Contributors are the lifeblood of all DAOs, so we take Contributor Experience & Compensation seriously and are always iterating on it. Contributor Compensation should achieve the following objectives:
- Clarity on expectations & compensation
- Incentive for commitment & focus
- Self-evaluation & growth
- Ownership in the project
To deliver on these objectives, we designed a program with the following principles in mind:
- Contributors should have flexibility in how they engage with the DAO
- Contributors should have flexibility in how they are compensated by the DAO
- Contributor engagement and compensation models should be interoperable with that of other DAOs
- Contributor value should be assessed in a bottom-up fashion
The DAOhaus Compensation Framework consists of 3 pillars:
- Base Compensation
- Bonus Compensation
- Governance Power
The Retroactive Track is tailored to contributors wanting more flexibility or testing the waters before committing more substantially to Warcamp. Contributors can start contributing whenever they want, however they want, and wherever they want. At the end of each month, they request compensation retroactively for their contributions, based on how much value they deem they’ve provided within their Circle.
If you've selected this track, see the Retroactive Track docs for details on how to request and receive compensastion.
The Commitment Track is designed for contributors wanting to make more substantial commitments to DAOhaus and have more certainty about their compensation.
If you've selected this track, see the Commitment Track docs for details on how to receive compensastion.
To uphold the ethos of decentralization and transparency, the processes for establishing base compensation are designed in a bottom-up and open manner. With that in mind, we start with a self-assessment phase where contributors indicate their Commitment and Value Levels.
1. Self-assess your Commitment Level
Commitment Levels are expressed in percentages, referring to how much of their total time / effort / prioritization / focus a contributor desires to commit to DAOhaus. For example, someone using time as their measurement and selecting 100% would be committing roughly 35 hours a week, whereas someone selecting 15% spends 5-10hrs weekly with DAOhaus.
These time estimates don’t line up with traditional “full time” hours. This is intentional. In the DAO space, there is a lot of value in forging connections across projects, so we encourage all Warcamp contributors to spend roughly 10% of their committed time contributing to web3 projects or DAOs. This is also yet another reason why we want to give contributors lots of options for how they engage with DAOhaus.
2. Self-assess your Value Level
Value Levels are graded from 1 to 5, referring to the contributor’s expected value created during the compensation cycle. Measuring expected value is challenging and subjective, so once again contributors are free to use the measure that’s most relevant for them, such as:
- DAOhaus experience
- Domain-specific knowledge
- Skill-specific talent, etc.
For example, a contributor may justifiably grade themselves as an L5 contributor based on their high quality experience in Web3 or DAOs, recognition as a leader in their space, deep knowledge about DAOhaus, or any combination of those three. Conversely, L1 contributors tend to be new to Web3, with some experience in their area of interest and are just beginning to learn about DAOhaus.
While we begin with self-assessment, the DAO collectively has final say over which value levels each contributor is assigned. We’re still actively working on how best to balance the DAO's budget constraints, needs and bottom-up approach (Principle 4)
3. Determine your Base Compensation
Based on each contributor’s Value and Commitment Levels, we pro-rate the compensation from a fair value of a Level 5 contributor committing 100% (i.e. $12,000). From this topline dollar value, each contributor then selects the percentage they wish to receive in DAOhaus’ native $HAUS token vs. the DAI stablecoin.
For instance, a Level 5 Contributor committing 100% of his or her time receives $12,000 a month, whereas a Level 3 Contributor committing 50% earns $3,500 a month.
4. Ratify & vote on each other's Compensation
Once all selections have been made and informally approved by the DAO, a Contributor Compensation Ratification Proposal is submitted and Warcamp DAO members vote to pass the proposal. You can view our first cycle’s Value and Commitment Levels for each contributor on the Commitment track, together with their monthly DAI and $HAUS payment, in this forum post. And here is the on-chain proposal ratifying these elections.
Why we do it this way Through bottom-up assessments, ratification proposals and open discussion, this process helps create openness and transparency in determining compensation, unlike traditional human resources departments, which are opaque and more prone to bias.
Furthermore, in the spirit of Principle 3, using Commitment percentages helps contributors segment their bandwidth and signal availability to contribute to other DAOs. Our hope is that this helps contributors better manage their bandwidth and reduce burnout, as well as help DAOs better estimate and communicate the commitment they want from contributors. As this approach gets more widely adopted, this should create a more sustainable way for greater cross-pollination of contributors among DAOs.
Warcamp uses Coordinape to distribute 600 $HAUS tokens among all contributors on a monthly basis, regardless of whether they are on the Commitment or Retroactive tracks.
Not only are we putting $HAUS in contributors' hands (see the next section for more), determining bonuses via intersubjective evaluation (i.e. Coordinape) is a bottom-up and decentralized approach to:
- Holding each contributor accountable to their Value and Commitment Levels as the Compensation Cycles progress
- Creating a framework to help contributors assess themselves and peers in terms of personal growth and development
For instance, if an L3 contributor on the Commitment Track has received more giveHAUS than their L3 peers, this could be a signal that they’ve been over-delivering and should be leveled up to L4. Conversely, If someone on a Commitment Track received fewer giveHAUS than their peers, this could be a signal for us to help them better hit their Value Level or review the right Compensation track for them.
As we go through more Compensation Cycles, we are looking to experiment with different amounts of giveHAUS per person, perhaps in proportion to their commitment % (for Commitment track) or the previous month’s received giveHAUS (for Retroactive track).
Our goal is to create a system that accurately and fairly evaluates the contributions and capabilities of Warcamp contributors in a non-hierarchical setting, informing contributors’ Bonus Compensation in the short term as well the evolution of their Base Compensation over the long term.
We believe that distributing governance power among all contributors is crucial to everything a DAO does. When contributors have actual power to determine the direction of DAOhaus, they approach their contributions as an owner or entrepreneur would, because that’s exactly what they are!
To distribute governance power over Warcamp to those that best know how to exercise it, we have a voluntary program for contributors to stake $HAUS received each month as Bonus Compensation for additional shares in the Warcamp DAO. The additional shares a contributor can receive is determined by intersubjective evaluation from their peers (as part of the Coordinape process).
Since their newly-minted governance power is a result of peer evaluation, we stay true to ensuring that our processes are bottom-up and transparent. Furthermore, as staking is voluntary, contributors have flexibility on whether they want to participate and how much they want to stake.
For an in-depth tutorial about staking you $HAUS tokens for Governance Power, check out this doc.
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