I wrote up a rough draft for a vesting plan that uses daily revenue that accrues to Lido’s treasury instead of fixed amount of LDO tokens as each KPI is triggered. I have literally zero experience doing this so I welcome everyone to take a scalpel to my idea. I used MATIC as an example and not as something I want to implement for Shard Lab’s plan. Im happy with that plan.
The “marketshare” column shows the market share that a staking derivative must reach to trigger a vesting event.
The “daily revenue*vesting multiplier” column shows the hypothetical daily revenue(in dollars) that Lido’s treasury would be accruing MULTIPLIED by the “vesting multiplier”. The vesting multiplier is an arbitrary number that would indicate the number of days it would take for Lido to break even at each vesting period. For example, at 2.5% market share earning $12,114.67 per day, it would take Lido 30 days to recoop the value of the LDO tokens paid to the vendor.
The “Total LDO tokens paid” column indicates the total amount of LDO tokens vested to the vendor. Using the first example again, at 2.5% market share earning $12,114.67, at 30 days revenue that is $363,440.10, or 83,935 LDO tokens paid to Shard Labs in this example.
The 30 day average price of LDO and MATIC is the 30 days BEFORE the KPI is triggered. I used 30 day average to calculate the price because I was worried that incentivized agents could manipulate the price of each token right before a KPI is reached to increase/decrease the value of LDO tokens paid to the vendor.
In this model, I see the following being debated:
-How to calculate the price of of tokens when KPI’s are triggers(ie 30, 60, 90, etc day average price.)
I have seen some plans that ask for Lido to pay for development costs if it is determined by both parties that the project is a failure. I think it would be best for Lido to always pay for development costs up front and be done with it. Because of the ambiguity of what is considered a failure, it could cause lots of friction and drama to determine payment after the fact.