Mirror

Skin in the game is necessary to align interestsPerformance bonuses should be in additional governance token compensation 

Stablecoin payments are necessary for cost of living, taxes

Contributor payment should be at least 25% in native governance tokens

Regular budget analysis should be a requirementExpenses should be tracked and justifiedGives token holders one way to evaluate performance

In special cases where many transactions require synchronous signing, a working group may opt for a lower threshold

Budget funds should be held in a multisigAt least 4/7 signers to avoid any central point of failure

Constraining funding too much will likely constrain the ability to attract quality contributors. A DAO should strive to create a culture where talent and performance is rewarded.

Quarterly/biannual performance reviews (see here for a performance review of Aave’s Grants DAO)Weekly working group updates (see here for an example of our work with PoolTogether)Regular budget expense analysis (Aave Grants provides a list of funded and outstanding grants that are updated in real-time) 

Examples of formal reporting: