individual assessment)

3. Outline the execution strategy or thesis

The strategy could leverage content marketing and educational initiatives to highlight the benefits and functionalities of Safe products. This can cover IRL activations, educational content or documentation. This should not cover “random” educational initiatives that do not create an impact.

Initiatives for this strategy should show their previous track record, avoiding untested, random efforts. Due to the difficulty in measuring effectiveness, a higher reputation standard is crucial for ensuring impactful and reliable results.

4. What are some example initiatives that would fall under this strategy

• Partnering with thought leaders for webinars and live Q&A sessions.

• Creation of recurring content like newsletters or podcasts

• Interactive social campaigns encouraging user participation and feedback

• Workshops about how developers can leverage Safe products, e.g., SDK / Protocol with regard to modules

5. Detail around existing data or evidence to support this thesis

• Arbitrum Grants Program has expanded its awareness initiatives by engaging a broader group of contributors through various contests (like jokerace) and initiatives (such as the Gitcoin partnership). This approach has resulted in a significant increase in contributions (>20k contributions) and a surge in grant program applications, enhancing awareness. Similar strategies can be employed to activate the community's interest in SAFE's products.

• Polkadot and Revolut partner to launch a “Learn&Earn” course on Revolut’s platform in order to foster the adoption of crypto, as well as to bring interest to the DOT token.

• Optimism Collective's RetroPGF is dedicated to supporting projects that help develop and use the OP Stack. Eligible initiatives include YouTube channels, newsletters and educational websites. 10m OP was allocated to 195 projects, where the top 10% of projects received more than 140k OP and generated measurable results reported in the forum.

6. Detail around any risks associated with this strategy

• Misalignment of content tone or subject matter with target audience

• Fragmentation and oversaturation of content

• Low impact production of content through AI tools

7. If this strategy succeeds, what is the happy case?

• Significant increase in ecosystem recognition and product understanding.

• Measurable uptick in wallet activations and sustained user engagement.

• Further establishment of Safe as a thought leader around smart accounts.

8. If this strategy fails, what would be some reasons?

• Ineffective content that fails to create an impact

• Inadequate reach due to poor distribution

• Not focusing on the right target audience

9. Assessment of the strategy’s maturity and if there is additional data that needs to be collected for the validation of this strategy

Quality assurance of contributions remains a challenging task, given the broad nature of the strategy. To avoid arbitrary contributions, we aim to especially focus on setting more specific examples and emphasize stringent feedback to ensure focused and effective progress.

10. What budget should this strategy be allocated for?

Disclaimer: Please be aware that the final numbers might change based on the market price of the stablecoin allocation proposal.

250.000 USDC