# \[PROPOSAL\] GRAPE DAO Governance Incentives: Participant Rewards & Reputation **URL:** \ **Category:** DAO\ **Tags:** dao, governance, reputation, rewards, incentives\ **Created:** [October 14, 2022, 10:11pm UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173 "2022-10-14T22:11:48Z")\ **Posts on this page:** 15\ **Page:** 1
**Author:** ![Arximedis](https://yyz1.discourse-cdn.com/flex031/user_avatar/dao.grapenetwork.org/arximedis/32/515_2.png) [@Arximedis](https://dao.grapenetwork.org/u/Arximedis)\ **Post date:** [October 14, 2022, 10:11pm UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/1 "2022-10-14T22:11:48Z")
Dear Grape DAO Members, I apologize that I did not have more time to make this even shorter. # **1. Proposal Purpose:** ## **A.) PURPOSE:** > i. Form a adequately defined **GRAPE DAO Governance Rewards Model for Participation in Governance: Staking, Proposal, Voting, & Consistency Actions**. NOTE: This proposal is/was a result of GRAPE DAO contributions to evolve & grow, not a bounty. > > ii. Create a Governance Rewards Pool **AND** Select 1 of 2 Proposed Rewards Models (or use both take the average) > > iii. Reward Grape Governance Members for the Past Epochs of Participation (2 Epochs per Review) ## **B.) CURRENT GOAL:** > - Define & implement a formal GRAPE DAO Governance reward model for Governance actions, like Staking, Proposals, Voting, & Consistency. > - Align all DAO members to ensure clear expectations and transparency is provided about what rewards methods, amounts & logic will be, with the recommended approach taking into account the failed models in other DAOs/Incentives models, that are commonly overlooked. > - _PAST CONCEPTS:_ Back in March, April & May 2022 an initial detailed proposal was made, followed by Discourse proposal with polls for DAO members to share feedback & review.: [[VOTE] Establish DAO POOL: $GRAPE Rewards Incentives Pools for Realms Proposers & Voters](https://dao.grapenetwork.org/t/vote-establish-dao-pool-grape-rewards-incentives-pools-for-realms-proposers-voters/972) - (\<- NOTE: THIS IS DIFFERENT FROM THE CURRENT PROPOSAL) ## **C.) CURRENT PROPOSAL** > - Establish Governance Rewards Incentives Pool as part of a broader initiative to define GRAPE ECOSYSTEM DEDICATED ALLOCATION POOLS (GRD) Please see the supporting documentation, proposal & voting details below and this Google [Spreadsheet (GRAPE DAO Metrics Dashboard v2-d2 - SHEET: PROPOSAL GRAPE DAO GOV Rewards)](https://docs.google.com/spreadsheets/d/1LmklFFeFkf4aTj-zTbtfTgeoNdCsVpEHlFYOuxDQQfU/edit) to see Governance Metrics & Conceptual documentation which will be updated iteratively, following this proposal # **2. Grape Proposal Overview:** _5 Key Points - A, B, C, D, E_ **BRIEF:** 1. Rewards Pool is set to Dynamically Adjust According to the Current Active Total Grape Staked divided by the All Total Grape Staked. This allows for new participants to increase the pool size, incentivizing staking Grape AND participating in Governance Proposals/Voting. 2. Rewards Pools is split into 2 parts: (A) Proposals (20%) & (B) Voting (80%), as Proposals create the ability to Vote, but success and health of Proposals depend heavily on Voting activity. 3. Governance Participation exists in 2 Time-Period Groups: (A) ALL & (B) Last X Epochs i.e. Proposals & Votes that occurred in All Epochs, and those that are being rewarded in the Last X Epochs. (X = 2 Epochs rolling month-over-month for increasing or decreasing marginal returns) 4. Proposals eligibility for rewards requires a Community Proposal Successful/Completed. User Proposals are represented as a percentage divided by All Qualified Proposals Created within the Time-Period reviewed. User Votes are represented as a percentage divided by All Votes Cast within the same Time-Frame as the Proposals. 5. A Users Stake weights are taken as the Median Grape utilized over the Time-Period rewarded (i.e. Last 2 Epochs) used for creating a Proposal or casting a Vote. The Rewards Pool is defined by the Current Grape Staked (Snapshots taken at Random) to encourage staking in future Epochs for participation. 