Rewards - Agora DAO

Overview

Agora DAO’s reward system incentivizes active participation and quality contributions from DAO members. While the on-chain reward infrastructure is still in development, the platform supports various reward mechanisms including token payments, NFT badges, and reputation building.

The reward system is designed to integrate with the task management and role systems, creating a comprehensive contributor experience.

Reward types

Agora DAO supports multiple reward mechanisms to incentivize different types of contributions:

Token rewards

USDC, ETH, or custom DAO tokens for completed tasks

NFT badges

Achievement tokens for milestones and contributions

Reputation points

On-chain reputation building for future opportunities

Role advancement

Progression to higher roles with more responsibilities

Token-based rewards

The primary reward mechanism is token-based compensation for completed work:

Supported tokens

USDC: Stablecoin payments for predictable compensation
ETH: Native Ethereum payments for gas-efficient transfers
DAO tokens: Custom ERC20 tokens for governance and ecosystem participation
Wrapped tokens: Support for various ERC20 standards

Payment structure

Rewards are typically structured as:

interface TaskReward {
  amount: bigint;           // Reward amount in token units
  tokenAddress: `0x${string}`; // ERC20 token contract address
  recipient: `0x${string}`;    // Contributor wallet address
  taskId: string;              // Associated task identifier
  status: 'pending' | 'released' | 'disputed';
}

Reward distribution methods

Manual distribution (current)

DAO admins currently coordinate reward distribution manually:

Task completion: Member completes task and submits deliverables
Review process: Task manager reviews and approves work
Payment initiation: Admin initiates token transfer to contributor
Confirmation: Transaction confirms on-chain

Manual distribution provides flexibility but requires trust between the DAO and contributors. Always verify the DAO’s payment track record before committing to large tasks.

Escrow-based distribution (planned)

Future implementation will include automated escrow:

Planned feature

contract TaskEscrow {
    struct EscrowedTask {
        uint256 taskId;
        address creator;
        address worker;
        uint256 reward;
        address token;
        uint256 deadline;
        bool completed;
        bool disputed;
    }

    function createTask(uint256 _taskId, uint256 _reward, address _token, uint256 _deadline) external {
        // Transfer tokens to escrow
        IERC20(_token).transferFrom(msg.sender, address(this), _reward);
        
        // Store task details
        tasks[_taskId] = EscrowedTask({
            taskId: _taskId,
            creator: msg.sender,
            worker: address(0),
            reward: _reward,
            token: _token,
            deadline: _deadline,
            completed: false,
            disputed: false
        });
    }

    function releasePayment(uint256 _taskId) external {
        EscrowedTask storage task = tasks[_taskId];
        require(msg.sender == task.creator, "Only creator can release");
        require(task.completed, "Task not completed");
        require(!task.disputed, "Task is disputed");

        // Transfer reward to worker
        IERC20(task.token).transfer(task.worker, task.reward);
    }
}

NFT reward badges

NFT badges represent achievements and milestones within the DAO:

Badge categories

Contributor badges

Issued for task completion milestones (5, 10, 25, 50+ tasks)

Role badges

Commemorative NFTs for role assignments and promotions

Governance badges

Rewarded for active participation in proposals and voting

Special recognition

Custom badges for exceptional contributions or achievements

Planned NFT structure

Planned feature

contract DaoAchievementNFT is ERC721 {
    struct Achievement {
        string name;
        string description;
        uint256 timestamp;
        string metadataURI;
    }

    mapping(uint256 => Achievement) public achievements;

    function mintAchievement(
        address _recipient,
        string memory _name,
        string memory _description,
        string memory _metadataURI
    ) external onlyRole(TASK_MANAGER_ROLE) {
        uint256 tokenId = _nextTokenId++;
        _mint(_recipient, tokenId);
        
        achievements[tokenId] = Achievement({
            name: _name,
            description: _description,
            timestamp: block.timestamp,
            metadataURI: _metadataURI
        });
    }
}

Reputation system

Building on-chain reputation unlocks opportunities:

