[PROPOSAL] NEW EMISSIONS MODEL: Incentives Pools

1. Proposal Purpose:

This is a formal proposal to put forward a new Emissions Model that can be managed and maintained by the DAO, focused on specific GRAPE Initiatives & Incentives to drive adoption, rewards and participation, into the future.

A.) The initial concept of this proposal was posted for discussion on 1 of 2 Discussion Posts about Metrics & Methods AND Models & Merits.

Ongoing Discussion regarding Metrics: [Discussion] Emissions Model Review: Part 1 of 2 - Metrics & Methods
Specific Concept about Emissions Model: [Discussion] Emissions Model Review: Part 2 of 2 - Models & Merits - #6 by Arximedis

B.) This Proposal aim to remedy flaws in the Past model:

1.) SubDAO “Pools” were in pre-defined amounts requested, tracked, allocated, and rewarded BY subDAOs to… themselves with little oversight from the DAO, Boards, or Councils. The full subDAO Emissions were almost always utilized, and there were no Govenance methods in place to require holding or decisioning within a subDAO (Rewards without Governance). SubDAOs lacked a number of processes and DAO failed to implement requirements or impose limits.
2.) Some subDAOs produced “work” in multiple instances (although it is more accurate to suggest this work done by a handful of “Individuals” each Epoch, rather than the entire “Groups”.
3.) “Work” was defined by Productivity alone, and whether work was Done as a Binary Yes or No. Tiers assigned to subDAO members tracked “Performance”, BUT Performance is different per subDAO and some subDAOs had objective measures of work produced (i.e. Designers/Videographers) v.s. others with more subjective (i.e. Researchers).
4.) “Value” was too loosely defined because ALL Emissions depended on subjective constructs of “contribution”.
5.) Treasury, Membership & “Verified” Productivity that contribute to GRAPE were sparingly if ever utilized.

2. Grape Proposal Overview:

This proposal aims to implement a MODEL Framework for “Emissions” which are redefined as “Rewards”. This change in structure will help to address 8 Key Initiatives for GRAPE and Incentives to drive participation. Organize available Grape each Epoch period or Quarter in Grape Initiatives & Incentives Pools to drive those Initiatives. GRAPE that is defined as “allocation” does NOT need to be utilized unless criteria currently under review is defined and confirmed. This proposal defines 8 POOLs that are pre-defined allocations but must each be released to members based on successfully meeting defined criteria AND those criteria are either suggested in this proposal or can be defined by the DAO for an alternative. To avoid conflating the issues of Metrics v.s. Model, I would like to request that the DAO consider reviewing each Pool individually and confirming/ascribing the appropriate “metrics” criteria to each to enable the release of rewards to members. (EACH POOL WOULD BE A SEPARATE GOVERNANCE TREASURY WALLET IN REALMS - UNDER GRAPE DAO REALMS)

This documentation includes DAO “Rewards” Model GRID [Emissions]
SAMPLE Metrics Dashboard - Google Sheets
NOTE: This documentation also contains “Metrics” which can compliment this proposal, however, I am truly interested in addressing the current stagnant conversation around a true Emissions Model that can carry Grape forward, rather than debate semantics.

Grape Strategic Initiatives [Incentives]

  1. DAO Pool [DAO Participation/Voting/Staking]
  2. Membership Pool [Membership Growth/Retention] (Review)
  3. Liquidity Pool [Liquidity/PoL/LP/Bonds]
  4. Base Performance Pool [Work Produced/Utilized/Productivity/Tiers]
  5. Bonus Treasury Pool(s) [Merit/Treasury Fund Inflow/Outflows/Contributions]
  6. Excess Strategic Pool(s) [Strategy/Time-Sensitive/New Ideas/Marketing]
  7. Bounty/Grant Pool [Development/Building/Products/Outsourcing]
  8. Prize Pool [Community/Contests/Events]

