B.Protocol Growth Squad Fund proposal draft

Below is a rough draft of a proposal I wrote up for a Growth Squad Fund as was discussed here. Let me know what changes any one wants and I’ll make them :slight_smile:


Summary

Set up a Growth Squad Fund to be used and managed by the initial members @a7om, @ramaruro, and @jamesb989

Proposal

This proposal is submitted for the creation of a ‘BProtocol Growth Squad.’ This fund is to be used to grow the number of users of B.Protocol, and increase the number of BPRO holders as well as participation in governance.

Member Contributions
A contribution can be providing support, creating related media, proposals, SEO, or anything that a member comes up with that helps increase the size of the BProtocol community. The fund can be used to help compensate growth squad members who make on-going contributions as well as to help grow the squad itself.

Fund Allocation
The fund would allocate an initial 25,000 BPRO for the first 3 months to be shared between the group. Any unallocated BPRO is maintained in the Growth Squad Fund for future members or bounties, or to adjust the distribution to market prices.

Growth Squad Fund

The squad is open to any new ideas and will allocate the funding for new members, or for one-off projects that benefit the community and require funding. If you would like to contribute via support or other work post on the forum. The fund is only an initial seed to test how successful the members can be in growing the platform. All expenses paid out from the fund should be publicly disclosed.

Ongoing Development

The community should continue to have discussions around this fund and its uses. This is an initial structure and the community should modify or change this as necessary. (i.e update the distributions or request more funds from the DAO, utilize other distributions methods, etc)

Reason

The BProtocol community is still in the early stages and needs to expand as we continue to grow as a project.

Result

1- Creates a Growth Squad Fund to be utilized by it’s members and allocates it an initial 25,000 BPRO.

Next Steps
We can create the initial Growth Squad and it’s members should work with each other and the community to find the best path forward. We can make any changes to the proposal and then submit a Snapshot vote to finalize and create this fund.

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Thanks for this effort. How is the fund spent? What determines the flow of BPRO? Streaming? KPI? Per effort, with predetermined amounts, like a grant?

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I was assuming it would be in a multi-sig and can add this part in.

I think it should be a little bit of all three where necessary. Grants for those in the community per effort as well as advertising pushes that need to be bootstrapped with capital. Streaming very small amounts for day to day moderation and support. KPI payouts can be reserved for rewards for members of the squad if this push succeeds to reach some milestones.

In my mind the squad are the administrators of the funds and directors of the growth push.

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I also think we should come up with the KPI milestones now and include them. I want to get everything somewhat decided and then I’ll make a second draft of the proposal.

The three most important that come to mind are:

  • TVL in v1
  • Accounts holding BPRO
  • Number of accounts voting with their BPRO

What thresholds should the squad be rewarded at and how much should be rewarded for each successful completion? I think we should poll the community to determine the most appropriate thresholds as opposed to deciding them ourselves but my initial thoughts on thresholds are:

  • TVL in v1
    • current TVL is ~$46.8M so my personal thresholds would be:
    • $75M, $150M, $250M, $500M
  • Accounts holding BPRO
    • current accounts are 1,138 so my personal thresholds would be:
    • 1750, 2250, 4500, 7500
  • Number of accounts voting with their BPRO
    • 58 accts voted for BIP-1 of the ~1,130 which is about 5% so thresholds would be:
    • 7.5%, 10%, 15%, 25%

I set all of these slightly high IMHO, would be interested on other peoples opinions. Once we figure out the thresholds we can move on to payout amounts.

1 Like

Thanks @a7om for putting this proposal together.

In my initial proposal I suggested that in the initial phase no funds will be paid out to the Squad members in order to avoid “free riders” but a KPI based solution as you have suggested might be a better fit.

Still I think most of the funds should be put out for promotions, prizes, PR and other marketing and growth efforts. Definitely when this is the first time the DAO is experimenting with such a structure.

We will need to finalize this proposal, the KPIs and their equivalent rewards during next week as I think it’s time to put it out for a vote at the same time frame with the new Liquidity Mining program vote (that should go out for vote also in the coming week or just after that).

2 Likes

My apologies, I interpreted it as meaning no rewards in the phase we initially work to grow towards a KPI. Once a KPI is reached it becomes another phase and a payment is received. If the team and community is open to my approach I think it would help garner participation.

Agree with this, but just think that the members (current and future) should have a “prize pool” reserved from the total amount. Not sure how much…off hand I would say 15-20 percent as a reward pool that would be given out upon KPI completion.

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Just to make sure I get the intention (and others understanding):

Squad members will in this first phase receive no pay, or little pay based on KPI

Personally I think this is good as an initial try at this.

Funds should primary be used for direct expenses for promotions, prizes, PR, marketing and growth

Am I getting this right if the intention here is that any effort/spending the growth squad finds suitable is then decided and spent by the growth squad itself? That could be e.g. paying a “influencer”, YouTuber, or doing traditional Google ads… While the exact details of what it could be are not part of this initial proposal. Would that be correct?

2 Likes

Also in agreement that the initial period of “pushing growth” goes unrewarded. The only question is whether there is a payout when KPI level 1 is reached or whether payouts start after a 3 month trial period.

I think that the squad will need to communicate with the community what it intends to do, and then get feedback for a period. It shouldn’t be entirely autonomous, but be a source of direction and ideas. So yes, you are correct that the squad “decides” but they should be acting transparently in the interests of the project and community.

