The sCoop - Contributor Newsletter - 2022.03.01 Tuesday

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

Today, Finance Nest’s weekly public-facing call, Money Talks, discussed current happenings in the Nest proposal process and tokenomics.

Tomorrow, it’s the Leadership Forum where we can expect to continue the discussion on the future of the Index Council. It’ll be followed by an open discussion on takeaways from ETHDenver, if you’d like to share anything you learned or just exacerbate your FOMO.

Announcements:

Meta-Governance:

Product:

Finance | Growth

Nest Proposals:

“Good experiments will receive funding.”

F.Nest’s Money Talks (6 attendees)

Nest Proposals

All 5 Nest Proposals are on the forum; Product and Governance proposals are still in talks pre-budgetary approval. The core analytic that contributes to budgetary approval is a comparison of actual Q4 spend to proposed Season 1 spend and comparison of funding from one Nest to another. For example, @Finance.Nest makes sure that Product Nest is funded adequately relative to Growth Nest as both will work a project, bringing different skills to the table. Finance Nest will prioritize actual spend as opposed to forecasted spend as the main benchmark as it was found that most Nests previously overestimated their spend quite significantly.

Each post will be updated with (1) budget, (2) a list of contributors, and (3) corresponding owl levels, which reflect what each contributor receives through the DSM. Then, F.Nest will create a Season 1 Funding Request that will go through IIP. Once this is passed, monthly Operations Account and Investment Account reports will elucidate how on- or off-target Nests are in their actual spend vs. budgeted spend.

A concern was raised that this pre-budgeting disallows spending on experimental ideas. But not to fret, says @Matthew_Graham, as “good experiments will receive funding.” Money for ideas that are not built into Proposals is available through various sources, Growth Grants Program being one of them. The major change from Q4 is that funding for experimental ideas will be approved on a more granular basis. A goal of this is to create a feedback loop where Nests create their own report on their progress toward KPIs; these reports will show what works and what doesn’t, and combined with financial reports, will hopefully tell a story that leads to greater efficiency in the future.

Our goal is decreasing inefficient repetition. If anything is necessarily repetitive, we must look for ways to repeat it with less time or take away touchpoints. This involves expanding functionality, roles, and remits while reducing unnecessary hours.

Tokenomics

In a nutshell, here’s the VE Model: You put your liquidity in a pool, deposit LP tokens in a gage and another token is locked into a VE Contract where it has certain benefits (one is that its holder gains voting rights to control the distribution of emission to gages). Whoever amasses the most of a token gets to decide where it goes.

Rather than doing exactly this (veIndex), we could do veIndex-ETH liquidity in a 1-year contract. Those who provide liquidity of Index get to vote on emissions to provide liquidity on other pools (1 pool per product on Mainnet). The gages that the LP tokens are deposited in determined the emissions. By depositing LP tokens, Index can keep or consolidate its liquidity position. By this contract, though, it can move the liquidity around, and holders can vote to assigned revenue across gages. This would provide incentive for methodologists to create better products as they could get more of the revenue associated with their product.

One more thought: Modularity. A few tokenomics models could be used to fulfill certain, different functions to create one large tokenomics gameplan. For the time being, F.Nest is sharing ideas and taking feedback. Expect a detailed proposal in mid-March.

Wednesday Meetings: (UTC/1-hr, UON)
1800 - BD Pod Internal Sync
1900 - Leadership Forum
2100 - ETHDenver Retro

Daily Owlpha: “When I see new projects in the space, I don’t ask if their attention to detail is high or low, I ask if they seem like the type of team that will stick around, through adversity and failure, through having hype and losing it, because those are the teams that will make it.” - @ohhshiny

Hoot!

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