SIP-2001: Pay DAO Stipends from Inflation
| Author | |
|---|---|
| Status | Rejected |
| Type | Governance |
| Network | Ethereum |
| Implementor | TBD |
| Release | TBD |
Simple Summary
Pay DAOs' monthly stipend from inflation instead of from the Treasury Council's assets, and determine a new governance process for changes in stipend amounts.
Motivation
The motivation behind this SIP is to increase self-sufficiency for the DAO in terms of operating costs and to better align stakeholders. Currently the Treasury Council handles the 47,000 SNX p.month DAO stipends, which unnecessarily gives the TC an additional lever of influence over other Councils, reduces protocol autonomy, and increases spending. Additionally, there is no formalized process to determine stipend amount and changes.
Overview
Council members receive a monthly stipend for their participation. Currently, the process is done manually by the Treasury Council, which pays a predetermined amount to each council member. Current total monthly stipends amount 47,000 SNX.
This SIP proposes that monthly stipends are paid from inflation and initially fixed at the current amounts, which is 2,000 SNX tokens per month to each council member (1,000 SNX tokens p.CCC).
In order to change the stipend amounts, the Treasury Council needs to propose the new amounts via SIP that is voted by the Spartan Council. The Spartan Council and other councils can suggest stipend changes to the Treasury Council, but only SIPs written by Treasury Council members that propose stipend changes are eligible for voting by the Spartan Council. This process aims to balance out control over stipends and increase protocol autonomy.
The reasoning for moving stipends to inflation is twofold. On one hand, it helps set a benchmark for a terminal inflation rate to cover for protocol expenses into perpetuity. On the other hand, it reduces expense bloat from the TC, which is already under strain by CC funding expenses and hedging costs.
If inflation was to ever be changed to 0, this SIP proposes that DAO stipend payout responsibility reverts to the TC.
Specification
47,000 SNX from current inflation will be sent every week to a Safe controlled by the TC. The TC will to transfer the stipend to the council NFT holders at the start of every month, as it happens now.