[Deprecated] Clarifying Index Coop Contribution Options

Finance Operational Funding & Payroll
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Simple Summary

Clarify the different ways Index Coop members can be compensated. Introduce INDEX denominated rewards for Working Group Leads and their core contributors.

Motivation

There are many different contribution schemes currently being used at the Index Coop. There are:

  1. Full time contributors
  2. Monthly contributors awarded by Treasury Committee
  3. Working group leaders with stipends
  4. Contributors paid by various working group programs

When new members join the Coop, or veteran contributors seek to deepen their commitments to the Coop it’s not clear what paths are available to them.

This post clarifies the existing contribution options and adds INDEX denominated rewards for Working Group Leads and their core contributors.

Specification

Full Time Contributors

Compensation: Salary + Vesting Tied to Token Supply
Example: 5,000 USD per month + 0.15% of token supply over 2 years

Much has been written about what is expected of Full Time contributors. Suffice to say, this role represents the members most committed & filling the highest leverage needs of the Coop. The number of Full Time contributors to the Index Coop will increase in the near future, but capacity will be limited.

Working Group Leads & their Core Contributors

Commitment: Narrow, must deliver for their working group first
Compensation: USD Salary or INDEX Salary tied to an initial 20 MA Price
Example: 7,000 USD per month or 150 INDEX per month for 3 months (e.g. 7,000 USD tied to May 1st 20MA Index Price)

Working group leads & their core contributors manage the bulk of day-to-day operations for the Coop. Each working group lead and core contributor should have ownership over a material portion of Index Coop operations. They can be sole contributors or leaders of their own band of contributors. Working groups are expected to set OKRs and measure their groups performance against those goals on a regular basis. Working Group Leaders & their Core Contributors are directly responsible to the Coop community for the results of their Working Groups and are expected to exhibit a high degree of ownership. These Working Group duties should be met before contributing to other parts of the Coop.

Monthly Contributors

Commitment: Flexible, may contribute across working groups
Compensation: Variable, Tied to Monthly 20MA INDEX Price
Example: Payment by GWG for Impression Mining, by CDWG for Design Work

Most contributors to the Index Coop currently sit in this tier. One major change we would like to move towards is compensation being subject to the discretion of the different working groups that members choose to be a part of. A more detailed post breaking down reasons & a proposed next steps for that change will be posted shortly.

A monthly contributor does not necessarily earn less than working group leads, or even full time contributors. Extremely effective monthly contributors should be rewarded in proportion to the results they drive to the Coop. Monthly contributors have the freedom to participate in several different working groups ad-hoc.

Next Steps

The Treasury Committee will begin evaluating all new working group proposals with the above guidelines in mind.

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Thank you for pushing this forward Dylan.

Today, I was talking about this with Joe and we found a cool concept that should be considered alongside this proposal.
There has been multiple attempts to allow contributors to lock and multiply their monthly rewards. Let’s imagine that we pay 2x if a contributor locks their rewards for a full year.

Every month, when claiming the rewards the contributors would have the chance to choose which % of their monthly rewards will be locked for a year. This allows every community member to decided how much invested they are in the future of the coop.
Example: (1) 100 INDEX May 2021 rewards. (2) Claim 50 $INDEX immediately and lock 50 $INDEX. (3) Get 100 $INDEX on May 2022 from vault.

This can be easily implemented by changing our current smart contract implementation to send the locked percentage via Sablier.

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@DefiJesus I like that idea a lot.

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Late to this but I think this is a great nudge forward @dylan

Thank you

The lock INDEX for 3 months for WG leads and high value contributors is good to see and I’m glad the BDWG is doing this now. I’d been keen to do that - and even more so if, as @DefiJesus suggests, there are ways to lock this for longer and take a deep, aligned bet on the Coop and $INDEX. Mission matter, but so do incentives - and this seems like a really powerful one

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Would be amazing to have a page on the website with an organigram. So we know all groups, all members involved … It can also help new members to know where to go, and who to contact.

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I think @Pepperoni_Joe is working on this…

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Perfect ! this will be very helpful

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Compensation: USD Salary or INDEX Salary tied to an initial 20 MA Price
Example: 7,000 USD per month or 150 INDEX per month for 3 months (e.g. 7,000 USD tied to May 1st 20MA Index Price)

Hi @dylan is this strictly a binary option? Being locked into 100% $INDEX only is a non-start for me (mortgage, bills, life yada yada. Would expect the same for some others?) If so it’s locking people out of any benefits of option B by default.

Thanks

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I really like this idea (essentially staking for contributors) @DefiJesus - and I know it will not affect everyone the same, but that doesn’t change the fact that it’s good for The Coop overall.

As I see it:

  • Incentivizes long-term contributions and sustainable thinking
  • Reduces downward pressure on the spot price of INDEX
  • Signals that contribution is valued more than other means of earning INDEX

My one suggestion would be to make this non-binary ( @MrMadila ), and I think smart contracts make this relatively easy, but I would like to see the earned rewards available immediately, however on a timeline of Y-months that reward would increase to Zx the amount earned (Y & Z being parameters that are voted on periodically) - if someone withdrawals before full vesting, the remainder would be sent back to the treasury.

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Hey all,
This post and its guidelines are being deprecated in favor of Working Groups v1.1.
This is certainly a direction we want to move in, but there’s lot’s changing in the working group format at the moment.

INDEX denominated rewards for core contributors is being set aside until the new working group structure has been settled & put in place.

1 Like