<h1>
<a name="authors-1" href="#authors-1"></a>Authors:</h1>
<p><a href="/u/bruno">@Bruno</a>,  <a href="/u/cozeno">@cozeno</a> , <a href="/u/diodionysos">@DioDionysos</a> , <a href="/u/meertitan">@Meertitan</a> , <a href="/u/spiral">@Spiral</a>  , <a href="/u/countvidal">@countvidal</a> , <a href="/u/fei.saver">@fei.saver</a> , <a href="/u/pavel">@pavel</a>,  <a href="/u/arcology">@arcology</a></p>
<h1>
<a name="summary-2" href="#summary-2"></a>Summary</h1>
<p>Proposal to create a 3-month pilot program for long-term contributors, called Tribal Force, to attract and retain talent within the community and foster decentralization.</p>
<h1>
<a name="motivation-3" href="#motivation-3"></a>Motivation</h1>
<p>Many community members have voluntarily contributed to the protocol since the early days and are deeply enthusiastic about the future of FEI. Unfortunately, Fei Protocol’s compensation is not competitive with other DeFi protocols, and it is becoming increasingly difficult to recruit and keep talent. Fei DAO does not yet have a compensation plan.</p>
<p><strong>We think that it is time to increase the decentralization of Fei Protocol by creating a group of long-term contributors focused on the growth of Fei.</strong> Currently, Optimistic Approval is one of the only community driven groups that is active in the protocol. We wish to expand upon that success, and introduce reforms to the OA by electing new members, and more community elected bodies to contribute to the growth of Fei.</p>
<p><strong>With the Tribal Force we are looking for community members that will be continuously working for DAO in multiple tasks. By long-term contributors we mean not single isolated contributions or proposals. We mean a continuous presence in the community bringing value.</strong> In the future, a DAO grants program could be operated by Tribal Force.</p>
<p>A fair compensation plan for active contributors will encourage even more value-adding contributions, promote further growth and foster community engagement. This is an important step for a decentralized and resilient project.</p>
<p>Many community members have made core contributions to the DAO and it is time to structure a pilot for a compensation plan using other protocols and their respective frameworks as a benchmark.</p>
<p>For context, <a href="https://docs.google.com/spreadsheets/d/17zB2ZJ-ANVVCH2cN68hZZHBCq_kClEk_qr6q1H_auSI/edit#gid=971858318">Maker DAO is paying 15,000 DAI per contributor per month <span>9</span></a> plus <a href="https://forum.makerdao.com/t/mip40c3-sp38-real-world-finance-core-unit-mkr-compensation-rwf-001/10447">240 MKR with 3 years vesting and 12 months cliff vest <span>4</span></a>. At current prices, total annual compensation is <a href="https://forum.makerdao.com/t/mip40c3-sp12-modify-core-unit-budget-rwf-001/7985">$180,000 in DAI and $240,000 in MKR with vesting <span>2</span></a>. <a href="https://forum.balancer.fi/t/proposal-renew-funding-for-the-ballers/2284">Balancer community contributors are paid between 250 to 500 BAL per month <span>2</span></a> ( $ 6250 to $12500 given current prices) for activities including LM allocation, discord support, newsletter production, and translation.</p>
<p>Some projects like Index Coop are discussing <a href="https://gov.indexcoop.com/t/community-ownership-retroactive-airdrop-to-historical-contributors/3199">community ownership</a>, <a href="https://www.comp.xyz/t/oracle-contributor/1887">Compound supports a long-term contributor</a> and others are <a href="https://medium.com/mstable/metanauts-guide-to-coordinape-964778e0f073">testing Coordinape</a> as a tool to decentralize the decision of how much each contributor will receive. This just confirms that the core aspect of Web3 is about community empowerment.</p>
<h1>
<a name="specification-4" href="#specification-4"></a>Specification</h1>
<p><strong>An elected “Tribal Force Leads" group, of four members, will be directly responsible to the DAO for the administration of Tribal Force</strong>. <strong>The Tribal Force members operate in a decentralized way, with Tribal Force Leads being responsible and accountable for the wise application of the requested funding, as well as managing Tribal Force member positions.</strong> At the end of the month, contributors will be compensated according to their level of engagement during that period (10%, 25%, 50%, 75% or 100%).</p>
<p>If 100%, the member receives the full reward, if not the respective percentage in relation to the base remuneration. The level of engagement and value creation can vary for each month. Contributions should be evaluated considering the effort and value created. The Tribal Force payments are meant to incorporate and supersede existing community payments such as OA, Grants committee, and mod payments. Pending imminent reform of those committees, newly elected members of those committees would be automatically included in Tribal Force, and paid accordingly as outlined by their charters.</p>
<p>Accountability is key to the success of this initiative. Each Tribal Force member including the leads will be responsible to write a post in the forum at the end of the quarter sharing their contributions (including KPIs and links when applicable).</p>
