Earlier this month, @Cattin0x wrote a Request-for-Comment (RFC) re: an Incentive System to Compensate @arbitrumDelegates. https://forum.arbitrum.foundation/t/rfc-2-delegate-incentive-system-for-arbitrumdao/15720…

This is a very important topic so I want to use this tweet to pull on some threads. First things first, why do we even need to compensate delegates? Well, the reality is that people who spend time and energy on governance work need to be rewarded .. with money.

Organizations who pay professionals to do governance work already exist β€” (e.g, @labsGFX, @StableNode @Blockworks_@flipsidecrypto). Unsurprisingly, these orgs are the most active in the forums and on @tallyxyzwhen it comes time to voting on-chain.

In the grand scheme of things, however, governance participation is still very low. So, what do we do? We create a system that incentivizes quality participation & pays delegates!

As Cattin writes in the RFC: β€œit is crucial to discuss establishing an incentive system that provides delegates with constant, attractive, and predictable rewards. To scale governance, it is essential to maintain delegate activity, who, through their voting power, guide and define the course of governance.”

Case Studies:

Tweet - Arbitrum RFC and MakerDAO Delegate Compensation System

Optimism Delegate Compensation System