BIP 5: Developer Mining Program Launch and Emissions

BIP | Badger Improvement Proposals
1

Category: Sett Vault
Scope: Outlining the start of the Badger development program and compensation for first strategist.
Status: Accepted

Overview

The Badger developer mining program is intended to reward builders creating new vault strategies and products with the DAO.

15% of the total supply 3,150,000 $BADGER is in a dedicated pool for developers to earn from. With the launch of our 2 new Sett vault strategies this week, we will have our first strategist building and we’ll kick start the distribution of rewards.

https://badgerdao.medium.com/badger-developer-program-3bf0cb2cc5f1

We propose 10,000 $BADGER tokens be allocated for developer rewards over the next 30 days.

Monthly emissions for these rewards are voted on by the DAO

Details

We are launching 2 new vaults on Sushiswap led by Andy8052 The 2 vaults are;

  • Badger/wbtc Sushi LP
  • wbtc/eth Sushi LP

With our first strategist we need to start emissions for the developer mining pool.

As defined before launch, strategists earn 50% of the performance fees (20%) from vaults they launch . They also earn emissions in $BADGER from the developer pool based on total TVL from their vaults.

We propose the first month of emissions should be 10,000 $BADGER tokens. This incentive motivates new strategists to get involved while rewarding those who are first.

After launch the strategist will be receiving rewards daily based on the % of TVL from his strategies vs others. Until there is another strategist, this vault will be the only one mining rewards.

If you are in favour of initial developer reward emissions, vote “for” and if you are not in favour vote “against”. Please share your feedback and guidance around the developer mining pool structure and month 1 emissions.

  • For
  • Against

0 voters

4 Likes
2

Thank you for posting this @Spadaboom. I think this is a great start to the Developer Mining program and am excited to see what comes of it. As we progress through this initial month, it will be important to monitor the sentiment and dedication of developers that take advantage of this program.

Ultimately, I believe that purpose led orgs must align the values of the group with that of its people, and this is a great first step forward in welcoming developers to our organization by providing an allocated budget for their incentivization.

In my opinion, there needs to be a balance between

  1. attracting impactful contributors
  2. not incentivizing opportunism or greed.

It is possible to achieve both #1 and #2.

In my experience in the business world, this comes down to culture and purpose . As we continue to define our guiding principles of the organization and solidify those values through leading by example and through actions and announcements, BadgerDAO should have no issue attracting the right people. IMO, early on, with liquidity mining at 100%-1000% APYs, we’ll inevitably attract degen farmers and traders. However, 1) how we convert our AUM/TVL, 2) how we continue to innovate, and 3) how we shape our economics as we scale down rewards to be more sustainable to our cashflows (in the future)… these will determine the status and condition of BadgerDAO in the future.

Excited for this initial step, and I am supportive of rewarding our Badger Builder Developers. :frog:

7 Likes
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In addition to having a clearly defined (and lucrative) rewards program, I believe it is in our best interest to internally propose strategies we would like to see built and create bounties for developers to come and implement them.

5 Likes
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Thanks for kicking this off @Spadaboom.
From my point of view we should incentivise the right balance of the following:

  • Innovation
  • Technical excellence/Security
  • Time to market

To achieve this we could front load the rewards but also have a vesting schedule that releases part of the rewards only if there are no exploits happening.
I also propose to reserve part of the dev pool to nurture a group of auditors.

On the innovation side of things, mainly for non strategy related products. I am in favour of a triple whammy approach:

  • seed grant: for the initial phase once the DAO has agreed to “invest in an idea”
  • revenue share: for the growth phase
  • hands on support (promotion, audit): Ongoing, this would help developers to focus on just budling and the community carries out other concerns
5 Likes
5

Using $BADGER tokens as a developer reward implies that you want to incentives developers to get more involved into governance and doing less development?

1 Like
6

Using $BADGER tokens as a developer reward implies that you want to incentives developers to get more involved into governance and doing less development?

why would using badger as a reward ever mean that? Badger as a reward is a financial incentive to keep developing. You can participate in governance on top of it.

