iip: 36
title: Full Time Contributor Retention
status: Proposed
author: Greg (@anon10525910)
created: 2021-03-19
Simple Summary
This post introduces a trial framework to compensate and retain an inaugural class of 4 Index Coop full-time contributors.
If successful, this will provide the groundwork to launch future full-time contributor programs. The immediate next step after implementation will be to create a clear framework for how another class forms.
Intro
Full-time contributor compensation has been a Coop need for months. This post proposes an experimental, specific first step.
If the framework-below is accepted by the community, the Coop will predictably compensate 4 full-time contributors. In exchange, the Coop gets their full-time focus on building the Index Coop to the benefit of all stakeholders.
This minimum-viable framework is optimizing for speed and laying strong foundations so we can quickly learn and iterate (10x From Here).
It was developed in response to community needs expressed on a variety of public forums, after researching how other top crypto communities retain & compensate full-time contributors, and in conversation with Coop community members.
This post covers
- Core principles
- Implementation
- How we build on this framework
- Next Steps
Core Principles
These are the core principles that form the foundation of this proposal:
Commitment & Trust: We, the Index Coop, should be willing to increase our commitment to contributors who earn trust by delivering impactful outcomes & who embody principles we believe are important to our long-term success.
We earn our people: We believe the best people are recruited (internally & externally), not bought. Protocols that pay top-of-market will always win salary-optimizing people. We believe the best people want to learn. Winning and retaining these people means creating an environment where people are optimizing for long-term career capital. We believe that if we improve Index Coop member’s long-term career capital, we will get the best people (Carta 101 & The Alliance).
Get the right people on the bus: “When facing chaos and uncertainty, and you cannot possibly predict what’s coming around the corner, your best “strategy” is to have a busload of people who can adapt to and perform brilliantly no matter what comes next.” (Good to Great)
Fairness: Full-time contributor compensation should be fair & based on the value/impact they provide to the Coop.
Comp. variables: Salary fills needs and vesting aligns long-term incentives + provides upside.
Complementary: This is complementary to the working group structure, treasury rewards, and bounties. Each of these programs serves different purposes.
Mutually exclusive: If someone is compensated as a full-time contributor, they will not be compensated separately via separate programs (no “double-dip”).
Speed & iteration: Right now, we need to optimize for speed and get a good-enough solution out the door that enables us to iterate as we learn and grow. Getting a fully-baked compensation program created is going to take time. This is the first step.
Implementation
Motivation
The Coop needs to retain high-quality, full-time contributors who drive meaningful outcomes to the benefit of all Index Coop stakeholders.
The contributors that fit this bill have other, and often less risky, professional options.
Such contributors need predictability (salary) and upside (token vesting).
Retrospective
Given that this is the first time we are implementing such a program, it is critical to pause, reflect & incorporate learnings.
3 months after implementation of this proposal, we will take time to reflect on how this trial framework worked.
The KPIs for each role (listed below) will be used as starting points for evaluating contributor effectiveness, but are not all-important metrics. Evaluations should also focus on growth, learnings, and continual improvement (Our Guiding Principles).
This, of course, will be done in conversation with the entire community.
What
A compensation package skewed towards aligning long-term incentives.
Salary: $5,000 per month for each contributor ($60,000/year)
- Given the structure of the Index Coop treasury, all compensation for this trial will be in INDEX. This can change should other options become available.
- The Treasury Committee will make these payments monthly, unless & until an acceptable alternative is determined and implemented.
$INDEX vesting: 0.15% of total supply over 2 years for each contributor (total 0.60% of INDEX supply allocated to 4 Index Coop members)
- 6 month cliff, back-dated to begin 1 month prior to implementation of this proposal to recognize that these full-time contributors have been all-in for months.
- With clawback - All unvested INDEX returns to the Index Coop treasury if someone leaves or the full-time contributor relationship is otherwise ended.
- Right of first refusal - Index Coop Treasury has the right of first refusal to buy-back INDEX at the prevailing market rate at that point from team members who wish to sell. The purpose of this is to limit the amount of vested INDEX reaching the open market.
Engagement
- Each compensated-contributor is required to post to the forum each quarter a “working group” style proposal if they are not already formally leading a Working Group.
- The intent is for full-time contributors to make both obvious & community-informed their priorities for the upcoming quarter.
Who
We are suggesting the Index Coop bring on the following 4 full-time contributors focused on the following areas. Each of these candidates have shown motivation, commitment and leadership when it comes to meeting the Coop’s goals.
They have demonstrated they can drive meaningful outcomes.
They have demonstrated commitment to our guiding principles.
- Current focus: Growth
- Current Mission: Grow Index Coop products
- Core KPIs: # Holders & # Unit Supply
- Current focus: Business Development
- Current Mission: Inject Index Coop products into the fabric of DeFi
- Core KPIs: # Holders & # Unit Supply
- Current focus: Community Methodologist - MVI & Treasury Strategy
- Current Mission: Grow the MVI into a massive success
- Core KPIs: # Holders & # Unit Supply
- Current focus: Community Methodologist - MVI
- Current Mission: Grow the MVI into a massive success
- Core KPIs: # Holders & # Unit Supply
In addition to the above, Community Methodologists receive bonus compensation upon reaching product growth milestones.
More details on the community methodologist role is outlined here.
What the Coop gets
Here are just some benefits the Coop as a whole gains:
- Proven contributors, dedicated full-time (40+ hours/week) to the Coop’s Success
- Visible roles focused on driving outcomes for the Coop (North Stars & Core KPIs)
- Increased governance power in the hands of community members
How we build on this framework
This is a proposal to ratify an initial, experimental model and secure a base of full-time contributors for the Index Coop.
The model will continue to evolve through contributor and community feedback.
Once there has been initial approval and implementation, there will be effort and attention put into building clear paths for future classes of full-time contributors. We expect to create clear paths that are more public (i.e. Sushiswap) & utilize hiring best practices (i.e. Who, The Alliance) that set everyone up for long-term success.
As a reminder, the Treasury Rewards systems, Working Groups structure, and Bounties are current paths to remuneration for contributions.
The experimentation with new ways to attract, grow, and retain contributors is born by a recognition of the sheer volume of potential and untapped talent not only within the Coop community but also in the greater crypto ecosystem
FOR
- Hire the 4 full-time contributors according to the parameters above
AGAINST
- Do not hire hire the 4 full-time contributors according to the parameters above