Agree. Regarding vesting, I have seen very different practices in the crypto industry, some of them might make sense in the context of Badger but others may not. I think the team together should propose how this would be best for Badger.
Yes, vesting could be used here effectively imo.
My only concern with the overall proposal, is that I feel there is so much more to it in the background that was not explained efficiently in the post. Like breakdown for Senior vs Junior, etc.
Would be nice to see a little more of the thought process that resulted in this BIP.
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Exactly.
During the bull market, we need to stack the intellectual and monetary capital fast, before winter arrives.
Those that build and solve problems will be rewarded handsomely by the market.
Technically because of the daily distribution the compensation is vested. If someone ghosts or starts underperforming relative to their role the core+seeders can take action to stop payments. Given it is a fairly small cohort of folks that have already showed competency and commitment hopefully this wont happen. Agreed it is important, this was the simplest way to go for now and i expect there to be changes as we grow. This is just for this year, I expect the proposal to be different and more nuanced next year.
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I think there is some very nuanced and great feedback in this forum so far. If @Spadaboom wouldnât mind adapting some of the points with these considerations, I am happy to cast my vote at this time.
No, daily payments does not mean vesting.
I want you to be adequately compensated now, and enormously compensated later if the project keeps growing and becoming more successful.
I think that way your interests and the community are better aligned.
If you get your Badger tokens daily, you could sell them or not, that is up to you. But then you would not be âinvestedâ in the longer term success of the project the same way and you might very well decide to leave tomorrow for a better pay in another project.
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I think you are discussing a cliff. Not vested would be just getting the tokens upfront. If a team member leaves now in this model they would have the tokens they had gotten to that point but not future tokens. You still want the token to do well in the future because you have a claim on more tokens in the future as long as you keep contributing
TLDR; payments can stop if performance stops. Daily distribution over a year is effectively 1 year linear lockup with daily vesting.
Hey @cryptomooniac - appreciate all the ideas youâre bringing forth. Let me highlight this portion below for your vesting suggestions.
When tokens are paid over a year and paid daily, they are technically being partially vested daily. This is also the most simple and elegant way for distribution given we have the Badger Tree. Iâm not quite sure where this fixation on vesting is, but releasing on a monthly basis does not make sense to me. The folks listed on this above have already proven through their dedication and physical investment in BadgerDAO through their day to day activities. We added this clause for Performance Management to alleviate concerns of misaligned incentives.
Does this address your concerns? If not, can you clarify what other structure you think is better fitting?
Yes, as I stated. The BIP received majority support 95%+ with 100+ vote, so I pushed it to snapshot. Due to community feedback, we removed the snapshot to have additional conversation. This removal of snapshot has been announced in this forum and in the Discord.
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I am discussing using the Badger portion of the compensation in a more strategic way.
Vesting means that the tokens are held aside for some period of time and then are released after certain conditions are met. Vesting is usually used to show that the team is highly interested in the project, and will continue working on project development.
If you know that you have a certain amount of tokens that will vest in the future, then you are âinvestedâ and want the price of the token to outperform so your compensation is bigger.
Also, if you get another offer, you at least think what you are leaving behind if you decide to leave the project.
If you receive your tokens daily, then it is like your âsalaryâ. You donât leave anything behind. Also you donât have that big âpay dayâ incentive that you are working hard to get in the future.
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Would you be able to point us to a model that has succeeded in a space like DeFi? We spent time reviewing multiple frameworks and believe this structure makes the most sense. Iâm open to hearing tried and true models if you know of or have any that we can review. I personally, however, wouldnât want to rejig this entire BIP just based on your thoughts or feelings of how vesting works in the traditional business world.
What conditions did you have in mind?
This sounds good! Also donât forget the people who help with translations and marketing sorts 
keep up the good work everyone!
Right - conditions here are continue to contribute at a high level. If you dont do that then you may stop receiving payment.
Hmm, from experience even though most companies do an even 25-25-25-25 (percentage of total over 4 years) vesting schedule, it can still be a significant amount of money youâre leaving behind if the underlying stock is doing well. This is especially true for startup shares at a high growth startup. Your future unvested shares could have 10xâed from the time you started working resulting in a âgolden handcuffsâ situation.
There is one company that comes to mind that doesnât do an even 25-25-25-25 (percentage of total over 4 years) vesting schedule. Amazon does a 5-15-40-40 schedule⌠However, I personally strongly dislike Amazonâs engineering culture and feel that practice is a bit predatory (Although I am biased here since I am speaking as an engineer). I would prefer not to go with such a scheme but am open to what others think as well.
Totally, as stated the grants program will continue and effort will be put into working out a âpath to long term contributorâ with the community.
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Everything in DeFi right now is new and as far as I am concerned, there is no one âtried and true modelâ. This BIP certainly is not and I thought the reason to post it is actually to discuss it and enrich it with community feedback. At least that is how I feel a governance process should work.
So, this is what I am doing. I have mentioned that I agree in principle with the framework, except that I believe the Badger portion should not be paid daily, and that everyone (you, Badger, the community) would be better served if that portion is used in a more strategic way. I have mentioned how that might look like and why I think it is better.
If you donât agree, fair enough. I donât expect everybody to agree with me, but I would be negligent if I didnât try to provide feedback. This is what is expected from an engaged community member, isnât it?
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Although I love this project, the compensation is not reasonable. Especially if the compensation isnât locked up somehow. It is higher than what was being paid during the rise of big internet companies.
There needs to be a vesting plan put in place to help stabilize the team over the long-term. There should be a reasonable compensation plan with possibly 20% paid immediately and then 80% vesting over the next several years. I would suggest creating a 5 year vesting plan that pays out 20% per year (1st 20% vests immediately). Since all of crypto is very volatile, make vested payouts quarterly instead of annually. When vested, the team member has the option of accepting a 50/50 mix or all USDC. The unvested part should stay as $Badger until vested. This will incentivize the team to build a company for the long-term vs short-term. In the long run, both team and long-term investors will be the biggest winners.
As far as insurance and other benefits (and the many laws that govern them), it can get complicated. If they are truly desired beyond the monetary compensation, it might be a good idea to outsource HR related responsibilities to a 3rd party HR company (I donât have any recommendations). This will help prevent law and liability issues and moves those responsibilities off the team for now.
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I think most concerns here could be satisfied if similar compensation models in defi and startups were provided for comparison.
I like this idea of recalculting based on the price of badger every month. I agree that our core team should be incentivezed well as they are the foundation of which BADGER is built, but I believe that $BADGER still have a lot of room to grow price-wise this next couple of weeks/months and that would put each personâs salary at a total in the Millions/year if the BADGER were to be a set amount every month.
Good discussion everyone.
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The pace at which Defi is moving is astounding. We have to be at the cutting edge of innovation to stay relevant in long term. Incentivizing the developers/contributors is a step in the right direction to innovate and stay relevant.
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