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My understanding is that

BADGER IS STRICTLY A TOKEN TO GOVERN THE DAO AND ITS ACTIVITIES. IT HAS NO MONETARY VALUE.

(from https://badgerdao.medium.com/introducing-badger-dao-ed47a586c619)

1 Like
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could a community member point me in the right direction for learning how to write strategies/learn enough solidity to be able to complete job requests? i would be willing to pay for personal tutoring. i want to be able to be a more involved member of the community and help out

1 Like
9

I think that is reasonable

10

Badger is quickly gaining a lot of TVL. It seems like we are paying devs a LOT of money. 10,000 badger in the next 30 days at current prices is like 100,000 badger in 1 month. If that’s split between 4 strategies that’s like 25k each. On top of that, they’re getting 10% of fees which at current TVL’s may be considerable. I’m all for incentivising development, but I think we should pay reasonable amounts for the work done.

It’s great that we are rewarding badgers for good work now, but I’d propose that before we lay out too much money for community development, we figure out how to make sure we’re getting good stuff from it and not just doing what DeFi Frog fears in #2.

I think spend of more than about 50K USD should in general be a bit better planned out so people can really think about it.

1 Like
11

I think the technicalities and legalities of a DAO are still obscure so that statement in my opinion, is more related to the fact that badger never raised any money, they didn’t sell the token.

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There’s valid points here. I think what would be difficult to measure is what is a “reasonable” amount to pay for the work done.

13

It’s not so difficult to determine once the work is done and the time has been measured to some degree. You just have to be thoughtful about it and invest in good projects instead of giving huge amounts of value to people who write simple strategies.

Sell the token or not, Badger is what Badger has to grow and make good in the world with, we should be thoughtful with how we use it in order to retain its value and keep things fair and aligned with some values that maybe we slowly need to find.

14

I think what’s lost here is there’s at least 19 named contributors on GitHub and more that are doing third party development, so these incentives get diluted pretty quickly.

There’s currently 7.35m badger in the treasury, so bootstrapping the first month of developer incentive program with .13% of the treasury doesn’t seem like an overspend.

Admit I’m biased, but just wanted to add some context and numbers!

1 Like
15

So even if there ends up being 40, 100k badger in 1 month for 40 developers is like 2.5k badger per dev which is like 25 grand right now in one month. I’m all about incentivising devs, and paying kickass ones enough to retire, but I think it makes more sense to pay smaller grants and first and work with the community on larger spend. Maybe I’m misunderstanding something.

If others disagree it’s not a big deal, just some thoughts.

If we release coins from the treasury too fast, people will loose faith in our the price will drop. If we want to do such large grants up front, maybe have the tokens vested over 3 years with 10-20% up front.

1 Like
16

The BIP is for 10k not 100k

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ahh ok, so then 5-10kUS a dev for contributing in the first month seems reasonable. Thanks for clarifying.

1 Like
18

I’d go a step further here. It’s not even from the treasury. There is a dedicated pool with 3.15M $BADGER tokens in it, developer mining pool. This is to reward strategists and product creators.

2 Likes
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The proposal is written in a way that the 10k badger will go to reward 1 strategist who has 2 sushi strategies. I’m all for incentivizing developers well, but if we have 19 people commiting to github behind the scenes to pull everything together, it seems like the incentives should be spread between all those people. 10k badger in one month for 1 guy who wrote 2 strats, on top of a piece of the fees, seems like a lot, and even though other allocations have been explained, the proposal seems to be for that.

20

The whole essence of the badger dao revolves around building things, therefore its essence is centered around developers. Without them there is no badger and you wouldn’t be here.

To attract the best that the industry has to offer it is important that the DAO compensates them gainfully for their work commensurate with what their colleagues in world class projects earn, which badger isn’t even doing.
You should understand that badger has captured the attention of the industry and as such should operate at world class levels so as to make world class connections and attract the best minds. It’s not in the best interest of the DAO to be paying peanuts or haggling over pay like some copy paste project.

1 Like