Development teams can find motivation to collaborate with the Lido DAO through various available schemes:
- Grant-based collaboration
- Time and materials The Lido DAO allocates an upfront sunk-cost grant for the development and further support of the module
- Metrics The modules may have specific success metrics that can be defined within a design. The development team can be motivated by the proposed incentivization plan based on certain metrics. For example, incentivizing node operators onboarding by considering such metrics as the number of independent node operators, diversity of node operators, etc.
- Revenue-based collaboration
- Some combination thereof
- Secondary tokenomics
A percentage of the total rewards generated by the module, based on fee parameters set within the module, is allocated to the third-party development team. This allocation can take different forms, such as a percentage of the DAO's normal fee that tapers over time or a flat percentage from the overall fee.
Upfront grants and revenue sharing can be combined to reduce development risks for the third party while still providing incentives for performance once the product is launched.
In certain cases, the development team might be interested in adding their utility token to the module. For example, by proposing to add a supplementary bond using their utility token. This option can be discussed and proposed to the DAO as part of the module design.
By offering these module incentivization options, the Lido DAO aims to attract and motivate development teams to collaborate effectively and contribute to the Ethereum ecosystem.