In a market characterized by easily-forked, open-source software, accruing long-term, defensible 'moat-based' value to Treasury governance/NAV tokens like xCVP depends primarily on the size, scope and agility of the community supporting the token and its associated pooled products. Now that many DeFi primitives have been proven to work, and a plethora of L1 and ETH/L2 chains have begun to sprout DeFi 'villages', launching new pools rapidly is basically a recruiting battle. Getting CVP/xCVP tokens into the hands of the right people for valuable contributions towards executing the best roadmap now is absolutely critical for the long-term success of a project like PowerPool.
Membership Stakes & DAO Rewards
Summary of minimum stakes required to participate in the PowerPool DAO and rewards available for successful Proposals approved by the DAO:
- xCVP in wallet for full access to website dashboards, SparkTeam channels, etc: 100 CVP
- xCVP stake to make Proposals on the Forum: 1,000 xCVP
- Voter Frequency Leaderboard/NFTs - semi-annual top 3 wallets: 2,000; 1,000; 500 CVP
- MVP Leaderboard/NFTs - semi-annual top 3 wallets: 2,000; 1,000; 500 CVP+NFT
- SparkTeam Leader(s) - For those not members of the Core Team or Management Board: $US 5,000 equivalent CVP/month
- Product Promoters: fully-specified new product Proposal adopted by DAO: 2,500 CVP/NFT
- Rebalance Promoters: a successful rebalance of launched product: 1,000 CVP/NFT
- Token Trackers: for timely submission of tracking spreadsheets: redeemable NFTs
Voting Incentivization Rewards
As a DAO that relies on potentially very valuable input/guidance from xCVP>1,000 stakers, reserving a significant proportion of CVP for incentivising voting is important. Many DAOs have been hamstrung by a combination of staker apathy and high gas prices (see below). Rewarding timely votes on key issues, and moving most routine votes/polls off-chain to eliminate gas fees are critical.
The PowerPool Forum and Governance platforms should support granular tracking of all types of (qualified, anonymous, wallet-based) polling and voting, routine and non-routine, linking votes to the tokens/pools at issue. This will support boosting flash polling and formal DAO voting participation rates via ‘gamification’:
- Create egalitarian scoring system where one (1) point would be awarded to each wallet for each vote cast, regardless of the amount of xCVP voted, which would motivate wallets of any size to participate in flash polling and vote on all formal proposals;
- Authorise a certain amount of CVP per year to use as key vote threshold shared group rewards to incentivise early, timely voting on key issues. (see below) Quorum determined by the total amount of xCVP governance token staked at the time of proposal creation. If the votes are important enough, chronic non-voting xCVP stakers get (lightly) slashed (that will get their attention...no pure passengers on this ship!)
- Authorize a certain amount of CVP per year for cumulative individual wallet voting rewards to be distributed to the three (3) wallets with the highest score(s) for each chosen time interval (e.g. quarterly & annually) whereby the winner(s) of the longest time frame (annual) would receive a greater allocation of CVP than the winner(s) of shorter time frames (quarterly) to reward voting consistency and a commitment to the future of the protocol.
For example, Nexus Mutual has been incentivising early, timely participation in key DAO voting by assigning a rewards pool to each vote, distributed amongst those who participate in that vote, Yea or Nay, up until the point where the vote reaches first Quorum, then Threshold for approval. The goal is not to incentivize either Yea or Nay votes, but to encourage xCVP stakers with sufficient ‘skin-in-the-game’ to vote on key issues asap. This ‘gamification’ of voting could also spur interest from other protocols who decide to buy up CVP, to stake xCVP in order to make formal Proposals and participate in the voting competitions. Other DAOs are looking at token burning as an incentive to drive voting.
Token Tracking Rewards
Anyone who joins the DAO can play the role of a Token Tracker. Token Trackers are responsible for updating cloud-based SparkData spreadsheets that track off-chain metrics reflecting on the outlook for a specific token included in the shortlist of tokens included in Power Universe pools already launched and subject to on-going rebalancing. Timely updates of the tracking spreadsheets that feed data into the PowerPower analytics & visualisation platform will be rewarded with NFTs redeemable for an xCVP stake in the value of the Treasury.
In addition, there is a Discord Channel for each launched Power Universe token, where the outlook for each of the constituent tokens, including zero-weighted tokens waiting to enter each pool, are being discussed continuously. Every week, Token Trackers should post a simple expression of their outlook for the token, using a simple range from three plus to three minus: +++/++/+/-/—/—-.
Members scanning the Discord channel postings on the outlook for various tokens under discussion should look for token pairs with opposite outlooks, and then collaborate to put a Rebalancing Proposal to the DAO, increasing the weighting of one token, and decreasing the weighting of another. If approved by the DAO, a significant reward of 1,000 CVP will be paid to the sponsors promoting the Proposal.
DAO Proposal Rewards
In addition to incentivizing participation in key votes, rewards are also paid for proposing and successfully promoting Proposals approved by the DAO. In the movie Wall Street, shady investor Gordon Gekko sent limousines with prostitutes to service tipsters feeding him profitable inside information. Because insider trading is not illegal or enforceable in crypto markets, it is important to find ways to attract or extract profitable information however possible, then act on it gas-efficiently and at scale.
Product Promoters: A fully-specified new product launch would consist of pool composition and initial weights, liquidity analysis for components, launch pool DEX, agreed rewards scheme and underwriters/prime minters prepared to establish the launch pool and maintain it for 6 months.
Rebalance Promoters: Anyone tracking the performance of the tokens in a pool, including zero-weighted tokens, can signal a Rebalancing proposal that makes compelling case for a given token(s) to be upweighted, and other token(s) to be down-weighted (even to zero). DAO approval of the reweighting is announced with a one-week delay, and the rebalance promoter rewarded, but no reward for non-consensus proposals that fail to gain the required quorum and majority.
The Management Board is responsible for attributing/apportioning the rewards and tagging the tokens/pools associated with each Proposal when it is tabled to the DAO for a vote. Voting data should track all forms of voting associated with a given token/pool, such that those xCVP stakers who have most consistently supported the shortlisting and increasing/decreasing the weightings of the best /’worst’ performing tokens/pools receive an allocation of CVP and a PowerPool MVP NFT as a performance-related ‘bonus’ every year.
Grants for approved projects/deliverables under supervision of the SparkPeople team
Task Related Grants
As part of the New Vision Roadmap, the DAO will authorise grants for specified deliverables. Anyone who feels they can contribute can propose a project with a defined deliverable and submit it on Discord and, depending on flash polling results, potentially on the Forum. If the (refined) Forum statement of the project is backed by at least two of the eight Management Board members, a formal Proposal to the DAO can be tabled.
Community Contribution Rewards
Example of Bankless DAO rewards distribution using Coordinape