1Hive Gardens Retroactive Funding

Motivation:

  • 1Hive contributors should feel confident that if they continue to create value for the DAO, they’ll be compensated appropriately.
  • Value created at 1Hive should proportionately go to those who create it, with some portion of growth being shared by the rest of the community.
  • Value is easier to measure after it’s created.

How to do this:

  • Create a Honey Pot Funding Proposal to reward the Gardens team for value created in the past. Here’s an initial suggestion for how this process might work, using only tools 1Hive is already familiar with:
    Screen Shot 2021-09-29 at 10.56.32 AM

1. Data Collection

  • In Discourse, a set time period for suggesting and collecting useful data, i.e. Total Token Value in Gardens, Honeyswap Volume/Tx Fees/Liquidity related to Gardens, growth in Celeste related to Gardens, etc.
  • Open discussion on collection and valuation methods.

2. Determine Value Created

  • Decided by the community In Discourse: “Post the dollar amount you believe the Gardens team created for 1Hive in the last time period, and the % you believe should go to the 1Hive community” - doing this in Discourse lets us associate a person with responses, helping with security/honesty.
    • TBD - is it OK for Gardens swarm members participate? Conflicts of interest are transparent.
  • We find the median values from the community (or other outlier-resistant metric)
  • Signaling Proposal Amount then becomes: [Gardens Value Created] - [1Hive community portion] - [Amount already paid in past Gardens swarm proposals]
    • i.e. if Gardens created $1 million in value with a 20% allocation to community, and $100k was already paid in past proposals, proposal amount is $700k.

3. Confirm with Signaling Proposal

  • We use 4 simultaneous signaling proposals where the community either approves this dollar amount or sends it back to discussion:
    • Create Retroactive Funding Proposal for Gardens at [AGREED VALUE]
    • More discussion needed, [AGREED VALUE] is too low
    • More discussion needed, [AGREED VALUE] is too high
    • Gardens should not qualify for a Retroactive Funding Proposal

4. Create Funding Proposal

  • Once the community supports a funding amount, create a funding proposal.
    • TBD - do we enforce a vesting period on HNY paid out? IMO a trust-based system with cultural enforcement might work better. Incentives are well-aligned - the 1Hive community wants retroactive funding to incentivize more valuable work, and people that get retroactive funding want to keep getting it. Swarms that dump HNY from retroactive funding are unlikely to get it again. Another benefit of a trust-based system is that HNY that would otherwise be locked can be reinvested into the 1Hive ecosystem through LPs, Celeste, and voting. In other words, intrinsic motivation > extrinsic motivation, but would need education so everyone understands how & why to act in the community’s interest.

5. Allocate to Gardens Team

  • If funding proposal is approved, Gardens team uses Coordinape to distribute between swarm members.

One last plea:

If we get this right, we’ll have a system that can be replicated at other 1Hive swarms and will help us as a DAO to recruit and retain good worker bees :honeybee: - funding proposals for ongoing/future work can look a little more like basic income, reducing HNY lost to projects that don’t pan out.

15 Likes

Interesting idea! Thanks for sharing :slight_smile:
Some questions:

  • Do you think this process should be done periodically i.e. once after every X months or just once?
  • Would Gardens swarm members contribute to ongoing/future work for a reduced payment (because they already get this sort of BI)?
  • Would 1Hive expect some “work for free” from Gardens swarm members because they get this BI? If so, who and how would decide what work?

Is there any way to prove if this happens?

  • Do you think this process should be done periodically i.e. once after every X months or just once?

Yes, periodically - probably every 3 or 6 months. But the first proposal should cover all previous work up to this point.

  • Would Gardens swarm members contribute to ongoing/future work for a reduced payment (because they already get this sort of BI)?
  • Would 1Hive expect some “work for free” from Gardens swarm members because they get this BI? If so, who and how would decide what work?

Gardens (and all of 1Hive) already works well below market rates for ongoing/future work. Right now I’m not proposing any change for how those payments work, but I do think Retroactive Funding could let us structure payments for ongoing work so that they look more like Basic Income.

To clear one thing up, I think you might be calling Retroactive Funding “BI” here - Basic Income is more of a living expense type compensation, which Retroactive Funding is not. If you create a lot of value for 1Hive, you’d get a lot of compensation.

  • Is there any way to prove if [dumping HNY] happens?

Sure, just look at their wallets :slightly_smiling_face:

2 Likes

I am leaning towards the opinion that, for the first round of funding at least, HNY from this proposal (if it were passed) should be locked for ~6 months with the option for 1Hive to signal that they want to return the funds to the Common Pool during that time.

This gives the community a fallback if they feel like Retroactive funding isn’t accomplishing its goals of distributing value fairly and incentivizing long term contributors.

2 Likes