Paraswap DAO

Overview

In March 2025, ParaSwap DAO launched a six-month Delegate Incentives Program (DIP) following the successful three-month Delegate Program Trial Period conducted between December 2024 and February 2025. Unlike the pilot program, which had no financial incentives, this new initiative introduces structured delegate compensation to further enhance participation, professionalize governance, and improve decision-making within the DAO.

This program was designed to counteract declining voter engagement and the high concentration of voting power by rewarding active and committed delegates while maintaining financial sustainability for the DAO.

Compensation Structure & Eligibility

Delegate Incentives Program – Key Details

• Total Budget: $180,000 USD in PSP tokens (or successor token per Project Miro).

• Duration: 6 months (March - August 2025).

• Compensation per Delegate: Up to $2,500 USD/month, allocated based on performance metrics.

Eligibility Requirements

• 80%+ voting participation rate from December 2024 onward.

• Minimum delegation of 1M PSP tokens (or equivalent post-migration).

• 100% of vote rationales must be publicly shared within seven days of each vote.

• Delegate Platform: Delegates must create a Delegate Thread outlining their values, experience, and governance goals.

• Application process: Eligible delegates must formally apply in the designated thread if they wish to participate.

Governance & Oversight

Program Objectives

• Increase participation & diversity – Encourage a broader and more active governance base.

• Enhance governance quality – Ensure transparency by requiring rationales for all delegate votes.

• Improve decentralization – Incentivize PSP token holders to delegate voting power to trusted and engaged delegates.

• Monitor effectiveness – Continuously track delegate activity and adjust incentive structures as needed.

Performance Evaluation Metrics

• Participation Rate 90 (PR90) – 30% weighting.

• Snapshot Voting (SV) – 30% weighting.

• Communicating Rationale (CR) – 25% weighting.

• Delegates’ Feedback (DF) – 15% weighting.

• Total Performance Score (TP) = PR% + SV% + CR% + DF%.

Compensation Tiers

• Tier 1 (TP ≥ 95%) → Up to $2,500/month.

• Tier 2 (TP ≥ 85% and < 95%) → Up to $2,000/month.

• Tier 3 (TP ≥ 75% and < 85%) → Up to $1,500/month.

Implementation Plan & Timeline

• Q1 2025 – Snapshot vote approved (PIP-58 passed on March 1, 2025).

• Q1 2025 – Program launch (March 2025) with initial 10 delegates.

• Q2 2025 – Reopening of applications in June 2025 to onboard up to 5 additional delegates (maximum 15 total).

• Q3 2025 – Final impact report published before program reassessment.

Key Takeaways

• ParaSwap DAO shifts from a non-compensated pilot to a structured incentive model, aligning with leading DAOs like Aave, Uniswap, and Arbitrum.

• High participation standards (80%+ voting, 100% rationales, minimum 1M PSP delegation) remain a priority.

• Incentive structure prioritizes performance-based rewards, ensuring that only active and high-quality contributors benefit.

• The DAO will evaluate renewal, modification, or discontinuation of the program in August 2025, based on its effectiveness and community feedback.