Idle DAO Governance Mining

Authors

Treasury League

Summary

Over the past 2 years in the DeFi industry, there have been many evolutions for DAOs and the people who work dedicating their time to a shared mission with other members.

During these months, the Leagues’ contributors noticed less active participation in governance activities. There was less community engagement and voting participation, as analyzed in this report that includes data from all voting proposals, on-chain and off-chain.

We believe that, especially in market times such as we are experiencing, those who remain active in the DAO deserve a reward for their contribution, which adds value to a decentralized organization such as Idle.

From that analysis, we are proposing the “Idle Governance Mining” which is a program to reward the activity and contributions of users in the Idle DAO community and governance.

Rationale

“Voting is the only legitimate form of governance decentralization” - Vitalik, August 2021

This initiative grew out of various reflections and conversations we had with Leagues and our community about incentivizing activity within Idle DAO governance, giving rewards to the contributors who are more active in the governance processes and add value to the community.

The assessment of participation will be calculated using a reputation score published on the Karma platform, which takes into consideration the activity of each individual DAO member in the community and governance.

Proposal

  • Anyone interested in contributing within the community and Idle DAO will be eligible for governance mining according to the reputation score;

  • The reputation score on Karma is calculated by taking into count activity in

    • Idle Governance Forum;
    • Snapshot (IDLE and stkIDLE) voting;
    • On-chain voting;
    • Discord (soon)
  • The final computed scoring will sum all activities and currently follows this formula:

    • Forum proposals Initiated (x10)

    • Forum proposals Discussed (x2)

    • Forum Post Count + Forum Topic Count (x3)

    • Forum Likes Received (x0.5)

    • Forum Posts Read Count (x0.1)

    • Off-chain Vote (x3)

    • On-chain Vote (x5)

    • Delegated Vote (x0.1)

    • Discord → within the same month:
      A. (x1) for each message
      B. After reaching the first 50 messages, (x0.5) for each message
      C. After reaching 100 messages, (x0.1) for each message

      At the end of the month, the score will be reset, with users getting starting from (A).

  • Reputation scores will be updated every 30 days (selection is therefore based on a reputation score created during this timeframe);

  • The first 5 addresses with the highest reputation score will be rewarded (Leagues contributors or governance addresses won’t be counted in this selection); the Treasury League will publish the selection monthly in the governance forum.

  • The Treasury League reserves the right to be able to change the scoring algorithm (if there will be the need to adjust it after measuring the performance during the program);

  • If someone intends to game the scoring system, the Treasury League reserves the right to disqualify these users from rewards.

Rewards

  • 2k IDLE as a monthly budget distributed;
  • NFT badges minted minted via Karma NFT service (on Polygon) to reward contributions for specific activities, such as:
    • Voted off-chain at least once via snapshot;
    • Wrote at least one proposal in the governance forum;
    • Voted on-chain at least once via Idle governance;
    • Interacted the most in the governance forum;
    • Voted the most in Idle DAO (on-chain + off-chain).

Next steps

We are glad to launch this initiative and reward users based on their reputation earned through their contributions to the Idle DAO community and governance.

We are open to discussing further details or including missing activities, either in computed scoring as well as for NFTs minting.

References

7 Likes

Great proposal! I was wondering why limiting rewards to only the first 5 addresses? It would make more sense to me to be as inclusive as possible ideally so I would remove this restriction if possibile and maybe reward even up to 20-30 people, proportionally to their score (maybe we can add a cutoff so eg min 5 IDLE for a payment)

Regarding the score, I feel that giving x10 for creating a new forum proposal may lead to spam, is it possible to give such multiplier only if the proposal leads to a vote and reduce it in other cases?

6 Likes

Fair point @william, but I think that, if we increase the number of people who are currently eligible, the total reward per person decreases (as it is more distributed of course), and the program may become less incentivized.

In addition to that, the limit of 5 people for rewards is based on the current numbers shown on Karma (based on low activity for now), so we can decide as proposed above to update the rules monthly if we see the need.


Regarding the forum proposal, the multiplier is a nice idea, but at the moment, Karma cannot automate this process: if there will be a proposal going to the voting phase, they need to map it manually.

The spam risk is always behind the door for other messages (e.g., on discord), but we always reserve the right to select the people eligible (so if people spam, they won’t be included).

We think it’s fair to give higher points to people who create proposals in the governance, do you think we should decrease the score for it?

3 Likes

I am the founder of Karma. Very excited for this program and am glad Karma can help the DAO increase participation.

We just came up with a way to make this possible with very little effort. So, yes, we can definitely do this!

4 Likes

That’s true, but if the aim is to on board always new valuable members it’s better to diversify a bit imo or even maybe increase the budget to eg to 2.5k IDLE / 3k IDLE per month

Welcome @mmurthy !

That’s a great addition!

2 Likes