"Participation" Guideline Concepts

  1. 12 Epoch Governance periods per calendar year OR 4 Epoch Quarters
  2. Each Member must commit and LOCK GRAPE balance for entire duration of each Epoch Governance Period or Quarter to receive Rewards.
  3. Each Epoch Period or Quarter will have at least 1 Proposal & 1 Vote Required per Member
  4. Grape Members are required (or encouraged) to Vote in Every Epoch Voting Session. (Delegated option n/a currently)
  5. Every proposal to be voted contains a link to Documentation (i.e. Discourse) supporting it.
  6. Eligible Grape Members claim rewards at the end of each Epoch Period or Quarter.
  7. Reward levels are tied to the Realms Grape Staked per Member & Calculated by % of Votes Cast or Must have Voted on ALL Realms Proposals within the Epoch Period/Quarter.
  8. DAO Rewards pool for each Epoch period/quarter is voted by DAO Vote and can not exceed 20% of Grape Emissions Budget and/or can not exceed 1% of Circulating or Total Supply (Unless otherwise altered by DAO Vote)

DAO “Rewards” Model GRID [Emissions] - PROPOSED POOLS

DAO “Rewards” Model GRID [Emissions] - Criteria Groups & Performance KPIs:

3. Stakeholders

GRAPE DAO, SubDAOs, Community Members & Other GRAPE Stakeholders

4. Costs/Resource Requirements:

Not More Than the Total Emissions Approved by the DAO for Emissions.
Current Proposal is using the previous: 5,000,000 GRAPE “available” as the hypothetical “Budget”.

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TL;DR of New Emissions Model Proposed:

Highlight: Emissions are not a one-size fits all issue. One “simple” solution is probably not “easily solving the problem”. Understanding what was wrong with Emissions before, means solving the problem going forward.

I. WHY POOLS?

1.) Emissions challenge is BIG on a whole. To Start, Split the challenge into the SMALLEST sections: GOALS = REWARDS = POOLS.
2.) Each POOL has a specific focus & decision/criteria. Clearer incentive and reward criteria for the community will help achieve goals/initiatives & engagement. To game the system, you need to participate in ALL of it. (which means you actually earn the rewards :wink: )
3.) People CHOOSE depending on how they decide or can perform/participate/contribute (merit), instead of groups distributing full amounts depending on however much is available and many roles they have. (Tiers remain but only for one pool)

II. SIMPLIFY → Focus on POOL #4 & #5 (Ignore POOLs #1-3 & 6-8 for this example)

Split Rewards into 2 TYPES: Base & Bonus → BASE = Performance (Old) & BONUS = Treasury &/or Membership (New)

A.) NEW Model: “Base” & “Bonus” (proposed in January along with “Excess”). Old Emissions Model looked at Sub-DAOs as a Group, gave Grape to assign as they deemed appropriate.

B.) POOL 4 = Base is the work emission (standard past subDAO emission). CHANGE: Adjust to a Cap Maximum Per Member/Role. ROLES can only earn “so much” and Tiers define how much of that fixed amount 100%, 66%, 33%, 0% etc (or change % depending on how we believe Tiers should be strict % returns).

C.) POOL 5 = Bonus is the treasury / membership emission. Depending on how much an Individual or Group contributes, they receive X % of GRAPE from the Pool.

D.) The problem in the past was “uncapped” emissions. Member could earn more than “X” for “Work”. Now, that would be a fair limit for ALL Roles and tied to Tier performance. Anyone who does work can earn “some Reward”. To earn more, there need to be contributions and participation from other Pools, governed by other criteria or metrics.

8 Grape Pools Initiatives [Incentivize] - Emitted or Not Emitted Direct 2 Members (D2M or NOT D2M)

  1. DAO Pool [DAO Participation/Voting/Staking] (D2M)
  2. Membership Pool [Membership Growth/Retention] (Review) (D2M)
  3. Liquidity Pool [Liquidity/PoL/LP/Bonds] (NOT D2M)
  4. Base Performance Pool [Work Produced/Utilized/Productivity/Tiers] (D2M)
  5. Bonus Treasury Pool(s) [Merit/Treasury Fund Inflow/Outflows/Contributions] (D2M)
  6. Excess Strategic Pool(s) [Strategy/Time-Sensitive/New Ideas/Marketing] (D2M)
  7. Bounty/Grant Pool [Development/Building/Products/Outsourcing] (D2M)
  8. Prize/Community Pool [Community/Contests/Events] (D2M)
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