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title: Bankless DAO Praise Rewards Disbursal

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# Bankless DAO Praise Rewards Disbursal

There's a few different options for disbursing your praise rewards and they all range in complexity, however since the Bankless DAO has no prior history with Praise we should start basic and non-lucrative.

The first 3-6 months of running praise will be all about building the culture and gathering data. It takes time and work from Community Managers but will pay off when you begin to see consistent analytics data. Here's how I would lay things out for the first 6 months and beyond:

## Phase 1 - Fixed Rewards
Start basic - I can assume that the Bankless DAO Discord community is quite considerable in size, I do not have access unfortunately so I can only make assumptions. However since you don't know how the community will respond - if they don't get it at first or if they try to game it - either way it's good to start small. 

Looking at the value of BANK on the market I would say to **go no higher than $500-$1000 worth of BANK per month for the initial phases (3-6 months).** This would be enough BANK to give a nice spread across your community and be able to give out appealing numbers of tokens to each recipient.

## Phase 2 - Dynamic Rewards
After you have onboarded your community to praise culture I would suggest moving to a dynamic model that is based on praise activity. This is an integrated method that will issue more or less tokens based on the instances of dish praised.

In order for this to work you need to set a peak praise number - meaning the amount of praise that needs to be dished in order to disburse the maximum cap of praise rewards (BANK). In order to set the peak you need to have some data to base your decisions on. So, as implied, I wouldn't move into this until at least 6 months after the initial Praise launch.


### Data from the TEC
For us in the TEC (Token Engineering Commons), we already had a strong Praise culture before going into the first deployment of the Praise system. Our community wasn't huge, maybe 100-120 active members. **We peaked out at 900 instances of praise dished in a month and offered around $3000 in monthly rewards.** This was perhaps a tad expensive, but worked out well for us assuming that after the peak we could have maintained 40-75% of that peak month to month following. Our peak praise for example came around the launch phase of our token.

## Phase 3 - Non-paid Contributor Bonuses
You could move here at the same time or shortly after phase 2, but it's good spread things out to see changes and make the best informed decisions. This last phase would take into consideration praise dished to your already paid contributors. This means people on your payroll who may have already formal work agreements with Bankless. 

This addresses a common problem we see in communities where the people who are already paid to do their job also end up getting the most praise. This leads to arguments around people getting "paid twice". We don't want to have to moderate praise but let it flow organically - there is a lot of value in just the verbal expression of praise and we don't want to stifle that. As a result we fix the issue on the distribution level. 

To implement this we still have our regular fixed or dynamic budget and within that **we issue a percentage bonus to non-paid contributors, could be anywhere from 50% to 100% bonus rewards.** We apply those rewards to our normal amounts then find out the sum of all rewards, including bonuses and calculate the share % of each recipient - Since the non-contributors have had bonuses applied they will have now a greater share % from before. We then multiply the share % against our regular budget to find their final rewards.

This might be complicated to explain but I have some spreadsheet templates I can share to simplify  things.

**TL;DR the end result is that your non-paid contributors get a bigger slice of the pie and your paid contributors get less**, this end result makes praise more inclusive and more enticing to your community engagement since it isn't the closed loop of paid contributors eating up all the rewards.


## Summary & Budget Recommendations

- **Phase 1 (3-6 months)** - $500-$1000 of BANK monthly. $250-$500 per Bi-weekly distribution.

- **Phase 2 (6 months-1 year)** - Add 50% onto whatever your first budget was if things are going well. ($750 - $1500 worth of BANK monthly)

- **Phase 3 (1 year and beyond!)** - Add another 50% onto your second budget. ($1125-$2250 worth of BANK monthly.)