2 ♥ · Incentive · Draft

Compensation

Regular payment in tokens or stablecoins to members who do defined work, so contributors can commit their time.

The Compensation card: 2 ♥ of Incentive

How it works

The DAO defines a role or a piece of work and the pay attached to it. A member applies, or a working group nominates one. Token holders or a delegated committee approve the budget in a proposal. The member does the work and reports on it at set intervals. Pay goes out from the treasury on a schedule, often part in a stablecoin and part in the governance token. The DAO reviews the role when the budget period ends and renews, changes, or ends it.


Use it when

  • You need people to commit real hours, not just volunteer when they feel like it.
  • Fill an ongoing role such as development, operations, or community management.
  • You want to retain contributors that other projects would otherwise hire away.

Watch out for

  • Pay in a volatile token can double or halve in a month, which makes budgets and morale unstable.
  • Paid roles can turn into a permanent payroll that token holders find hard to cut.

Example

MakerDAO Core Units. MakerDAO funded Core Units from 2021, each on a budget proposal that paid facilitators and staff in DAI plus vested MKR, until the Endgame plan replaced them.


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