Option 2 - Karma delegation dashboard
Following the publication of [RFC-2] Delegate Incentive System for ArbitrumDAO, the Karma team reached out to the SEED Latam team to explore a collaborative effort on the incentive system.
While we are confident that Karma enriches the proposal, we have introduced it as an optional feature, recognizing that the community might have a different perspective. If the DAO feels it is not appropriate, this option can be omitted and the proposal can continue with Option 1.
About Karma
Karma is an integrated set of DAO tools for measuring contributions and improving governance. DAOs and communities use these tools to engage contributors, track their contributions, and take action to increase engagement and accountability.
Team and Product
Karma is a team of four developers with two years of experience in the DAO space. Mahesh Murthy is the founder of Karma. Their flagship product is the Delegate Dashboard, and they have collaborated with numerous DAOs, including Optimism, Gitcoin, Starknet and more. You can view all our dashboards at: Explore DAOs on Karma.
Website: https://www.karmahq.xyz/
Twitter: https://twitter.com/karmahq_
What Karma brings to the proposal
SeedLatam proposes an experimental delegate incentive program. Karma’s delegation dashboard can track all delegate activities, including on-chain and off-chain voting participation, as well as Forum and Discord activity. This proposal seeks to establish the delegate dashboard for Arbitrum and incorporate additional features to enhance the incentive program.
Proposed additional features (specific to incentive program) include:
- Automatically indexing and displaying essential activity metrics, eliminating the need for delegate self-reporting.
- Showcasing detailed monthly compensation figures for each delegate, allowing the community to access all pertinent details in one location.
- Streamlining administrative processes by highlighting delegates who fulfill the monthly criteria and computing their respective compensation amounts.
What Karma brings to the proposal
SeedLatam proposes an experimental delegate incentive program. Karma’s delegation dashboard can track all delegate activities, including on-chain and off-chain voting participation, as well as Forum and Discord activity. This proposal seeks to establish the delegate dashboard for Arbitrum and incorporate additional features to enhance the incentive program.
Proposed additional features (specific to incentive program) include:
- Automatically indexing and displaying essential activity metrics, eliminating the need for delegate self-reporting.
- Showcasing detailed monthly compensation figures for each delegate, allowing the community to access all pertinent details in one location.
- Streamlining administrative processes by highlighting delegates who fulfill the monthly criteria and computing their respective compensation amounts.
Specifications
Services offered if the proposal passes
Should the proposal be approved, the following will be implemented:
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A Delegate Dashboard for Arbitrum will be established, mirroring what we’ve set up for other DAOs like Optimism, Gitcoin, Starknet and more. The dashboard will feature:
- A comprehensive view of all delegates along with their voting statistics (both onchain and snapshot).
- Access to onchain and snapshot voting histories of individual delegates.
- A “Delegate Lookup” function to swiftly ascertain whom a token holder has delegated to and the delegate’s performance since that time.
- A “Delegator Lookup” feature to view all token holders who have chosen a particular delegate.
- The ability to connect one’s wallet and delegate directly from the dashboard.
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Clear indications on each delegate card regarding whether that delegate has chosen to receive compensation. A new filtering feature will be added to sort delegates based on this criterion.
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A fresh page will be added to the dashboard, showcasing all delegates compensated on a monthly basis, complete with amounts and statistics.
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Monthly compensation metrics for delegates will be displayed, ensuring transparency for both the delegates and the community. This will simplify the process for delegates by removing the requirement for monthly self-reporting.
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Administrative functions will be automated for ease in verifying metrics and initiating payments to qualifying delegates.
Cost and support
Karma will create the delegate dashboard, develop the necessary functionality to strengthen the incentive program and ensure that the data is kept up to date. The price for the product and support will be 20,000 USD for the first 6 months of the program. Will configure the control panel and complete the implementation of the features within one month of proposal approval. As modifications to the incentive program are expected based on new knowledge, you will continually update and maintain the features to adapt to evolving program requirements.
Payment Schedule
The payment for Karma will be executed in two parts
- Once the proposal is approved, Karama’s public management will receive 10,000 USD to start working on the delegate scorecard.
- The remaining 10,000 USD will be paid one month after Karma has the scorecard ready to implement the incentive system.
Considerations
- Payment to Karma will be made from the multisig and will be made in ARB tokens.
- In case of delay in delivery Karma will have to inform publicly with a post in the forum the reasons for the delay.
- In case the delay is not justified or is longer than 15 days, a vote will be held in the snapshots for ArbitrumDAO to vote whether or not to cut off the payment supply.
Delegate responsibilities
Although Karma automates much of the process, delegates still need to perform the following tasks:
- Vote in snapshots
- Justify their vote in the snapshots
- Vote in the tally
- Justify proposals in the tally
It is recommended that, until the system is optimized, delegates keep a log of their activities.
