Executable [CGP#7] - Community Leadership Incentivization

This RFC replaces the now deprecated RFC about the same topic.

Abstract

This proposed CGP describes the scope, engagement, and compensation of Community Leaders who are tasked with providing necessary support functions for the Connext community in an effort to keep community operations running and to monitor the completion of projects and tasks.

Motivation

With the NEXT token having launched, we propose an updated compensation structure for Community Leaders. Before the token launch, Community Leaders were compensated by Proxima Labs (formerly Connext Labs Inc.) via USDC Superfluid stream. This proposal is designed to shift the compensation into the hands of the Connext DAO as a decentralized, community-governed entity in the ecosystem.

Rationale

Community Leaders are Core Contributors to the Connext ecosystem as per the DAO Docs and focus on the areas of community management, education, user support, and marketing. As such, Community Leaders provide essential functionalities for developing and growing the Connext ecosystem. This CGP provides Community Leaders with the funds necessary to help meaningfully grow the Connext ecosystem.

Key Terms

The term “Community Leader” is an umbrella term for individuals who exercise certain roles and provide different functionalities within the Connext ecosystem. The following outlines the different roles that the umbrella term encompasses and their functions, responsibilities, and tasks.

  • Community Administrators: Community members with the highest administrative power. As such, Community Administrators (CAs) provide key functions to the Connext ecosystem, such as engaging in outreach campaigns, conducting marketing initiatives, exercising community programs, ensuring the security of community outlets (such as Discord and Telegram), monitoring the performance of moderators, moderating discussions, as well as on/offboarding of other community leaders.
  • Community Moderators: Community members who function as moderators are responsible for moderating community discussions and addressing support-related ticket inquiries. Additionally, moderators manage local communities.
  • Community Ambassadors: Community members acting as ambassadors are responsible for creating outreach campaigns that target the sustainable growth of the Connext ecosystem and increase the reach of Connext. Some ambassadors may also engage in activities outlined for moderators.

Community Leaders have closely collaborated with Proxima Labs in building the Connext ecosystem over the last 3 years. Its members have built critical community infrastructure, played a key role in promoting Connext, handled community support, and are actively involved as multisig signers of different Connext DAO-related entities such as the security council.

The Community Admin Committee members are Andy, Grraarrgghh, Stefan, and Tommy. The group has been contributing to the Connext ecosystem as Community Leaders for more than 2 years now and has placed a strong emphasis on growth as well as building a healthy and engaged community.

Community Leaders Sub-DAO mission.

The mission of the Community Leaders as a sub-DAO within the Connext ecosystem is as follows:

  • Empower highly engaged and dedicated community members to assume leadership positions in the ecosystem (as administrators, moderators, and ambassadors).
  • Foster the healthy and sustainable growth of the Connext community
  • Help the different entities in the ecosystem to realize the vision of Connext (building a network for secure applications that are universally accessible from any chain).
  • Effectively allocate resources to initiatives and individuals that are committed to growing the Connext network.

Specifications

This CGP proposes a compensation structure that is based on the role of a Community Leader and their compensation tier. To ensure fairness and transparency, this proposal maintains the same compensation structure that was previously used by Connext Labs Inc. for incentivizing community contributors.

  • Community Administrators: $400 / week
  • Community Moderators: $200 / week
  • Community Ambassadors: $200 / week

Incidental Contributors: Negotiable COD

Organizational Changes

At present, the fixed payment Community Leader team consists of:

  • 6 Community Administrators
  • 6 Community Moderators
  • 1 Ambassadors

The full Community Leader team (incentivized and non-incentivized) consists of:

  • 6 Community Administrators
  • 18 Community Moderators
  • 15 Ambassadors

We are planning to reduce the number of team members of both the incentivized as well as the non incentivized cohort based on activity levels.

After the enactment of this proposal, we expect the fixed payment Community Leader team to consist of:

  • 4 Community Administrators
  • 4 Community Moderators
  • 2 Ambassadors

Additional Ambassadorship opportunities will be based on an Incentivized model, to be paid via the Community Treasury.

KPIs

Engagement of administrators, moderators, ambassadors, and other contributors is regularly evaluated based on a set of KPIs. The following provides an overview of what each group of Community Leaders is doing on a regular, day-to-day basis.

The following provides an excerpt of the KPIs that are used:

  • Activity KPIs: Number of posts, number of replied/solved tickets (on both Discord and Intercom), amount of content written. Forum and governance voting activity.
  • Engagement KPIs: Number of views, comments, replies on Twitter/Reddit/etc.
  • Lead KPIs: Number of generated leads, converted leads.
  • Intangibles: Contribution to internal initiatives, etc.

