Balancing of compensations
Hello everyone 
As you all know, bear market is here, but Tornado Cash contributors are still working hard even during these harsh times 
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 donât 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 $100k per month, so that they can continue their work on the protocol development.
Solution
Here is what I do suggest for balancing out positionsâ compensation (+ adding the compensation for the Russian community).
This list follows the average remunerations in the western countries regarding DAO workers positions.
| Position/cost | Compensation (in TORN per month) |
|---|---|
| Operational costs | 100k$ |
| 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 monthsâ 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 monthsâ 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 doesnât have the funds to pay a bounty, we could take the DAO workersâ 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!