6. Two Reward Formulas are Proposed as the Proof of Concept: 7. RewardA: (RewardsPool\_Vote x Valid Active User Stake Weight % x # of User Votes / All Proposals Last 2 Epochs) + (RewardsPool\_Propose x Valid Active User Stake Weight % x # of User Proposals / All Proposals Last 2 Epochs ) 8. RewardB: (RewardsPool\_Vote x Valid Active User Stake Weight % x ( AVERAGE (# of User Votes / All Proposals Last 2 Epochs & Gov Reputation Epoch Weighted)) + (RewardsPool\_Propose x Valid _User-to-TotalProposer_ Stake Weight % x ( AVERAGE( # of User Proposals / All Proposals Last 2 Epochs & Epochs Weight )) 9. Gov Reputation Epoch Weighted & Epochs Weight are %-based values designed herein and implemented as a placeholder using the current proposal under RewardB. There are additional values not currently utilized for the purposes of simplicity, which can be leveraged for future implementations. 10. The Spreadsheet contains numerous metrics and calculations for the purposes of providing community members and reviewers with the ability to identify or create their own models, by copying and modifying formulas. ## **A. Overview** > - Establish Grape Ecosystem Dedicated Allocation Pool for Governance > - Merit & Reputation based Governance rewards for Governance contributions & participation. > - Rewards Models are intended as an incentive to promote healthy participation. > - Across DAOs various models have been discussed, reviewed, tested, & changed to address incompleteness or flaws. > - To ensure a robust process - outlined below are the key elements that Grape aims to utilize: ## **B. Reward Pool Allocation/Cap & Calculation** ### **i. Formula B1: GRIP Grape Reward Pool for Allocation** > > GRIP (_dynamic_) = (GRAV / GRAS) \* (GRD=500,000 $GRAPE per Epoch) > > Pool Segmented into: > > > 20% = Proposal Rewards (Max 100K $GRAPE) > > 80% = Voting Rewards (Max 400K $GRAPE) NOTE: Grape Ecosystem Dedicated Allocation Pool: Governance (GRD) =\> Max Pool recommended is 500K GRAPE _or_ 0.1% of GRAS _whichever is **less** _. For Limits/Max Cap See Part #4. #### **Reward Pool Formula B1 Explained:** - GRIP is a dynamic pool that adjusts according to the ratio GRAV/GRAS which is a % of total GRAPE Staked in Realms used for Voting in Governance divided by Total Grape Staked In Grape DAO Realms (i.e. GRAV is all $GRAPE Staked in Realms). - By setting the Rewards Pool to be a % of Total Active Grape used for Governance v.s. Total Grape Staked in Governance, it incentivizes all Grape Governance participants to remain active in a critical function for the DAO (Voting), and ensures there will be ample rewards that are not diluted by increased participants, until all participants have been active. - This mechanism is also meant to help Sybil Resistance or Attacks on the rewards process in any single given epoch. ## **C. Reward User Formula/Calculation & Amounts/Percentage** > **Variable Notations** > > > GRR = $GRAPE Reward Return > > GRRa = $GRAPE Reward Return (Formula A) > > GRRb = $GRAPE Reward Return (Formula B) > > GRSu = $GRAPE Realms Staked (Current Epoch - user) > > GRSm = $GRAPE Realms Staked (Median X Epochs - user) > > GRSup = $GRAPE Realms Staked Weight as a Percentage / All Grape Staked (user) > > GRSpp = $GRAPE Realms Staked Proposer Weight as a Percentage / All Grape Staked (user) > > GRSa = $GRAPE Realms Staked in Realms (all) > > GRD = $GRAPE DAO Rewards Incentive Pool > > GRDp = $GRAPE DAO Rewards Incentive Pool (Propose) > > GRDv = $GRAPE DAO Rewards Incentive Pool (Vote) > > GRIS = % of $GRAPE DAO Rewards Incentive Pool / GRAS > > GRIP = Dynamic $GRAPE DAO Rewards Incentive Pool after applying %GRIP > > GRAP = $GRAPE Realms Stake Participating in All Proposals (all proposers) > > GRAV = $GRAPE Realms Stake Participating in All Governance (all voters) > > GRGR = $GRAPE Realms Governance Reputation (proposals, votes, weights) > > GRGG = $GRAPE Realms Governance Reputation Epoch-Weighted (GRGR & Weights) > > Puc = QualifiedMS Community Proposals Created By User in Epochs > > Pqc = QualifiedMS Community Proposals Created By All Users in Epochs > > Ppc = Community Proposals Created by User in Current Epochs > > Pac = Community Proposals Created by All Users in Current Epochs > > Ppn = Community Proposals Created by User in All Epochs > > Pan = Community Proposals Created by All Users in All Epochs (sum/cumulative) > > Pvc = Community