PIP-16: Season 3 Compensation Proposal

As Season 3 starts, we are introducing a few important improvements for the Protein Community. One of them is a simplified compensation structure, which will be used by Teams and Pods to prepare their Budget Allocation Proposals and recognise contributors’ value throughout the season. Compensation is one of the critical elements of the Self-regulation framework, as we want teams to become more autonomous and responsible, but also to create the right incentives and nurture shared ownership in the community.

Contribution value

Current market conditions have forced us to postpone the creation of the $PRTN liquidity pool on Uniswap, with many of our fellow tokenized communities experiencing huge drops in their token’s value. We’re still exploring an LP model that can work within the current conditions, however this will take more time, rigour and planning.

For this Season, we propose to value 1 hour of any member’s contribution as equal to 350 $PRTN. This rate is based on the current internal valuation of $PRTN and it implies ~70% premium to compensation in USDC.

We want to stress this value is set temporarily for Season 3 and will be reassessed after August 31, 2022. We recognise the $PRTN token as a representation of ownership and governance rights within the community, and aim to build long-term holders as a focus.

Contribution levels

At this stage of our community development, we want to prioritise consistency over expertise. Thus, we propose to compensate for the amount of time someone is contributing, regardless of their expertise level.

General principles:

  • Core team contributors will not be compensated via additional projects or other programs
  • Team/pod contributors qualify for per initiative allocations (but it’s up for team leads to decide how to do it)
  • All contributors qualify for tipping

Contributor Levels

Level Expectations Hours p/w Compensation
Tier 1 Protein is your primary work focus >25 >8,750 $PRTN
Tier 2 Protein is one of your main priorities 10-25 3,500-8,750 $PRTN
Tier 3 Protein is an interesting side project <10 <3,500 $PRTN

Roles, priorities and expected outcomes must be set internally within teams. It will serve as a guideline, and work evaluation should also include members’ growth, learning and improvement.

Team / pod contributors will choose the initiative they want to work on and estimate in advance how many hours the initiative would take. If they choose a few initiatives, they become eligible for respective compensation. At the end of each week/month, the team leads will compensate their members based on internal review or any other process they like. On the other hand, most initiatives can be tackled by 2 members or more, in that case the compensation will be divided evenly between contributors.

Onboarding / hiring

  1. As core team members are the only members who receive monthly compensation in USDC, their onboarding needs community approval through Snapshot voting

  2. The proposal should include motivation, list of contributors (with their roles and monthly compensation in $PRTN), compensation terms, and voting timeline

  3. To minimise the governance burden for the community, votes are organised once a month (on 15th) to vote for new contributors cumulatively

  4. When team/pod contributors join a team/pod, they choose the initiatives they want to work on.

  5. All onboarding decisions should be reflected in the Protein Team Budgets sheet (link will be provided a bit later)

Termination

In failure to meet expectations or violation of Protein / GGth values and principles, a re-evaluation discussion will take place between contributors and the core team. If the decision to terminate is agreed and valid, it will be put into effect by the core team. In this case contributors’ monthly compensation will be immediately ceased.

Proposal Timeline

Forum discussion until June 3rd
Community vote on June 6th

2 Likes

Hi Artem,

thank you for sharing this proposal. It is a great starting point for everyone that wants to get involved with Protein.

I understand that consistency is favoured over experience, but I wonder how we could incentive and reward great talent, high performers, or anyone who simply did an outstanding job.

What if we spare a percentage of the team budget for the end of the season bonus, to be allocated among team members through coordinape process (see example scenario 1)? Or perhaps we could promote the idea of investing a percentage of team members $PRTN allocation to tipping others (scenario 2)?I guess the latter option would introduce some type of signal about each member generousity, too

1st scenario
Team X is made by:

  • Contributor 1 15h/week = 5250$PRTN
  • Contributor 2 15h/week = 5250$PRTN
  • Contributor 1 5h/week = 1750$PRTN
    Total budget contributor= 12.250$PRTN

Premium is:
Total budget contributor / Number of participants
12.250/3=4.083$PRTN

This is the premium to be allocated and distributed among members and determined by members via coordinape.

2nd scenario
Each member can tip up to a max. of their 10% income the others.
With this method I am not sure whether this would be fair to tier1 contributor, but anyway, thought I ‘d share this here for some thoughts.