Dear Aragon Community,
We wanted to pull a proposal together to standardize the payments in the DAO for all contributors.
We are now a few months into paying contributors in the DAO and some of the hypotheses have been put to the test in the payment process. We hypothesized that a 60 Day rolling average ANT price would smooth the peaks and troughs for contributors in the DAO. It was also assumed that a 50/50 split of ANT would be the optimum amount. Both of this have proven ineffective on a day to day basis and the majority of the feedback we have received has been regarding the transaction fees, ANT price swings and the (diminished) ANT pay out. Therefore, we would like to propose two things that we aim to implement in season 1:
- Split payment 70/30 (USDC/ANT)
- The current 60-day rolling price average of ANT, does not have the desirable effect in terms of price.
- As the price of ANT fluctuates over the payment period process which is currently 14 days, we would like to test to pay out a larger portion of the bounty in a stable coin
- So we propose to pay out the bounty in 70% USDC and 30% ANT
- As contributors we will receive more authority, as we can swap USDC later on back to ANT if you want (against low fees, due to proposal 2), When more governance rights are desired, they can easily (cheap and fast if Polygon) swap their USDC towards ANT in the desired proportion (hence more authority)
- Transition USDC from ETH chain to Polygon chain (reduce transaction costs)
- Paying on Ethereum mainnet is extremely expensive for contributors
- Transactions can get blocked for hours or even days if a low gas fee is used
- Not capital efficient
To move USDC from Ethereum to Polygon, we propose the HOP bridge can be used:
Hop is a scalable rollup-to-rollup general token bridge. It allows users to send tokens from one rollup (or mainnet) to another almost immediately without having to wait for the rollup’s challenge period.
In addition, Hop has never been hacked and has multiple audits under its beltl, see https://help.hop.exchange/hc/en-us/articles/4405172444429-How-safe-is-Hop-. Alternatives like Synapse protocol have higher TVL than Hop, however, parts of Synapse have not been audited, see FAQ - Synapse Protocol
Finally, there is also the official Polygon bridge at Polygon Web Wallet v2, however, it seems like this bridge is constantly under maintenance and it is slower and less efficient than Hop.
Hop interface to move USDC to Polygon can be accessed here:
By default, funds are bridged over to the same address and the source address, but it’s possible to also bridge to a different address by defining a custom recipient.
By transitioning USDC over to Polygon, we provide the contributors completing bounties greater flexibility when they are paid so that they can swap back into whatever percentage allocation they want without incurring in high fees.
We would appreciate the AN Tech Sub-DAOs input on the bridge they feel is the most secure.
This proposal also paves the way for streaming payments using Superfluid, which we are exploring for future implementation.
The payment process was never finalized for the DAO and we would like to propose this become the standard for all guilds, contributors and teams across the DAO. We appreciate this will not be perfect for all contributors but we have aimed for a balanced approach and we would appreciate your input on the split and other aspects of the proposal.