Rewards Distribution for Praise

[Franco]

Proposal description

To start the distribution of rewards through our Praise Reward System, the Rewards Team needs access to the funds for the Rewards subDAO to distribute these rewards. An amount of 35 million GIV has been previously allocated from the Token Distro for this specific reason when the GIV token was launched.

We are requesting permission to manage this amount through the Rewards subDAO and start using the funds to distribute the rewards through the GIVstream. We will start distributing once we finish the retroactive quantification and caught up to date.

What will distribution look like?

Taking into consideration the total amount allocated and that it has to run for 5 years we can distribute up to 58k GIV bi-weekly (periods will be 2 weeks long).

Considering the peak of praise dished in 2022 was 1500 in the month of July we will use a dynamic calculation method that will distribute rewards in proportion to this cutoff number. So for this period where we’ve seen the peak number of praise, we will distribute the ceiling number of rewards available per period (58k GIV). And for the other periods that have less praise less rewards will be distributed.

Let’s see an example:

• If we set the ceiling to be 58k GIV, and the cutoff is 1500 praise if we get during a period 1200 praise the calculation will throw a lower number of tokens to be distributed (46400 GIV in this case).
  
• If in one period we get 1500 or more praise the max amount of GIV (ceiling number) will be distributed.
  

The current quantifying periods have been designed to distribute the amount per period split in the following way:

• Contributors get 90%
• Quantifiers get 7%
• Reward board members get 3%

Distribution will be made through the GIVstream, which means that the subDAO does not need the funds to be transferred but permission to access the funds in the token distro.

Rewards subDAO

The final token distribution will then be voted by a board of 5 trusted members of the Rewards Team who have been vested with the responsibility of inspecting the final distribution and pushing the button to release funds though an Aragon Rewards subDAO:

The Rewards Team is formed by Franco, Claire, Nikola, Dani and Mateo.

Name: Rewards DAO

Name of the voting token: Giveth Reward DAO

Symbol of the voting token: GRD

Tokens minted: 5 (1 for each Rewards Team member)

Voting parameters:

-Support required 88%

-Minimum Quorum 55%

-Vote duration 24hs

The vote for releasing rewards DAO funds are set in order to pass a voting with a minimum quorum of 3 votes that have to be YES. If a single vote is NO the voting will fail.

Expected duration or delivery date

If everything continues to go well with quantification and we get the funds we can start our first distribution next month of March 2023.

This is my first forum post, I encourage all the community to give some feedback, I’m open to any suggestion and answer every question Thanks!

[NikolaCreatrix]

Great job @Franco for your first post!
Did you also wanted to add a poll to get signalling from the community or is this just an informative post?

My next question is - we mint only 1 token for each subdao member forever? Or are we going to follow fibonacci sequence and mint ever so often/e.g. quarterly? This part is unclear for me…

[Franco]

Thanks @NikolaCreatrix !

Yes I’ll leave a poll to get signaling from the community. About the second question, one token was minted for each member we won’t mint anymore unless one of the members leaves, in that case we would have to burn a token and mint another one for the new member that replaces them. Ideally we want to keep it closed to 5 members, but if we need to change it at some point we can do it through EVMcrispr.

Now the poll:

Should we continue with this way to distribute rewards?

• Looks good, let’s start distributing!
• No, I have some concerns and I’ll comment below

[aabugosh]

Hey @Franco, thanks for this detailed post! This is exciting stuff to see Praise in action, and I can’t wait for us to get started with this.

I have a couple of questions:

1. When we do the distribution, would we also be willing to also give a portion back to the Praise organization? What I mean by that is that Praise itself is being spun off into its own company where they are building out their own product roadmap and are looking to scale up Praise as a standalone product. In one of their last meetings I attended, it was mentioned that some DAOs (like Gnosis) give a portion of their distribution rewards back to Praise. The details can be discussed but is that something we could consider (as a way to support the further development of new Praise features for Giveth and pay for their support work and hosting costs)? I can connect you with some of the Praise team to discuss this in more detail.

2. I don’t know if this was discussed before, but I was wondering why we structured it this way as a subDAO? I’m curious why we’re spinning off this into a separate “DAO” with separate individual rewards and incentives instead of just integrating it into a working group with its own budget. For example, why don’t we just have a reward working group or something similar and the distribution rewards (the 3% and 7%) go back to either Giveth or the budget of the working group somehow? Since isn’t the work being done by the quantifiers and reward board technically being paid for by Giveth (since I assume hours spent on this are accounted for and paid as part of salaries and not separate)? My question is not about why we’re minting new tokens for Aragon, but rather why structure the rewards this way for board members and quantifiers?

[Franco]

Hey @aabugosh, regarding your first question, we are definitely open to discussing the possibility of giving back a portion of the distribution rewards to the Praise organization. It sounds like a great way to support the further development of new Praise features for Giveth and pay for their support work and hosting costs. Let’s schedule something with the Praise team to discuss this further.

As for your second question, I personally agree on cutting the rewards board share incentives since we are already being compensated, but I would keep the quantifiers incentives since not every quantifier is a paid contributor and it’s a good idea to keep this “quantifier” position available for anybody who wants to join and not just paid contributors.

I hope this answer your questions!

[Danibelle]

@aabugosh

reward board technically being paid for by Giveth (since I assume hours spent on this are accounted for and paid as part of salaries and not separate)?

FYI, I am on the Rewards Team and Board, and not compensated by Giveth…

[Giantkin]

Maybe any of the Quantifielrs acount opt out (or have it sent elsewhere?)

[mitch]

Writing down some of the convo from the gov call we had on monday.

based on the setup we currently use for calculating and distributing rewards it is very easy for the rewards team to simply remove the addresses of the already paid contributors from the reward board rewards calc (3% currently) - so in theory we simply remove the addresses of the paid contributors and keep only the non-paid contributors.

@Franco one thing to be aware of is that 3% of rewards will concentrate into the remaining address(es) so for example if @Danibelle was the only one left in the list then she alone would get 3% of the total distribution.

In terms of quantifiers it’s a bit more tricky - since there is no file that is easily editable in terms of adding a removing quantifiers from getting rewards you may want to consider doing it in the final calculation.

In the same way in the TEC for example we give a bonus of sorts to non-contributors (thus subtracting from contributor rewards) for praise rewards we can simply apply the same method to quantifier rewards. This will mean already paid contributors will have reduced rewards for quantifying and non-paid contributors will get a slight bonus.

[Franco]

We’ve talked about the percentages in the Rewards team call and we are proposing the following percentages for the distribution:

• 90% for Praise receivers (with the rewards calculations bonus for non-contributors)
• 7% for Quantifiers
• 3% for Praise Organization

Leaving out the 3% previously destined for the Rewards team, and keeping the 7% for Quantifiers.

Please vote in this poll if you think this looks good to start preparing the distribution:

• Looks good, let’s distribute!
• I have some concerns and I’ll comment below