Newcomer Jumpstart Period

We spent about a month deliberating how to compensate full-time members of the DXdao. However, most of the people this applied to have already been in this DAO for months. While it is important to structure compensation for the most core contributors of the DXdao, the process of becoming a DXdao member is going to look a lot different for people that have been on the come-up from May 2020 onward.


  • 43.5% of the voting power in the DXdao belongs to 7 people. That’s an average of 6.2% among these 7. That means 7 REP holders already have more than the maximum REP issued in a 24-month engagement, according to the Workers Compensation Guidelines.

So while this result may not have been engineered, there is an imbalance that must be acknowledged and curbed over time.

One of the ways we can do this is a minor fast-track for people who the DXdao agrees are valuable contributors and worthy of voting power and compensation. But we have to do this with discretion so that the precedents we set do not lead to further imbalance.

We should encourage members to ask for compensation for the completion of smaller, bounty-like tasks, such as finding bugs, providing and documenting liquidity in our products, organizing small-scale marketing and liquidity campaigns, etc. so they can get a feel for the rhythm of task completion and asking for compensation. REP can be distributed more liberally this way.

Monthly rep compensation in a worker engagement is 0.166%. I want to propose that the first 3 bounties a person completes can warrant up to .225% REP range per bounty. In a month’s time they can gain minor compensation wins that will prepare them for longer engagements. So this structure of the 3 bounties provides a thin barrier to entry, and a fairly accelerated distribution of REP to mitigate the REP imbalance. Once you hit the .5%-.675% range, you become “eligible” for a fulltime engagement with the DXdao in periods of 45-60 days. This initla bounty-period allows newcomers to earn REP at 3x the pace of a full-time worker, which I think is pretty fair. Once you’re past the bounty period, compensation follows the guidance of the Workers Compensation Guidelines.

My numbers are totally up for debate (e.g. maybe we only need 2 bounties at .25% each). My point is people need to start small, while still being incentivized to work in the DXdao long term.

That way 10 new members would warrant a 5-6.75% inflation, with full-time engagements resulting in 1.6% or so inflation per month.

These are my ideas. Feedback of all forms encouraged.


One additional solution would be for the top REP holders to show, in an act of good faith, a commitment to reducing the imbalance by slashing their own REP to something smaller.

Important topic and props to Ingamar for taking the time to address it here.

I agree with the problem statement and would say that the DXdao has a mandate to become more decentralized and have REP be more distributed.

Having a newcomer jumpstart is a possible approach at accelerating the distribution of REP. As I ponder this some more, I am concerned however that this could result in people who only work for that initial chunk of REP, and I wonder if a better approach might be to frame it more as a newcomer bonus, that is earned after a certain timeframe (maybe somewhere around 4 months or so). So work the first few months within the worker guidelines, and then earn something like that 3X bonus.

Regarding whales slashing their REP, I wouldn’t be opposed if that’s what they want to do, but I also don’t think it’s necessary as the worker guidelines already stipulate a max REP percentage, which in effect freezes distribution to whales, and over time they will approach that max limit along with others who even just start working today.

To be upfront, my company Level K has around 5% of REP. The worker guidelines specify a max of 4%.

Side question - REP is distributed, in Alchemy, as an integer rather than a %. How do we know how much REP to ask for in a proposal if dxDAO is always thinking in %?

Other question - why are we setting %-of-all-REP rewards with all the moving parts? As time goes on, inflation will push workers to get more and more REP (integer version) - it seems like we will hit a % ceiling relatively quickly. In other words, everyone can’t be working for that max % total REP (4%) if there are more than 25 people in the dxDAO universe.

I feel like compensation in general is very confusing for newcomers. For example, I’ve been doing some dev work for the DAO since May 14th and so far I’ve put in ~43 hours of work. I believe I’m included in the new developer on-boarding for the proposal which just recently passed, and I’m aware of the Workers Compensation Guidelines, though I’m quite confused as to how it’s agreed upon who will be involved in that.

I’m not sure whether I should make a proposal for past work, or whether I will receive compensation from the recently passed developer funding proposal, or whether I will be involved in the workers compensation guidelines. Normally I wouldn’t spend this amount of time on a project without knowing exact compensation, so it’s a bit off-putting to be so uncertain. Can anybody share some advice/knowledge on the topic?

Hi Kaden, pinged you in keybase regarding this. I think the devs there can help you navigate this and get some clarity quickly. Cheers.

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What is the “core team’s” (REP whales? idk) opinion on a small-scale REP locking test (e.g. distributing 10% of the REP for locking DXD for a year)?

I sort of stopped pushing this because most folks seemed to “agree” it wasn’t in line with the idea of REP as contributed work, but I’m still curious if there’s an appetite for a small, controlled distribution.

I also have, for instance, an article I wrote during the curve initiation and some tweets/social stuff that got some decent coverage, would love to be able to redeem this as REP if there’s a protocol for it.

Thanks Ingamar and great framing.

If the DXdao hopes to scale, it will need to create a seamless onboarding process for community members interested in contributing. That won’t happen overnight, but it should be an immediate priority.

Broadly speaking, there seem to be four ways to distribute REP

  1. "Full-Time" contributors through the Worker Compensation Guidelines that Augusto led.
  2. Bounties and Community contributions - a smaller task with a low-level of commitment. I think some of the discussion in this thread would fall under this. I think Nylon was also working on a scheme to reward community members.
  3. Partnerships or DAO-level coordination - DXdao will not just need to engage with individuals, but also engage in partnerships to further the development of DXdao products and bringing those partners into the DXdao with some REP distribution. Something to think about as DAO development kicks off over the next couple months.
  4. DXD holders - a controversial concept, but we should explore the relationship between DXD holders and REP. Ezra has discussed this on community calls recently.

#1 and #2 are most relevant to this thread and it would be great to use both of them to create a continuum of easy initial on-boarding into DXdao through some REP distribution and then a clear path for higher commitment to the DXdao (and more REP distribution).

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