Summary:
This proposal seeks community approval for the replacement of the TMDC & tokenomics workstream lead for the period of 3 months (retroactive to 11.01.23 and ending 01.31.24). This proposal includes a re-envisioning of core responsibilities and their cadence, and includes a ramp-up of the allocation of FOX compensation, to ProfMcCarthy, who will undertake the pivotal role of Tokenomics Workstream Leader. The compensation will ramp up, starting at $7,000 per month for the first month, $10,000 per month for the second month, and $14,000 for the last month of (3-month) locked fox compensation. This is in alignment with the standard compensation granted to workstream leaders and has no impact on our stablecoin holdings or runway since compensation will be entirely in FOX. The Tokenomics Workstream Leader will oversee the management and revitalization of the ShapeShift DAO tokenomics and publish Shapeshift DAO external-facing reports.
Abstract:
As we embark on a reimagined approach within our Tokenomics Workstream, I am enthusiastic and motivated by the significant opportunity before us. This opportunity not only presents the means to address the pressing challenges currently confronting the ShapeShift DAO but also affords us the ability to meticulously navigate a new path for the governance of tokenomics. In essence, this proposal represents a reimagination of the tokenomics workstream, one that acknowledges the ever-evolving dynamics inherent to our ecosystem. In this new landscape, I recognize the immediate relevance of the proposed fee model, which introduces a sophisticated parametric fee structure for all trade routes. In my capacity as the Tokenomics Head, a role of pivotal importance within this reconfigured workstream, I am genuinely excited to undertake novel responsibilities and imagine new ones. My goal is to provide the utmost value to FOX holders and expand coverage of revenue streams.
Motivation:
The motivation behind this proposal is to formalize the continuation of the Tokenomics Workstream under the leadership of ProfMcCarthy, who will lead the revitalization of our tokenomics. ProfMcCarthy is an Associate Professor of Economics at a state college in the US. They have a PhD in Economics from Colorado State University, with specializations in monetary economics and political economy. ProfMcCarthy also serves as the director for the local small business development center. ProfMcCarthy has experience in managing the DAO’s treasury, as they have been on the TMDC since its inception in October, 2021. This transition is imperative to address the evolving dynamics of our ecosystem and align our tokenomics with the community’s interests. Recent (and past) unforced errors show the need for greater guidance and ownership of the processes within recommended policies regarding payments, investing, and managing risk.
Specification
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The Tokenomics Workstream Leader, ProfMcCarthy, will undertake various tasks including:
Produce at least two comprehensive risk management reports each month to support TMDC decisions, with the first report finalized and published no later than 11/15/23.
- Steward decisions regarding loans and/or bonds alongside the TMDC (as needed)
- Submit monthly expenditure reports by the 5th of each subsequent month.
- Submit monthly revenue reports by the 5th of each subsequent month
- Report on stablecoin holdings weekly starting week of 11/13/23.
- Report on runway weekly beginning week of 11/13/23.
- Conduct market opportunity research and publish reports on yield trends within SS, new tokens/chains, existing tokens/chains with changes (bimonthly with first two reports published 11/30/23 and each subsequent report published on the 15th and 30th)
- Preparing professional external-facing reports (similar to that of Gnosis Karpatkey Treasury reports and BadgerDAO’s “State of the DAO” reports) (Monthly by the 20th)
- Ensuring that the DAO’s information is available and accurate in leading financial and crypto information spaces (such as www.tokenterminal.com) (add 5 financial sources by 01/31/24)
- Perform monthly sentiment analysis and publish reports (on the 30th)
- Perform an initial assessment of the tokenomics structure (by 12/15/23)
- Work alongside other workstream leaders and the TMDC to draft and revise fee model parameters.
- Attend governance and ops sprint meetings weekly.
- Engage in community forums nearly daily with measured impact by tracking engagement metrics monthly.
- Complete post-mortem reports and rectification strategies on an ad-hoc basis.
- Recruit new members to the DAO.
- Strengthening the protections for FOX holders
- Expanding coverage of revenue streams
- DAO-to-DAO liasing
- Working closely with marketing to issue reports
- Periodic reviews to gather community feedback (surveys/discord discussions)
These starting tasks are aimed at ensuring our tokenomics remain competitive, sustainable, and transparent. Additionally, the Tokenomics Workstream Leader will play a crucial role in assessing the impact of the proposed fee model on our tokenomics, fine-tuning the fee model parameters, gathering feedback, providing data-driven insights, ensuring integration with governance, and staying up-to-date with market trends and competitor fee models. Additionally, alongside TMDC, the workstream will focus on stewarding the FOX foundation loan and keep a keen eye on the DAO’s token revenues, stable revenues, and outstanding liabilities with rigor and transparency.
ProfMcCarthy would hold office hours, present at tokenomics meetings, recruit new members to the DAO and the tokenomics workstream and the TMDC, and make themselves available async within hours should any community member have need of them, day or night, seven days a week. ProfMcCarthy will monitor fox price and activity, setting alerts and watching sentiment analysis predictors to foresee and mitigate risk events.
ProfMcCarthy would keep his role on the TMDC but forgo compensation previously allocated to him for the TMDC role.
Benefits
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Leadership Continuity: Supporting this proposal ensures the continuity of leadership within the Tokenomics Workstream, allowing for a seamless transition and execution of the fee model proposal, revenue predictions, and risk-focused management of the TMDC assets.
- Expert Oversight: ProfMcCarthy, as the Tokenomics Workstream Leader, will bring expertise to the management of our tokenomics, facilitating sound decision-making and strategic planning.
- Enhanced Community Engagement: ProfMcCarthy's role includes active community engagement and feedback gathering, fostering a stronger alignment between our tokenomics and the community's interests.
- Additional Support for the Evolving Dynamic Parametric Fee Structure: The Tokenomics Workstream Leader will provide valuable support and insights into the implementation and management of the dynamic parametric fee structure, ensuring its effectiveness.
Drawbacks
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Allocation of FOX tokens for this role means resources that could be preserved and allocated for alternative purposes are utilized.
- Tokenomics, as a relatively new discipline, carries inherent risks. Analyzed hypotheses and risk mitigation strategies may not prove accurate over time, potentially leading to unforeseen consequences.
Vote:
For
- : Supporting this proposal signifies approval for the continuation of the Tokenomics Workstream, with ProfMcCarthy as the new workstream leader, and the allocation of compensation in the form of $31,000 over a 3-month period, entirely in FOX.
Against
- : Rejecting this proposal indicates disapproval of the Tokenomics Workstream's continuation under the leadership of ProfMcCarthy and the compensation allocation.
Please cast your vote as “For” or “Against” to express your stance on this proposal.
[Vote Here: For / Against]