SEED Latam Commitment
Seed Latam is committed to monitor the proper functioning of Karma and to collect feedback from the community on the performance of the dashboard. We also commit to collaborate with Karma so that the dashboard meets the needs of the incentive system.
Disclaimer
SEED Latam does not have any commercial relationship with Karma nor does it receive any payment from them for incorporating them into this proposal.
The only link between SEED Latam and Karma is that both want the success of the Arbitrum ecosystem.
Overview
Proposal overview
Duration of the incentive system
- 6 month
Total Number of Delegates to Receive Incentives
- 30 delegates
Selection process
- Tier 1:
- Voting Power: 30M ARB - 1M ARB
- Delegates to Receive Incentives: 10
- Budget Allocation: 360.000 USD (6000 USD per delegate per month)
- All-time Participation Rate (Tally): +75%
- ARB Token Lock Requirement: +3,500 ARB
- Tier 2:
- Voting Power: 999,999 ARB - 300,000 ARB
- Delegates to Receive Incentives: 10
- Budget Allocation: 240,000 USD (4000 USD per delegate per month)
- All-time Participation Rate (Tally): +75%
- ARB Token Lock Requirement: +2,500 ARB
- Tier 3: Exclusively for delegates meeting the subsequent criteria:
- Voting Power: 299,999 ARB - 100,000 ARB
- Delegates to Receive Incentives: 10
- Budget Allocation: 120,000 USD (2,000 USD per delegate per month)
- All-time Participation Rate (Tally): +75%
- ARB Token Lock Requirement: +750 ARB
Eligible delegates must confirm their participation in the incentive system by posting a message on the forum.
Scoring
- Option 1:
- Option 2:
- Karma Delegate Dashboard
Minimum to receive incentives
- TP= +60%
Adicional Score
- +10% TP
Parameter Snapshots
- Last day of the month 23:59 UTC
Dispute
- 2 days
Payments
- 17th of each month
Multisig Management
- Gnosis Zodiac OZ governor module
Incentive system administrator
- SEED Latam / Facilitators
Total Cost
Option 1
- 720,000 USD Incentives
- 360,000 USD Market fluctuation
- Total: 1,080,000 USD
Option 2
- 720,000 USD Incentives
- 360,000 USD Market fluctuation
- 20,000 USD Karma development
- Total: 1,100,000 USD
Source of truth: https://www.coingecko.com/en/coins/arbitrum
Proposal Timeline (dates to be determined)
Option 1:
- Week 1 - Temperature Check
- Week 2 - Temperature Check
- Week 3 - Snapshot Voting
- Week 4 - Onchain Voting
- Week 5 - Onchain Voting
- Timelock Period (3 days)
- Week 6 - Delegate Nomination
- Week 7 - Announcement of Selected Candidates & Preparation of Forum Channels
- Week 8 - Incentive System Kick-off
Option 2:
- Week 1 - Temperature Check
- Week 2 - Temperature Check
- Week 3 - Snapshot Voting
- Week 4 - Onchain Voting
- Week 5 - Onchain Voting
- Timelock Period (3 days)
- Week 6 - Delegate Nomination - Karma development starts
- Week 7 - Announcement of Selected Candidates - Karma development
- Week 8 - Karma development
- Week 9 - Karma development completed
- Week10 - Incentive System Kick-off
The incentive program will begin on the 1st of the closest month to ensure an organized schedule.
Conclusions
Please note that this initial incentive system is experimental and is not intended to be the final version. With this initiative, we aim to evaluate the performance of the DAO and determine its positive impact. We also anticipate collaboration from both the governance team and facilitators to ensure its success.
At the end of the six months, SEEDLatam commits to delivering a report containing the gathered data and feedback from the governance.
Special thanks to
We would like to thank all the people who gave us their feedback and also those interested in the subject, we believe this is important for ArbitrumDAO: @noturhandle, @0xNSE, @benhoneill, @Saurabh, @Frisson, @jengajojo, @DisruptionJoe and everyone who sent us a message via twitter and telegram, and we also want to thank @krst and @Sinkas for providing the space to discuss this topic on their Arbitrum Office Hours – giving us a lot of useful insights + feedback.
We would also like to thank @pedrob who is a SEEDLatam contributor who collaborated in the creation of the proposal. He belongs to SOFI AVC of MakerDAO and has extensive knowledge about incentives for ecosystem actors.
Next steps
Feedback Period
For one week, the community is encouraged to share their views and suggest modifications to this proposal, allowing us to better tailor it to the needs of ArbitrumDAO. If one week proves insufficient for this process, we will extend the feedback period by an additional week.