- Author: Lexi Caffrey (SuperRare Labs)
- Status: Proposed
- Type: Treasury Management
- Implementer: RareDAO Governance Council & RareDAO Foundation
- Sponsor(s): TBD
- Created Date: July 2, 2024
Summary and Motivation - The current Master Service Agreement (MSA) between the RareDAO (DAO) and SuperRare Labs (SRL), established in SIP-11, is up for renewal in August and needs to be changed. This proposal moves to update the payment terms in the MSA to ensure that SRL is properly compensated for the work it does on behalf of the DAO. This SIP proposes that we change the terms from one based on DAO fees to one based on expenses billed.
Specification - The MSA established in SIP-11 allows for SRL to invoice the DAO monthly for its services plus a 15% service charge along with its relevant expenses. However, when the DAO’s monthly revenue is lower than SRL’s accrued services and expenses, then SRL is only able to invoice the DAO for 85% of monthly revenue. When the original MSA was signed this was a mutually beneficial agreement, however the market has changed quite a lot and this no longer makes economic sense. Given that the MSA is up for renewal in August, we recommend that the section limiting invoices to 85% of revenue be removed from the MSA and that the service charge be reduced from 15% to 10% to provide an equitable agreement for both parties. This aligns incentives between the DAO and the most active service provider to ensure continued development of the project.
Benefits - SRL, the DAO’s largest service company, would be in a more stable financial position and more freedom to continue to improve its infrastructure and features for the DAO and the community.
Drawbacks - The DAO treasury could be paying out more money each month to SRL.
Outcomes - Continued growth of the DAO, protocol, and network as a whole.
This SIP has fulfilled the DAO requirement and has moved forward to