Callisto Network has been launched in the context of a bear market with no pre-mined coins, no external funding, and no ICO. The project’s funding is supported through a straightforward model: 10% of the block rewards are allocated to the Callisto treasury to fund the project’s development. In other words, the project will progress as long as the community and miners continue to support it.
While this model has allowed for a successful launch of the project and the achievement of the white paper’s goals, it needs to be redesigned to expand further the project.
The main objective of the treasury is to fund the Callisto Network development. However, ensuring the motivation of the team remains essential for the long-term success of the project. We, therefore, propose to establish a dynamic incentive model that will keep the team motivated while increasing the investment in the initiatives that will expand the Callisto ecosystem and increase the value of the Callisto coin (CLO).
A Dynamic Motivation System
We propose to evolve the scheme so that each team member, both employees and key community contributors, is motivated by the project’s long-term success.
We have imagined a dynamic motivation system in which the team receives a variable share of the annual treasury income based on the value of the CLO coin:
- 5 percent if the CLO coin’s value is equal to or greater than 100,00 USD.
- 10 percent if the CLO coin’s value is equal to or greater than 10,00 USD.
- 15 percent if the CLO coin’s value is equal to or greater than 1,00 USD.
- 20 percent if the CLO coin’s value is equal to or greater than 0,1 USD.
- 25 percent if the CLO coin’s value is equal to or greater than 0,05 USD.
- 30 percent if the CLO coin’s value is equal to or greater than 0,03 USD.
- 35 percent if the CLO coin’s value is equal to or greater than 0,02 USD.
- 40 percent if the CLO coin’s value is equal to or greater than 0,01 USD.
- 50 percent if the CLO coin’s value is equal to or greater than 0,005 USD.
We, therefore, propose to introduce a motivation system based on two different groups of team members:
- The first group is composed of the core team members.
- The second group is the Callisto Ambassadors, administrators, and advisors.
This system consists of three types of incentives, short-term (monthly), medium-term (quarterly), and long-term (yearly):
- Monthly incentive: 40 percent of the annual budget.
- Quarterly incentive: 30 percent of the annual budget.
- Yearly incentive: 30 percent of the annual budget.
A crucial factor to consider is that the monetary policy of Callisto Network includes a progressive decrease of the block reward, which directly impacts the funding of the treasury.
CLO Treasury Funding
As of today, considering that the block reward is 129.6 CLO, Callisto’s treasury is collecting 2 239 488 CLO per month.
The current value of CLO coins is greater than 0,01, so 40 percent from treasury income (895 795 coins) would be allocated to the team incentive:
- 40 percent as monthly incentive: 358 318 CLO.
- 30 percent as quarterly incentive: 806 214 CLO.
- 30 percent as yearly incentive: 3 224 856 CLO.
As the following CLO block reduction is expected to occur in May 2021, the Callisto treasury will collect 1 343 692 CLO per month.
If we anticipate a CLO price higher than 0.02 USD, therefore 35 percent from treasury income (537 477 coins) would be allocated to the team incentive:
- 40 percent as monthly incentive: 214 990 CLO.
- 30 percent as quarterly incentive: 483 729 CLO.
- 30 percent as yearly incentive: 1 934 916 CLO.
These incentives will be distributed among each group as follows (If some group will have higher number of members it will be changed based on core team members voting):
- 40 percent will be allocated to core team members.
- 45 percent will be allocated to Ambassadors, admins and advisors, based on these ratios:
- 80 percent as direct incentive.
- 20 percent based on core team members’ vote.
- 5% will be allocated to a reserve fund, which will be available upon core team members request to support ad hoc activities.
As the Callisto community has always been supportive, we propose to allocate 10% of the incentives to community marketing.
- To be qualified for monthly and quarterly incentives, a team member must be mandated/assigned.
- To be eligible for the yearly incentive, a member must have been in a position for a minimum of 6 months.
- Team members who are not working on a full-time basis will receive an incentive proportional to their attendance time. (This only applies to core team members).
- In case a team member does not claim his quarterly or yearly incentive in the next 30 calendar days, it will be divided between the active members of his group.
- If a group is over or understaffed and the incentives are unbalanced, the core team can readjust the distribution calculation.
- Members who have benefited from the motivation system and who wish to sell partially or totally the coins they have benefited from must first contact Callisto Enterprise to initiate an OTC transaction.
Note: This calculation scheme will be applied to all projects funded by CLO Enterprise:
- 25 percent of the CLOE tokens will be distributed as team incentives.
- Soy and Coinary amounts are currently being negotiated.
- More projects are in the pipeline that can’t be published at this time.
Few words about our Ambassador Program
Since the launch of Callisto Network the community has always been a key element of the project, so we wanted to more formally involve those community members who showed a willingness and a sense of commitment.
This led us to think of the Ambassador program, where the key community members will be the voices of the community.
As ambassadors are the voices of the community, a Codex describing their role and responsibilities is essential and should be drafted. It makes sense to us to propose that the ambassadors write this document themselves.
Ambassadors Status Update (10/08/21)
We believe that it is essential to have clarity on the role of the ambassadors, so the Callisto Network core team got together and discussed the topic. We agreed that the ambassadors should be proactive and have the advantage of being familiar with the reality of the community.
Whether they are “ambassadors” or “administrators,” our local community leaders have already made several interesting proposals, so it seems logical to designate them as our ambassadors.
As ambassadors have the opportunity to submit propositions, we have dedicated a section in our official forum where they can present proposals and funding requests for the growth of their community.
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