SOSIP-13-Contributors Bonus & Long Term Incentive Plan

Prepared by: 9x9x9 Reviewed by: Dyno; Taegeuk

Background

Unlike most projects, the contributor team reserved nothing for themselves in OpenDAO. All of the contributors joined with passion and worked for free in the beginning.

SOSIP-5 passed, allowing for contributors to be compensated for their efforts, there are different levels of remuneration depending on one’s role in the DAO and each level provides a fixed amount of remuneration.

As contributor skillset and experience grows, if he/she remains in the same position with a fixed income salary, he/she is more likely to leave the DAO and start new projects for more achievements.

Thus, to retain our valuable talents and align the contributors’ mindset, we would like to propose further long term incentives for contributors. We believe that not only will new incentives reward continuous value creation, but also inspire top talents across the space to join the contributor team.

Short term bonus

Coordinape

Allow DAO team members to collectively reward each other making community payments more equitable and transparent.

Tip.cc

Contributors are also entitled to receive casual $SOS tips from Telegram & Discord community members if the community recognizes their service.

Performance bonus

The discretionary bonus is designed to reward the contributors who made significant contributions towards $SOS token value or dramatically exceed their standard duty as per role based on contributors’ monthly peer review.

Long term incentives

Contributor Incubator Funds:

If a contributor decides to start a project of any kind, there will be a direct access to a portion of funds from OpenDAO treasury, which will be invested to the contributor to help with the idea and dream that he wants to pursue. If the project does well, the DAO treasury can also capture some of the value and increase DAO treasury.

Contributor Option:

This is for contributors who wish to own more $SOS tokens. The more tokens a contributor owns, the more incentives there are to achieve significant progress with the highest efficiency and passion.

Contributors will receive option credits equal to an agreed-upon ratio of the monthly salary. Option credits can be accumulated up to 6 months and will allow the contributors to buy $SOS from the treasury valued at the lowest price in the past 6 months recorded on CoinMarketCap. If a contributor has joined the team for less than 6 months, his earliest right to exercise the option will be the date that he joined the team. Option credits will have to be used before the contributor leaves OpenDAO.

Sabbatical Leave:

Contributors who have been with OpenDAO for more than 2 months will be entitled to 4 days of paid leave to combat burnout, and stress. The sabbatical leaves can be accumulated and replenishes every 2 months. Application for leave must be submitted for approval a week in advance, with tasks properly delegated to another colleague.

How the options will work

Options will be represented by NFTs, unlimited in supply, and have face values of 10K, 50K, and 100K. The option NFT is non-transferable, bonded to a contributor’s address, and serve only as an option proof. Tokens bought will have linear vesting of 6 months done through a smart contract, this means the tokens will be locked up and slowly released to the contributor. If a contributor leaves within the vesting period, the effect on the option will depend on the nature of the departure.

For example, A has joined the team for 3 months and is entitled to execute an option at lowest price point within the 3 months working period. If A exercises his option, he will purchase $SOS from the treasury at $0.000001, the lowest price within the last 3 months, and slowly release 1/6 of the position per month for the next 6 months at market rate.

An example

Assumptions: 3 months lowest price: $0.000001 Current price: $0.000005 Profit ratio: 5x A has accumulated 50k option credits $SOS price remain unchanged within the next 6 months for calculation purpose

A pays treasury a sum of $50,000, treasury gives A $250,000 worth of $SOS token at $0.000001 per $SOS with 6 month vesting period, releasing ⅙ per month for the next 6 months. Each month, A can sell ⅙ of the $250,000 worth of $SOS position which is roughly $41,750 at market price.

So A effectively pays the treasury $8,250 to mint this non-transferable NFT that’s worth $208,250 to be paid off in full within 6 months.