LPR - Long-Term Participation Rewards

Supports:

• Performance-Based Bonuses

Context:

In DAO ecosystems, sustaining member engagement and loyalty over the long term is critical for maintaining a robust and active community. Retaining experienced members not only preserves institutional knowledge but also incentivizes continuous contribution and leadership development within the DAO.

Problem:

Many decentralized autonomous organizations struggle with member retention, as initial enthusiasm can wane without proper incentives to engage members over an extended period. This leads to high turnover, loss of expertise, and a potential decrease in DAO performance and governance quality.

Forces:

• The need for consistency and reliability in member participation and contribution.
• The requirement to balance short-term rewards and long-term value creation within the DAO.
• The challenge of designing an incentive system that recognizes and rewards long-term commitment without causing inequity among members.

Solution:

Implement a system within the DAO that rewards members for their long-term participation and contribution. This system can include gradual increases in governance power, higher dividend payouts, or special community statuses as members age with the DAO. Such incentives help ensure that long-term contributors feel valued and are compensated for not only their ongoing contributions but also their loyalty and commitment to the DAO’s mission.

One method to structure these rewards is by scaling voting power and financial benefits based on the duration of active participation. This can be implemented using token vesting schedules where members earn more governance tokens the longer they participate, or through tiered membership statuses that offer exclusive benefits at each level.

Real-world examples such as MakerDAO have adopted similar approaches where governance power increases with the amount of MKR tokens locked in their voting contract, encouraging long-term holding and participation in governance. Another example is EOS, where long-term holders can earn greater staking rewards over time.

Therefore:

Design and integrate long-term participation rewards that provide incremental benefits to members, fostering sustained engagement and rewarding loyalty within the DAO ecosystem.

Supported By:

• Conviction Voting