None of this is set in stone btw, the whole proposal was just something I wrote up to start people off talking.

2 Likes

B.Protocol Growth Squad Fund

Summary

Set up a Growth Squad Fund to be used and managed by the initial members @a7om, @ramaruro, @TragedyStruck who have proposed to join the Squad, in collaboration with the team.

Proposal

This proposal is submitted for the creation of a ‘BProtocol Growth Squad Fund’. This fund is to be used by the Growth Squad to grow the number of users of B.Protocol, and increase the number of governance members as well as their participation in the governance.

Below is a gross proposal plan for the Growth Squad work for the first 3-months phase. It is based on the different ideas suggested by community members on the forum and on Discord.

KPI #1 - Grow the number of B.Protocol users to 900

Rationale for setting this KPI

  • Adding ~300 new users. 100 per month on average.

  • Current count of accounts is ~580, which means an average growth of ~70 users/month in the last 8 months (since the project was launched in late October). Though it seems in the last 2 months the growth rate is slower.

  • All current growth of B.Protocol was made organically with nearly zero funds spent on marketing.

  • It should be easier to grow the growth rate with invested funds and existing record of the protocol.

  • For reference, according to this dashboard or this one - Compound onboards roughly 4000-7000 new unique users/ addresses a month, month over month for the last 6-7 months. Maker on the other hand is growing much slower (~1k a month) and in general has a much smaller user base (77k vs 358k of Compound).

  • The new Liquity integration users should also be counted.

Work plan

This is an initial list of steps the Growth Squad can and should execute to reach this KPI:

  • Write a clear and concise messaging about the benefits of B.Protocol Users (both for v1 and v2).
  • Engage and promote/incentivise more B.Protocol users to engage with Maker, Compound and Liquity users over existing social media channels of each project (Reddit, Telegram, Discord, etc), to raise awareness and trust towards B.Protocol.
  • Engage and sponsor Crypto and DeFi media and news outlets to cover B.Protocol in articles, ads, banners etc.
  • Engage and sponsor crypto and DeFi YouTubers, bloggers, etc, to review the B.Protocol app and its various integrations.
  • Incentivise community members to contribute content creation, event hosting, SEO, and anything else that can drive awareness and trust while helping to reach the KPIs of the Growth Squad.
  • Build an Ambassadors Program to help promote B.Protocol in different communities.

KPI #2 - Grow governance members to 1500 and have higher engagement in B.Protocol governance

Rationale for setting this KPI

  • Current number of BPRO holders is ~1140.
  • About 800 joined since the token was launched in late April.
  • In the last few weeks the number is not growing.
  • Adding ~120 new governance members on average per month (total of 360 new users)…

Work plan

  • Targeting the right audience with the right messaging (different than KPI #1).
  • Engage with the relevant audience through sponsoring relevant YouTube channels, Bloggers etc.
  • Get more proposals for the wider B.Protocol community to get involved with.

Ongoing Development

The community should continue to have discussions around this fund and its uses. This is an initial structure and the community should modify or change this as necessary. (i.e update the distributions or request more funds from the DAO, utilize other distributions methods, new KPIs, etc).

The squad is open to any new ideas and can decide to allocate funds for new initiatives, or for one-off projects that benefit the community and help reach the KPIs above. If you would like to contribute via support or other work - please post it on the forum for now. The Squad will create proper communication channels with the community to facilitate an easy way to get in touch with its members, based on the existing channels or new ones.

The fund is only an initial seed to test how successful the members can be in growing the platform. All expenses paid out from the fund should be publicly disclosed.

Funds allocation

  • 25,000 BPRO for a 3-month pilot period.
  • The funds will be allocated to a unique account which will be under the control of a multisig of 3 out of 4 signers - 3 keys will be held by each of the Squad members and 1 by the team.
  • A full report on the spent funds and their impact will be published at the end of the pilot period by the Growth Squad.
  • Any funds that won’t be used during this pilot period will be returned to the DAO Reserve or be used in the next funding round for the Growth Squad if such round will be decided by the DAO.
  • The Growth Squad members will be eligible for total rewards of up to 20% of the Squads fund (5k BPRO in total to all members together) on achieving or exceeding the KPIs mentioned above.

Reason

The BProtocol community is still in its early stages and needs to expand as we continue to grow as a project. Onboarding new users to the protocol and getting more BPRO holders to participate in the governance are two of the most important metrics of a healthy and growing DeFi protocol.

Result

Open a Snapshot vote for this proposal.

If it passes - Create a Growth Squad Fund to be utilized by the current multi-sig according to the directions of the Growth Squad members, and allocate an initial 25,000 BPRO from the DAO Reservoir to it.

4 Likes

There’s perverse incentives here that allow the anonymous members of the growth squad to enrich themselves via a sybil attack. Utilizing B.Protocol has no cost other than gas. The members of the squad stand to earn ~$50,000 and the cost of the sybil attack to meet the KPIs is much less than that.

At a minimum their needs to be filters for attack vectors on each of the KPIs.

  1. only users with at least $10k of debt on the platform
  2. should be based on token holders of material size, say >$1k

All of this could still be easily gamed if one of the members is a secret whale. I’d rather allocate more to the team itself and have them hire people for marketing…