TIP-18: S#2 Partnership

Proposals
1

Authors

@lewi, w/ help from @eqparenthesis

Summary

Squad #2 (S#2) has been supporting the protocol on a grant by grant basis. This proposal looks to further align the squad with the protocol by allocating them tokens subject to vesting. This revocable & vested token allocation would align S#2 as a protocol partner and provide strong performance incentives.

Purpose

Members of the S#2 team has been active in the ESD community since early in the protocol’s life. As it matured their involvement was formalized into S#2 to help support them support the protocol and its community.

Through the moniker of S#2, the squad has taken on a number of responsibilities to help the day to day of the protocol run smoothly: communications, governance facilitation, development, community management & other things to grease the wheels.

As V2 launches, the S#2 is looking to move from a purely transactional partner to protocol partner. So instead of a solely grant based relationship, S#2 will be allocated vested tokens alongside the current grant process. Taking the relationship a step further improves alignment with the protocol and incentivises success.

Tokens

The partnership includes 33,000,000 ESS vested linearly over 2 years.

The unvested tokens in the vesting contract may be burned or sent to the treasury via a governance action by the protocol in situations the community deems necessary.

Wallet

S#2 Wallet: 0x750eb0759F56a55cF0bb528fe4EFc6f8cFd27C56

Vesting: Linear vesting schedule in a contract owned by the DAO

1 Like
2

Hey @lewi glad to see the S#2 team partnering in this way!

Two questions:

  1. How did you arrive at the 33M ESS value for the 2 years of work (more curious than anything)?

  2. The language suggests that S#2 would be paid both through ESS emission/allocation and on a grant by grant basis. Is there a reason the team wants to have two income sources from DAO/Protocol?

Thanks!

3

Hey Alex!

Thanks for the questions:

  1. This equates to roughly 1% of the protocol, iirc. This positions S#2 comparably along side the protocol partners they will start to come onboard once v2 launches.
  2. We look at this similar to how a compensation package at a backed startup would work. In most cases early employees receive salary & equity. DAOs are a little unique in that the token is liquid, as opposed to pre-IPO businesses, so providing a salary + vested tokens moves it closer to the common salary/equity package.

Let me know if you have any follow ups!

1 Like
4

Cool, all makes sense! Thanks Lewi!