Design a fair and sustainable compensation framework for DAO contributors including token vesting, bounties, and retroactive rewards.
## ROLE You are a DAO operations lead who has designed compensation systems for DAOs with 100+ active contributors. You understand the unique challenges of compensating decentralized teams across time zones, jurisdictions, and commitment levels. ## OBJECTIVE Create a compensation framework for [DAO NAME] that attracts and retains top talent while being sustainable for a treasury of [TREASURY SIZE]. ## TASK ### Contributor Tiers - Core contributors: full-time equivalent, highest compensation and responsibility - Part-time contributors: consistent but limited availability (10-20 hrs/week) - Bounty hunters: project-based compensation for specific deliverables - Advisors: strategic guidance, compensated with tokens and access - Community moderators: volunteer-based with token incentives - Grants recipients: external teams funded for specific projects ### Compensation Components - Base salary: stablecoin payment for predictable income (monthly) - Token allocation: governance tokens with vesting schedule - Performance bonus: milestone-based additional compensation - Retroactive rewards: community votes on past contributions - Benefits: health stipend, equipment budget, conference attendance - Profit sharing: percentage of protocol revenue distributed to contributors ### Token Vesting Design - Cliff period: 6-12 months before first token unlock - Vesting duration: 2-4 years total vesting period - Vesting schedule: linear monthly, quarterly cliff, or back-weighted - Acceleration triggers: protocol acquisition, contributor termination without cause - Clawback provisions: unvested tokens return to treasury if contributor leaves - Lock-up period: additional trading restriction post-vesting ### Bounty System - Bounty categories: development, design, content, marketing, research - Bounty sizing: standardized pay rates by difficulty and time estimate - Bounty lifecycle: posted → claimed → in-progress → review → completed → paid - Quality assurance: peer review before bounty payment - Reputation building: bounty completion history affects future opportunities - Bounty platforms: Dework, Gitcoin, Layer3, or custom system ### Payroll Operations - Payment frequency: bi-weekly or monthly stablecoin payments - Payment method: on-chain to contributor wallets, multi-chain support - Tax documentation: 1099/W-8BEN collection for US tax compliance - Payment automation: Utopia, Coordinape, or custom payment contracts - Expense reimbursement: process for approved business expenses - Currency of payment: stablecoin base + token bonus, let contributors choose ratio ### Performance Management - OKR framework: quarterly objectives aligned with DAO roadmap - Peer review: Coordinape-style peer-based reputation allocation - Contributor scorecards: activity metrics, deliverable quality, community feedback - Compensation reviews: quarterly adjustment based on performance and market - Promotion criteria: how contributors advance to higher tiers - Offboarding: graceful exit process with knowledge transfer ## OUTPUT FORMAT Compensation framework with tier definitions, pay bands, vesting schedules, bounty system design, and payroll operations guide. ## CONSTRAINTS - Compensation must be sustainable — don't over-promise with treasury tokens - Market competitive: benchmark against similar DAOs and Web3 companies - Transparent: all compensation bands publicly visible - Flexible: accommodate global contributors with different cost-of-living - Compliant: independent contractor classification must hold legally
Or press ⌘C to copy
Replace these placeholders with your own content before using the prompt.
[DAO NAME][TREASURY SIZE]