<p>TF Leads will examine these reports and request additional follow up as needed. TF Leads will be responsible for publishing reports detailing and justifying their decisions, such as the admission of new members, assessment of a member’s work level, and censure members for misconduct or consistently misrepresenting their workload. Upon the second censure, that member is irrevocably removed from the Tribal Force.</p>
<p>Tribal Force Leads will create a notion page with a summary of all contributors and the records from the payment transactions. This will be called Tribal Force Tracker and will be updated monthly with the contributions of each member.</p>
<p>Tribal Force will coordinate its efforts with at least bi-weekly working meetings.</p>
<p>The process to approve members should be open and transparent to all. <strong>The focus of this program is on contributors that already have shown high commitment with Fei and value creation. The pilot would welcome for now only community members who have demonstrated at least three month of continuous and effective contributions to the protocol to self nominate for Tribal Force under this forum post.</strong> Members who would like to also run for Tribal Force Leads should include an additional section detailing their intention and credentials.</p>
<p>All members who have indicated their intentions to run for Tribal Force Leads will have their names listed on a Snapshot where voters may vote for up to four candidates. Tribal Force Leads require dedication of approximately 40 hours a week, seeing that they are expected to administer the program on top of their other routine responsibilities at FEI Protocol. The four members with the highest final count, and who have cleared a 10M vote quorum will be elected as the pilot Tribal Force Leads.</p>
<p>At the end of this three month period, a meeting will be called to pass the next Tribal Force budget, assess the performance of the pilot program, and to assess the efficacy of the administration of TF Leads. A separate snapshot for a new election of Tribal Force Leads will also be conducted at this juncture. All DAO members are welcome to participate in this meeting; this is meant to establish a precedent for a permanent accountability mechanism conducted quarterly to the DAO should this charter be renewed.</p>
<p>In future renewals of this charter, new members who wish to join the Tribal Force should indicate their intention and scope of participation and start contributing on a trial basis. At these quarterly meetings, those who have been recognized by the Tribal Force Leads for their effective contribution in the last three months trial period can be formally admitted to the Tribal Force. At this proceeding, the DAO may vote to officially condemn members of the Tribal Force Leads for abuse of power or poor administration, which will render them ineligible for future election as TF Leads.</p>
<p>After the pilot, TF Leads will present a brief report listing the lessons learned and potential improvements, and seek the DAO’s approval for an extended charter. The future program can be funded in increments seen appropriate by the DAO.</p>
<p><strong>We propose a maximum rate per person of 8,000 FEI and 8,000 TRIBE; roughly in line with other protocols such as MakerDao, GRO, Balancer, and Aave.</strong> It is important to note that the rate will be revisited after the pilot and implement measures to provide some measures of job security to Tribal Force members who might quit their current jobs and engagements.</p>
<p><strong>This proposal and the associated vote will approve the charter and elect four Tribal Force Leads, who will then promptly select eligible members to the pilot Tribal Force.</strong> After the final list of Tribal Force members is established, Tribal Force Leads will officially request funding of TRIBE for 3 months funded by the DAO Treasury for the initial trial in a separate snapshot. Note that the requested amount is only the maximum amount and will not be used in its entirety unless all members uniformly contribute at the maximum possible level. Any unused funds will be returned to the DAO treasury at the end of the pilot period.</p>
<h1>
<a name="participating-in-the-tribal-force-5" href="#participating-in-the-tribal-force-5"></a>Participating in the Tribal Force</h1>
<p>The Tribal Force is composed of long-term community contributors that are highly engaged with Fei. If you feel like you fit in this profile and are interested in being a Member of the Tribal Force or would like to nominate someone to be, please reply to this thread with basic info, including:</p>
<ul>
<li>Are you applying for a Tribal Force member position or Tribal Force Leads?</li>
<li>Describe your/the expert’s involvement with Fei Protocol, especially past contributions to the Fei ecosystem?</li>
<li>What skills/experience do you/they bring?</li>
<li>What are your expected contributions?</li>
<li>Bonus question: What are some of the long-term goals with your contribution to the Fei ecosystem?</li>
</ul>
<p>Feel free to post here if you have any general questions or comments about the Tribal Force as well!</p>

