Authors: @Kene_StableNode & @Bobbay Contributors: N/A Status: RFC Date Posted: 2022-11-22
This is a temp check to conitnue the discussion surrounding Multi-Sig Signer’s compensation with community feedback incorporated.
Multi-Sig signers have solidified themselves as a vital part of the Hop Protocol’s operations, although Multi-Sig signers participate in varying degrees, this temp check is geared towards rewarding each multi-sig signer adequately at their various points of participation.
As a way to reward multi-sig signers while building a culture that incentivizes prompt participation from signers, this initiative will help ensure that the Hop multi-sig operators stay motivated to carry out their duties whenever called upon.
Initial Retroactive Payment
There are currently five Multi-Sig Signers, I am proposing that the multi-sig signers are compensated retroactively, starting with a retroactive payment as a reward for work previously done.
There are currently two Hop Protocol multi-sigs, one for Ethereum Mainnet and one for Optimism, the Mainnet Multi-Sig was has been operating for five months starting from June, while the Optimism multi-sig has been operational for 4 months, starting from July.
For the initial retroactive payment, I propose a one-time payment of $2,000 to @dybsy who contributed the most during this retroactive period. @dybsy took on the day-to-day administration of the two multi-sigs which included doing the following:
- Learn how multi-sig technology works
- Figured out troubleshooting
- Worked on merkle tree verification
- Confirmation of multiple variables
- Worked daily to avoid the compromise of the multi-sig
For other multi-sig signers (four individuals specifically) I recommend a one-time payment of $1,000 per signer, the difference in payment for the lead multi-sig signer and other signers is justified by the day-to-day involvement of the lead multi-sig signer.
Total Cost = $2,000 + ($1,000 x 4) = $8,000
This initial retroactive payment will be paid out completely in HOP.
Subsequent Retroactive Payments
Subsequently, I propose that whoever takes on the day-to-day administration of the multi-sigs should be compensated $500 a month for efforts related to administering the multi-sig, while other multi-sig members should be compensated $250 monthly, these payments would be made twice a year at 6-month intervals, for example: If the first subsequent retroactive payment would be made in June 2023, while the second payment would be made in December 2023.
The most active Multi-Sig signer who administers the multi-sig day to day will be paid a $3,000 payment twice a year, which is an annual salary of $6,000.
On the other hand, each of the other multi-sig signers would be paid $1,500 twice a year, which is an annual salary of $3,000 per multi-sig signer.
Annual Total Cost = $6,000 + ($3,000 x 4) = $18,000
These subsequent retroactive payments will be paid out completely in HOP.
General Total Cost = (Inital Payment + Subsequent Payment)
$18,000 + $8,000 = $26,000
It is important for multi-sig signers to be adequately compensated based on the level of time commitment and effort they put in to ensure the day-to-day running of the HOP Protocol, this has been reflected in the distinction in payments for the lead multi-sig signer and other signers.
- Formalizing the multi-sig signer roles with term limits and opening up the multi-sig signer roles up to the entire community through a nomination process and an election.
- Possibly incorporating vesting schedules to further align compensated role holders contributing to the Hop Protocol.