Draft

JBP-96: Use of $JBX for community enhancement and engagement only

Author

Anon

Cycle

16

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Summary

This proposal aims to define the purpose of distribution of JBX towards community enhancement and engagement and limiting some other uses like direct compensation for contributions.

Abstract

We have compensated contributors both in ETH and JBX. We can see in previous trial payouts and payout proposals where the ask was made either on ETH or JBX, or a mix of both,like in Produce Juicebox Podcast, Translation Payment specific proposals or Add DrGorilla.eth to trial period payout.

In the recent times, after proposal trial (that was cancelled before submission)Strengthen JBX membership and final proposal moved forward Move JBX from treasury to contributors, it is clear that the core team wants to strengthen the community via JBX token ownership.

The JBX token enables token holders to vote on the Snapshot proposals and have access to Notion among other things. Abilities that engage the community into a sane governance process where anyone with tokens can propose and the votes are widely distributed.

Motivation

When the token is used towards contributions, it denotes a sense of liquid currency in exchange for work done towards the DAO. This alienates the purpose of use of JBX. While at the beginning, in order to help engage more contributors in the governance, the most direct way to do so was paying in the form of JBX, the team sees a different vision for this token.

Risks

Paying solely in ETH means that now the payouts are going to pull from the reserve, making it the only feed for payments towards contributions. Using JBX eases this pressure allowing the use of the reserve for other purposes.

Furthermore, the contributors may sense that the lack of JBX on the payout means that they are not asked to be part of the community and hence, detach from the DAO.

Another major risk is that the community gets used to the fact that to get JBX they need to get involved, achieving a dependency on JBX that is counter to the philosophy of community participation.

Mitigations

In order to have a healthy reserve, it is imperative to have a healthy financial oversight. A good financial management helps have the reserve levels in a good place. So far, those levels are in the right place.

In order to engage the contributors, we can do airdrops to contributors from previous cycles in the form of automated defined ratio (i.e. 1/10) of contribution on JBX to the value of its contribution in ETH. On the other hand, if the contributor is engaged in the governance process and shows interest in the future of the DAO, any JBX token holder can opt to tip the contributor.

For the third risk, the sporadic airdrops help randomize the push of JBX to the community, making it something not expected. We would recommend in this proposal to keep the random nature of the airdrops and depend more on tips, to remove the expectancy that JBX should be distributed.

Specification

A****s the action item for this Proposal, specify a maximum limit of the use of JBX for payouts on the following proposals to a scale of 10,000 / 50,000 / 100,000 JBX depending on the complexity of the collaboration and the collaborator’s involvement, (~~~~1/10 of the payout amount on the following proposals:

  • Trial Payout
  • Recurring Payment
  • One-Time Payout
  • Payout Reduction

Exceptions may be handled via voting mechanism, that is, if within the temperature check and the governance process, the community sees that this exception would benefit the community, the limit can be waived. But this needs to be specifically clarified on the proposal and the waiving vote result embedded on the proposal for audit purposes.

On a future proposal, we will limit the use of JBX to remove it out of payouts all together and only do payouts with ETH.

Things this proposal change

  • Limit the amount of JBX given on a payout proposal.
  • Define the use of JBX moving forward.

Things that this proposal doesn’t change

  • The issuance of JBX on the capital raise.
  • The reserve rate for JBX for other DAOs.
  • The JBX airdrops performed by the core team.

Rationale

Use of JBX as means of community engagement and participation enhancer will separate the JBX function from the reserve. This will:

  • Make accounting and finances much simpler
  • Will help focus the energy of the JBX use towards a mission: community engagement and participation on DAOs decision matters.
  • Enable simpler metrics to measure the success of the JBX distributions (as it will be solely focused on one purpose).

Timeframe

Start implementing this measure upon approval of this proposal.

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