Grateful Mentorship Agreement Q3-Q4 2023

Title: Grateful Mentorship Agreement Q3-Q4 2023
Authors: Alejandro Santander, Gaston Silberman
Date: 01/11/23

Summary

This proposal delineates the particulars of the first agreement between the EthernautDAO and a project, in this case the Grateful Protocol, reflecting the DAO’s updated mission. It specifies Grateful’s requirements, the timeline of the agreement, the DAO’s provision of a lead mentor and additional on demand mentors, the project’s compensation to the DAO, and the subsequent remuneration of the DAO’s mentors.

Background

Recent proposals have set the stage for the introduction of this proposal, signifying the dawn of the DAO’s new mission to “cultivate true value in Web3.”

  • The mission change proposal broadens the DAO’s mentorship scope, extending it from individual developers to entire teams.
  • The project alignment proposal outlines the criteria determining which projects qualify for the DAO’s mentorships.
  • The paid roles proposal stipulates compensation structures for those roles in the DAO indirectly supporting mentorships.
  • Lastly, the new economic model proposal delineates the framework within which the DAO can form bespoke agreements with projects seeking mentorship.

This proposal embodies one such bespoke agreement.

Specification

The proposal is organized in the following manner:

  1. Definition of the agreement’s duration and pertinent dates,
  2. Detailing the requirements of Grateful,
  3. Outlining how the DAO intends to meet these requirements, and
  4. Describing the compensation structure for both the individuals participating and the DAO collectively.

Agreement Duration

This agreement spans from September 1st, 2023, to January 31st, 2024. This period aligns with the current council epoch and also marks the informal commencement of the mentorship.

The subsequent council epoch commences on February 1st, 2024. Upon this date, the present agreement will cease to be valid. The onus will be on the succeeding council to either renew this agreement or deem the mentorship as concluded.

Grateful’s Needs

Below is a list provided by the Grateful protocol, detailing specific areas where assistance is required to achieve its Q3 2024 objectives.

  • Product Vision
    • Inclusion of a technical mentor in weekly sync sessions.
    • Engagement of a product mentor in weekly strategic discussions.
  • Code Review and Contract Audits
    • Input from a technical mentor on feature design and problem-solving strategies.
    • Thorough code assessments in technical implementations.
    • Assistance in obtaining audits — The DAO will leverage its connections and community to help secure cost-effective audits for the project’s developments.
  • Immersion in Optimism and Ethereum Communities
    • Grateful, valuing its alignment with Optimism, aspires to integrate with the Optimism ecosystem. While Grateful recognizes the overarching principles of both the Optimism and the broader Ethereum ecosystem, guidance is sought on achieving compatibility.
  • Grants and Funding
    • As Grateful functions as a public good, relying primarily on grants and community backing, the protocol seeks support in applying for grants and ensuring eligibility compliance.
  • Pinpointing Genuine Use Cases
    • While Grateful presents a clear product and vision, it seeks the DAO’s expertise to identify its authentic role within the Web3 ecosystem.

The DAO’s Approach

Permanent Lead Mentor

The DAO proposes to assign Alejandro Santander as the lead mentor for this project, to assist in all weekly calls, meet all technical needs, and provide recommendations on community alignment and ecosystem values. For this, the lead mentor will devote a total of 5 hours per week, i.e. 20 hours per month.

Dynamic Mentors

Additionally, the DAO will offer the services of specialized, non-permanent mentors with advanced expertise in the realms of Optimism and grant acquisition. The DAO commits to providing an aggregate maximum of 8 hours monthly to this project, with these hours being distributed across various mentors.

Community Presentations

The lead mentor is responsible for documenting the project’s progress in the DAO’s system and organizing monthly public updates for the EthernautDAO community. These updates will align with the project’s needs and include a final review at the agreement’s conclusion to assess the mentorship’s overall impact.

Compensations

The compensations rationale for this agreement is structured in a three-step process: First, the DAO appraises the mentoring cost. Next, the project determines how to fulfill this cost. Lastly, a performance multiplier is applied, adjusting the DAO’s compensation based on the team’s satisfaction level.

Note: Any additional agreements between Grateful and its mentors are not prohibited by this agreement.

Costs Incurred by the DAO

We suggest that the DAO’s mentors charge at a rate of 200 USD per hour.

It’s estimated that dynamic mentors will contribute 1 hour of work weekly, translating to 4 hours monthly. Additionally, the lead mentor can request 4 additional hours from the council, but any hours spent beyond this on the project are borne by the DAO and not by the project. The lead mentor is in charge of keeping track of all dynamic hours.

Summing up, this amounts to a monthly total of 24 mentoring hours, equating to 4800 USD.

DAO to Mentors

The DAO will be in charge of compensating mentors for their work in the project, facilitating a 50% conversion from assets that promise some value in the future into assets with current value, such as stable coins, or any tokens with a present market valuation.

Given the suggested compensation of 200 USD per hour,

  • The lead mentor is entitled to a monthly compensation of 2,000 USD (200 * 0.5 * 20).
  • Dynamic mentors are similarly compensated but based on their reported hours to the DAO, for an hourly net compensation of 100 USD per hour (200 * 0.5).
  • It’s estimated that dynamic mentors will contribute 1 hour of work weekly, translating to 4 hours monthly. Additionally, the lead mentor can request 4 additional hours from the council, but any hours spent beyond this on the project are borne by the DAO and not by the project. The lead mentor is in charge of keeping track of all dynamic hours.

When the DAO eventually unwraps future values from the project (e.g. SAFE agreements), it will forward the corresponding part to the mentor. It is very important that the mentor documents the mentoring process as well as possible for facilitating calculations when this event occurs.

Performance Multiplier

This multiplier applies to how the project compensates the DAO at particular checkpoints during the mentoring process.

We further propose the addition of a multiplier to this sum, contingent on a joint assessment between the council and the project at the conclusion of this agreement. This multiplier can range up to 3x of the initial amount, based on the following scale:

  • 1x - The value derived falls short of the project’s expectations.
  • 2x - The value derived meets the project’s expectations.
  • 3x - The value derived surpasses the project’s expectations.

Project Payment Schedule

Grateful agrees to make monthly payments to EthernautDAO on the last day of each month as compensation for the mentorship services.

Scoring System

To assess the project’s progress and ensure transparency, we will implement a scoring system. Grateful, as the mentee, will work with their mentor to assign scores to various project components (Please refer to Grateful Needs). These scores will then be presented to the DAO Council for approval. The cumulative score will be used in monthly evaluations and will determine the multiplier for additional payments.

Progress Evaluation

Grateful and their mentor will conduct regular assessments of the “Grateful Needs” defined at the start of the mentorship. This evaluation process will help us track progress and make necessary adjustments.

Payment Method

Payments will be made via a SAFE (Simple Agreement for Future Equity), with the amount determined on a monthly basis and contingent on the project’s valuation.

SAFE Formation

The formation of the SAFE will be carried out by either a representative from the DAO or an entity designated by the DAO, ensuring a transparent and secure payment process.

Termination Clause

In the event that either party decides to terminate the agreement, Grateful commits to making payments up to the last active day of the mentorship.