The discussion on IIP-15 has becomes slightly sidelined into a discussion on methodologists and rewards.
I think this is really something that should be discussed separately as it has a wider application.
During a call in November I suggested that we should consider if we should create a two tier system for methodologists / funds:
- Tier 1: DeFi Pulse, CoinShares, etc. Large organisations who can add value to the launch and marketing of the fund in terms of assets, reputation and reach.
- Tier 2: community led funds which rely on the coop for design, liquidity rewards and ongoing management.
I still think this is a good idea, and think that we should see if we can work something out. I think there are a few questions to discuss:
- Do we want to modify the structure to allow / encourage community led funds?
- How do we handle the streaming fee / reward the fund proposers?
- How does it fit into the methodology bonus programme?
For q2, I can see a few options that could be combined:
- Methodologists / proposers propose a fee split with the coop and receive an ongoing income.
- Methodologists / proposers receive a single payment of INDEX tokens when the fund is successfully launched with all fees going to the coop (I think Compound do this with proposers of new code including a bounty for the work they have done).
- Methodologists / proposers get a bounty when the fund hits a KPI ($100 m AUV ? ) and all fees goes to coop.
If the methodologist / proposer don’t get an ongoing income from the streaming fee, then the coop should consider ongoing rewards / salary for the people managing the fund. I suppose it would be similar to the role I’ve being doing on DPI, a coop member with is product lead for a fund, keeping on top of the activity, KPI’s and building extrinsic use cases etc. Something for the guys looking at long term coop community retention to consider.
For q3, I think there are three options for Tier 2 funds:
- Methodologists / proposers are eligible for the share of methodologist bonus based on income to the coop (i.e. as per the other methodologists).
- The fund is ineligible for any methodologist bonus
- The fund collects methodology bonus as normal (based on the % of streaming fees collected by the coop) but the bonus is redirected to the coop treasury. This would help the long term growth of the coop as it retains collateral, and generates more competition for the tier 1 methodologists. Note, I would consider that such strengthening of the coop is also in the long term interests oft he tier 1 methodologists.
I think it could be good to have a discussion on this, then some polls before raising an IIP.
Some other comments from IIP-15 discussion: