Adding some notes & questions
Core Problem: Seems to make sense to split GWG & BD apart. Clearly focused on different parts of the funnel.
Key Performance Indicators: Echoing @LemonadeAlpha, It seems like there are some easier metrics here, that basically boil down to “# of deals closed” or however else you’d describe the most proximate output(s)- whether that is # of Tier 1 exchange listings, # of high-value defi partnerships, # of whale holders (for investor relations)
Request for funding:
- What is “contributor rewards / bounties”? Is that for the core contributors or other community members?
- What does $10K for “webinars and conferences” get the Coop? Why do we believe an in-person event strategy is the right one for this 3 month period? What’s the hypothesis here? I wonder if there is a smaller way to test out this tactic before allocating $30K to it.
Flagging this as a note to self
Flagging that this ^ is not in the original Working Group vision as described
here: Laying the Rails.
2 Likes
These folks have been cranking - excited to see what they keep delivering for Coop.
In favor
2 Likes
Great post and feedback. I’m also strongly in favor of this proposal. Some fair points in the comments were made regarding consistency of rewards and budget details. I suppose this will be addressed.
Something that comes to mind regarding DeFi partnerships: These partnerships develop through “inbound” and "outbound"activities. Either we approach others with a proposal for partnerships or we are approached (e.g. UMA). This is a different setting than exchange listing, or investor relations, where it’s mostly us reaching out.
Is the focus of this group mostly on outbound, or also the first address for incoming partnership requests?
No need to answer rn, this is mostly an input to consider when enhancing these capabilities.
Hey Lavi. It is definitely a bit of both, I have had inbound enquires from exchanges and angel investors that we need to manage but we are also still being proactive with our outbound activities. We need to be proficient in handling both however the main driver of our success will definitely be from outbound activities.
1 Like
That’s exclusive of core contributors.
This is implied and there’s some inconsistency even within the post, but that $30k is intended to cover three things:
-
Attendance by BD team members of Crypto/DeFi in-person events that will have a large number of industry participants that the Coop should build or strengthen relationships with. Bitcoin Miami is the specific event in mind for the timeframe that we think will run $5k-$7k.
-
Hosting panel discussions or events on behalf of the Coop. @Metfanmike and I have a specific vision for up to two events in NYC during the WG period (and expect success and continuance). That would run around $10k But we also want to budget for other financial centers where we have boots on the ground (Singapore and London coming to mind specifically).
-
Running Webinars (digitally at first but also could re-use the content for live settings). This is perhaps the most tacked-on and initial investment will be contributor rewards for helping us set these up (@Pepperoni_Joe giving some early help here based on his experience) though there may be costs for licenses, etc.
Speaking only for myself, the reason to do a concerted in-person push now is two-fold:
-
I’m looking for people who are Crypto-comfortable but not yet aware of DeFi, DeFi-curious, or have friends who are one of those two and would drag them to an event. I’m looking for differentiated impressions that @LemonadeAlpha could never reach because they’re low-usage Web 2.0 folks but they’d still go through the same discovery process that I did just a few months ago. And people who come from TradFi will understand DeFi before they would commit funds to an individual protocol or trade. And I want as many of them as possible to know that DPI is the way to get sector exposure.
-
DeFi summer happened during a global pandemic. There haven’t been nearly as many conferences or meetups on the topic as there otherwise would have been. That rubber band is stretched and primed for release. And I want people to see the Index Coop logo when they feel the snap.
So to bring that home:
Why in-person? It’s going to put our community and product in front of different people than existing strategies.
Why financial centers? TradFi evangelists are a route to institutional capital (also more likely early adopters for retail investment).
Why now? We’re coming back from a pandemic and DeFi is still emerging in public consciousness.
5 Likes
Oh one little thing - Treasury Committee handles this topic
TWG is like all other projects, requests funding from Treasury Committee
With respect to recent market events, is this model of fixed INDEX per month allocation the best way to manage how we reward people ?
For me, if I had a lot of liabilities (bills, mortgage etc…) to pay, having such a volatile income is not a good thing. INDEX is down 25% since the 30th April when this post was made.
If the post was made one week later, early May, then the rewards would have lost more than 50% in USD value.
I personally don’t want to see the scenario where contributors risk loosing out like this, but I respect those who Opt into this style of deal.
1 Like
Thanks, @Matthew_Graham. I was pushing strongly for this compensation construct for working group leaders so would love to share my thinking.
At the outset, I’ll note the ultimate solution here is very simple: give working group leads a choice. Those that want to take the market risk from fixing the token amount can opt to do so. Those that are relying on a set monthly USD value when they sign up as a working group lead can alternatively opt for that construct. Problem solved.
With that said, here’s more context:
- Full-time contributors have their compensation fixed because they’ve committed to working for the Coop full-time for two years. This makes sense, as they should have equity ownership and upside if their hard work infuses value into the Cooperative over the course of the two years. They are fully incentivized.
- By comparison, part-time contributors can’t similarly have their compensation fixed because the time and value of the contributions is highly variable and only known after the work is done.
But Working Group leaders fall somewhere in the middle of that continuum. Arguably, to me, they look much more like full-time contributors - just with a shorter commitment window (and therefore less compensation).
In the case of this proposal, we all decided we were comfortable taking the market risk, and I personally don’t regret it. You are (rightly) pointing out that INDEX has lost a lot of value in the last couple of weeks (but coming back already). That’s the downside risk of fixing compensation. However, for me, the far bigger risk is upside risk. I believe so much in the project and in the value that our efforts will have on the project that I’d perversely be downright dejected by the price of INDEX going up because it means our efforts ultimately result in fewer INDEX tokens at the end of the working group timeline. You would never commit to joining a startup employee without upside, which is in fixed shares. The same logic applies here, imo.
By fixing the monthly token amount, the incentives are more aligned. This construct also serves as a hedge in some ways. If INDEX plummets, I’m ok with that. I’ll probably just buy more INDEX. If it goes up, fantastic. I’m happy either way.
7 Likes
I agree and support the opt in approach. I do wonder, if we are limiting this style renumeration to those who can afford the downside scenario and therefore limiting eligibility by individual’s personal financial situations. We can all be bullish, expect price risk to the upside, but not everyone has the ability to express this view via this arrangement. My thinking is how can we make this as inclusive as possible.
My post over the weekend was to highlight the downside risk and also to trigger the discussion around the opt in approach being made as inclusive as it can be. I mentioned this topic to a broader audience before and the idea of having a minimum USD floor value was raised. This gives people who opt in, the unlimited upside exposure whilst somewhat limiting the downside exposure. This gives people the confidence knowing they have a minimum value coming in each month (USD value) which can be used to fund living expenses.
7 Likes
If the community is amenable to it, I love that idea, Matthew. It’s an embedded put just in case we experience a sizable drawdown in the INDEX price. I’m happy to chat more about this with you to think it through if you’d like.
3 Likes
Great comments here re compensation @Matthew_Graham and @Metfanmike.
+1 from me on fixed INDEX compensation for WG leads and major WG contributors - I understand the risks but like the trade.
Hey all - thanks for the great conversation and support. Just wanted to highlight two links.
The BD Expense Tracked can be found here
We will be using this document to track all transaction in and out of the BD multi-sig. @Matthew_Graham please let us know if there is anything else you would like to see.
The BD Gnosis Multi-Sig can be found here
Please do not hesitate to reach out regarding any questions.
Would be keen to be a part of that convo.
+1 from me to have options to partially select USD / $INDEX or even ETH as per the rewards survey we did a little while back.
1 Like