Delegate Incentive Program Refinement from June
Introduction
From the outset, the Delegate Incentive Program was designed as a progressive and evolving initiative. Early on we identified an area for improvement that we believe is key to refining the program. By addressing this, we can bring the DIP more closely in line with its core goal: encouraging high-quality, meaningful participation from delegates. A key part of this involves introducing a tiered compensation system that fairly recognizes and distinguishes different levels of contribution.
A point we’ve identified and worth revisiting is that a delegate who simply votes and provides rationales for all their votes—without making any additional contributions—automatically qualifies for Tier 2 by reaching 85% Total Participation. This is the same as a delegate who, in addition to voting and providing rationales, also made other contributions that, while not outstanding enough for Tier 1, still added value and brought their Total Participation between 85% and just under 95%.
We believe this is unfair, as both delegates receive the same treatment despite clearly different levels of engagement. Equating them misaligns the incentive structure, which is meant to encourage greater and more meaningful participation from delegates.
Accordingly, we will make use of the faculties and responsibilities that have been granted to us in our role as Program Manager:
Amendment:
To improve the program and address the previously mentioned inconsistency, we will implement the following adjustment to the DIP, which will take effect starting in June.
For the current month of May 2025, participation parameters will remain the same as last month, as the month is already in progress and it would not be reasonable to apply retroactive changes.
Therefore, these updates will come into effect on June 1, 2025.
Current tiers:
New tiers (Starting June 1, 2025):
- Payment USD (PUSD): The final amount of USD in PSP tokens that the delegate will receive in each month is based on his TP% and his Tier.
- Tier 4: TP ≥ 75% and < 85%. Compensation range: up to $ 1,000.
- Tier 3: TP ≥ 85% and < 90%. Compensation range: up to $ 1,500.
- Tier 2: TP ≥ 90% and < 95%. Compensation range: up to $ 2,000.
- Tier 1: TP ≥ 95%. Compensation range: up to $ 2,500.
In this way, the current Tier 1 remains unchanged, the current Tier 2 — which covered Total Participation of ≥ 85% and < 95% — is now split into three tiers, with a new Tier 4 added, which corresponds to the current Tier 3:
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New Tier 2:
Total Participation of ≥ 90% and < 95%, with a compensation range of up to $2,000.
(For delegates who vote and justify all their votes during the month, and also make contributions, although they do not reach Tier 1)
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New Tier 3:
Total Participation of ≥ 85% and < 90%, with a compensation range of up to $1,500.
(For delegates who only vote and justify all their votes during the month)
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New Tier 4:
Total Participation of ≥ 75% and < 85%, with a compensation range of up to $1,000.
(For delegates with low, but not null, participation)
Starting with this new tier scheme effective from June, we will continue to monitor how the program iterates and performs to see if the announced changes have the desired effect. If not, we will make further adjustments.
We have edited the first to reflect the announced changes.
We are, of course, open to receiving feedback and suggestions from delegates and the community in general to continue improving the program.
Other contributions
Finally, at @mehdi’s suggestion (here and here), and to evaluate delegates’ performance for the ‘Delegates’ Feedback’ parameter, we will assess real and concrete public contributions that have an impact, made by delegates outside the official and usual governance channels. This includes activities on social media such as Twitter/X and other governance forums.
To this end, delegates who believe they have made such contributions can share with us, by the last day of each month, the proof of their public contribution. This can be done through any available medium, such as a post in their delegation thread, DM via the forum, DM on Telegram, or message in the Delegates’ group. The proof may include, for example, links to their Twitter/X or other governance forum posts.
SEEDGov, as the Program Manager of the DIP, will evaluate these contributions to form the ‘Delegates’ Feedback’ parameter based on the quality of content, engagement, and effectiveness in boosting governance participation. Additionally, the provided evidence will be published in the monthly report for the entire community to be informed.