#saplings Other DAOs have modeled their comp programs after Maker DAOs. But people also have criticisms like Ben O’Neill

Tweet - Arbitrum RFC and MakerDAO Delegate Compensation System (1) Compensation formula (2) Governance core unit (AlphaGov) = Governance Facilitator

Possible issues (imo): the compensation formula is cumbersome & GovAlpha has a cumbersome (lots of manual work) job every month to track proposals/votes and make subjective-ish decisions about delegate performance. This also makes them hard to replace b/c they have knowledge. But what if the committee was elected & they were paid a fixed fee. Then delegates had a pool of funds for compensation. So delegate comp. is a line item on budget like MakerDAO.

IMO best to automate the process.

MakerDAOs compensation program was one of the earliest ones and extremely robust, with a centralized committee who maintains a compensation formula which i wrote about ad nauseum in my tweet.

L2Beats brings up another program, Hop, which he says he likes for self-reporting. The formula, however, I found to be opaque.

![[Pasted image 20230913095107.png]] Source: https://ournetwork.substack.com/p/our-network-deep-dive-2