YIP-xx: Prefunding Reimbursables

YIP-xx: Prefunding Reimbursables

Basic Summary

This proposal attempts to create a standard for a way to streamline pre-paying for code deployment by contributors without compromising heavily on trustless-ness.

Motivation - Why am I proposing it?

At the moment, the DAO contributors who deploy the on chain contracts for monthly proposals and execute multi-sig payments need to have the ETH available to do so beforehand and request reimbursement afterwards. Some on chain proposals gas costs are quite expensive (0.5 ETH and up) This could be considered a hardship and may limit the pool of people who are able to perform this task in a way that is unrelated to their technical qualifications.

Pre-paying funds for these transactions is a feasible solution to this problem. Due to the specifics involved in deploying code and a lack of a system to punish someone who takes the funds and disappears, it is very hard to do this in a trustless way.

Specifications - How am I proposing it is accomplished?

As a work-around to the above issues, I propose the following model as a way to limit the DAO’s risk and provide a clear set of rules around transparency for anyone who receives funds prior to performing any action that uses those funds.

  1. The DAO shall determine an acceptable maximum amount that it is willing to distribute to any contributor that will need to use funds in the near future for DAO related activities. This could be specified generally for any contributor or for a specific contributor. This shall be determined via snapshot vote. This only need to happen once.
  2. Before funds can be dispersed, the contributor requesting funds shall create a clear request, posted on the YAM governance forum stating the amount they need, the way in which the funds will be used, and the time period in which they will be used. This request shall be made at least 3 days before the funds can be transferred.
  3. The contributor requesting funds shall create a new, unused Ethereum address (or other chain if that is where the funds are to be used) that will receive the funds and will be used exclusively and for the sole purpose of performing the transactions stated in the forum post. This wallet can be re-used for future YAM related actions as long as it is not been used for anything else.
  4. This wallet address shall be posted on the forum with the request so that anyone who wishes can verify that the funds have been used correctly.
  5. Credible objections to this request that are brought up must be resolved prior to sending the funds. Determination of what is credible shall be determined by the multi-sig signers who will be distributing the funds. If the recipient of the funds is one of these multi-sig signers they can respond to the objections but shall have no say in determining credibility.
  6. After 3 days with no objections, or a resolution of objections, multi-sig signers should send the funds to the specified wallet.
  7. Any deviation from using the wallet in the way stated in the post, sending funds to another wallet, or any other behavior that breaks the expectations stated above should result in the DAO revoking the privilege to receive pre-funding. More severe misbehavior with any of these funds (i.e. theft, loss, etc) should result in additional penalties as determined by token holders.
  8. At the end of the time period for which actions are expected to be carried out by the contributor, if there are no further requests for pre-funding, any unused funds shall be returned to the multi-sig at the expense of the contributor.

These rules are intended to create a clear precedent for how the DAO deals with prefunding contributors for work expected to be done. These rules will govern this process until another, improved or modified process is proposed and ratified.

This process does not apply when contributors request payment for reimbursable expenses. For those, clear backup for actions and items funded shall be provided before payment is distributed.

Poll to Measure Sentiment

  • Implement new model for pre-paying from multi-sig
  • Do not implement new model

0 voters

A little color on this proposal:

The multi-sig is already pre-funding deployment costs. These transactions can be seen here and here, which were send out for last month’s and this month’s development costs.

As a multi-sig signer, I signed the first of these transactions but I am not comfortable signing transactions that pre-pay for what were previously reimbursables without having it visible to governance and other YAM stakeholders. I believe it sets a bad precedent and it can easily be made more transparent and clear by following the steps I outline above.

This makes a lot of sense to me. Thanks!

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