[Formal Review] [Phase 0] Transition to the DAO

This is the official draft and Snapshot poll for the [Phase 0] Transition to the DAO proposal. Please formally review the proposal and vote in the Snapshot poll by :rotating_light:17:00 CET - Monday, August 29th :rotating_light: For help participating in voting, please reach out to @abbey or @shelb_ee

[Formal Review] [Phase 0] Transition to the DAO

As outlined in The Next Phase of the RadicleDAO post, the project’s next decentralization goal is to have the scaffolding in place to transition Core Teams to the DAO by November 2022 with initial teams transitioned by February 2023.

This proposal outlines Phase 0 of this transition which transitions Radicle’s development runway and contributor token rewards to the DAO. It requests 3M USDC to fund six months of Core Teams operational budgets (until February 2023) and 1.9M RAD to distribute among Radicle contributors who joined the project post- token launch.

:exclamation:Note: The original estimations included in the Temperature Check and Discussion (2.75MUSDC and 1M RAD) have been updated to accurately reflect the calculations that were conducted when preparing the proposal. More details on the numbers are included below.

A full overview of Background, Purpose, and Impact can be found in the Temperature Check and Discussion posts. This post outlines notable changes and additional information that have been included after the Discussion post.

Design Approach

Contributor Compensation

The total USDC amount was calculated based on estimated costs for the next six months for the following: all Core Team monthly costs plus intended hires (totaling CHF ~2.6m); intended event sponsorships; a management fee (e.g. the costs of managing these services, like legal, accounting, and administration). On top of this, an additional ~10% buffer for extraneous situations was included.

Contributor Rewards

As outlined, each qualified contributor will be granted 1.5x their annual estimated fee in RAD, vested over 4 years, with a one year cliff from their contract start date (i.e. if they leave before the end of their first year, they don’t get any RAD). A contributor’s “annual estimated fee” is based on their daily/hourly rate and amount of time spent on Radicle.

Qualified contributors include every contributor who currently holds a contract with the Radicle Foundation, community contributors selected by the Foundation, and contributors that the Foundation intends to engage contractually within the next sixth months.

Technical Implementation

Proposal Code

After further consideration, the proposal will transfer the USDC amounts and RAD amounts to two separate multi-sigs. Both will be controlled by four signers, with a two out of four quorum. The signers will consist of the Foundation Council (@abbey @lftherios @cloudhead) and the Foundations Op Lead (@ange).

0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48 0 "transfer(address,uint256)" 0x85C6CeEeb8E1A2E49D23cE8b9E0e59413FDb8bbB 3000000000000
0x31c8EAcBFFdD875c74b94b077895Bd78CF1E64A3 0 "transfer(address,uint256)" 0xBA6D95426467a55b007345dBC6292127EbcE71C4 1900000000000000000000000

Vesting Contracts

Each contributor will have their tokens allocated an on-chain vesting contract, with a 1 year cliff and four year vesting period. The “vesting start date” of each vesting contract will be the date the contributor first started working for the Foundation. These vesting contracts will be created by the Foundation Council over the next couple of months. The vesting contracts should be configured to ensure maximum flexibility for the DAO to upgrade the contracts as it sees fit, as well as create new ones for future contributors.

The goal is to transfer ownership of these vesting contracts to the DAO to decentralize control of contributor incentivization.

Overall supportive of this proposal. The 1.5x RAD award is reasonable assuming annual estimate fee is aligned with market. Vesting requirements are robust.

Please let us know if you’d like our assistance tackling future compensation issues.

C3

Between the Temperature Check proposal and this one, there’s a sizeable 33% increase in the USDC allocation and a 90% increase in the RAD allocation. Would it be possible to get more details on what caused the increase?

Apologies for the late reply, I totally thought I had sent it already!

Yes, for sure! First, the discrepancy between the proposed runway in the formal review (3M) vs. the temp check/discussion (2.75M) is only 10%. The main reason behind the increase is that back of the napkin estimations were turned into actual calculations. @ange, Sally (Ops @ Foundation), and I calculated monthly costs based on contributor invoices instead of just projections. Additionally, we allocated costs & token allocations for four potential hires that surfaced after having conversations with our development teams regarding their hiring priorities & goals over the next 6 months.

The RAD allocation is a substantial increase and was due to a very rough estimate of initial contributions. The number increased after calculating the total allocations at a set conversion rate and including allocations for potential hires.

Thanks!

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:classical_building: SNAPSHOT POLL RESULT :classical_building:

The formal review for the [Phase 0] Transition to the DAO proposal has SUCCEEDED and received unanimous support. See the final results here.

The proposal can now be submitted for an on-chain vote.

:classical_building: NEW GOVERNANCE PROPOSAL :classical_building:

The [Phase 0] Transition to the DAO proposal is active and open for voting! :seedling: If passed, this proposal will transition Radicle’s development runway and contributor token rewards to the DAO. It requests 3M USDC to fund six months of Core Teams operational budgets (until February 2023) and 1.9M RAD to distribute among Radicle contributors who joined the project post- token launch.

:writing_hand: Proposal Overview:

:ballot_box:Voting is open until September 3, 2022 at 8:34 AM GMT+2. Cast your vote here:

@abbey / @shelb_ee I was wondering:

Is there a way for the on-chain record that is generated from a vote to capture not just hyperlinks to (mutable) text in this forum / github / etc. , but rather to create an immutable record, so in 5 years from now it will still be visible what we voted on ?

The risk with links is not only that the content will change, but also that the website linked to may have gone down, changed domain name without proper redirection, etc. at which point the vote seems like it would feel a little … empty?

Thank you for clarifying!

Got it. You might want to fix the following quote in the OP then:

(2mUSDC and 1M RAD) have been updated to accurately reflect the calculations that were conducted when preparing the proposal. More details on the numbers are included below.

Oops, good catch — thanks, and sorry for the confusion!

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hmm great point! I think there should be a way to do this, as Snapshot votes all have on-chain signatures attached them iirc. potentially we should deploy some version control system for archiving governance posts/proposals/votes?