Author: @Bobbay_StableLab
References
Governance process
Hop example
Idle Finance example
MakerDAO
1inch on layer 3
Introduction
To boost governance activity on 1inch, we would like to incentivize community members to present proposals and receive rewards.
Motivation
An active governance culture is an essential aspect of every DAO’s operations. Active governance means that the community is dedicated to improving the protocol’s operations, which builds a culture of iteration around the protocol. However, governance work is continuously under or unpaid, making it an unattractive role.
By incentivizing an active governance culture at 1inch, we can attract participants to become more involved in 1inch DAO, thus enabling more opportunities for 1INCH to decentralize. 1INCH DAO tried a similar program last year using Layer 3, which was successful in attracting participants.
Specification
Contents
- Aims
- Allocation
- Eligibility
- Eligible Proposals
- Ineligible Proposals
- Eligible Recipients
- Distribution
- Administration
- Accountability
- Reflection
Aims
1INCH governance is still somewhat inactive, and in these current market conditions, it is even harder to attract governance participation. We hope some form of incentive will attract users to engage with the 1inch DAO.
We would like to present this program for 6 months at a total cost of 6,000 USDC.
Allocation
This proposal would allocate 6,000 USDC to a newly-made community multi-sig. Each successful proposal would receive 500 USDC. At the end of each month, the community multi-sig will distribute rewards to the eligible authors. This is to reduce the unnecessary cost to the DAO.
This would incentivize a total of 12 proposals across 6 months.
Since 1INCH earns protocol revenue in USDC, it is easier to distribute governance rewards in USDC. If all USDC is distributed, this would cost the DAO 6,000 USDC for 6 months.
Eligibility
Eligible Proposals
All proposals that follow the outlined governance workflow within 1inch DAO and successfully pass Phase 4.
Ineligible Proposals
- Proposals requesting budgets or grants are excluded.
- Grants are directed to the current 1inch grant program.
- Proposals making minimal amendments to previous proposals (e.g. fixing only typos) are excluded from this program.
- Proposals that have no direct, actionable outcome (e.g. establishing a mission statement) are excluded from this program.
Eligible Recipients
The original authors of a proposal are considered the eligible recipients of the reward. Those who initiate the Snapshot vote will not be eligible for a reward. If there are multiple authors of a proposal, it will be assumed that the reward will be evenly split unless explicitly stated otherwise to the community multi-sig disbursers.
Distribution
@RoundElephant , StableLab and @DAOplomats.eth can form the newly made community multi-sig for these community incentives with a ⅔ signature.
Distribution will occur at the beginning of the following month.
Authors of a proposal should communicate with community multi-sig signers to provide the correct wallet information for distribution. Wallet information can be communicated in private, but all transactions are public since they are on the blockchain.
StableLab, 1INCH Core Contributors and DAOplaomats will be exempt from this program and will not be eligible to receive any rewards.
Administration
- StableLab provides a monthly update of eligible proposals at the end of each month.
- Community multi-sig distributes funds in the first week of the following month.
- Any unspent funds at the end of 6 months will be sent back to the 1inch DAO treasury.
Accountability
StableNode will document a record of all successful proposals providing the following information:
- Link to Proposal
- Summary of Proposal
- Authors
- Transaction Payments
This will help us review this proposal and consider whether 1INCH DAO should continue to provide governance incentives or pause the program.
Reflection
The community can review these governance incentives after 6 months to evaluate their success and whether to let it continue or pause the program.
Next Steps
- Temperature check with a poll on the forum
- Move to a SnapShot poll
- [Yes]: Move forward with this program
- [No]: Do not implement this program
- [Abstain]