I’d like to share an idea I came up with during the ReGenesis Summit, and have slowly been refining based on feedback from other members of the community. I see this program as something that could either replace or compliment the current grants system, either with the current DAO structure, or the proposed structure of having a Board of Directors/Advisors.
I know, it’s long. I’ve done a lot of work to condense it as much as I can. Rather than critiquing the presentation, please provide feedback on the actual ideas within, and ask for clarification on parts that are too vague or too verbose, as this is still a work in progress.
A Summary of CBI
Problem:
The Decentraland DAO has two major problems:
- The grants system is flawed: It has been exploited, with funds distributed unfairly, and there’s no proper reward system in place to recognize or incentivize meaningful contributions.
- The community feels powerless in the DAO: There are no ways for users to gain Voting Power (VP) without spending money. Contributions to our ecosystem aren’t rewarded with increased decision-making ability or recognition, leaving many feeling disengaged.
Solution:
The Contribution-Based Incentive (CBI) system introduces a fair way to reward positive community contributions, allowing users to gain VP, rewards, and influence without having to spend money. Users accumulate Dharma (potential) and gift it to others, turning it into Karma (recognition). Karma decays over time, requiring continued contributions in order to receive rewards. Rewards are paid in MANA, empowering users to gain VP, stimulate economic growth, and receive real-world benefits.
This system fixes both issues by creating a fair reward mechanism that empowers the community and incentivizes long-term, meaningful participation.
Detailed Overview:
Financial Structure:
Under the structure proposed by the DAO ReGenesis of 2024, a Contribution Based Incentives program would work through the following financial structure:
Allocating Funds: A Structured Financial System
The financial structure begins with the DAO Treasury, overseen by a Board of Advisors, who are responsible for approving and allocating funds across the DAO’s operations and incentives. The process flows as follows:
1. Incentives Budget:
- The DAO (or an appointed Board of Advisors) allocates a Community Incentives Budget, which is split into two primary buckets: the Grants Bucket and the CBI Bucket.
a. Grants Bucket:
- Grants are intended for small, short-term projects that are already complete or nearly so, and are capable of providing a proof of concept.
- Each grant provides funding up to 5k per project, paid out in DAI or MANA.
- Unused grants funds may either remain in the DAO Treasury or be redirected to the CBI Bucket for the next quarter, allowing for flexible financial management.
b. CBI (Community-Based Incentives) Bucket:
- The CBI Bucket incentivizes positive contributions from the community. Rewards are given to individuals or groups who make significant contributions such as:
- Creating in-world experiences.
- Hosting events or community discussions.
- Sharing valuable ideas in the DAO forums.
- Creating content (videos, articles) about Decentraland.
- Helping others learn or explore the platform.
- Rewards are paid exclusively in MANA, and recipients can:
- Keep their MANA to increase their Voting Power (VP) in the DAO.
- Use their MANA in the Decentraland economy (buying collectibles, land, etc.).
- Convert MANA into fiat currency for real-world income.
Implementation
How It Works:
- Dharma Accrual: Users accumulate Dharma passively, capped by their tier level, which reflects their potential to contribute positively.
- Karma Decay: When a user receives Dharma, it converts into Karma, a recognition of their contributions. Karma decays over time, but it increases Dharma accrual, promoting continuous positive action.
- Daorma (DAO Dharma): Special Dharma awarded by the DAO for significant community contributions like successful projects or governance participation.
Definition and Origin of Terms:
Dharma:
- Traditional Meaning: A person’s duty or moral path in life.
- CBI System: Represents a user’s potential to contribute to the community. Dharma accumulates passively at 0.0001 per minute, and users can store a limited amount based on their tier level. Users can also gift Dharma to others, reflecting their potential to support positive actions.
Karma:
- Traditional Meaning: The concept of cause and effect—good actions result in positive outcomes, while negative actions lead to negative consequences.
- CBI System: Represents recognition for contributions. Karma is earned when a user receives Dharma from others, but it decays over time at the same rate it was earned (0.0001 per minute). Half of the Karma turns into Dharma for the recipient, allowing them to contribute to others, while the other half is “burned.”
Karma Tiers:
The system has six tiers, each with a share of the total budget and individual caps to ensure balanced participation.
- Sentry (40%): Requires 10,000+ Karma; 20% cap for individuals
- Peacekeeper (30%): Requires 1,000+ Karma; 15% cap for individuals
- Seer (15%): Requires 100+ Karma; 10% cap for individualsÏ
- Perceiver (10%): Requires 10+ Karma
- Scholar (5%): Requires 1+ Karma
- Protege (0%): Entry-level, for those who have yet to contribute significantly.
(Tier names are suggestions; the community can help determine their final names.)
Key Dynamics:
- Giving and Sharing: Users are encouraged to give Dharma to others. Half of it converts into Karma for the recipient, while the other half is burned, ensuring ongoing engagement.
- Rewarding Positive Actions: Karma rewards contributions but decays over time, encouraging sustained effort. Karma boosts Dharma accrual, creating a cycle of positive contributions.
- Community-Driven Growth: The Dharma-Karma system encourages continuous contributions and long-term involvement, strengthening the community over time.
Sybil Resistance
What is Sybil Resistance?
A Sybil attack happens when someone creates multiple fake identities to gain more influence or control in a system. For example, in decentralized platforms or voting systems, a single person could pretend to be many users, allowing them to manipulate decisions or outcomes.
Sybil resistance refers to methods used to prevent this by ensuring that each participant is a unique, real individual. This is important for maintaining fairness and preventing any one person from unfairly dominating a system through fake accounts.
Ways we can add Sybil resistance:
Require certain steps to be eligible for CBI:
- Own a name AND
- Complete some combination (4 of 7?) of other tasks:
- Attend a DAO town hall
- Buy/rent land
- Hold an event with a certain number of RSVPs
- Approved wearable/emote submission
- Delegate a certain amount of VP to a recognized delegate or VP pool
- Receive a certain forum badge
- Create and deploy an experience
Other security protocols on the back end could include not allowing reputation to be gifted between two accounts on the same IP address, which forces someone to keep setting up VPNs and wallets. By adding enough friction for those trying to take advantage of the system, eventually it becomes easier to just play within the rules.