Votes Created by User in Current Epochs > > Pvn = Community Votes Created by User in All Epochs > > GRGR = $GRAPE Realms Governance Reputation (proposals, votes, & activity weights) > > GRGG = $GRAPE Realms Governance Reputation Epoch-Weighted (GRGR w/ Epoch Weight) > > GREW = User Epoch Weight (Time Factor as a % = Total Active Epochs last X Epochs) > ELIGBILITY Recap: User must have been active at least once in the last 2 Epochs (i.e. at least 1 Vote), Current Stake must be more than 0 (zero) _AND_ Current Stake must be greater than 70% of Median Stake used in Last 2 Epochs. ### **i. Formula C1: RewardA: User Governance Participation (or not) = Formula**: > > GRRa = ((GRIPv x GRSup) x (Pvc / Pqc)) + ((GRIPp x GRSup)\*(Puc/Pqc)) > > Formula Recap: Grape Rewards Return (a) = (RewardsPool\_Vote x Valid Active User Stake Weight % x # of User Votes / All Proposals Last 2 Epochs) + (RewardsPool\_Propose x Valid Active User Stake Weight % x # of User Proposals / All Proposals Last 2 Epochs ) ### **ii. Formula C2: RewardB: User Governance Participation (or not) = Formula**: > > GRRb = ((GRIPv x GRSup) x AVERAGE(Pvc/Pqc, GRGG)) + ((GRIPp x GRSpp) \* AVERAGE(Puc/Pqc, GREW) ) Grape Rewards Return (b) = (RewardsPool\_Vote x Valid Active User Stake Weight % x ( AVERAGE (# of User Votes / All Proposals Last 2 Epochs & Gov Reputation Epoch Weighted)) + (RewardsPool\_Propose x Valid _User-to-TotalProposer_ Stake Weight % x ( AVERAGE( # of User Proposals / All Proposals Last 2 Epochs & Epochs Weight )) ### iii. Governance Inputs or Values (Potential) #### **On-Chain Governance, Realms & Integrations** > **Click to Expand: Governance Metrics** > > 1. Stake Deposited (Committed) > 2. Stake Withdrawn (Reclaimed) > 3. Stake Delegated (Connected) > 4. Stake Consistency (Time) > 5. Stake Weight (Gravity) > 6. Proposal Created (Generated) > 7. Proposal Quality (Grade) > 8. Proposal Result (Gauge) > 9. Vote Invoked (Cast) > 10. Vote Revoked (Retracted) > 11. Vote Sentiment (Position) > 12. Vote Option (Multi-Vote) > 13. Grape Verified (Unique Member) > 14. Grape Community (Age) > 15. Civic Pass Integration (Unique User) - _Future_ ### iv. Inclusive Governance Metrics > Inclusive implies no qualification or validation outside of considering a typical Community Proposal or Vote a.k.a. a Count of All Proposals or Votes before qualifying #### Inclusive Proposals (p [User] & a [All Users]) > **Click to Expand: Inclusive Proposals Values** > > | Variable | Metric Description | Calculation | Inclusion | Filter | > | --- | --- | --- | --- | --- | > | Ppc | Community Proposals Created by User in Current Epoch | Count | Sum/Epoch | User | > | Ppn | Community Proposals Created by User in All Epochs | Sum | Sum/Cumulative | User | > | Ppa | Average Community Proposals Created by User per Epoch across All Epochs | Average | Average/Cumulative | User | > | Ppm | Median Community Proposals Created by User per Epoch across All Epochs | Median | Median/Cumulative | User | > | Pac | Community Proposals Created by All Users in Current Epoch | Count | Count/Epoch | All Users | > | Pan | Community Proposals Created by All Users in All Epochs (sum/cumulative) | Sum | Sum/Cumulative | All Users | > | Paa | Average Community Proposals Created by All Users per Epoch across All Epochs | Average | Average/Cumulative | All Users | > | Pam | Median Community Proposals Created by All Users per Epoch across All Epochs | Median | Median/Cumulative | All Users | #### Inclusive Votes (v [User] & w [All Users]) > **Click to Expand: Inclusive Votes Values** > > | Variable | Metric Description | Calculation | Inclusion | Filter | > | --- | --- | --- | --- | --- | > | Pvc | Community Votes Created by User in Current Epoch | Count | Sum/Epoch | User | > | Pvn | Community Votes Created by User in All Epochs | Sum | Sum/Cumulative | User | > | Pva | Average Community Votes Created by User per Epoch across All Epochs | Average | Average/Cumulative | User | > | Pvm | Median Community Votes Created by User per Epoch across All Epochs | Median | Median/Cumulative | User | > | Pwc | Community Votes Created by All Users in Current Epoch | Count | Sum/Epoch | All Users | > | Pwn | Community Votes Created by All Users in All Epochs (sum/cumulative) | Sum | Sum/Cumulative | All Users | > | Pwa | Average Community Votes Created by All Users per Epoch across All Epochs | Average | Average/Cumulative | All Users | > | Pwm | Median Community Votes Created by All Users per Epoch across All Epochs | Median | Median/Cumulative | All Users | ### v. Qualified Governance Metrics (Addendum) #### Qualified Proposals (u [User] & q [All Users]) > Optional: Qualified proposals imply 66% (2/3) majority vote & non-malicious/harmful > > > Consider updating to 4/5 (80%) or 3/4 (75%) or 3/5 (60%) _and_ adding qualifier to ensure secure proposals with full community support. > **Click to Expand: Qualified Proposals Values** > > | Variable | Metric Description | Calculation | Inclusion | Filter | > | --- | --- | --- | --- | --- | > | Puc | QualifiedMS Community Proposals Created By User in Epoch | Count | Count/Epoch | User | > | Pun | QualifiedMS Community Proposals Created By User in All Epochs | Sum | Sum/Cumulative | User | > | Pua | Average QualifiedMS Community Proposals Created by User per Epoch for All Epochs | Average | Average/Cumulative | User | > | Pum | Median QualifiedMS Community Proposals Created by User per Epoch for All Epochs | Median | Median/Cumulative | User | > | Pqc | QualifiedMS Community Proposals Created By All Users in Epoch | Count | Count/Epoch | All Users | > | Pqn | QualifiedMS Community Proposals Created By All Users in All Epochs | Sum | Sum/Cumulative | All Users | > | Pqa | Average QualifiedMS Community Proposals Created by All Users per Epoch for All Epochs | Average | Average/Cumulative | All Users | > | Pqm | Median QualifiedMS Community Proposals Created by All Users per Epoch for All Epochs | Median | Median/Cumulative | All Users | #### Qualified Votes (x [User] & y [All Users]) > **Click to Expand: Qualified Votes Values** > > | Variable | Metric Description | Calculation | Inclusion | > | --- | --- | --- | --- | > | Pxc | Qualified Community Votes Created By User in Epoch | Count | Count/Epoch | > | Pxn | Qualified Community Votes Created By User in All Epochs | Sum | Sum/Cumulative | > | Pxa | Average Qualified Community Votes Created by User per Epoch for All Epochs | Average | Average/Cumulative | > | Pxm | Median Qualified Community Votes Created by User per Epoch for All Epochs | Median | Median/Cumulative | > | Pyc | Qualified Community Votes Created By All Users in Epoch | Count | Count/Epoch | > | Pyn | Qualified Community Votes Created By All Users in All Epochs | Sum | Sum/Cumulative | > | Pya | Average Qualified Community Votes Created by All Users per Epoch for All Epochs | Average | Average/Cumulative | > | Pym | Median Qualified Community Votes Created by All Users per Epoch for All Epochs | Median | Median/Cumulative | #### vi. Inclusive/Qualified Governance Ratios > **Examples of combining metrics to derive outcomes** > > > Qualified User Proposals in Epoch divided by ALL Proposals in Epoch: Puc / Pac > > > Average of Qualified Proposals / All Proposals: Pua / Paa > > > Median All Users Votes / All Users ### **vii. Governance Reputation** > > GRGR = $GRAPE Realms Governance Reputation (proposals, votes, weights) > > Involves Metrics identified in part iv. below in various averages, and ensuring to look at historic and recent participation in proposals and voting. > > GRGG = $GRAPE Realms Governance Reputation Epoch-Weighted (GRGR & Stake + Epoch Weights) > > Involves Metrics identified in part iv. below in various averages, and ensuring to look at historic and recent participation in proposals and voting, coupled with stake & epoch weights. ## **D. Eligibility Criteria:** > - i. Participation will be reviewed at the end of each Governance Epoch. > - ii. Each Eligible member must commit and stake the $GRAPE amount balance for the entire duration of each Governance Epoch to receive rewards. Increases in Governance Stake after Epoch start will not be included in calculations for individual rewards during the given epoch. > - iii. Each Governance Epoch must have at least 1 Proposal created by the DAO and at least 1 Vote Required per GRAPE Member to be eligible for GRAPE DAO Rewards. No Proposals = No Rewards for either Proposals _OR_ Votes > - iv. Proposal Creation “Success” is dependent on