Tribal Force Proposal: Long-term Contributor Program 
  Authors: 
  @Bruno ,   @cozeno  ,  @DioDionysos  ,  @Meertitan  ,  @Spiral   ,  @countvidal  ,  @fei.saver

Tribal Force Proposal: Long-term Contributor Program

<p>Hey Tribe,</p>
<p>I was thinking about recent news and the increasing regulatory attention to DeFi and stablecoins (see <a href="https://www.coindesk.com/policy/2021/09/21/secs-gensler-calls-stablecoins-poker-chips-at-the-wild-west-crypto-casino/">here <span>3</span></a>).</p>
<p>One interesting take from Anthony Sassano about this context is very relevant for us:</p>
<blockquote>
<p>I’m also talking decentralizing the entire stack. The team, the front-ends, the supporting infrastructure - all of it needs to be as decentralized as possible to resist any adverse regulations and law enforcement action. We also need to address the biggest pain points - centralized exchanges and stablecoins - by building decentralized alternatives.</p>
</blockquote>
<blockquote>
<p>Another thing that the regulators are going to show us is which projects are actually decentralized and which ones are DINO (‘decentralized in name only’). I don’t think any of the crypto-based systems that claim to be decentralized have had to deal with a serious adversary like a regulator before - but they will very soon. Whether they are layer 1’s, layer 2’s, DeFi apps or whatever else - there will come a time when they will all face the wrath of a well-funded regulatory adversary - and they will lose if they are not truly decentralized. This is exactly why all teams should be building their systems to be as decentralized as possible from day 1.</p>
</blockquote>
<blockquote>
<p>This is really the only way the crypto ecosystems wins - we always knew that the regulators would be coming - and now it’s time to fight. Let’s decentralize everything.</p>
</blockquote>
<p>Source: <a href="https://thedailygwei.substack.com/p/decentralize-everything-the-daily?token">Decentralize Everything - The Daily Gwei #340 <span>3</span></a></p>
<p>In the case of stablecoin projects, I think we will have some natural selection of the projects with more decentralization in assets and operations.</p>
<p>We are well positioned on the decentralization of the assets held by PCV. However, when talking about operations we can improve a lot. And it is natural that as Fei is just in the beginning, it is very dependent on Fei Labs. Creating new versions of the product is very time consuming and knowledge specific. So, the works related to peg mechanism and product development is more difficult to decentralize at this time and will continue to rely on Fei Labs.</p>
<p>However, I think it would not be healthy to have Fei Labs covering all the other operation areas.  In my opinion, some activities that could be operated in a more decentralized way are:<br />
(1) Growth &amp; Marketing &amp; Education &amp; Content production<br />
(2) Protocol finance and analytics</p>
<p>Other projects are going in that direction of decentralization of operation. See all the experience from Index Coop with working groups, MakerDAO with core units and <a href="https://medium.com/rari-capital/version-2-the-future-of-the-rari-capital-dao-9d2c37027752">Rari Capital <span>1</span></a> starting now with their Task Force.</p>
<p>I know the grants program is already covering part of these areas, but the grants model tends to attract more spot and isolated contributions. To attract more recurring contributions in a coordinated way and aligned with a strategy, these structures could help.</p>
<p>While in May I saw a great need for FEI DAO to structure its PCV guidelines and how we would diversify our reserves, now I see an urgent need for a focus on <strong>Growth &amp; Marketing</strong>. As you can see below the number of TRIBE and FEI holders are having difficulties to increase the number of holders (exception is the spot movements related to Tribe listing in CEX).<br />
</p><div><a href="https://global.discourse-cdn.com/business5/uploads/fei/original/1X/de80de739f8edc6362fc0e3264e650125e0533c3.png"><div>
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Source: <a href="https://dune.xyz/firefalcon/FEI-Dashboard">FEI Dashboard <span>2</span></a><p></p>
<p><a href="https://gov.indexcoop.com/t/proposing-a-growth-working-group-iii-new-budget-poll-added/1953">Index Coop</a>, <a href="https://forum.makerdao.com/c/core-units/growth/37">MakerDAO</a> and <a href="https://medium.com/rari-capital/rari-capitals-week-29-track-e860fab66c05">Rari</a> have their Growth/Education working group, core unit or task force, respectively.</p>
<p>I think Fei could have something similar, a Growth &amp; Marketing structure coordinated by community. The scope could include, for example: communication planning &amp; strategy, content production, including educational materials, social media content and monitoring, influencers relationship, sponsorships. Just a starting point here.</p>
<p><strong>The idea of this post was not to present a specific proposal, but to incentivize the discussion in this important subject for the future of Fei. Discuss how can we decentralize operations and have a more resilient protocol.</strong></p>

