This one has been on the docket for a while, way back since we kicked-off the HR upgrade about a year ago. In the Governance WG we’ve been brainin’ how to handle the subDAOification process and achieve more fiscal accountability in our DAO (Thank you @Griff for the kick in the pants).
My dream end goal still looks to the Shapeshift model, where we eventually can have WGs as semi-autonomous governance units that manage their own budget. Contributor responsibilities, payment and performance are held to the scrutiny of the WG rather than the whole DAO, which will not always have the right context to make well informed, granular decisions.
However we’re going to do this gradually rather than all at once so we have time to adapt and make the right decisions for the Giveth DAO. At the end of the day we want contributors contributing, not bogged down in seven levels of accounting hell.
From facilitating the last year of Governance calls I’ve surmised that we generally agree to begin on a macro level, focusing first on our 3 Circles (Community, Platform, GIVernance).
To that extent I think we are ready for Phase 1 - Circles Accounting
What does Circles Accounting look like?
We would define three important tasks of Circle Accounting (for now):
- Using hours and salary data collected to set a soft-budget for a given Circle to operate within.
- Monthly tracking and reporting of WG expenditures (recurring service subscriptions and non-salary costs) and profits (e.g. technical services partnership).
- Monthly tracking of salary costs categorized by WG.
How do we make this happen?
We should move forward on this by first creating a role of Circle Accountant (CA). The CA will be responsible for all of the tasks mentioned above. We will invite DAO members to nominate an active contributor to take on the role of CA for a given Circle. This first set of CAs will be expected to hold up their duties for at least 6 months until we’re ready to transition into the next phases.
THIS IS NOT A LEADERSHIP CONTEST, THIS IS AN ACCOUNTING JOB.
CAs will have a standardized and easy to use spreadsheet template developed by the Governance WG that allows them to produce monthly fiscal reports. We’ll also open up a public category on our forum for managing CA roles and for posting monthly Circle Finance Reports (CFR).
From the Governance WG, our imminent transition to using Coda instead of typeform to collect contributor hours will make this WAY easier. The Governance WG will also provide assistance for CAs to set up their respective Circle’s soft budget
Salary information for individual contributors will not be disclosed
Some minor issues to figure out will be sorting WGs into the most logical Circle and defining the WG task list better.
Also, take some time to review your role proposal and make any updates now!
What do the next phases of subDAOification look like?
I believe it would be prudent to let this first phase run for up to 6 months then decide the next course. Here’s my suggestion on how we should break the full transition down:
Duration: 6 months
- Giveth elects Circle Accountants (CA), 1 for each Circle.
- Using hours and salary data collected, CA sets a soft-budget for a given Circle to operate within.
- Monthly tracking and reporting of WG expenditures (e.g. subscription costs, bounties, rewards) by CAs.
- Monthly tracking of WG spending on contributor payments by CAs.
Duration: 3 months
- Working Groups define their KPIs and/or measurable goals.
- On-chain DAOification of Circles (Probably via Aragon DAOs)
- The DAO assigning hard budgets for Circles
Duration: 6 months
- Circles assigning hard budgets for WGs
- Circles requesting quarterly budgets from the DAO
- Circles pay contributors from their budgets
- WGs requesting quarterly budgets from the Circles
- WGs manage their own budget and pay contributors out of their own subDAO Treasuries
THIS IS THE GOAL
Setting this out there for advice process. If you find any gaps in our theory or any strong objections to carrying out the subDAOification process in this direction, now is the time to be heard! Specifically feedback on Phase 1 will be the most useful so we can at least agree on where to start.
Following advice process, I will set up the forum so we can begin choosing CAs for our 3 Circles.
We’re doing a great job so far in our DAO practices and now it’s time to take it to the next level!
Props to @clara_gr @freshelle for collaborating on this proposal.