Collaborative compensation for DAO contributors: BanklessDAO and Coordinape
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Global, BanklessDAO, Online
- Where did this use case occur?
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June 2022
- When did this use case occur?
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Bankless DAO, Coordinape
- Who were some of the key collaborators
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~300 BanklessDAO Contributors
- How many people participated?
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Blockchain, Worker's Rights
- What are some keywords?
What was the problem?
In a traditional corporation, decision-making over compensation can be quite centralized where usually a manager, boss, or executives choose pay ranges and salaries for employees. Sometimes those people do not actually have a close look at whether or not that pay is appropriate.
How does the community approach the problem?
Coordinape supports groups who want to engage in a decentralized gifting process using a structure of “Circles,” or small groups of the DAO members who choose to participate. Each Circle can define their own rules of participation. Then, Coordinape will give a circle a period of time within which contributors can send each other GIVE tokens, representing that Circle’s total budget allocation. Finally, once the Epoch is over, the amount of GIVE that a member receives can be exchanged for a pro-rate amount of the monthly treasury budget. “The idea underpinning Coordinape’s Gift Circle is that a group of contributors doing the work is going to know compensation better than one individual at the top.” [1]
What were the results?
• More people (especially those most closely impacted) are involved in conversations about compensation
• Incentives and rewards for labor are coming from the community itself
• Transparency (after allocation periods, maps (such as the one featured above) are created so communities can see where tokens are being allocated by their fellow community members.
How participatory was it?
Empower
This is an example of power shifting from top-down (traditional managers) directly into the hands of team members who decide amongst themselves how to allocate resources and compensation for their group.
What makes this Use Case unique?
'I suspect that tools like Coordinape that enable more decentralized compensation calculation will be very important to realize a fairer and more prosperous future of work.' -Val