creation and execution of a proposal meeting the following criteria: Proposal must be a “Community” Proposal, exceed Quorum receiving a qualified majority Approval vote (\>75%), that is not veto’d or reverted by the DAO due to unwanted or malicious intent, does not manipulate the rewards process, & is found not to collude with others or seek to game the rewards process. > - v. Every Proposal to be voted must contain a link to supporting DAO Documentation & Discussion (i.e. Discourse, or DAO accepted future equivalent). > - vi. Eligible Grape Members will receive rewards within the following Epoch, after the Governance Epoch ends. > - vii. Reward levels are tied to the % of Rewards divided by Total or Qualified Realms Grape Staked, Calculated by % Qualified Proposals out of Total Proposals, or Calculated by % of Votes Cast v.s. Total Votes per Proposal. ## **E. Multi-sig Approval/Management, Review, Distribution, & Execution:** > - i. Rewards confirmations will be published with insights regarding the criteria, successful proposals, and candidates, including the amounts expected for reward, total reward pool allocated, and potential candidates that failed due to failing criteria. > - ii. A group of DAO members entrusted with allocating and distributing the Grape will use a Realms, Squads, or, UniqueClub multi-sig (i.e. Similar to Bounty Approval Group) > - iii. Distribution of rewards will be discussed and confirmed as either: a Single Realms proposal with Multiple Transactions to each Recipient, or, Grape will identify an alternative more effective, cheaper and most importantly, secure method. # 3. Stakeholders > GRAPE Holders Capable of On-Chain Proposal Creation & Collaborators - (I.e. Neanderthals & DAO Members contributing to proposals. Example: A Proposal Creator may wish to contribute a % of Rewards earned to other contributors to a given proposal.) # **4. Costs/Resource Requirements:** ## **DAO Rewards Pool Rubric:** ### Rules: > DAO Rewards pool for each Epoch period is voted by DAO and can not exceed the following amounts (Unless otherwise altered by DAO Vote). This rule applies to the collective DAO Rewards Pools > > DAO Governance Rewards Pools will not exceed the following amounts (whichever is less): > > - 10% of Grape Emissions per Epoch > - 2.50% of all Realms Grape Staked > - 0.10% of Circulating Supply ### **DAO Grape Rewards Incentives Pool (GRIP)** > _Key Metrics to Calculate Reward Pool Sizes_ > > - Total Circulating Supply of $GRAPE > - Total $GRAPE Staked in Realms v.s. Circulating $GRAPE > - Total $GRAPE Voting in Realms v.s. Total Staked in Realms > - NOTE: In April & May - Poll suggested the DAO would APPROVE - Dynamic Reward: 50,000 $GRAPE Pool x % Epoch Successful Proposals/Total Proposals. Initially Concept was to divide proposals & votes, but here 50,000 Base & 100,000 $GRAPE Maximum per Month/Epoch ```auto Title: GRAPE DAO Governance Incentives: Participant Rewards & Reputation Authors: @Arximedis Contributors/Feedback: *Grape DAO Members -* Billy, CryptoPawz, RiderInRed, Dynite, Legend) Created: 2022-10-14 Updated: 2022-11-27 Stage: Proposal Discussions-To: https://dao.grapenetwork.org/t/grape-dao-governance-rewards-pool-incentives-for-realms-stakers-proposers-voters-in-progress/1173 Category: "Governance", "Governance Logic", "Incentive Parameters", "Governance Rewards", "Governance Reputation" Implementations: https://docs.google.com/spreadsheets/d/1LmklFFeFkf4aTj-zTbtfTgeoNdCsVpEHlFYOuxDQQfU/edit?usp=sharing Audits: TBD ``` References (Inspirations): - Green L, Myerson J. [A discounting framework for choice with delayed and probabilistic rewards.](https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1382186/) - P. C. Vélez, A. Barmat [The Graph: Rewards and Distribution Mechanism](https://forum.thegraph.com/t/gip-0034-the-graph-arbitrum-deployment-with-a-new-rewards-issuance-and-distribution-mechanism/3418) - Maker DAO, [MakerDAO: Protocol Rate Accumulation Mechanism](https://docs.makerdao.com/smart-contract-modules/rates-module) - B Batog, L. Boca, N. Johnson, [Ethereum: Scalable Reward Distribution](http://batog.info/papers/scalable-reward-distribution.pdf) - N. Johnson, [Ethereum: Div tokens](https://weka.medium.com/dividend-bearing-tokens-on-ethereum-42d01c710657) - S. Bury, LongHash [Balancer: Staking of BPT for Economic and Governance Benefits](https://forum.balancer.fi/t/proposal-staking-of-bpt-for-economic-and-governance-benefits/2113) - dfinity, [Revise dfinity Governance Rewards Exploit](https://forum.dfinity.org/t/community-discussion-revise-governance-voting-rewards-to-fix-proposal-spamming-rewards-exploit/11915) - dfinity, [Maximizing Voting and NNS Rewards](https://wiki.internetcomputer.org/wiki/Maximizing_Voting_and_NNS_Rewards) - Purestake, [Algorand Token Rewards Calculation for Staking](https://www.purestake.com/blog/algorand-rewards-distribution-explained/) - P. Pettit, [Bonding Curves - The What, Why, and Shapes Behind Them](https://www.linumlabs.com/articles/bonding-curves-the-what-why-and-shapes-behind-it) ---
**Author:** ![DeanMachine](https://yyz1.discourse-cdn.com/flex031/user_avatar/dao.grapenetwork.org/deanmachine/32/40_2.png) [@DeanMachine](https://dao.grapenetwork.org/u/DeanMachine)\ **Post date:** [October 15, 2022, 4:25pm UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/2 "2022-10-15T16:25:21Z")
Would we be able to test this out for October or November? ---
**Author:** ![Arximedis](https://yyz1.discourse-cdn.com/flex031/user_avatar/dao.grapenetwork.org/arximedis/32/515_2.png) [@Arximedis](https://dao.grapenetwork.org/u/Arximedis)\ **Post date:** [October 16, 2022, 7:40am UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/3 "2022-10-16T07:40:55Z")
Still making updates to the proposal which is why it wasn’t submitted under DAO yet. Please take a look - made several updates to attempt to be as clear as possible. Final update pending once metrics have been pulled so we can use to improve the final formula. ---
**Author:** ![system](https://canada1.discourse-cdn.com/flex031/uploads/grape/original/1X/e132458099af96aa0796571a33f237a088db0b0c.png) [@system](https://dao.grapenetwork.org/u/system)\ **Post date:** [November 27, 2022, 7:23am UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/4 "2022-11-27T07:23:22Z")
This topic was automatically closed 30 days after the last reply. New replies are no longer allowed. ---
**Author:** ![Arximedis](https://yyz1.discourse-cdn.com/flex031/user_avatar/dao.grapenetwork.org/arximedis/32/515_2.png) [@Arximedis](https://dao.grapenetwork.org/u/Arximedis)\ **Post date:** [November 27, 2022, 7:26am UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/5 "2022-11-27T07:26:46Z")
---
**Author:** ![DyNite](https://yyz1.discourse-cdn.com/flex031/user_avatar/dao.grapenetwork.org/dynite/32/900_2.png) [@DyNite](https://dao.grapenetwork.org/u/DyNite)\ **Post date:** [November 30, 2022, 9:26am UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/6 "2022-11-30T09:26:08Z")
I’m gonna try to summarize this so I can come back to it. 🫡 ------------------------- **1.** A.) GRAPE DAO Governance Rewards Model proposes a rewards pool to reward members In participation in -governance, -including staking, -proposal making, -voting -and consistent actions. Two proposed rewards models are given; either model can be chosen -the average -or the past 2 epochs B.) Reward methods, amounts & logic should be clear and transparent to ensure all DAO members are aligned. ------------------------- **2.** bruh… ![not reading all that](https://canada1.discourse-cdn.com/flex031/uploads/grape/original/1X/9d209b33f698eccf3d2dd2d7b43863aa98f8bba4.png) In all seriousness, from what I gathered, Grape will have a dedicated allocation pool for governance rewards, and the rewards will be merit- and reputation-based. These two governance reward models (rewardsA and rewardsB) will be reviewed and tested to ensure they are effective and complete and to address any potential flaws. --------------------------------- **3.** All Grape Holders are capable of creating on-chain proposals and inviting collaborators to contribute to them such as requesting a Neanderthal to propose on-chain/co-write the proposal). ---------------------------------- **4.** Each epoch, max rewards for DAO Rewards Pools are determined by a DAO Vote: CAN NOT exceed 10% of Grape Emissions per Epoch, 2.50% of all Realms Grape Staked, or 0.10% of circulating supply We had issues with payments for mods yesterday, I am sus about our ability to “self-police” given recent behavior. While this is clearly an insane amount of work, my fear is that it is far too complex for what GRAPE is capable of executing at this point. What we could do rather is try to break this down in steps and try to execute once a week. We have talked endlessly on this topic, let’s execute on deciding which rewards model to go with instead and take it from there IMHO. What do you think Arx? Perhaps we can hop on a personal call and see what we can do? The time of GRAPE meetings makes it hard for me talk given my current living situation. ---
