Balancing Compensations

Balancing of compensations

Hello everyone :smile_cat:

As you all know, bear market is here, but Tornado Cash contributors are still working hard even during these harsh times :muscle:

Problem

Due to the price fluctuations, in order to keep contributors with us, we either have the choice to have stable coins in our community fund, or we can balance compensation equivalent in TORN.

I think that in the long run, it will be necessary to define a diversification strategy of the community fund, which would minimize the problems generated by the TORN volatility.

However, the stable coin strategy would involve selling TORN and would create selling pressure, which is clearly not needed currently because of the bear market. In a future proposal, we need to think about how to diversify.

Therefore, I think that it is not the right time to sell TORN for stable coins now; rather, it is better to balance TORN compensation so as to keep it viable for the team and for the contributors - costs don’t move, but prices do.

In addition, as the founding team has recruited more software engineers to work on SuperNova (the version actually in development), it is necessary to increase their grant from $80k per month to $100k per month, so that they can continue their work on the protocol development.

Solution

Here is what I do suggest for balancing out positions’ compensation (+ adding the compensation for the Russian community).
This list follows the average remunerations in the western countries regarding DAO workers positions.

Position/cost Compensation (in TORN per month)
Operational costs 100k$
Head of Community 13k$
Russian Full Community Management 10k$
Developers 8k$ to 9k$
Multisig signers 5k$
CM & others full-time contributors 4k$ to 5k$

When it is needed, multisig signers can check if the compensation needs to be updated relative to the market and to the involvement. If, for example, it is not sustainable for contributors, then multisigs could update compensation ranges in TORN to adopt the compensation proposal above. Or,
if a contributor is not involved enough, then the compensation can be reduced/removed and vice versa.

By doing so, we avoid the unhealthy impact on operational costs and contributors created by high volatility, and we allow both the founders and the contributors to keep their compensation more balanced so they can continue working towards developing Tornado Cash.

Simulation

Therefore, I made a simulation with the hypothetical proposal execution date of June 10 and the TORN price of $30 or $25.
I then took into account all of the current outgoing Sablier that would go directly back into the community fund, removed 6 months’ worth of costs (operation, compensations) and added the Community Fund Grant Sablier available amount on 12/10/22 (6 months from 6/10/22).

How much is TORN available on June 10?

On June 10, with every Sablier refunded, community fund would have:

From Amount in TORN Amount in $ ($30/TORN) Amount in $ ($25/TORN)
Community fund 54,469* $1,872,450 $1,560,375
Operation Sablier refund 6,410 $192,000 $160,250
Compensations Sablier refund 3,840 $115,200 $96,000
Total available 64,719 $1,941,570 $1,617,975

*54,469 = 49914 (actual funds available) + 4555 (actual amount claimable from the community fund sablier)

How much TORN is available on December 10?

Subtracting 6 months’ worth of costs and adding the community fund grant Sablier for 6 months:

Items Amount in $ (30$/TORN) Amount in $ (25$/TORN)
Community Fund on 15/06/22 $1,941,570 $1,617,975
Operational costs for 6 months - 600,000$ - 600,000$
DAO Workers for 6 months* - 315,000$ - 315,000$
Community Fund Sablier on 10/12/22 + 973,350$ ** + 811,125 **
Total = $1,999,920 = $1,514,100

*marty, bt11ba, rezan, gozzy, ghost, garf1eld, fennec and myself.

**~ 32,445 TORN claimable from the community fund sablier (37,000 TORN - 4555 TORN claimed on June 10th on our simulation)

This leaves the community fund with more than enough to cover other expenses, such as dealing with potential bug bounty payments.
Now, if it turns out that the price of TORN drops significantly and the community fund doesn’t have the funds to pay a bounty, we could take the DAO workers’ ongoing monthly grants out of their Sablier to pay the bounty.

I hope my explanation is clear, feel free to provide your feedback regarding this proposal!

Could @rezan or @bt11ba organize a snapshot please? :kissing_cat:

3 Likes

Dear Community,

I think the tc team is doing great job, all but Mr. Ghost. As I wrote before Mr Ghost is the war propagandist (just look at his telegram channel Ghost in The Block, if you didn’t know it). And as such he could possibly one day face same sanctions as other war propagandists (like Soloviev, Kiselev, Simonjan…). As he is doxed (Ghostbusters: деанонимизация Ghost in the Block – Telegraph) it will also expose TC project to high risks, giving one more argument against tornado cash to the appropriate authorities.
Therefore I see very high risks in providing Mr. Ghost with a 10k per month from TC DAO funds. I will vote against this proposal and also recommend you to do the same.

there seems to be decentralization, yes, but you are on the CEX side and probably encourage the removal of the labor of Russian-speaking users, as Buterin did

Here is the snapshot vote:
https://snapshot.org/#/torn-community.eth/proposal/0xce76c7973c98f4aad44452cd2a7273f798793f2294c28ac2ea0de7d9ade3fbc8

1 Like

Fake news. Ghost multisug-member and Ghost_In_The_Block are not related.

@Ghost as I have already written, there are multiple indices that you are the same person. See below…
Dear community, please understand me correctly. We should not fund any person, that makes war propaganda. It is not good for tc for legal reason and not good for moral reason (i.e. many great crypto projects are done by ppl from russia and ukraine together and we are against this barbaric war)
With best regards,
----Why @Gost is the same person–

  1. you have written, that you live in usa and have no knowledge of russian, but you have translated tc doc to russian:
    https://docs.tornado.cash/v/ru/ Russian docs : Mr_Ghost
  2. you we funded by DAO for the moderation of russian TC support forum, right?
    This is how bt11ba introduced you:
    "
    I propose that we expand our field of vision by adding a non-European/American multisig this time, but rather a Russian one, who can represent the interests of the Russian community: @Ghost (creator of the Tornado Cash russian telegram group).

0 facts.

Just some weird thoughts. Anyone can live in the USA and speak russian.

So, you can stop your split mind and do not flood here.

Nobody cares about local conflicts in true crypto community.

Your schizo-spymania and russophobia means nothing in the world of Decentralization.

Dear @Ghost,
Fact:

Message @bt11ba from Nov '21
Citation: " @Ghost (creator of the Tornado Cash russian telegram group)." This telegram group has same admin and same symbols and use most of reposts from “Ghost in the block” group.

But I am speaking not to you but to the community. For how silly @Ghost hold us, when he is using words like “russophobia”. Nobody has something against russians. Your trick is too simple. You are calling our rejection of a dumb decisions of one dictator russophobia. There were no true elections and no political opponent cold participate, changed constitution and then he has started this war, were he bombs russian speaking towns like Charkov, Mariupol… No Mr @Ghost, russophobia is something different. Russophobia is to support this war and to ruin the future of the Russia, your own country.

Community should not fund @Ghost

Well then what is the point of tornado cash . If they take a fee of it then they are paid for their part of the services that they are paid for . Crazy your word on a contract dont mean shit . Remind me never to hire this guy for anything and also never have him in our presence cause if anything goes down this guy will be giving a disposition.