[Discussion][OBRA] Safe Token Utility Sprint 1

This is an initial draft for a Token Utility Sprint. We’re still looking for two experienced researchers to join the sprint team! If interested, please comment on this thread with your experience or DM me.

Aligned Strategy: 1. Research and implement Safe token utility
Funding request: 50,000 USDC, streamed over 10 weeks with a 4-week cliff.
Relation to Strategy budget: 25%

Abstract
The Safe Token Utility Sprint 1 is a group of 3 experienced SafeDAO contributors working with tokenomics experts and SafeDAO stakeholders to methodically define and scope the best SAFE Token use cases related to DeFi Modules and staking. The sprint will have three phases: 1. Create an extensive list of Safe token utility options, 2. Organize the options based on resources required to realize and potential to generate value for SAFE. 3. Pick the 5 use cases that score highest and prescribe the required resources to develop and successfully implement these Token utility use cases.

After the first Token Utility sprint, we imagine an initial cohort of at least 3 use cases to start the Development and Implementation stage through a follow-up proposal.3

Metrics and KPIs
We’ll use the following measurements to track the impact of this initiative on the Strategy:

  • Number of token utility options mapped that score at least 3 (out of 4) on resources required to develop and potential to generate value for SAFE in the to-be-produced Token Utility rubric.
  • Quality and detail of requirements for the top use cases, judged by how clearly the market potential and technical specification are worked out.

If successful, the outcome of this initial sprint can function as the basics for submitting the first Token Utility Development and Implementation phase.

Initiative Description
Following SEP21, the SAFE Token Utility Design space has been clarified, and an initial community focus on Canonical DeFi features and SAFE staking connected to the Fee engine (value creation and revenue generation) was set out.

Following these priorities, the next step is to complete an initial exploration and prioritize the specification and development of the most promising token utility functionalities.

This proposal aims to form a Working Group of relevant experts who will spearhead the research and design of 3-5 use cases related to DeFI modules and Staking over 10 weeks.

This Sprint aims to determine which use cases are most promising (highest return vs lowest costs/risks) and specify what would be needed to build and test the use cases.

The Sprint would consist of three phases:

  • Token utility mapping phase: During this phase, the group will gather existing and new Token utility options through various means, including stakeholder interviews, desk research, and user submission. The team will remove duplicates and spam and create a final overview with options related to DeFi features and Staking.
    Deliverable: A clear overview of the potential SAFE token utility options related to key DeFi Features and Staking modules.

  • Token utility evaluation phase: During this phase, the Sprint leads and outside experts will score the mapped token utility concepts based on the time and resources required to implement them and their potential to generate and capture value.
    Deliverable: A selection of the most promising 5 use cases, a breakdown of why each was selected, and what will have to be determined/validated during the specification phase.

  • Top utility specification phase: The group will drill down further into the most promising use cases. Additional market research, validation, and interviews with experts and users will be conducted to allow for further prioritization. In parallel, the Sprint team will do technical research and specification to reduce technological uncertainty and confirm the assumptions around resources required to develop and implement the token utility use case.
    Deliverable: A detailed specification of the most promising 5 token utility use cases related to Staking and/or DeFi features that provide sufficient clarity for builders groups to apply for an OBRA budget to develop and implement each token utility function.

Projected workload
The sprint’s Core group is projected to contribute a combined workload of ~40 hours a week for the full sprint duration (10 weeks). Each hour the Sprint team contributes is compensated with ~125 USDC, below standard for Senior blockchain strategists/analysts for projects of this size.

Any future SAFE rewards, if received, will be distributed to Core group members and experts who provided input through a to-be-determined methodology by the Core sprint group.

Current Status
This initiative builds on SEP #21, providing the context for Token Utility. Two priority areas have been identified. Each working group member has contributed to Safe Token Utility through the forum; however, the group has not worked together as a unit.

Risks of the Initiative
Below are the identified risks and how we mitigate them.

  1. Gathering sufficient stakeholder and expert input: Forming a working group might limit the input and implementation from potential stakeholders and expert input that might need to be sufficiently involved. To mitigate this risk, the working group will actively chase input and provide multiple points for feedback #buildinpublic.

  2. Mismatch with core business elements: ​The token utility sprint should consider all business elements when shaping its design, including regulatory requirements, technical feasibility, and viable models that are acceptable to prospective users. The working group will work closely with crucial SafeDAO stakeholders to ensure alignment.

