Yearn.finance Reveals ‘Coordinape’ Decentralized Grant Distribution Platform
Yearn. finance has revealed the details of “Coordinape,” a distribution platform for the $40,000-per-month Yearn DAO community grants budget — putting a wider effort to further decentralize Yearn’s governance.
Andre Cronje, the founder of Yearn, said in an interview with Cointelegraph that he is not taking part in Yearn’s “day to day” development. Each Coordinape member will have a set quantity of “allocation points'' which they can be distributed to other members who they worked with during a given month. At the time, Members with the most interactions and allocations will receive vast portions of the grants budget.
There are several other tools for distributing rewards programmatically, such as Colony, a recently re-released DAO platform, core Yearn operations member Tracheopteryx said that an in-house solution was essential for the firm's eccentric needs.
“We have a monthly grants budget of $40,000 and dozens of active contributors. How do you decide how much to give each person? You could use a DAO to decide on the allocation for each person one by one, but that doesn’t scale,” he said. “Coordinape let’s each contributor allocate tokens to everyone they think brings value, then when you look at the total allocation across all contributors it’s a pretty accurate and efficient way to assign asymmetric rewards. Nothing else out there does this.”
Tracheopteryx and others have been working to find the solution on Coordinape since February. The platform is inspired by Teal, a school of organizational theory that advocates for worker self-management, as well as recent developments in computational social choice.
According to Tracheopteryx, the ultimate goal is to “move more decision-making powers off of the multisig’s shoulders and onto a network of autonomous and self-managed teams.”
At first sight, however, Coordinape’s joint-reporting member-reward program seems at odds with the wider cryptocurrency space. Users' reports on one another’s contributions could quickly and easily be played through soft coordination, running contrary to the elegant economic incentives and security undergirding so many smart contract systems.
However, Tracheopteryx said this trust at the social layer is key to Yearn’s success.
“When you work in crypto sometimes you get so used to thinking about trustless systems, attack vectors, and adversarial environments that you can't see anything else. But the reality of most creative teams is that they are highly collaborative environments. We needed a consensus mechanism that enhances that kind of energy. This can only work on top of a trustless blockchain, just like an orchid can only bloom from the physics of matter.”
He stated that the “incentives are pretty low” to game the program, and that by design it can’t be operated “catastrophically.”
As Cronje explained in the blog, Likewise Yearn itself Coordinape is a tool that “originate(s) out of a personal need, but can be generalized to help any other organizations / DAO’s struggling with a similar problem.” The team will be releasing an open-source version of Coordinape as soon as possible, and are “excited to see how people add value and innovation.”