Objectives

The following provides an overview of the objectives of the Community Leaders for the upcoming quarter:

Maintenance

  • Ensuring Discord server is moderated 24/7. Thread response time: 15 minutes.
  • Maintaining and increasing server security. Reduction of spam accounts that pass filters by 25%.
  • Maintaining fast ticket response times. Target ticket response time: 15 minutes.

Growth

  • Increasing server activity. Targets:
    – Increase percentage of new members who talk on the server by 100% (presently 1%).
    – Maintain percentage of new members who visit 3+ channels above the 15% benchmark.
    – Increase 1 week retention of new members to benchmark of 20% (presently 4%).
    – Maintain message activity of members above 10 posts/member benchmark.
  • Developing and implementing new community initiatives. Target: 1 large-scale community initiative per quarter.
  • Identifying and onboarding new key contributors. Target: onboarding 2-4 key contributors per year.
  • Effectively utilizing growth channels and opportunities to expand the connext ecosystem. Example: Drive engagement through Connext Intern account on X, use YouTube account for providing visual guides/tutorials, overhaul Connext Academy to be a key resource for community education.
  • Engaging with external contributors to produce educational content for the connext community. Target: increasing production of educational content, produce 2-4 content pieces per quarter.
  • Driving awareness of Connext through marketing, events, and media opportunities, etc.
  • Fostering regional connext communities, hosting local workshops and discussions.
  • Expanding the resources available in Connext Academy.

Budget

The Community Administrator Committee produces budgets which shall include details for the following:

  • Community Administrator compensation
  • Community Moderator compensation
  • Ambassador compensation

The DAO budget shall subsequently be submitted to the Connext DAO as a request for funding. The Committee shall produce underpinning justification for the budget to the Connext DAO.

Payment Schedule

CL compensation will be distributed via SuperFluid on an ongoing basis, and adjusted monthly to rebalance based on market conditions.

Multi-Signature Approvals

The Community Admin Committee is in charge of the funds and their distribution. All CL multi-signature approvals will be conducted with a minimum of three (3) signatures, and the Community Admin Committee (Andy, Grraarrgghh, Stefan, and Tommy) will have hardware wallets used only for the purposes of this multisig.

Steps to Implement

This proposal follows the recommended structure outlined in the DAO Docs. Initially, we are looking for comments about the proposal from the community. If necessary, changes to the proposal will be implemented.

Timeline

The RFC phase will be followed by the vote. After the RFC phase, the multisig funding transaction will be included in the Snapshot vote making this an executable proposal.

Overall Cost

This proposal requests a quarterly budget of 295,000 NEXT tokens and a one time retroactive compensation of 147,522 NEXT, totaling 442,522 NEXT. Administrators, moderators, and ambassadors will not receive a higher monthly compensation than their agreed monthly compensation.

Important note: At the end of each quarter, unspent NEXT will be rolled over to the next quarter. The DAO can also vote to request that unspent NEXT be returned. Under no circumstances will unspent NEXT be distributed among Community Leaders.

Quarterly Calculation

The ask is that the Connext DAO covers the funding below:

Item Funding (NEXT) Description
Base Compensation 120,000 Quarterly base compensation available for CAs & Mods
Buffer 50,000 Buffer for adjustments based on price fluctuations
Community Treasury 125,000 Incentivized payment purse for Ambassadorship projects and events
Total 295,000 Total costs

The monthly compensation breaks down to 5,714.28 NEXT per Community Administrator and 2,857.14 NEXT per Community Moderator/Ambassador, totalling 40,000 NEXT per month. Fixed compensation for the entire quarter therefore is 120,000 NEXT (assuming NEXT price remains at $0.30). Fixed compensation will be revisited every month and adjusted as necessary.

Additionally, the Buffer and Community Treasury funds may be used to cover Community Leadership operational expenses (such as software licenses).

Methodology

On the first day of each month, we will calculate the # NEXT to be distributed, using the average closing price of NEXT from the previous 7 days, as listed on Coingecko.

Incentives

Tokens not used for fixed compensation, specifically the 125,000 NEXT in the Community Treasury, will be used to incentivize Ambassadorship projects and events.