Ideas for Further Decentralization of FEI DAO Operations Hey Tribe, 
 I was thinking about recent

Ideas for Further Decentralization of FEI DAO Operations

<p><strong>Proposal:</strong> FIP-33</p>
<p><strong>Status:</strong> Last call</p>
<h1>
<a name="summary-1" href="#summary-1"></a>Summary</h1>
<p>OTC deal where FEI DAO exchange FEI and TRIBE in equal proportion for 200,000 BAL (~US$ 4,400,000) form Balancer DAO.</p>
<h1>
<a name="motivation-2" href="#motivation-2"></a>Motivation</h1>
<p>Balancer will play a key role in <a href="https://medium.com/fei-protocol/introducing-fei-v2-6f56afe7a1b5">Fei v2 <span>4</span></a>. In the new version, PCV will be managed using a Balancer v2 Investment Pool. This has the potential to add PCV (almost $1B) to the Balancer platform.</p>
<p>As Fei v2 brings significant TVL to Balancer, it would be beneficial for both communities to strengthen the partnership through a Treasury swap.</p>
<p>DAO to DAO partnerships are moats, durable competitive advantages. DeFi composability works better when communities work together. Balancer is a highly respected and innovative project, the perfect fit for Fei Protocol, the main liquidity source for DeFi.</p>
<p>At the same time we diversify PCV by holding BAL, TRIBE will be into the hands of a long-term ecosystem partner.</p>
<p>Moreover, as our core operations will be in Balancer platform, it is important to have some voice in the governance discussion there.</p>
<h1>
<a name="specification-3" href="#specification-3"></a>Specification</h1>
<p>Fei DAO will deploy an appropriate version of the Badger DAO OTC Contract as the one used in the <a href="https://snapshot.org/#/fei.eth/proposal/QmPusyESur6P4TuN7ChMBV26HpZyc8waLqx4LcMTKxh64T">Index OTC purchase <span>8</span></a>.</p>
<p>200,000 BAL from the Ecosystem Fund would be exchanged for the equivalent USD value of TRIBE and FEI in equal proportions from Fei DAO Treasury, using the 20 day smooth moving average price at the time that voting ends. Price feed will be BAL/USDT (Binance) and TRIBE/FEI (Uni-V2) FEI/ETH (Uni-V2).</p>
<p>Fei DAO will deposit BAL into BAL/WETH 80/20 paired with ETH from the PCV and commits to holding for the long run. The Fei DAO will also be eligible to earn BAL rewards (currently at 22% APR) , which will be further held by Fei and possibly reinvested in the 80/20 BAL/WETH pool.  Balancer DAO will be eligible to earn TRIBE rewards by participating in Fei’s incentivized staking programs (Uni v2, Rari, Curve, etc.).</p>
<p>In the context of the long-term partnership, both DAOs will hold the exchanged governance tokens for at least one year.</p>
<p>According to the discussions, this is just the first step and in 3 months, we will submit another proposal to swap more tokens.</p>

