SIP-00030 Should we fund the Coordinape Test Epoch?

Authors: @Synth, @Minterras, @dropnerd, @kb1900, @Lamorak

Purpose:

SharkDAO members are spending a lot of time and effort in growing and bringing value to the community. It is important that the community rewards them. We think that many members of SharkDAO would contribute more and execute faster if we rewarded them. This is not intended to be the only mechanism to reward contributors of the DAO.

Summary

• SharkDAO will reward contributors via a Coordinape circle.
• In the circle, active SharkDAO volunteers will receive GIVE tokens that are intended to be given to Sharks who are actively driving SharkDAO initiatives forward. These GIVE tokens will turn into ETH and SHARK for the recipient.
• 2.5 ETH and 875,000 SHARK will be allocated from the treasury for the epoch. The ETH will be released immediately, while the SHARK tokens will be held in escrow (time-locked) for 3 months and then released to recipients.
• Anyone who has spoken in a committee channel or project channel since September 1st, 2021 will be eligible for circle membership. Initial circle will be all authors of proposals posted on snapshot. (See Circle List)
• Based upon the results of the test period, a decision will be made by SharkDAO on whether or not to continue using the platform.

Logistics

If this proposal is passed, tokenomics volunteers will work with the Coordinape team on getting SharkDAO’s Coordinape “circle” set up as soon as possible. The Circle administrators will be @Synth and @Dropnerd for the first epoch and can be later discussed if SharkDAO wishes to alter the Coordinape circle admins.

• There will be a grant for this two week test epoch of 2.5 ETH and 875,000 SHARK. The ETH will be sent soon after the epoch ends, while the SHARK will remain time-locked and held by the DAO for up to 3 months. The reasoning for this time lock is that contributors will be able to see immediate rewards for their contributions in the form of ETH while still being incentivized to increase the value of the SHARK token through further contributions.
• Throughout the trial Epoch, the Circle Sharks will be able to send their 1000 GIVE to other Circle Sharks whom they see adding value to the Shark ecosystem and deserve to be rewarded.
  • Circle members are highly encouraged to attach a note indicating why the Give was sent
  • Note: a Circle Shark is free to give as much or as little of their 1000 GIVE as they see fit. Any un-gifted GIVE will be burned at the end of the Epoch.
  • At the end of the Epoch, a spreadsheet will be produced with each Circle Shark’s ending GIVE allocations that have been sent to them. (e.g Shark earned 200 GIVE tokens this cycle, there were 1800 GIVE tokens allocated after burns, Shark earns 1/9 of the allocation)
  • Coordinape provides a map of all GIVE allocations to view how contributions are interacting with one another:
• If the GIVE token allocation seems highly suspicious, a proposal may be put in place to adjust the allocation or cancel it altogether.
• If no proposal is put up to adjust the allocation for 36 hours after the epoch ends, multisig will then coordinate the distribution of funds based proportionally on the amount of GIVE tokens each Circle Shark has.

Circle List

Anyone who has spoken in a committee channel or project channel on discord from September 1st, 2021 will be eligible for circle membership. If you have spoken in a committee chat/project chat before September first, you are encouraged to send a message once again to confirm an active eligible status.

Step 1: The initial circle list will be anyone who has authored a proposal. Initial circle members will have 24 hours to respond to be included in the first list. If not, the initial members can be included in step 2. The initial list will be as follows :

@Lithium, @Rayo, @Forager, @Lamorak, @Dropnerd, @Sasquatch, @Synth, @nico, @kb1900, @dopalisa, @RYGA, @huh.eth, @nicholas, @Minterras

Step 2: This initial list of members will then vouch for anyone eligible who has submitted a request (a short form) to be a member of the Coordinape circle. Members who request to be a part of the circle will have to receive vouches from >8.008% of the total circle members. (This will be 2 vouches from the initial list). Members will have up to 24 hours after the initial circle members join to apply for the circle to be included at the start of the epoch. If eligible members miss the deadline, they can submit mid-epoch

Step 3: Eligible members may apply late to the epoch. If an applicant receives the vouches necessary during the epoch, they will be given a pro-rata share of GIVE tokens. (eg. Synth joins 1 week into the 2 epoch, Synth receives 500 of the 1000 give tokens to allocate)

Possible Success Metrics

• Development velocity increases.
• Sharks who have become less active become more active during the trial period.
• New Shark volunteers indicate that Coordinape rewards are a major factor for deciding whether they would contribute.
• SharkDAO is able to recruit talent and maintain talent as it scales.

Risks:

• The initial test circle does not accurately reflect core Shark contributors and reward contributions equitably
• A test period run without a sufficient tangible incentive (i.e. ETH or $SHARK) would not provide an accurate representation of the platform’s abilities. We think 2.5ETH and 875,000 SHARK should be enough.
• The allocated ETH and SHARK for this epoch is considered “wasted” by some members who did not participate or get rewarded.
• Members could collude within the Coordinape platform and give each other all of their GIVE, alienating other members and souring the appetite to use the platform long term. We intend to audit the rewards and see which improvements we can make.
• Coordinape does not yet store data on-chain. Trial period would be required to be overseen by a few SharkDAO Admins → could lead to confusion and disputes around final tallies/rewards/fairness. We will publish all reward information within Discord.