A Summary of CBI

Problem:

The Decentraland DAO has two major problems:

The grants system is flawed: It has been exploited, with funds distributed unfairly, and there’s no proper reward system in place to recognize or incentivize meaningful contributions.
The community feels powerless in the DAO: There are no ways for users to gain Voting Power (VP) without spending money. Contributions aren’t rewarded with increased participation, decision-making ability, or recognition, leaving many feeling disengaged.

Solution:

The Contribution-Based Incentive (CBI) system introduces a fair way to reward positive community contributions, allowing users to gain VP, rewards, and influence without having to spend money. Users accumulate Dharma (potential) and gift it to others, turning it into Karma (recognition). Karma decays over time, requiring continued contributions in order to receive rewards. Rewards are paid in MANA, empowering users to gain VP, stimulate economic growth, and receive real-world benefits.

This system fixes both issues by creating a fair reward mechanism that empowers the community and incentivizes long-term, meaningful participation.

Detailed Overview:

Financial Structure:

Under the structure proposed by the DAO ReGenesis of 2024, a Contribution Based Incentives program would work through the following financial structure:

CBI - Financial Structure.png

Allocating Funds: A Structured Financial System

The financial structure begins with the DAO Treasury, overseen by a Board of Advisors, who are responsible for approving and allocating funds across the DAO's operations and incentives. The process flows as follows:

1. OpCo Budget:

The Operational Company (OpCo) receives a quarterly budget approved by the Board of Advisors to manage day-to-day operations.
Unused OpCo funds can be transferred back to the DAO Treasury or optionally contributed to the CBI Bucket, allowing the community to benefit from an efficiently run OpCo. This increases community appreciation for a well-managed organization.

2. Incentives Budget:

The Board of Advisors allocates a Community Incentives Budget, which is split into two primary buckets: the Grants Bucket and the CBI Bucket.