Metanauts Guide to Coordinape 🐵
Coordinape is a tool for DAOs to incentivize, reward, and leverage their community contributors. It helps DAOs to scale and provides transparency on where resources and contributions are being allocated towards. Coordinape is a project that spun out of Yearn, and is used by Yearn, Gitcoin, Sushi, CREAM, Bankless DAO, and many more. In mStable, we will use Coordinape to reward our Metanauts — our core community who shares our mission and values, and help contribute to the success of mStable.
Why do we need Coordinape?
To better explain the benefits of Coordinape, let’s create an example using a fictional Metanaut — Bowtie. Bowtie is an active member of the mStable community. She participates in governance, helps to provide support in Discord, shares great memes, and contributes insight and feedback on our forum. Previously, as a community contributor in mStable, Bowtie’s main ways to get rewarded for her hard work was to either receive tips directly from the core team, or to apply for a grant. Neither of these options are great because the former cannot scale well, while applying for a grant isn’t very applicable here. Coordinape helps to solve this by easily allocating funds and rewarding community contributors who are active and supporting mStable.
Let’s dive in 👇
How does Coordinape work?
Bowtie is in our Metanaut circle and earns MTA rewards based on her contributions throughout every epoch. At the beginning of every epoch, each Metanaut and core contributor (including Bowtie) receives 100 GIVE tokens to allocate towards the people that they see helping out. In mStable’s case, although core contributors receive 100 GIVE tokens to allocate, they are not eligible to receive any. They help to allocate and distribute funds to Metanauts that they see helping out and being active, but do not receive any rewards. The initial two-week trial epoch — starting on September 1st, 2021 — will distribute 2000 MTA in total.
Here’s an example:
Let’s say there are 15 Metanauts and 5 core contributors, therefore there would be,
20 members in the circle × 100 GIVE each = 2000 total GIVE to allocate during the epoch. However, it is not required to allocate GIVE tokens if you were not present enough to have worked with anyone, or seen who was contributing. If Bowtie was away on a vacation in the Metaverse during the entire two weeks, it would be normal for her to both receive 0 GIVE and allocate 0 GIVE. If, however, Bowtie was exceptionally active and worked a lot with Tophat and Pengu, then Pengu may allocate 90 GIVE tokens to Bowtie (with a friendly message to show appreciation for her work), and 10 GIVE tokens to Tophat. Tophat may have worked primarily with Bowtie and Snowman — who was helping to translate docs into different languages. In each case, it is up to the individual to allocate GIVE tokens and show appreciation for the people that they worked with and saw contribute.
How are funds distributed?
Throughout the two-week epoch, members of the Metanaut circle will be allocating their GIVE tokens accordingly. Suppose that in the end, only 1000 total GIVE tokens were allocated and distributed. This means that each GIVE token actually distributes 2 MTA, because
2000 MTA being distributed ÷ 1000 allocated GIVE = 2 MTA each. In this case, Bowtie received 300 GIVE, while Tophat received 150 GIVE. When funds are distributed at the end of the epoch, Bowtie will receive 600 MTA sent directly to their Ethereum address, and Tophat will receive 300 MTA to his.
Coordinape encourages self-reflection
After completing our first epoch, we are able to see a map of everyone who is in our circle, where and to whom resources are being allocated, and take advantage of additional tools to be self-reflective and examine whether funds are being allocated towards efforts that are aligned with our wider goals. Additionally, we can view the histories of each community member, their profiles, and vouch for new members to onboard into our circle.
In Summary — Apes Together Stronk
Coordinape is a great tool for DAOs to allocate funds and reward community contributors in a fair and equitable way. It encourages more communication among contributors, and leverages the distributed nature of remote teams and DAOs. If you are interested in learning more about Coordinape’s upcoming features, including NFT badges that grant access to circles, GIVE for specific tasks, Ape Vaults which can fund circles directly from protocol emissions or yield farming rewards, and more — please check out our July community call interview with Zach.