AIP 29: Bounties for Non-AIP Activities That Add Value to AirSwap

Summary

The sustainability of the Airswap governance model is dependent on an active community of members engaged in the exchange of ideas, culminating in the creation of AIPs and other activities aimed at improving the project’s success.

Currently, the only incentive for community members to remain active and engaged is via the rewards for AIP creation and voting. This limits the incentivization rewards to the authors of AIPs - and any co-authors they choose to split the rewards with.

AIP 10: New Token Treasury - implemented - allocates up to 15% (49.16M AST) of the treasury over 3 years to Growth:

  • Tokens to be distributed through programs that aim to grow the network.
  • Tokens to be distributed through programs that aim to grow the community.
  • Expect a lot of experimentation in these programs.

AIP 25 aims to propose a mechanism to reward non-AIP related activities that grow the network and/or community.

Specification

Create bounties as incentives for community members to be rewarded for non-AIP contributions to the community.

Example Bounties: based on current community activities. Possible to modify as new precedents emerge

  • Community tools and dashboards
  • Marketing initiatives
  • Translation services
  • Research into integratable networks for growth
  • Research into potential Liquidity Providers
  • Being a moderator on Discord
  • Updating Airswap website
  • Creating/maintaining Airswap presence on other websites - coinmarketcap, dune, defipulse, reddit, coingecko etc.
  • Drafting news articles and press releases
  • Updating FAQs pages
  • SEO

Since AIP 10 passed vote there is a budget allocated for these types of community services but no defined process to utilize it.

Mechanism to Create Bounty

Bounty creation would run independently from AIPs - which are primarily reserved for high-level policy questions regarding the overall direction of the project.

If someone from the Airswap community has an idea to grow the project or has identified a problem to be solved they can submit a bounty request to be voted on by the Members Community. The threshold of consensus required to approve the bounty is scaled to the size of the reward requested. *Example - 1000 AST bounty would require minimum 10% consensus from the members community. 5000 AST would need 50%. Voting would be time limited. The threshold for consensus can be modified via a configuration vote.

Rewards:

Bounty rewards to be paid in either points or out of Airswap treasury (in sAST) and can only be sent to staked wallets - limiting community engagement bounty rewards to individuals invested in the long-term success of the project.

Since requester of the bounty will not always be the implementer of the solution a ‘finders-fee’ of 10% of the total bounty should be awarded to the requester upon reward of the bounty for completion of work.

Requirements:

Community members eligible for rewards would need some AST staked.

A bounty board or something similar would need to be created on community.airswap.io and/or on the AirSwap website and Web App (AIP 30).

A simple voting mechanism needs to be implemented for bounty creation. Where this vote should occur - discord, activate, community.airswap is TBD. However to avoid confusion, bounty voting should be separate and distinct from AIP voting as there are no points to accumulate from voting on bounties.

If no satisfactory candidate can be found within the AirSwap community to fulfill the bounty then AirSwap has the option to host the bounty externally (gitcoin et al.) and open the eligibility to non-stakers.

Should be paid with points rather than treasury. Distribution of treasury should be taken with care and should be based completely on how the project is doing, we need AirSwap to survive for generations, and us being stewards of the treasury need to take this responsibility seriously.

thats for the comment! :slight_smile: We had some discussion on this point in discord. The math worked out that given the amount in the treasury to cover these types of activities vs. the expected cost of bounties - it was thought that the impact to the treasury was very insignificant.

I would be interested in hearing what are the benefits to the community members and benefits to Airswap for this question on rewards in points vs rewards in AST… its easy enough to make that change in the AIP. My understanding from the discussions in discord is that most community members wanted bounties in AST.

The biggest benefit is that we retain treasury for the future and not unnecessarily release more tokens in the market. We are all concerned about diluting our currwnt ownership.

Would it not make sense then to have the option for both? some bounties by their nature are one time events - im thinking for example a social media marketing contest - which could reward the winner with points. Other bounties which require more work over time - im thinking for things like dune dashboard maintenance etc. - could get rewarded in sAST.

also wont the potential dilution be really insignificant given 150,000,000 AST in circulation and at most their would be like 25 bounties a year averaging like 1000-2000 ast per bounty? also the amount ast per bounty can change - as the price of AST increase the amount per bounty can always decrease.

It would make sense for larger projects or engagements we could release tokens from the treasury, but that should be an exception rather than a rule

Big fan of this proposal.

Instead of hosting the bounty platform separately (and kind of re-inventing the wheel), we should consider posting bounties on gitcoin. The plus side of this is that you’ll get a lot more exposure to, and engagement from potential contributors, with the downside being a 10% fee on bounty creation.

I do like the idea of priority being given to those with a balance of sAST, but care should be taken not to be too discriminatory against those who don’t have loads of funds available to lock up long term. You’ve also suggested paying out in sAST*, so presumably if you did that, their sAST would not be vested, which almost enforces some loyalty to the product anyway.

*the “standard” on gitcoin appears to be ETH - I have seen other tokens as the rewards, but am not sure if you can arbitrarily offer any ERC20 token, or whether they need to be approved by someone first

Thanks for the feedback @greypixel.

I’m not opposed to the idea of hosting bounties on gitcoin. The 10% cut on the bounty isn’t great… but not insurmountable. It’s worth considering indeed.

I think if we are going to update the website/create a web app (AIP30) then perhaps we can include a bounty page within that development cycle. Of course that is dependent that AIP30 passes vote. :slight_smile:

I think if we host the bounties on our own platform/website first we can give our community members priority to the bounties. If no satisfactory candidate can be found within the community to fulfill the bounty then we should have the option to host the bounty externally (on gitcoin) and open the eligibility to non-stakers.