AADAO Salary Increases
For eight contributors
Effective 10/31 Payroll
In early October, AADAO contributors initiated salary adjustments citing expanded responsibilities following the GM’s departure.
Old Salaries
The potential funding sources for these increases consisted of the former GM’s unallocated monthly salary of $14,500, with additional consideration given to utilizing up to 1.2% of the bonus $ATOM allocation.
While Oversight agreed with the plan to adjust salaries in principle, the proposed increases exceeded the established compensation brackets established and ratified via proposal 865 (see below).
Oversight insisted that the increases must maintain alignment with the approved compensation framework to ensure compliance with existing governance approved pay parameters.
The core team and oversight agreed that a specific exemption for the Operations Associate position was warranted, as the established hourly rate range of $15-20 was both inadequate and overly restrictive.
On November 4, 2024, the following increases were proposed, and accepted via an all-DAO vote; making the following increases effective as of the 10/31 payroll.
New Salaries
AADAO Bonus ATOM
Prop 865 established a bonus pool of 100,000 ATOM, with distribution contingent on defined Key Performance Indicators (KPIs) that were to be transparently communicated to the community.
Retention Bonuses
Beginning in February 2024, the DAO implemented a retention-bonus reward that distributed 1,320 ATOM monthly to three contributors each month. This retention bonus program concluded with the September 30, 2024 payroll cycle.
Eligibility for retention bonus distributions was restricted to contributors who had completed a minimum service tenure of twelve months with AADAO. The retention ATOM amount is % calculation of the 2024 base salary, disbursed monthly as ATOM.
| Base Salary | Retention Bonus (ATOM) | ATOM Value (@$8.66) | Total Monthly Comp | Ratio (Bonus/Base) |
|---|---|---|---|---|
| $14,500 | 628 ATOM | $5,438.48 | $19,938.48 | 37.5% |
| $6,500 | 281 ATOM | $2,433.46 | $8,933.46 | 37.4% |
| Base Salary | Fixed Retention (ATOM) | ATOM Value (@$6.00) | Total Monthly Comp | Ratio (Bonus/Base) |
|---|---|---|---|---|
| $14,500 | 628 ATOM | $3,768.00 | $18,268.00 | 26.0% |
| $6,500 | 281 ATOM | $1,686.00 | $8,186.00 | 25.9% |
Note: The ratio represents the bonus amount in USD divided by base salary:
- $3,768/$14,500 = 0.260
- $1,686/$6,500 = 0.259
This shows how the fixed ATOM quantities result in a reduced bonus-to-base ratio when ATOM price decreases.
Note: This shows the impact of ATOM price decline while keeping the ATOM quantities fixed:
- 628 ATOM × $6 = $3,768.00 (versus $5,438.48 at $8.66)
- 281 ATOM × $6 = $1,686.00 (versus $2,433.46 at $8.66)
The percentage of bonus relative to base salary has decreased from ~37.5% to ~26% due to the lower ATOM value.
Performance-Based Bonuses/Strategy Bonuses
AADAO contributors encountered significant challenges in developing KPIs that effectively aligned both internal operational metrics and objective measures of performance and “value.”
AADAO Bonus Forfeiture
Due to challenges with developing KPIs, AADAO decided to forfeit all use of bonus ATOM beginning with 10/31 payroll.
This means they cancelled the disbursement of:
- retention bonuses
- performance bonuses (individual & team)
- strategy bonuses
88,056 ATOM remains from the initial 100,000 ATOM bonus allocation (following retention-based disbursements). The ~88k ATOM is held in AADAO Strategy Subdao wallet, and will be returned the Hub community pool.