VDP-136 Proposal: Compensation Policy Squad Update to VDP-72

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Perhaps some context would be helpful here (information only, I have an obvious conflict of interest as a Steward and can’t debate or vote on this proposal, only observe):

VDP-72 as written in December 2022 allocated up to 25k VITA per month for each steward, with the view that it would result in a budget of 0.47%/yr or 1.88% of the Total Token Supply over a 4 year period. Stewards and VitaCore have restrictions on their ability to liquidate any of their granted VITA until 2026 at the earliest, and it vests over 4 years from date of receipt.

The math was that, the Stewards, of which their were 4 at the time, would equal around 7.5% of Total Token Supply. Note that this was a budget for the Steward positions, there was no guarantee that any individual would stay in that position for the entirety of the 4+ years such that they would receive the whole 1.88%. This also applies to VitaCore and to Squad Leads.

Similarly, budgets were set aside for VitaCore, and squad leads in all the working groups. VitaCore / Squad Leads would get an allocation that would result in 0.1%/year or 0.4% after 4 years (again vested for 4 years, locked until 2026). Each Working Group was given a budget for each year to reward top contributors and these were allocated (for 2023) in VDP-67 (Longevity Dealflow) and VDP-97 (Community and Awareness), Coordination made no L-TIP allocations . The breakdown was 1 million VITA/year for Longevity Dealflow contributors, 600k/year for Community and Awareness Contributors, and 200k/year for Coordination.

In total the original plan would have seen up to an additional 25% of Total Token Supply issued by 2026 to DAO contributors, with 15% going to working group contributors, 7.5% going to Stewards, and 2.5% to VitaCore and Squad Leads. I strongly suggest everyone review what the current approved governance is in VDP-72.

It should be noted that VDP-72 is independent of VDP-3 which covered the Genesis Auction and for which the founding team received allocations. Only one member of that founding team remains as a steward or squad lead in VitaDAO today.

The New Proposal

Comparing the two “Appendix E” spreadsheets - one from the approved VDP-72, and the other one proposed in the report, my understanding of the new proposal is that:

  1. Overall VITA compensation will drop from 25% of Total Token Supply to 8% across all stakeholder groups reflecting the 300% change in secondary market pricing of VITA.

  2. Steward specific compensation over 4 years drops from 7.5% of TTS, to 3.04% TTS.

  3. VitaCore specific compensation over 4 years drops from 2.5% of TTS, to 0.56% TTS.

  4. Working Group compensation over 4 years drops from: 4 million to 2.3m (Longevity Dealflow, 80% of budget), 2.4m to 432k (Awareness WG, 15% of budget), and 800k to 144k (Coordination WG, 5% of budget).

Other information that maybe useful:

  1. All VITA allocations under VDP-72 stopped in July of last year pending this review, per VDP-108.

  2. Nobody currently compensated by the DAO under VDP-72 participated in the Squad. For clarity, being the Coordination Steward, my role was only to provide information as requested, and provide historical context.

  3. The remit of the Compensation Policy Squad was to compare current compensation to what exists in the web3 world, and biotech world, for positions of similar complexity, skillsets, and demands with the view to make sure that the compensation policy would be attractive to the best talent from outside the DAO, not to cater to the incumbents.

  4. Their remit also included the ability to identify areas where improvements could be made to make the DAO more attractive to contributors.

Hope this helps the conversation, @mykalt45 @Ben @tylergolato @aschwartzphd @alexdobrin

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