DXdao Pay Structure Update - December 2021 [Draft Proposal]

This draft proposal suggests the following changes to the current compensation guidelines:

  • New payment structure featuring eight levels
  • Shift to 3 year vesting schedule for DXD alongside paying DXD at market rate
  • Introduction of bi-annual bonuses funding allocation

If this proposal passes, we will be transitioning away from the current payment structure. The new proposed payment structure can be found here as well as in the chart below.

To further clarify and explain the proposed level guide and compensation we have prepared a Q&A to answer any pertinent questions. Any questions and feedback around this new structure are appreciated.


What does this look like burn rate wise?

The projections below are calculated based on current contributors and estimates about their future levels.

Monthly USD burn rate: $169,000
Monthly DXD burn rate: $148,500
Total monthly burn rate: $317,500

Yearly USD burn rate: $2,028,000
Monthly DXD burn rate: $1,782,000
Total yearly burn rate: $3,810,000

At a price of $743.03/DXD:
Total DXD locked in vesting yearly: 2398.29
% of circulating supply: 5.65%
% released in year one: 0%
% released in year two: 3.77%
% released in year three: 1.88%

How will the market rate for DXD be determined?

The market price of DXD will be determined by taking the average DXD price over the last 1 month in US dollars calculated on Swapr.

How will new levels be determined for current contributors?

Once passed through governance, contributors should closely assess the language presented in the new compensation structure and have a discussion with their squad lead or other relevant contributors to their vertical. Contributors should make an educated decision surrounding their level based on the updated level descriptions and any feedback received. If a contributor doesn’t feel a level completely describes them, they should start at a lower level. Although there is no direct conversion, generally speaking contributors are likely to fall within the following levels:

Current Level New Level to consider
Level 1 Level 1 - 3
Level 2 Level 2 - 4
Level 3 Level 3 - 5
Level 4 Level 5 - 7
Level 5 Level 6 - 8

When will the new compensation structure go into effect?

If this proposal passes on mainnet and xDai, the structure will be considered in effect. This is expected in 1-2 weeks depending on feedback.

What if I have an active worker proposal with the old compensation when this goes into effect? Will it be retroactive?

The signal proposal will have a date in the future when the new guidelines will go into effect. Only proposals after this date will be able to use the new guidelines as a reference point.

How do “Promotions” work with the new level system?

Like all worker engagements, promotions are led by the individual contributor, who can apply in a new worker proposal to be at a higher level. The community will provide feedback on the worker scope in the forum and squad leads are encouraged to vocalize when a contributor in their squad has misrepresented their level, be it to the low or high end. REP holders will use various signals from the community and collective to determine whether or not to approve the “promotion” to a higher level.

What is the goal of shifting to a 3-year vesting schedule for DXD ?

Moving to a 3 year vesting schedule helps align long-term incentives among contributors and DXdao. DXD will be locked with 1/3 vesting after 1 year of the contributor contract start date, and the remaining 2/3 vested through a linear schedule after the 1-year cliff, fully vested at 3 years.

How much funding are we looking to allocate towards bonuses?

We suggest allocating $100k every 6 months towards bonuses for DXdao contributors in a mix of USD and DXD compensation. This amount is 5% of the overall compensation budget ($1.9m).

11 Likes

Looks great.

I would add a floor price for DXD vesting, which is enacted if DXD were to ever trade below the value again. I believe it’s fair to DXD holders to base this off of the latest DXD purchase from the bonding curve, which is: Ethereum Transaction Hash (Txhash) Details | Etherscan

With a price of ETH at the time of the txs of: $576
a price of ETH/DXD of 1.0203

For which I’d suggest the following floor price = 576 * 1.0203 = $589.69

EDIT: After reviewing on-chain data, it looks like the transaction above was done above the market-rate of DXD. ATH price in 2020 of DXD was: $523. Which is also the amount used as ATH price since the end of 2020.

Other than that, I’m looking forward to seeing the proposal live on-chain :slight_smile:

7 Likes

I think something that has been ambiguous thus far and also in the text above is whether vesting means that DXD is simply locked up until the specified time periods are up, or whether ultimately receiving the DXD depends on continuing to be a contributor at DXdao. For example, if I stop contributing to DXdao before the 1 year cliff of DXD that is vesting to me, does that DXD go back to the DAO.

So as not to hold up this proposal, I think it might make sense to amend the above text to say that the details of what vesting means will be addressed in a separate proposal. That way discussion can be opened up on the topic specifically, leaving time for people to understand and for debate.

8 Likes

This proposal is now live on Mainnet and xDai !

4 Likes