CIP-76: Continued funding for development services - Service Agreement No 5

Hi @sunce86 , great seeing here again :slightly_smiling_face:

While your questions would be more appropriate on CIP-Draft - Replenishing the CoW Team Grant Allocation, leaving some responses here - would appreciate that we continue the discussion in the other thread.

#1 - There is a mix of conclusions that I would like to clarify. The previous amount attributed to the Core Team, was so for the period of the last 4 years (unconditionally), and the attribution committee was prudent and ended up not allocating the entire amount. This should not be considered in the calculation of the request for the next 4 years (e.g. sum to the 10% requested), as these are in a sense tokens already attributed to the team (which will be used to even further expand our retention initiatives).

Your comment on the amount of the grant is correct on an individual basis (the grants have become smaller versus the initial grant to the team during spin-off), but you need to consider that the team grew from ~10 to now 40 people, and with a hiring plan making the target size at 60 people.

Regarding the dilution comment, please see the new CIP- proposal.

#2 - I don’t think that pattern has been seen to be honest (from the majority of the team, but can be individual cases). On how to mitigate the increase in supply, please see the CIP-proposal.

#3 - Yes. That would lead to backloading the token release, and would mean an immediate compensation decrease on a significant number of team members, leading to poaching risk precisely when we are in a key phase (developing relevant features for partnerships, working on cross chain mechanism, value distribution, etc).

#4 - This is incorrect. The proposal (old and the new) earmarks a vesting schedule to the core team, which is then further vested to contributors, hence there is no immediate bump in the voting power of the core team. Also, this is seen as the prior grant remainder (+20M tokens) has never been used for voting.

Given that: 1) We just saw a key CIP being rejected; and, 2) This is a request for a 4y vesting allocation, that will not be 100% allocated to contributors on the onset (but as their previous grant ends), I do not foresee an abnormal shift in voting power to Core Team. Still, we would for sure enjoy the same level of ongoing engagement that we saw previously in this CIP voting.

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