**Author:** ![Arximedis](https://yyz1.discourse-cdn.com/flex031/user_avatar/dao.grapenetwork.org/arximedis/32/515_2.png) [@Arximedis](https://dao.grapenetwork.org/u/Arximedis)\ **Post date:** [November 30, 2022, 11:24pm UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/7 "2022-11-30T23:24:50Z")
Shorter version of the “BRIEF” Points outlined in the Proposal **OVERVIEW:** POOL, SPLIT, WEIGHTS (Stake, Proposals, Voting, Reputation, & Time) - No Votes = No Rewards & No Proposals = No Votes. - Pool Allocation: 500K / Reward Pool Available: % of Current Stake / All Realms Staked - Pool Available: Current User Stake / All Current Stake: (EX: 9M All Voters / 10M Total Staked = 90%) - User Max Reward: Median User Stake / All Median Stake: (EX: 900K User Vote / 9M All Voters = 10%) - Proposals Reward: User Proposals / All Proposals: (EX: 2 User Proposals / 10 Proposals = 20%) - Voter Reward: User Votes / All Proposals: (EX: 10 User Votes / 10 All Proposals = 100%) - Votes Metric: User Votes Cast / All Votes Cast: (EX: 10 User Votes / 100 All Votes = 10%) - Reputation (Easy): Epochs User Active / All Epochs Elapsed: (EX: 9 Epochs Active / 10 Epochs = 90%) 5 POINT RECAP: Basics for Formula for RewardA 1. **POOL Allocation** : Rewards Pool Starts at 500K. The POOL Available is dynamically defined by 9M Grape Votes divided by 10M Grape Staked in Realms = 90% → Rewards Pool = 500K x 90% = 450K Grape Available. Current Stake defines Pool Allocation. 2. **POOL Split** : Proposals 20%/Voting 80% → Proposal Pool 450K x 20% = 90K Grape → Voting Pool 450K Grape x 80% = 360K Grape. 3. **STAKE WEIGHT** : Each User can receive Rewards according to **Stake Weight** , **Participation Weight** , and **Reputation Weight** (Formula for RewardB only) → User Stake Weight used to Vote divided by All Grape Voted in Governance → User A, B, C have 1M, 500K, & 100K where 10M Grape Total Voted = User Stake Weights are User A 10%, User B 5% & User C 1%. Median Stake defines Max Reward. 4. **PROPOSAL WEIGHT** : (Recap: Proposal Pool is 90K) → User A can receive 10% Max (9K), User B 5% Max (4.5K), and User C 1% Max (900) → NEXT: Users can receive rewards according to how many Proposals Created. _EXAMPLE:_ 3 Users Create 10 Proposals in Last 2 Epochs → Each User A, B, C created 5, 1, 4 → User A can receive up to 5 / 10 = 50% of 9K = 4.5K, User B (1/10) = 10% of 4.5K = 450, & User C (4/10) = 40% of 900 = 360. Proposal Participation Weights define how much of the Grape a User “could” earn. 5. **VOTE WEIGHT** : (Recap: Voting Pool is 360K) → -\> User A can receive 10% Max (36K), User B 5% Max (18K), and User C 1% Max (3.6K) → NEXT: Users can receive rewards according to how many Votes were cast per Proposal Created. EXAMPLE: 100 Users Vote on 10 Proposals in Last 2 Epochs → Example User A, B, C votes on 5, 0, & 10 Proposals → User A can receive up to 5 / 10 = 50% of 36K = 18K, User B (0/10) = 0% of 18K = 0 Grape, & User C (10/10) = 100% of 3.6K = 3.6K > Reward A v.s. Reward B - 3 Key Differences: > > - STAKE WEIGHT for Proposals is a % of User Proposer Stake divided by All Proposers Stake (#3+#4) > - REPUTATION WEIGHT for Proposers (i.e. GREW =\> Average of Reputation & Current Proposal Weight #4) > - REPUTATION WEIGHT for Voters (i.e. GRGG =\> Average out Reputation & Current Voting Weight in #5) > > > GRGG = $GRAPE Realms Governance Reputation Epoch-Weighted & Overall > > GREW = User Epoch Time Weight (Time Factor as a % = Total Active Epochs last 2 Epochs i.e. 1/2 = 50%) > [@Arximedis](#): > > Two Reward Formulas are Proposed as the Proof of Concept: > > **RewardA** : (RewardsPool\_Vote x Valid Active User Stake Weight % x # of User Votes / All Proposals Last 2 Epochs) + (RewardsPool\_Propose x Valid Active User Stake Weight % x # of User Proposals / All Proposals Last 2 Epochs ) > > **RewardB** : (RewardsPool\_Vote x Valid Active User Stake Weight % x ( AVERAGE (# of User Votes / All Proposals Last 2 Epochs & Gov Reputation Epoch Weighted)) + (RewardsPool\_Propose x Valid _User-to-TotalProposer_ Stake Weight % x ( AVERAGE( # of User Proposals / All Proposals Last 2 Epochs & Epochs Weight )) ---
