I would like to add a community-building perspective to the topic.
If we were an HR department of a company that looks to get the most for its resources’ frugal spending, a lot of the logic above would be applicable.
The critical metric would be the number of ‘happy customers’ we ‘buy’ with 1$ spent on chat support service.
In my opinion, there is a bigger picture to consider.
When we reward teams and individuals who bring value to Uniswap, using the most precise market rates might not be the right approach.
Uniswap treasury is far from being short on funds, so I can’t find a good argument to be frugal.
Even when we significantly overpay contributors for their work, it still is likely the best avenue of spending governance treasury in terms of ROI.
The way we reward contributions sends an important signal to future contributors.
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Higher rewards bring more contributors .
- Higher rewards raise the cap of the quality of incoming contributions.
Let’s consider two scenarios.
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we reward contributors with perfect market rates
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we reward contributors with 2x market rates
Imagine we reward 1 million UNI for 1 million UNI worth of work over a year in the first scenario.
In the second scenario, we would reward 10 million UNI for 5 million UNI worth of work.
In my opinion, the second scenario is much more beneficial for the growth of Uniswap.
If we want more people to bring value to Uniswap, the rewarding process needs to be:
a) easy
b) generous.
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Regarding the proposal at hand, the suggested rates are close enough to market rates that I don’t think there is a need for discussion on lowering them.
Lowering the rates would send an uninviting signal to future Uniswap contributors.
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Regarding the proposal’s scale, I think it would be better if the second layer of Uniswap governance would decide on and execute it.
The scheme where 40 million UNI tokens need to vote for a 35k grant looks disproportionate to me.