Equity Opportunities for Giveth Contributors

DAO Ops
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Vesting is coming to an end my friends, we’ve reached nearly the end of this 2.5 year journey. Don’t call me sentimental :stuck_out_tongue:.

We should consider how we can continue creating opportunities for existing and incoming Givethers to hold equity in the Giveth DAO & GIVeconomy in the form of GIV tokens.

A GIVtastic Proposal :giv:

I propose we create an opt-in program where paid contributors can choose to be compensated partially in GIV and receive an additional bonus also in GIV tokens as part of their negotiated salary/wage paid out every month.

How much is compensated in GIV is what we can decide. The percent amount could take two forms: fixed or dynamic.

Fixed

We choose as a DAO a fixed amount to compensate in GIV for the contributors who wish to opt-in. For example we could say 5% + a bonus 3% of your monthly pay in GIV. This applies equally to all contributors who opt-in.

To visualize this, let’s say your pay for a given month is $1000, you would get $50 worth of GIV plus an additional $30 worth of GIV for a total of $80 worth of GIV and $950 worth of stable tokens, the total value of tokens paid to you would be worth $1030.

This has the benefit of being simple to implement and easy to keep track of in our accounting processes. The downside is that if a contributor wants to take more or less risk/equity they do not have the option.

Dynamic

Each individual contributor chooses the percentage of their pay they want to receive in GIV and the bonus is derived from a determined factor. For example we could say half of the percent you choose to take in GIV from your regular pay is the added bonus on top. The percent amount the contributor decides ideally does not change month to month.

Using this example we could say if your monthly pay is $1000, you choose to take 25% in GIV then you could receive a bonus 12.5% in GIV, that would be $250 worth of GIV + a bonus $125 worth of GIV plus the regular pay of $750 in stable tokens. The total value of tokens you would receive is $1125.

This has the benefit of letting each contributor choose an amount that is comfortable for them. The downside is this can add extra overhead to our accounting processes and the work involved in paying everyone every month.

Token Locking

We will be requesting that GIV tokens sent should be locked for a minimum of 4 weeks (two rounds) in GIVpower to prevent abuse by contributors who are receiving a bonus in GIV tokens only to sell them immediately.

GIV tokens will be distributed on Optimism.

Including the Galaxy

I would also like us to consider opening this opportunity to not only Givethers but to also General Magic contributors. Since there is SO MUCH cross-over between the two organizations it could be much simpler to make it more inclusive for those who want to participate.

That being said we’d also need to decide if/how GM reimburses Giveth for the spent GIV tokens.

What is to decide

There are :four: things in order we need to discuss regarding this proposal:

  1. Should we take up this initiative?
  2. What method should we choose for making compensations partially in GIV - fixed or dynamic?
  3. What numbers do we set related to the chosen method?
  4. Do we include General Magic contributors? If so, how is Giveth compensated for spending its GIV?
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I like a fixed system - opt in or opt out… This already adds accounting bloat, but not as much as if every month someone wants to tweak things.

I think it’s worth including GM contributors… but I think it’s only fair if they are someone working toward supporting Giveth/the GIVeconomy… otherwise, it’s like paying out a token that someone doesn’t care about… and the incentive is too high to dump.
Maybe we could make a system where in order to “opt-in” contributors should explain why/how they are caring for the GIVeconomy?

2 Likes
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I shared with mitch a doc i setup for dynamic choice on a token payout. % in token, and longer lock means bigger bonus. (3months, 6,12, and 18)
not impossible. no tracking after its sent out.
course, on/off is even easier.

1 Like
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Maybe this will help to find an answer to the first two questions…

Which Method should we use for calculating Equity Distributions?

  • Fixed
  • Dynamic
  • Neither, I’m against this idea.
  • Abstain

0 voters

2 Likes
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With the final vesting distribution nearly wrapped up we should move to figuring out how we want to do this.

On the GIVernance call April 15 we discussed how we prefer to do this and there was strong sentiment for using a dynamic distribution, using some pre-defined tiers to make it a little simpler.

We also discussed some lock-up periods as well as bonuses. Based on this discussion here is my proposal for Equity Opportunities:

Provide 4 tiers for which contributors can opt-in to receive a percent-based amount of their compensation in GIV + a bonus percentage, those are:

  • Low | 8% compensation in GIV + 3% bonus
  • Medium | 15% compensation in GIV + 6% bonus
  • High | 35% compensation in GIV + 12% bonus
  • GIVmaxi | 65% compensation in GIV + 25% bonus

When a contributor receives their compensation in GIV it is required to lock it in GIVpower for a minimum of 4 rounds.

Contributors can opt-in at anytime but cannot change their tier preference for at least 2 months after opt-in in or changing their tier preference.

WDYT?

  • Let’s do it!
  • I have a different idea…

0 voters

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The tiers looks good to me.

I think it would be great for the lock-in period and changing of tier preferences to be quarterly (calendar) same as with the previous vesting distribution. This way, changing of tiers would all happen during the same time (end of each quarter) for everyone. Although, they could opt-in anytime even in the middle of the quarter.

Question, after opting in, can the contributor opt-out anytime, say after 1 month? I think this is also an important aspect to be cleared out.

1 Like
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I think this is not quite proportional… Low is 3/8 = 39%, medium is 40%, High is 34% and GIVmaxi is 38%

Could we tweak it so there is an escalating bonus for taking more?

  • Low | 8% compensation in GIV + 3% bonus
  • Medium | 15% compensation in GIV + 6% bonus
  • High | 35% compensation in GIV + 15% bonus
  • GIVmaxi | 65% compensation in GIV + 30% bonus

And can I confirm what this actually look like?

Like if someone gets paid $1000 and they take the Low option, they would get $920 in USDC and $110 in GIV, and if they took the GIVmaxi choice, they would get $350 in USDC and $950 in GIV right?

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That’s a great point! I might even make a slight tweak to make medium a bit more interesting:

  • Low | 8% compensation in GIV + 3% bonus
  • Medium | 15% compensation in GIV + 7% bonus
  • High | 35% compensation in GIV + 15% bonus
  • GIVmaxi | 65% compensation in GIV + 30% bonus

So using the above, for each case let’s use the $1000 payment example:

  • Low | $920 USDC, $110 worth of GIV, total value of tokens is $1030
  • Medium | $850 USDC, $220 worth of GIV, total value of tokens is $1070
  • High | $650 USDC, $500 worth of GIV, total value of tokens is $1150
  • GIVmaxi | $350 USDC, $950 worth of GIV, total value of tokens is $1300
3 Likes
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Thanks so much for bringing the option of equity for our contributors :purple_heart:

I think there should be some sort of informed consent about the “volatility” of the GIV token before contributors decide to opt-in. Maybe a signed agreement or a very clear message before recieving their monthly payment.

Gitcoin used to pay their contributors in GTC, when the price was high. From the grapevine, I heard contributors who hodl-ed GTC lost significant amounts of money when the price of GTC dropped. I’d really not like for that to happen to our contributors without them not knowing the risks first of receiving GIV as a percentage of their salary.

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That’s a good point @hanners717 - I think just a simple document or message communicated to those who opt-in would suffice.

I also want to cover here or in our next GOV call how we should ratify this? Snapshot vote? Should we define a budget as well?

I had a look at the amount of rewards sent out from Praise and Vesting and from the $64.5M GIV allocated we have about ~22M GIV left.