The sCoop - Contributor Newsletter - 2022.02.02 Wednesday

Fresh Owlpha, curated daily. This is @HOWweDAO . (previous issue)

Today, Wise Owls led the Leadership Forum, presenting continued plans for the rollout of Index 2.0 as Nests submit their proposals.

Tomorrow, BD will hold office hours and after, we’re talking to Wintermute’s Evgeny Gaevoy in Conversations with the Coop on Discord. Finally, Growth Nest holds its community call. (No Gov Nest this week.)


Index 2.0: Next Steps

Leadership Forum (45 attendees) slides

Leadership Forum opened this week with a question regarding the uncertainty around Nest budgeting and how this process might shape the Coop. “Is Index 2.0’s primary purpose to improve organization and efficiency or is it to aggressively reduce the budget?”

Index Council member @Matthew_Graham shared that while the purpose of Index 2.0 is primarily to make Index more efficient, budgeting is a core part of this. Since the core team is now salaried (“Priority Hires”), the biggest change we’re facing is the way Nests are funded. Requesting additional funding on top of that requires proposals be very well-structured and tied to Nest and Index objectives. The larger the spend, the more evidence of planning and structure F.Nest wants to see (as opposed to the trust delegated to pod leaders for smaller items like bounties). Our strategy of bottom-up budgeting is being restricted by comparing proposals’ numbers to Q4 spend. It’s likely a final overall budget (aggregated to include all nest budgets) will run through Snapshot as an IIP.

Next, Joe explained each of the 5 Nest’s progress towards completing their budget proposals. Community Nest and Finance Nest have completed their proposals and have shared them with Index Council. The next steps are posting the proposal on the Forum and gaining approval from Index Council. Growth Nest, Product Nest, and Governance Nest are drafting or have drafted their proposal with next step being gaining feedback from Finance Nest on budgeting.

Index Council members’ terms formally end on February 28th; what happens next? The Index Council proposes that they will continue in post until the community elects new members or dissolve the council. The Council will focus on: priority hiring, nest funding, Set <> Index Council relations, and eventual Index Council handover. Points were raised that these responsibilities could be handed to the Nest leads, who largely are the makeup of Index Council. This may, on the other hand, put extraneous pressure on nest leads. @mel.eth will step back from the Council to concentrate on Nest-building for the next month and @jdcook has left full-time at Index. The 5 remaining Index Council members would continue their roles. The future of the Wise Owls will be a major focus of the Leadership Forum in coming weeks.

DSM (Dynamic Staking Model) allows Index contributors to build ownership and will be available for all Neon, Gold, Silver and Bronze Owls. Owl Levels have been established for Priority Hires and will soon be given to contributors for Season 1. The Council proposes that it allocate a specific number of Gold, Silver, and Bronze Owls for each Nest and then each determine who in their Nest should fill each category. To nominate additional individuals for Gold or Silver, Nests may submit “Owl Evolution requests” voted on by the Gold Owl population.

An important question was raised about how to determine the Owl Level of cross-functional contributors; the Council encourages each Nest to include all core contributors in their nest proposal. While Owl Levels may change across nests for one specific contributor who contributes to multiple nests, the contributors’ highest Owl Level will be taken into account for DSM. An IIP explaining DSM for Bronze, Silver & Gold Level Owls not included in Priority Hires will hit the Forum once the Nest budget proposals (each providing a final list of Owls in the respective nest) are complete.

The meeting capped off with Product Nest Lead @DocHabanero proposing product designers receive 0.01-0.02% of AUM in order to attract the best talent and incentivize the best results. Benefits to the Coop include: (1) less reliance on outside skill sets, like methodologists, (2) incentive for the IC community to create and launch products, and (3) no need for IC to pay a premium for product designers who do not produce successful products. Disadvantages are (1) the perceived concentration of wealth to product designers and (2) uniqueness of this incentive structure to Product Nest among the 5 Nests. Product Nest will gather feedback from the community and proceed with their Season 1 budget proposal with the aid of Finance Nest.

Thursday Meetings: (UTC/1-hr, UON)
1600 - BD Office Hours
1700 - Conversations with the Coop with Evgeny Gaevoy of Wintermute
2000 - Growth Nest Community Call

Daily Owlpha: “There will only be a handful of moments that change this space, and when they happen, you need to make sure you’re ready. Guard your time, get enough sleep, remember to eat/drink throughout the day, and then strike with all your energy when the opportunity of a lifetime comes.” - @OhhShiny

Hoot Hoot!