**Author:** ![Arximedis](https://yyz1.discourse-cdn.com/flex031/user_avatar/dao.grapenetwork.org/arximedis/32/515_2.png) [@Arximedis](https://dao.grapenetwork.org/u/Arximedis)\ **Post date:** [November 30, 2022, 11:26pm UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/8 "2022-11-30T23:26:06Z")
Open to discuss over a call Let me know what works & when @DyNite ---
**Author:** ![CryptoPawz](https://yyz1.discourse-cdn.com/flex031/user_avatar/dao.grapenetwork.org/cryptopawz/32/53_2.png) [@CryptoPawz](https://dao.grapenetwork.org/u/CryptoPawz)\ **Post date:** [December 4, 2022, 4:01am UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/9 "2022-12-04T04:01:34Z")
Read it a couple of times now and your shorter version did help a lot. The examples are helpful, too, kind of. I still think we need to just do it, either with a smaller sample size, or just apply it to the available data (for everyone). Looking at the examples (with users A/B/C), it feels that the stake weight shouldn’t have an impact when it comes to proposal creation, as it sends the wrong message. I also see some minor issues with the Eligibility Criteria you mentioned. I understand why you tried to make everything as rule-based and transparent as possible; some parts have an adverse effect, though 😅 All in all I very much appreciate the amount of work and time you put into writing everything down in detail ❤ That alone warrants trying it out and see how it fares, imo. ---
**Author:** ![DeanMachine](https://yyz1.discourse-cdn.com/flex031/user_avatar/dao.grapenetwork.org/deanmachine/32/40_2.png) [@DeanMachine](https://dao.grapenetwork.org/u/DeanMachine)\ **Post date:** [December 4, 2022, 10:08am UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/10 "2022-12-04T10:08:54Z")
I have to agree with CryptoPawz; this is an insane amount of valuable work and we should focus on putting it into practice! ---
**Author:** ![TheRipTyde](https://yyz1.discourse-cdn.com/flex031/user_avatar/dao.grapenetwork.org/theriptyde/32/384_2.png) [@TheRipTyde](https://dao.grapenetwork.org/u/TheRipTyde)\ **Post date:** [December 4, 2022, 1:14pm UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/11 "2022-12-04T13:14:13Z")
This short version is much easier to understand. Definitely in favour of what it aims to set out and seeing this is going to onchain vote. ---
**Author:** ![system](https://canada1.discourse-cdn.com/flex031/uploads/grape/original/1X/e132458099af96aa0796571a33f237a088db0b0c.png) [@system](https://dao.grapenetwork.org/u/system)\ **Post date:** [January 1, 2023, 7:12pm UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/12 "2023-01-01T19:12:08Z")
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**Author:** ![system](https://canada1.discourse-cdn.com/flex031/uploads/grape/original/1X/e132458099af96aa0796571a33f237a088db0b0c.png) [@system](https://dao.grapenetwork.org/u/system)\ **Post date:** [January 30, 2023, 10:39pm UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/13 "2023-01-30T22:39:05Z")
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**Author:** ![system](https://canada1.discourse-cdn.com/flex031/uploads/grape/original/1X/e132458099af96aa0796571a33f237a088db0b0c.png) [@system](https://dao.grapenetwork.org/u/system)\ **Post date:** [March 1, 2023, 2:45am UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/14 "2023-03-01T02:45:29Z")
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**Author:** ![system](https://canada1.discourse-cdn.com/flex031/uploads/grape/original/1X/e132458099af96aa0796571a33f237a088db0b0c.png) [@system](https://dao.grapenetwork.org/u/system)\ **Post date:** [March 30, 2023, 6:41am UTC](https://dao.grapenetwork.org/t/proposal-grape-dao-governance-incentives-participant-rewards-reputation/1173/15 "2023-03-30T06:41:13Z")