Title:
[SCP-81] Enable Partial Salaries in FOX
Summary:
Allow workstream contributors to elect to receive part of their salaries in FOX through Hedgey time-lock bonds.
Abstract:
If passed, this proposal would allow each workstream contributor to choose from the options listed in the Specification section for a portion of their monthly contribution compensation to be paid in FOX tokens. Contributors would select a percentage of pay in FOX, along with a time-lock period. This would result in extra FOX being paid to contributors, relative to what they’d receive if they did not choose one of these options. (Alternatively, contributors could choose to receive their pay as usual.)
Motivation:
In order to conserve the DAO’s stablecoin treasury, and to align contributors to the long-term success of FOX, it would benefit all parties for contributors to have the option to opt-in to receive part of their monthly salary in FOX. To incentivize this behavior, the DAO would offer a “bonus” in the form of additional FOX. The longer the time-lock selected, the larger the bonus.
Survey conducted in the month of May show wide support for this option:
Specification:
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Contributors will be able to choose any percentage of their salary to be paid in FOX. Contributors can modify the percentage to be paid in FOX each pay period. Any changes must be communicated to their workstream leader.
If choosing any amount of salary in FOX, a time-lock period must also be selected. The longer the time-lock, the bigger the bonus:
3-month lock, 5% extra FOX
- 6-month lock, 10% extra FOX
- 12-month lock, 20% extra FOX
- 18-month lock, 30% extra FOX
The USDC portion of pay will be available immediately, but the amount of FOX–both the base amount and the extra from the time-lock selection–will be locked and unavailable until the time-lock expires.
At this time, it looks like the best option to offer this incentive is through Hedgey bonds. With Hedgey bonds, every month employees will receive an NFT that can be traded for the corresponding amount of FOX upon time-lock expiry. It would also be possible to sell the NFTs before the time-lock period is over to interested parties for USDC or any other crypto.
The Tokenomics committee may change these specifications at any time, except for the fact that this program is voluntary. That aspect can only be changed by a community vote. Any other specification listed here is subject to change. Any changes will be communicated.
Benefits:
The DAO benefits by spending its stablecoins more slowly, allowing for a longer period to sustain a bear market and/or recession.
Contributors benefit by having the option to increase their salaries by agreeing to lock-up the FOX portion of their pay (plus a bonus) for a specified time period.
Drawbacks:
It would be inappropriate if any contributor felt undue pressure to participate in this program. With that in mind, it’s important to note that this program would be completely voluntary. All contributors have the right to choose to receive their pay in 100% stablecoins–or, if they currently receive FOX instead of USDC, to maintain the status quo of receiving all their FOX immediately.
Vote:
A “yes” vote would enable contributors to select a percentage of pay in FOX, and a time-lock period with a corresponding FOX bonus as specified above. It would also trigger the ability for workstream leaders and multi-sig signers to create new Hedgey bonds for each pay period to meet this need.
A “no” vote means nothing changes.