FIP 33: Swap between Balancer DAO and Fei DAO  Proposal:  FIP-33 
  Status:  Last call

FIP 33: Swap between Balancer DAO and Fei DAO

<p>Hello Tribe!</p>
<p><a href="https://tribe.fei.money/t/fei-dao-investment-policy-statement-ips/3284">After feedbacks from the community <span>3</span></a>, we have a new and simpler version of the PCV Guidelines (ex-Investment Policy Statement).</p>
<aside>
  <header>

      <a href="https://drive.google.com/file/d/1bgBGC9ZJqxtSEe7xnRM47Vu8De_1HVDC/view?usp=sharing" target="_blank">drive.google.com</a>
  </header>

  <article>
    
<div></div>

<h3><a href="https://drive.google.com/file/d/1bgBGC9ZJqxtSEe7xnRM47Vu8De_1HVDC/view?usp=sharing" target="_blank">PCV Guidelines.pdf <span>39</span></a></h3>

<p>Google Drive file.</p>

  </article>

  <div>
    
    
  </div>

  <div></div>
</aside>

<p>All feedback is welcome as this document is a work in progress. We hope this could help community to have more clarity and convergence over potential next deployments of PCV.</p>
<p>To gather the community sentiment and priority regarding some PCV deployment options, we kindly ask to answer the poll below.</p>
<p><strong>1. What would be your priority in terms of PCV allocation considering the following options (you can vote in two options):</strong></p>
<div><div><ul><li> <span>Provide liquidity for FEI-stable coins pairs</span></li><li> <span>Provide liquidity for FEI-WBTC pairs</span></li><li> <span>Provide liquidity to FEI-DeFi Large Caps pairs</span></li><li> <span>Generating yield with ETH (eg.: using Lido to stake)</span></li><li> <span>Generating yield with other stablecoins</span></li></ul></div><div><div><div><span>20</span><span>voters</span></div></div><ul><li>
                      
                      <span>Choose up to <strong>2 options</strong>.</span>
                     </li></ul></div><div><span>Vote now!</span><span>Results</span></div></div>
<p><strong>2. Do you agree with a target allocation in stable coins between 10% and 30% of PCV with the objective to provide liquidity for FEI markets or generate yield?</strong></p>
<div><div><ul><li> <span>Yes</span></li><li> <span>Yes, but with a higher allocation</span></li><li> <span>Yes, but I prefer an upper limit of 20%</span></li><li> <span>Yes, but I prefer an upper limit of 10%</span></li><li> <span>No allocation in other stable coins at all</span></li></ul></div><div><div><div><span>19</span><span>voters</span></div></div><ul></ul></div><div><span>Results</span></div></div>
<p><strong>3. Do you agree with a target allocation in BTC up to 10% of PCV?</strong></p>
<div><div><ul><li> <span>Yes</span></li><li> <span>Yes, but with a higher allocation</span></li><li> <span>No allocation to BTC</span></li></ul></div><div><div><div><span>18</span><span>voters</span></div></div><ul></ul></div><div><span>Results</span></div></div>
<p><strong>4. Do you agree with a target allocation in DeFi Large Caps up to 10% of PCV?</strong></p>
<div><div><ul><li> <span>Yes</span></li><li> <span>Yes, but with a higher allocation</span></li><li> <span>No allocation to DeFi Large Caps</span></li></ul></div><div><div><div><span>19</span><span>voters</span></div></div><ul></ul></div><div><span>Results</span></div></div>
<p>*We considered DeFi Large Caps, projects with more than than $ 1 bln of market cap.</p>

