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Compensation Model

Purpose (Why)

So far, Samara only dealt with a single type of compensation, called contribution:

  • historical contributions (recorded in Google sheets)
  • personal contributions (work done on the side)
  • external contributions (financial or knowledge transfers)
  • quest-based contributions (Hypha quests)

In addition, Samara has developed an interim compensation model:

  • define HUSD need in advance (based on fiat needs)
  • propose commitment (%)
  • do the Co-Ev process
  • update commitment
  • use 3 salary bands related with contribution (%): 70k for 1%- 49% contribution, 90k for 50%-79% contribution, 110k for >80% contribution
  • HUSD amount pay and the rest in Samara tokens with 1.8 multiplier

The purpose of this policy is (1) to simplify and improve the above interim model, (2) to anchor the compensation model on the approach outlined in The Chronicles of Samara  and (3) to better integrate 4 key components of compensation:

  1. Mindshare (how much of your life you give to Samara)
  2. Complexity (the anticipated intensity or difficulty of the work you do for Samara)
  3. Value (the actual value your contribution brings to the organization)
  4. Bonus (the go-above-and-beyond recognition as a generic multiplier added on top)

To simplify the above interim model, we need to reconsider:

  • pay out HUSD per collective schedule, not per individual need
  • uncouple commitment from contribution and salary bands

To integrate the 4 key components, we need to revisit the compensation model and start at the bottom:

  1. Dividing mindshare into quests, contributions and roles
  2. Encoding complexity a priori through the allocation of the funding, expenses and salaries
  3. Decoding value a posteriori through the contribution level, proof of work and role archetypes (+OKRs)
  4. Adding a bonus through the membership level and badge archetypes

Note that complexity is tied to a role-assignment within the context of a circle (e.g. a senior front-end developer for the DHO sub-circle in Hypha) and the value is decoded and voted on in an organizational context. 

Implementation (How)

Let's try to spell out a possible new approach for Samara:

Goals (TBD)

  • try to move the salary discussions off the table so that they are no longer front-and-center (this is a major source of contention in any organization)
  • try to stay away from any competitive measures (that lead to comparisons, e.g. my experience vs yours, my commitment vs. yours, my needs vs yours etc)
  • find a compensation model that is (1) fair and equitable for members, (2) allows for a personal growth pattern, and (3) aligns with the goals of the organization

Model (TBD)

  • everyone has the freedom to choose their distribution of mindshare
    • the overall distribution across all activities cannot exceed 100%
    • you are encouraged to adjust your commitment levels accordingly
    • there is no connection between level of commitment and complexity
  • the circle (pod) decides what the level of complexity is for a given task/quest/role ("job")
    • intense or difficult tasks/quests/roles are rewarded higher
    • simple or repetitive tasks/quests/roles are rewarded lower
    • alternatively, all tasks/quests/roles are rewarded equally
  • the organization decides if the task/quest/role has contributed value to Samara or not
    • tasks are proposed and voted on by each member 
    • quests are co-evaluated for each milestone and member
    • roles are evaluated and re-confirmed every 3 months 
  • the salary is based on a compound token model
    • any work activity will earn 2x SVOICE in USD equivalent terms (investment activity is 1x)11 
    • long-term contributors are expected to earn proportionally more SAMARA tokens ("deferring", "having skin in the game")
    • incentives for SAMARE tokens include a 1.8 multiplier that degrades over time

Examples (What)

  1. Jeff joins Samara as a new member and goes on an onboarding quest
  2. After completion, he earns an Apprentice badge, some SVOICE and is looking for a long-term engagement
  3. The XYZ circle has a new job posting at complexity level "B3" and archetype "building"
  4. Jeff applies and is accepted into the new role and starts his new assignment
  5. Each week he claims to pre-defined tokens for the B3-Builder role
  6. At the end of each quarter (or 3 months period) he documents progress in OKRs

 

1 This differs from the book, I believe Samara investors want to have a voice in decisions, that's why they invest, but that voice is lower than that for existing members enacting roles

Irina: I have some concerns of giving voice to investors. LEt's discuss.

 

 

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