Proposal - Delegate Incentive Program (DIP)

Proposals Finalized AIPs
119

First, it’s important to clarify that the Arbitrum Foundation carries out the KYC process and is not the program administrator’s responsibility. We act as intermediaries between the delegates and the AF by trying to make the workflow as simple as possible. The process for KYC is something like this:

1- A delegate qualifies to receive incentives.

2- The Program Administrator sends a forum message to the delegate to ensure they start conversations with AF’s Compliance Team.

3- The delegate completes KYC process with AF.

4- The Program Administrator receives an email from AF telling them that X delegate has completed KYC.

5- The Program Administrator sends a forum message to the delegate to double-check if the KYCed address is correct.

6- The Program Administrator asks MSS (previously the Program’s Multisig) to execute the payment.

7- Payments are published in our Payment Distribution Thread.

We know that the KYC process can be a bit tedious for delegates who qualify for compensation, and sometimes even for the program administrator, as there are sometimes some problems:

  • Coordination issues between Compliance and Delegates.

  • Delegates do not entirely understand the necessary steps to do KYC.

  • Fractal ID being hacked.

  • Long wait periods until delegates can receive payments.

  • Delayed payments mean angry delegates.

  • Delayed KYCs also mean that the Program Administrator must critically monitor payment flow to avoid a mistake, which can be critical for DIP. You can see payment flow in our Payment Distribution Thread

Since KYC’s amendments must be done again for DIP Temporary Extension, we started conversations with the AF team to accelerate the process. We tried to start the KYC process early for those delegates who received incentives during the six months of the original program (your delegation included). Still, unfortunately, we weren’t allowed to proceed until we had the monthly results.

We know that the KYC process is critical and that some points can be improved to make it less tedious for delegates. We are happy to look for solutions for this process.

@cliffton.eth @raam, how do you guys think we can smooth the process and improve the experience for all the parties involved?

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