PCV Guidelines - New Version Hello Tribe! 
  After feedbacks from the community  3  , we have a

PCV Guidelines - New Version

<p><strong>Authors:</strong> <a href="/u/bruno">@Bruno</a> , <a href="/u/fei.saver">@fei.saver</a> , <span>@Elee</span></p>
<p>As discussed in the Discord, we are preparing the first financial report related to the second quarter (Q2), considering April, May and June. We considered some references: <a href="https://www.canva.com/design/DAEkL78UibE/">Index Coop Report 1 <span>4</span></a>, <a href="https://indexcoop.substack.com/p/index-coop-financial-report-may-2021">Index Coop Report 2 <span>4</span></a> and <a href="https://github.com/yearn/yearn-pm/blob/master/financials/reports/2021Q1-yearn-quarterly-report.pdf">Yearn <span>2</span></a>.</p>
<p>The motivation for elaborating the financial report is to increase Fei Protocol transparency and raise awareness around the financial strength of Fei Protocol. It has an educational and  communication potential to bring new users and investors to the protocol. It can also be a tool for the community to make good and informed decisions.</p>
<p>After initial discussions, we are proposing the following structure for the Q2:</p>
<h1>
<a name="income-statement-1" href="#income-statement-1"></a>Income Statement</h1>
<p></p><div><a href="https://global.discourse-cdn.com/business5/uploads/fei/original/1X/18ea47bc04cc17fb445df2dd397476616c7040ec.png"><div>
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<h1>
<a name="balance-sheet-2" href="#balance-sheet-2"></a>Balance Sheet</h1>
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<h1>
<a name="comments-3" href="#comments-3"></a>Comments</h1>
<p> → Selling FEI for US$ 1 ETH in the bonding curve, add US$ 1 FEI liability and US$ 1 ETH asset , so it does not impact the income statement.</p>
<p> → Buying FEI in the reweights with  US$ 1 ETH, reduces  US$ 1 FEI liability and US$ 1 ETH asset, so it does not impact the income statement.</p>
<p> → Buying with the stabilizer (considering the 0.95), reduces the US$ 1 FEI liability, and US$ 0.95 ETH, registering US$ 0.05 ETH result in the income statement.</p>
<p> → FEI loans, register US$ 1 FEI liability and US$ 1 fFEI asset. The asset increases its value as the interest is accrued, and the result impacts the income statement.</p>
<p>→ We did not consider PCV Deployment Results inside the revenue because it can increase or decrease in value (eg.: DPI price can go down or up). It would be weird to have a negative revenue. Revenue is dedicated only for operations.</p>
<p>The guidelines for calculating each line are in the spreadsheet: <a href="https://docs.google.com/spreadsheets/d/1QqWe_5XvGNkBukhrWhIDH4gqfM6VxoyVhOfGswtB7As/edit?usp=sharing">here <span>9</span></a>.</p>
<h1>
<a name="next-steps-4" href="#next-steps-4"></a>Next steps</h1>
<p>We will collect the onchain data, populate these 2 statements and share here.</p>
<p>We are open for feedbacks.</p>

Tribal Force Proposal: Long-term Contributor Program

Ideas for Further Decentralization of FEI DAO Operations

FIP 33: Swap between Balancer DAO and Fei DAO

PCV Guidelines - New Version

Fei Financial Report

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