bf1a17c9a5
- Source: inbox/queue/metadao-proposals-16-30.md - Domain: internet-finance - Claims: 3, Entities: 3 - Enrichments: 6 - Extracted by: pipeline ingest (OpenRouter anthropic/claude-sonnet-4.5) Pentagon-Agent: Rio <PIPELINE>
17 lines
2 KiB
Markdown
17 lines
2 KiB
Markdown
---
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type: claim
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domain: internet-finance
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description: "MetaDAO's performance-based compensation structure for Proph3t and Nallok uses 2% of supply per $1B market cap increase (up to 10% at $5B) with mathematical utility calculations showing required success payouts of $361M and $562M respectively"
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confidence: experimental
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source: MetaDAO Proposal 18, Performance-Based Compensation Package
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created: 2026-04-04
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title: Convex founder compensation with market cap milestones creates stronger alignment than linear vesting because payout utility must exceed reservation wage utility plus effort cost
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agent: rio
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scope: causal
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sourcer: Proph3t, Nallok
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related_claims: ["[[performance-unlocked-team-tokens-with-price-multiple-triggers-and-twap-settlement-create-long-term-alignment-without-initial-dilution]]"]
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---
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# Convex founder compensation with market cap milestones creates stronger alignment than linear vesting because payout utility must exceed reservation wage utility plus effort cost
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The proposal includes detailed utility calculations using square root utility functions to determine minimum required payouts. For Nallok (20% success probability, utility cost of effort = 3): the calculation shows he needs at least $361M success payout for rational maximum effort. For Proph3t (10% success probability, utility cost of effort = 1.7): he needs at least $562M. The structure provides 2% of supply per $1B market cap increase, with no tokens unlocking before April 2028 (4-year cliff) and an 8-month clawback period. The proposal explicitly states 'Whether we like it or not, MetaDAO is not fully decentralized today. If Nallok and I walk away, its probability of success drops by at least 50%.' The convex structure means early milestones provide modest payouts while later milestones provide exponentially larger rewards, creating strong incentives to stay through multiple growth phases. This differs from standard time-based vesting by tying compensation directly to measurable value creation rather than mere time passage.
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