[SC] Token Allocation - Andres Larez

I should preface this by establishing how tokens have been vested to members assigned by the DAO in the past. For the founding members it is expected by social contract alone, that they work for 3 years.

Let’s start off by looking at the publicly available data on founding member allocations:
@bbenligiray - bbenligiray.eth - 7.5MM - worked for 2 years prior
@sashkica - sasa.eth - 1MM - worked for ~6 months prior
@dave - dav3.eth - 820K - worked for 2 years prior
@Kiyo - 0xFB15B18bb56A587D4c87e3f06F51a2d6fF73E19B - 50K - worked for ~2 months prior

The ultimate purpose of this was to incentivize members from the early days, back when there was no funding, to perform with the intent of growing the protocol to the point of ensuring that they attain exponentially larger returns in the future. These allocations are irrevocable, which has the unfortunate downside of anyone being able to walk out at any time and leave the others to do all the hard work and ensure that they passively earn on the side. The only way of remedying this is, as with the case of first party oracles, slashing their reputation going forward. But again, that is entirely subjective.

Now to come to how subsequent DAO contractors were awarded, the tokens were allocated within the range of 50-150K, with business developers and community managers, developers, and team leads, in that order, following the progression of size increase in that range. These tokens were taken from the V1 DAO from the tokens earmarked for incentivizing builders and partners. These tokens are periodically vested, with the possibility of being cut off at any time should the contract be terminated by either the DAO or the contractor. The tokens are not staked however, but I don’t see why this should be the norm.

To come to the subject of this post - Andres Larez (@cypherbadger) - I would like to ask for him to be the recipient of the first token allocation from DAO V2, as there are no more tokens to tap into from V1. He would be given 50,000 API3 tokens, that will be sent to a multi-sig wallet from whose signers will keep it staked in the DAO on his behalf.
Andres has joined us only recently, but has proven himself to be an immense asset for the DAO in such a short span, by taking charge of the Spanish speaking community and going above and beyond his call of duty by pushing the envelope forward during the Bankathon in El Salvador, by networking with several important parties and catering to any developer in need. His networking has helped with cementing API3 as a key player in the burgeoning crypto ecosystem in El Salvador, which he himself has moved to from Venezeula. It was these efforts that brought out such a substantial local developer turnout for the event.

I should add that while these amounts might at first glance seem large, it is standard practice across startups in web2 and web3 to allocate larger amounts at an early stage, so that their employees are incentivized to go beyond their expected calling and add more value to the organization going forward. In this case, 0.05% (less, given inflation) of the overall share of the organization is an adequate and arguably even low amount.

I expect Andres to fully rise to the occasion and shape the course of the API3 DAO moving forward, to the best of his abilities, and so I would like to put forward this proposal.

4 Likes

I can vouch for Andres. He has been an amazing team member in the short time he’s been with API3. He’s formed valuable partnerships, organized more than a few meetups in El Salvador, he truly believes in the mission and lives it. He deserves a lot of credit for the success we’ve had in Latin America. We want him here long term. :+1:

1 Like

I vouch 100% for Andres. He has been pushing super hard, he got sponsors very quickly, connected with top influencers, organized meetups and he is pushing the LATAM community super hard to a point that he even made the decision to stay in El Salvador after going there for the Bankathon. To me, this shows clearly that he is really well aligned with our DAO and we definitely want people like him to be part of the DAO.

I support this proposal!

2 Likes

I also strongly vote in favor. I had the pleasure and honor in working with Andres in API3’s recent Bankathon El Salvador efforts. As Ryan, Midhav, and Manu mention, Andres has been key to API3s success in Latin American. Andres is shrewd, quick on his feet, looks out and plans for API3s best interest, and is thinking for the DAOs short and long term impact as an organization. Moreover, Andres has special insights, and is an absolutely great person to work with. It makes perfect sense that API3 becomes his home to further explore his talents and intellectual pursuits. It is with no hesitation that I support this proposal.

~Welcome to Latin America~
:sunglasses:

3 Likes

As a Venezuelan-American I am happy to see such a diverse group of people working together to make API3 successful and promising. Kudos to him for leaving Venezuela at such a tough time in our country and to exceed in El Salvador. Congratulations!

1 Like

I like the proposal on behalf of Andres Larez; but would like more information regarding the 50,000 API3 token allocation. Would the 50,000 API3 tokens be distributed over a year’s time span on a monthly basis? Also, what would be the metrics of satisfaction that Andre would have to meet, to determine if he is performing accordingly?

Thank you

I’m glad that you asked this because I’ve been meaning to elaborate - had to stay away from devices for a bit, hence the late reply
The 50,000 tokens will be vested over 3 years from the date of joining of the contractor, with the first batch of tokens being given after the initial 6 months cliff, as is the case with other contractors as it stands
The tokens will be sent to a multi-sig whose signers will distribute them periodically - monthly sounds good enough tbh
As for metrics, I think remaining to be an employee/there being demand for his services should be satisfying enough. You’d think of the allocation as a level that is unlocked for having met the previously described criteria, and simply continuing to do one’s work with the likelihood of being motivated enough (by the value of the tokens) to do even more for the organization should be enough

I’d like to make an update to this proposal.
It’s been brought to my attention that having to make a proposal for each contractor that has been nominated for this purpose is

  1. inefficient, given the seemingly herculean effort it takes to get the majority of the DAO to vote in its favour (see: the BlockVenture primary proposal)
  2. risky, given this post has the full name of the contractor who’s set to receive the tokens, thereby allowing the revelation of the worth of the contractor in question to potentially malicious actors

In this case, since the post is already out there, there isn’t much that can be done about the latter point. It does make sense however, to preserve the privacy of contractors going forward, as has been done for the recipients of tokens from the v1 DAO. But maybe the onus of doing so can be left to these contractors in the form of their own opsec efforts - this can be done by simply going by pseudonyms or first names - as the alternative would be entrusting the multi-sig in question to not just take the tokens for themselves
My amendment to this proposal thus would be to make a request for a bulk token amount (500K) to a multi-sig controlled by the marketing, biz dev, and integration teams, who will stake the tokens in the DAO while handing them out every month, with the reasoning for each allocation being listed under the official governance post whenever it’s handed out. The contractor in question will be informed that they need to maintain adequate opsec prior to such a post, and they should act accordingly for the sake of their own security

1 Like

Maybe a little late due to your last post Midhav but just wanted to say that although I only worked briefly with Andreas he’s a very self-motivated individual who quickly ran with tasks, instantly adding value. I’m sure as our LATAM strategy develops this value will only increase and agree it’d be great to have you onboard long term.

1 Like

Thank you, for the clarification update Midhav. Seeing the positive recommendations offered. I would be in favor of this proposal and the possible LATAM opportunities, the proposed candidate could help create. You may need to construct an official proposal for this on the API3 Governance site, so it can be voted on and enacted.
Have a Blessed Day!

1 Like

I’ll go ahead and make this an official proposal since it’s been up for long enough

1 Like

The topic of enabling token allocations without having to submit a primary proposal every time is something I’ve discussed with many of the team leads for quite a while and I’m planning to submit a proposal for this very soon. Since the token allocation proposal for Andres (that this thread started with) has now turned into something that very closely resembles what I’ve been writing up, I suggest holding back on submitting that DAO proposal and continuing the discussion once the Governance Meta thread for my proposal is up. I’ll post the link to the thread here.

2 Likes

Link to API3 Hot Wallet thread: [SC] API3 Hot Wallet

2 Likes

shafting my proposal in favour of Heikki’s