βœ… [RFC] Proposed Community subDAO Creation & Funding

Summary

  • This request is to propose the creation of an mStable Community subDAO and seek ongoing funding for mStable community initiatives including the Metanaut Coordinape circle, payment of Discord Moderators, providing MTA for tipping in Discord, and running events and giveaways for the broader mStable community.

Abstract

  • As mStable continues to decentralize and prioritizes building a strong and engaged community, there is a need to be able to reward community members for their contributions to the mStable ecosystem.

  • While the GrantsDAO focuses on larger projects and more formal relationships, a number of opportunities have been identified which can allow mStable core team members and other community members to distribute rewards fairly to active community members.

  • The mStable GrantsDAO has provided an initial grant to bootstrap funding for the community initiatives in Q4 2021. This consisted of 11,500 MTA allocated to the following areas:

    • Metanaut Coordinape Circle (6000)
    • Discord Moderator Payments (3000)
    • Contests and giveaways (2000)
    • Tipbot (for tipping in Discord) (500)
  • These funds are currently disbursed via a multisig account controlled by mStable core team members across Operations, Community and Business Development.

  • In order to continue these successful initiatives, this group is proposing the creation a Community subDAO and requesting ongoing quarterly MTA funding.

Funding Request Breakdown

  • Requesting funding of up to 14,000 MTA per quarter to top up the fund at the start of each quarter, starting in Q1 2022. This amount has been calculated based on the following projected spending:

Coordinape: 7500 MTA (Max 2500 MTA per epoch with 3 epochs per quarter)

Moderator Payments: 4500 MTA (max 4500 USD, assuming MTA > $1.00)

Contests and giveaways: 1500 MTA per quarter

Tipbot: 500 MTA per quarter

Total: 14,000 MTA per quarter.

This amount should allow a small buffer and we would not expect 100% of funds to be used each quarter. The quarterly funding payment would be for the amount of MTA required to top up the fund to 14,000 MTA after all expenses from the previous quarter are accounted for.

Community subDAO structure and responsibilities

  • The Community subDAO would be led by the mStable Community Manager, Penguin, who would have the responsibility of initiating transactions to disburse funds, keeping accurate records of transactions and communicating with other signers.

  • Proposed initial structure is a 2/3 Gnosis Safe with the following signers:

    • Penguin (mStable Community Manager)
    • Derrick (mStable Growth & Partnerships)
    • Cam Soulsby (mStable Operations Lead)
  • Given the smaller amounts of MTA that will be disbursed by this DAO, it is proposed that Gnosis Safes are created on both Ethereum L1 and Polygon. Funds would be bridged to Polygon and distributed on Polygon unless L1 payments are specifically required.

Pros

  • This funding would provide a sustainable way to incentivize and reward community contribution to the mStable ecosystem.
  • Approved ongoing community funding reduces the governance overhead of small individual funding requests.

Cons

  • As with any distribution of MTA there is cost to the treasury but we believe that rewarding engaged community members for contribution is a cost effective use.

Next steps

  • Please comment below
  • Approval of funding: maximum of 14,000 MTA to be disbursed at the beginning of each quarter, starting January 2022.
  • Creation of subDAO: Feel free to suggest changes to the signer structure.
3 Likes

I’m for this creation, as it will streamline the quarterly expense funding of the Community led initiatives.

I think the pricing and strategy works out as well, and the structure and signers themselves are well known and respected in the community.

Is there also a reimbursement planned for signers, or is it a honorary position?

Other than that, good job! :innocent:

Definitely a good step.

I wonder if the Community SubDAO is also good for compensating the elected Community Signer in both DAOs (TreasuryDAO and ProtocolDAO)?
It would be around 1k USD per signer monthly, a total of 3k USD per month or 9k USD per quarter. Calculated as the 30 Day VWAP/

2 Likes

All of the reasoning and parameters look good to me. :+1:

Thank you soulsby for this helpful proposal and detailed write-up.

Penguin has been doing a fantastic job as the mStable community leader. It feels like the right step for Penguin to take a key role in this proposed community subDAO.

Great questions by mZeroNine and Dimsome.

Just to confirm, would the 14,000 MTA be allocated as specified in the original post or does the community subDAO have any flexibility?

For example, increasing Coordinape Circle rewards for a particular quarter and giving less for contests and giveaways (or vice versa). I think providing some flexibility can be useful, and perhaps when going outside some bounds items can be taken to a community vote. For example, anything more than 20% difference from the allocation (or whatever value makes sense).

Finally, I like disbursing the funds on Polygon, which makes a lot of sense for smaller amounts.

Thanks again and great proposal.

Thanks all for the feedback and suggestions.

Since the proposed signer group comes from within the mStable core team and the workload should be minimal, I don’t think additional compensation is required for this role except to reimburse gas costs.

This would help to remove a recurring monthly transaction from the Funding subDAO and fits within the purpose of this community fund. My only concern is that since this regular funding request is currently denominated in MTA, it’s tough to account for for a regular amount quoted in USD. There are ways around this and I’m open to it but my preference would probably be to handle this from the subDAO along with other monthly transactions for now.

Great point, I should have mentioned this. My thinking was that the amounts specified should be a guide and the actual usage could vary slightly month-to-month based on requirements. Given that some expenditure is relatively fixed (Coordinape, moderator payments) the variation would likely be small. If there was a significant change to required expenditure (in either direction) then there should be a revision of this ongoing funding request. We could also include a summary of expenditure in the quarterly Treasury Report for transparency.

Edit: after further consideration of @Dimsome 's suggestion regarding compensating community DAO signers through this community fund, an additional amount will be included in the proposal to allow this to be included as suggested.

1 Like