3 Incentive framework

[stephen-rowan]

Incentive framework that ensures sustainability and aligns interests (DRAFT VERSION IN BUSINESS PLAN V3)

[tttroyyy]

[tttroyyy]

EARNING REWARDS

As part of the NFT-DAO Tokenization model, rewards can be paid to community contributors in a number of ways. Equity contributions can be made as follows:

• Sweat Equity (pro bono contributions);
• Social Equity (community trust rewards);
• Paid Equity (rateable hours delivered).

Sweat Equity

Pro bono contributions within the community ranging from successful branding or logo designs, task and bounty completion, referrals and recruitment, market research assignments, business documentation, social media sharing, content production, resource procurement, networking milestones, coding, database and library management, administration, community management – and much more – can be captured within the DAO onboarding and community management process. Sweat Equity can then be distributed to contributors in the form of NFD tokens based on a consensus-based market valuation of the work done. Sweat Equity is a contribution option for participants not employed by the DAO or members operating in a casual or non-professional capacity, to tokenise their efforts and contributions. This process will also seek to stimulate community participation and leverage the community’s skills in task completion. Market valuations may also rank certain tasks by size, as proposed by the community, and contributors may be able to claim a bounty for their completed task, which must then be signed of by a quorum of community members.

Social Equity

An additional value metric that accompanies Sweat Equity is Social Equity. This is a P2P contribution where members can offer other members micro-rewards (like BAT tips, IdeaScale kudos or Reddit karma). These rewards are also paid out as NFD tokens at a standard nominal rate, with the option to increase that rate depending on the value the giver feels the receiver has offered them or the community. Social Equity is a measure of social trust also, as Social Equity can also be paid out by the treasury based on Know-Your-Customer (KYC) information each member chooses to disclose with the community. This metric can be measured once new members onboard into the DAO. Social Equity can also create a gauge a metric, in combination with Sweat Equity, to determine how much the community values the work the member is providing (quality) rather then the rate of work only (quantity). There is a possibility that alliances within the community may decide to share Social Equity amongst themselves to increase their trust score. However, a ratio can be implemented that identifies the rates of trust swapping amongst individual accounts within the network, which may implement a cap on trust scores that are marked as being manipulative.

Paid Equity

Includes direct paid work by negotiation to contractors or employees. Legal terms, conditions and contracts will need to be drafted by the Business Holon and in accordance with an Operational Agreement to formalises relationships between NFT-DAO participants and the NFT-DAO LLC. (Registration with Wyoming State Legislature pending – July 1 2021. Interim company registration can be viewed here: https://wyobiz.wyo.gov/Business/FilingDetails.aspx?eFNum=117187035128090204062064230129080151087194217068)

The Incentive Fund

15% of total token circulation will be allocated to incentivizing innovation and participation within the DAO network. Incentivization metrics will include Sweat Equity (for casual pro bono work contributed within the community); Social Equity (through a trust score metric shared between community members); incentivization’s for BOXCAR trailblazers whose markets are stimulating growth within the community; incentives for governance voting contributions; and dividend payments in the form of one-off or recurring token drops.

The model will be merged with the Our Strategy section of the NFT-DAO Business Plan, which will be found here: #17 and the NFT-DAO Token Distribution Model found here: #20

[tttroyyy]

DELIVERABLE UPDATE:

It is estimated that this deliverable is currently 90% complete.

A tokenomic framework has been drafted that groups the NFT-DAO roadmap into Phases, Business Development Stages, Deliverables, Potential Token utilities, Rollout phases, Contribution metrics, Consensus Pools, Onboarding Funnels, Member Engagement Pathways and Timeframes.

Incentivization is captured through a combination of the Member Engagement Pathway (via Onboarding Funnels) and Equity Tiers within the DAO (via the Token Roll-out). It is proposed that this model be more fully developed and implemented to support application with the Project Catalyst community: https://cardano.ideascale.com/a/dtd/Contribution-Token-Governance-Model/

The final stage of this deliverable will require expertise review and sign-off by core contributors.

NOTE: This work has currently been achieved while awaiting the release of $19,893 allocated by the NFT-DAO to the Governance Holon to achieve project deliverables. See fund allocations here: https://cardano.ideascale.com/a/dtd/Comprehensive-NFT-Framework-Collab/334521-48088