One-Time Retroactive Payment

In light of the token launch, Connext Labs Inc. (now Proxima Labs) stopped the compensation streams as of the 24th of September, however many of the community contributors continued with their operations and provided value to Connext as usual. For this reason, we are proposing a one-time, retroactive payment covering the compensation for the missed time (2 months for former members, 3 months for the rest) to all incentivized members of the Community Leader team that are still active in the community. This includes:

  • 6 Community Administrators
  • 6 Community Moderators
  • 1 Ambassadors

The ask is that the Connext DAO covers the costs below:

Item Funding (NEXT) Description
Community Administrator 92,571 One-time, retroactive compensation of CAs
Community Moderator 46,285 One-time, retroactive compensation of Moderators
Ambassador 8,667 One-time, retroactive compensation of Ambassadors
Total 147,523 Total costs = compensation + gas costs

On- and off-boarding

Community Administrators will oversee the process of onboarding and offboarding administrators, moderators, and ambassadors. As such, Community Administrators identify suitable individuals and assist them in performing their role in the Connext ecosystem.

1 Like

Thanks @TommyR8. We appreciate the added clarity in the updated proposal, especially regarding the quarterly estimates you’ve provided.

Could you provide more details wrt the 125k NEXT request for Ambassadorship projects and events? Specifically, how many projects/events do you anticipate this amount will cover during the quarter? Also, what can we expect from these projects?

Thanks!

2 Likes

Hello everybody!

I would like to make a disclaimer regarding my status as a Delegate and active Community Moderator.

Having been a user of xPollinate and later Connext, during Q2 2022 the Contributors program was started which resulted in my active participation in helping users both on Discord and in the Connext Spanish community. It was also the start of a series of Spaces/IRL events in which I have participated throughout my time helping to spread the word about Connext. This allowed me to get the role of Community Mod in October 2022.

When the DAO was launched, the @SEEDGov team reached me with the interest of forming a delegation. I saw this as a great opportunity to further collaborate with the purpose of Connext and to look after the interests of the protocol, having a platform composed of people with experience in other governances as a support.

While I’m one of the incentivized mods included in this RFC, from my experience at Connext I believe that the rest of the team included in the proposal has demonstrated capability and a genuine interest in the success of the protocol. On the other hand, as with the Retroactive Rewards RFC for Contributors, @SEEDGov will raise any concerns that may arise from this proposal.

Finally, I would like to say that I won’t ever vote against the interests of the protocol/DAO, but I am fully open to hearing any concerns from other community members regarding my conflict of interest when voting on proposals in which I am financially involved.

3 Likes

Hi @veildev, thank you for the great question.

One of our primary goals in establishing the community SubDAO is to go back to basics, minimize unnecessary recurring costs, and explore the most effective ways to achieve the OKRs laid out in our proposal. The NEXT allocated to the SubDAO treasury may be used in a number of ways, including:

  • Collaborating with thought leaders in the space to grow the awareness of Connext
  • Onboarding additional community managers, moderators, and ambassadors
  • Initiatives aimed at growing regional communities
  • Campaigns aimed at activating the existing community
  • Development of educational materials, including long-form content, graphics, and explainer videos
  • Revitalizing the Connext Academy to act as a resource for crosschain developers
  • Hosting events
  • Covering the cost of infrastructure aimed at making the community more secure, functional, and scalable (Intercom for ticketing, security bots like Hashbot for Discord, etc.)
  • Adjusting recurring costs to offset fluctuations of NEXT

The treasury will allow the SubDAO to take advantage of opportunities as they present themselves, as well as run calculated growth experiments. To ensure tokens are being used in the most effective way possible, we will rigorously track the impact that each initiative has on our overarching goals and will only continue to supply tokens to the most effective opportunities.

Any tokens remaining in the treasury at the end of the proposal duration will automatically be rolled over into the next quarter or may be returned to the DAO upon a successful DAO vote.

1 Like

Thanks for the post and glad to see community contributors being compensated. I’d like to suggest opting for payment streams of a vesting schedule to incentivize long term alignment from the contributors

SubDAO Multisig has been created on Arb for this RFC

Address: 0x409b0031AaAd2Ed5FC3Ec1dB7CEF7Dc926724832

1 Like

Executable CGP#7 is up: Snapshot

2 Likes

The below response reflects the views of L2BEAT’s governance team, composed of @kaereste and @Sinkas, and it’s based on the combined research, fact-checking and ideation of the two.

We’re generally in favour of compensating participants for their contributions to the DAO and we’ll be voting in favour of this proposal. We find the proposed amounts for both the one-time retroactive reward as well as for the ongoing compensation reasonable, and we like the fact that the incentives are tied to KPIs rather than being an arbitrary process.