Timeline and milestones

Milestone Description Duration
1. Create an initial directory of SAFE token utility options. Gather existing and new Token utility options through various means, including stakeholder interviews, desk research, and user submission. Remove duplicates/spam and create a final overview. 3 Weeks
2. Organize the options based on resources required to realize and potential to generate value for SAFE. Coordinate with token experts and safe builders to determine the value creation potential and difficulty of rolling out each mapped use case. 3 Weeks
3. Test market assumptions and describe requirements for the top 3-5 use cases. Pick the top 5 use cases and drill deeper to validate revenue potential and roll-out assumptions. Create an initial specification for the specific use case that can function as the foundation for a follow-up proposal by a building entity to develop and implement the use case. 4 Weeks

Initiative lead
LuukDAO (@LuukDAO): An existing Safe Delegate, former DeFi Fund Manager, and founder of Kolektivo Labs with 7+ years of experience in the Web3 space. Luuk will function as a researcher and project manager to ensure the timely and successful delivery of the initiative.

Alex (@espina): Research at Gnosis Guild. Alex has ample experience with the Safe ecosystem and protocol architecture, having contributed to our work on modular infrastructure for smart accounts. Alex brings a deep technical understanding and direct connection to the Gnosis Guild team to fact-check technical evaluations.

Lavi (@Lavi): Experienced DeFi analyst/researcher. Prev Index Coop, Prime Rating, Llama Risk. Active in the Digital Asset space in Switzerland and beyond. Lavi brings relevant business and tokenomics experiences and 4+ years of structured DeFi research experience.

Team
The Core Working group will collaborate with a wide range of stakeholders to validate our market assumption and technical estimations:

  • Tokenomics experts to validate and model token flow assumptions
  • Market experts and existing users to validate our revenue assumption
  • Safe experts to confirm our technical estimations are correct and applicable.

The Sprint will be executed publicly, sharing progress every two weeks and requesting wider stakeholder and community input.

Budget Notes
No up-front capital is required. Rewards will be streamed for 10 weeks following a 4-week cliff. The Safe Tokenomics Working Group will manage all resources in a 2 out of 3 Safe Wallet and allocate them based on internal agreement within the Working Group.

We request that the Safe Ecosystem Foundation (SEF) provide us with a point of contact (Steven) who will coordinate between the working group and the SEF to ensure that all prioritized Token Utility aligns with the SEF’s technical and legal resources.

11 Likes

I think this is a great proposal — having multiple efforts to research token utility would be beneficial to the DAO to explore the full design space.

I’d be happy to join as one of the researchers on behalf of Gnosis Guild. As a researcher at Gnosis Guild, I’ve had ample experience with the Safe ecosystem and protocol architecture, from contributing to our work on modular infrastructure for smart accounts. We are also developing a proposal related to the Fee Engine that would complement this work well.

6 Likes

Hi all,

Great proposal. Thanks, @Luuk, for setting it up. I’d also be interested in joining this group as a researcher.

About me: I’ve been in web3 for 4 years, mostly in roles related to analytics/research and tokenomics. Started in 2020 at Index Coop, leading several initiatives and writing reports on major DeFi protocols. Moved on to lead PrimeRating, where we evaluated over 100 web3 projects, including their tokenomics. Later I worked as an analyst writer for Llama Risk (Curve’s risk team), conducting comprehensive reports on stablecoins. Currently working in the digital assets space, and I’m supporting Nabla in designing their tokenomics. In summary, I do have several years of experience in research, DeFi, and designing tokenomics.

I have previously worked with @Luuk, and I’m also very familiar with Safe and its ecosystem. I’d be honored to support the protocol in this important matter.

You’ll find me on Twitter here. Happy to provide more info or attach previous work if required.

7 Likes

Hi @espina!

I think your background and involvement in Gnosis Guild make you a great fit for the Core group of the sprint! I’ve added you to the proposal.

5 Likes

Hi @Lavi - I’m excited you’re interested in joining the Core group of the Sprint. I know you’re among the most structured analysts and have much relevant experience. I’m going to add you to the proposal.

5 Likes

Great proposal! Sablier Labs has voted in favor of it.

Have you already found a streaming provider @LuukDAO? Would be happy to walk you through how to set up the streams using Sablier (it’s entirely free to use, we are Safe Guardians, and we have a Safe app).