SUPERALGOS PROJECT
Thoughts on Governance and the Allocation of Rewards
Understanding the role of the community in valuing contributions.
Everyone participating in the governance process should be mindful of how votes are cast. Governance is everyone’s responsibility, and a crucial aspect of the collaboration.
In general terms, the strategic goals of the project require the community to strike a balance on the following ideals:
- We wish to leverage our capacity to deliver liquid incentives to expand our contributors’ base and accelerate contributions. This is the positive feedback loop that turns Superalgos into an ever-improving trading infrastructure.
- We wish to incentivize contributors to hold-long term while allowing them the freedom to cash out tokens if that helps them get more involved and add more value to the project.
- We wish to be mindful of the expansion of the circulating supply and make sure that the tokens we distribute represent the fair value of the contributions accounted for in Proof of Value reports. It is our commitment to all holders to only distribute tokens backed by value added to the project.
Reserve For Future Distributions
First thing to consider is how many tokens are distributed and how much of the monthly budget is left in the treasury as reserves. This determines how many tokens we put in circulation each month.
The tokens we add to the circulating supply should reflect the monetary value of contributions. This is something well established already, as the project rewards value created only. But we need to make sure that we assign the right value when voting!
The current monthly budget of 10M $SA tokens is configured in the Superalgos pools hierarchy. If the monetary value of contributions for any given month is less than the market price of 10M tokens, then you need to vote for the Reserve For Future Distributions pool node to affect how much of the budget is left in reserve. The rewards in that pool are not distributed and remain in the treasury account for future distributions.
Community Building Programs
Within the Community Building Programs pool class definitions, the Referrals Rewards, Support Rewards, and Mentorship Rewards pools determine the rewards that people get for actual value created. This is where the bulk of weight votes should go within these programs.
Instead, the Referral Bonus, Support Bonus, and Mentorship Bonus pools represent bonuses for mere participation in the programs. These bonus pools should be a small incentive for people to participate by declaring their referrers, supporters, and mentors, not a means to get free cash every month!
Also, we should be mindful when declaring mentors and supporters. Have the people you are vouching for been active and contributing real value as mentors or supporters during the current distribution period? You probably shouldn’t be vouching for them if the answer is no!
The fair setup is to vouch for the people who truly deserve to get the monthly rewards! You shouldn’t be dragging votes across periods without considering what you are voting for!
Other Governance Programs
Similar thoughts should go to the rest of the governance programs!
How much money should we distribute for casting votes, delegating power, staking tokens, or providing liquidity? Let’s be extra mindful when casting these weight votes too!
Voting for Teams
Of course, this is a crucial aspect of the governance process, as it directly rewards the value created in the form of improvements to the core infrastructure.
Voting for teams is obviously personal and subjective. Your responsibility as a holder and participant in the governance process is to incentivize valuable contributions with a fair reward and the appropriate monetary value.
Mastering Contributions
You just read an article in the Mastering Contributions series exploring some of the crucial aspects of the Superalgos Collaboration. To continue your journey learning about how to contribute to Superalgos, just keep reading:
- Why Contribute to Superalgos
- How to Contribute to Superalgos
- Why We Reward Value Creation Only
- What Is and What Isn’t a Contribution that Adds Value
- All About Proof of Value Reports and Teams Formation
- The Superalgos Contributor Mindset
- The Good Governance Citizen
- More Thoughts on Governance and the Allocation of Rewards
