CRYO-10.1: Compensation Framework

Submitted by: CryoCore Team Members: CryoCore

1. Problem

CryoDAO is a decentralized organization, with numerous stakeholders directly and indirectly involved in achieving its goals and implementation of organizational activities. DAO Members implement activities through Working Groups, and need to be compensated through a simple, transparent framework.

2. Solution

CRYO-6 governance sets the most fundamental CryoDAO operational principles. In addition to those, the following principles apply to the Compensation Framework:

1. Outputs are rewarded, not inputs. The DAO does not pay salaries by inertia, and does not hire for tenured positions. We do not measure the number of hours worked, unless necessary for legal compliance. We operate on the principle of putting in effort today, for the benefits to come in the future.
2. High empowerment, high accountability. Members elected in CryoDAO roles are given very high levels of empowerment. They are also rewarded based on their performance, as evidenced by reaching set goals.
3. High performers earn governance influence. $CRYO is seen as a way to reward valuable contributions to the community through a greater stake in, and ability to influence, CryoDAO’s direction and decision-making. Built on community spirit, we incentivize efficiency and results by rewarding Members and contributors with governance tokens based on their performance. High performers therefore earn more “rights to govern”.

2.1 Compensation Framework

CryoDAO rewards contributions in USDC and $CRYO. Given we are a young organization yet to demonstrate significant achievements, and the “every dollar spent on operations is a dollar we can’t spend on research projects” principle, USDC rewards have been designed well below market rate.

Most DAOs use various tricks to “hide” compensation numbers from the Members. They tend to bury compensation in large documents that are hard to read and complex frameworks that are hard to understand. We, on the other hand, pride ourselves on being clear and transparent.

CryoDAO compensates the following elected roles separately and on a per-month basis, and under the following conditions:

Role	USDC	$CRYO	$CRYO Lockup
Stewards	5,000	5,000	12 months
CryoCore	0	1,000	12 months

Stewards’ compensation is aimed at consistently increasing their ability to influence the direction of the DAO in return for their contribution of time and effort.

To put the above into perspective, the budget for yearly USDC rewards for the above roles is a total of 180,000 USDC (3 individuals x 60k USDC), or about 5% of our Juicebox raise (1,108.18 ETH raised, at the time of writing’s average price of $3,200 = $3,546,176).

Similarly, the budget for yearly $CRYO rewards for the above roles is a total of 252,000 (3 individuals at 60,000 and 6 individuals at 12,000 $CRYO yearly), or about 5.69% of our current supply of 4,422,687.04 $CRYO. This is in line with the CRYO-3 Tokenomics governance. Any unused rewards are returned to the DAO Treasury.

Individuals may vote with the token representing their vesting $CRYO, vCRYO, immediately.

Expenses for elected roles are not part of the plan and are reimbursed when and only if they are within the framework of the Working Group’s Yearly Plan or another budget line within the DAO Strategic Plan described in CRYO-6 governance.

Reward budgets for Working Group Members and any additional frameworks must be proposed by the Stewards in the DAO Strategic Plan.

Rewards to service providers external to the DAO are budgeted for in the DAO Strategic Plan, and are executed based on supplied invoices.

The Compensation Framework is reviewed yearly at the end of the last quarter of the Strategic Plan. Upon outstanding performance of any individual, Members are encouraged to author supplementary governance asking for additional $CRYO rewards.

3. Requested Budget

A compensation budget of 180,000 USDC and 252,000 $CRYO is requested for the 12 months post the date of Steward elections.

4. Timeline

This proposal should be executed immediately upon a positive community vote, and compensation disbursed as per the framework detailed above.