Reputation factors

Tasks completed: Number and complexity of finished tasks
Success rate: Percentage of approved deliverables
Timeliness: Meeting deadlines consistently
Governance participation: Voting frequency and proposal quality
Role tenure: Length of time in specialized roles

Reputation benefits

Higher-value tasks

Access to premium tasks with larger rewards

Role eligibility

Qualify for manager and leadership positions

Voting weight

Increased influence in governance decisions

Priority assignment

First access to new opportunities

Role-based rewards

Different roles come with different reward opportunities:

DEFAULT_ADMIN_ROLE

DAO treasury allocations
Founder token distributions
Long-term governance tokens

TASK_MANAGER_ROLE

Management fees from task creation
Bonus for successful task completion rates
Priority access to new initiatives

AUDITOR_ROLE

Audit fees for review work
Security bounties for finding issues
Compliance incentives

USER_ROLE

Task completion rewards
Participation incentives
Community contribution bonuses

See the role management documentation for details on role assignments and permissions.

Reward calculation examples

Typical reward ranges by task type:

Development tasks

Smart contract development: 500-2000 USDC
Frontend features: 300-800 USDC
Bug fixes: 100-300 USDC
Integration work: 400-1000 USDC

Design tasks

UI/UX design: 300-700 USDC
Logo/branding: 200-500 USDC
Marketing materials: 150-400 USDC

Content tasks

Technical documentation: 200-600 USDC
Research reports: 300-800 USDC
Tutorial creation: 150-400 USDC
Blog posts: 100-300 USDC

Reward amounts vary based on DAO treasury size, task complexity, and market rates. Always negotiate terms before starting work.

Payment workflow

The current payment process follows these steps:

Task completion

Contributor completes work and submits deliverables for review

Quality review

Task manager or admin reviews work against acceptance criteria

Approval

If approved, task is marked as complete in the system

Payment initiation

DAO admin initiates token transfer from treasury

Confirmation

Contributor confirms receipt of payment

Treasury management

DAOs manage reward funds through their treasury:

Treasury operations

Funding: DAO receives funds from members, grants, or revenue
Budgeting: Admins allocate funds for different categories
Reserves: Maintain buffer for ongoing obligations
Diversification: Hold multiple token types for flexibility

Payment authority

Only addresses with DEFAULT_ADMIN_ROLE can authorize payments from the treasury. This ensures:

Accountability for fund usage
Prevention of unauthorized withdrawals
Clear audit trail for all payments

Integration with tasks

Rewards directly connect to the task system:

Task with reward

const task = {
  id: "1",
  title: "Smart Contract Audit",
  description: "Review governance contract for vulnerabilities",
  reward: "500 USDC",  // Displayed reward
  status: "open",
  category: "Development",
  priority: "high",
  deadline: "5 days",
};

See the task management documentation for more on the task system.

Vesting schedules

For long-term alignment, DAOs may implement token vesting:

Vesting parameters

Cliff period: Initial waiting period (e.g., 3 months)
Vesting duration: Total unlock period (e.g., 12 months)
Release schedule: Linear, milestone-based, or custom

Example vesting schedule

Total reward: 10,000 DAO tokens
Cliff: 3 months
Vesting: 12 months linear

Month 0-3:  0 tokens unlocked
Month 4:    833 tokens unlocked
Month 5:    1,666 tokens unlocked
...
Month 12:   10,000 tokens fully unlocked

Tax and compliance

Important legal considerations:

Cryptocurrency rewards may be taxable in your jurisdiction
Contributors are responsible for reporting income
DAOs should provide payment records for tax purposes
Consult with tax professionals for compliance guidance

Best practices

Clear terms

Document reward amounts and payment terms before work begins

Timely payment

Pay contributors promptly after approval to maintain trust

Fair valuation

Research market rates to ensure competitive compensation

Transparent tracking

Maintain public records of rewards and distributions

Dispute resolution

If reward disputes arise:

Direct communication: Contributor and task manager discuss the issue
Admin mediation: DAO admin reviews evidence and mediates
Community vote: In unclear cases, DAO members vote on resolution
Partial payment: Consider compromise solutions for partial completion

Future enhancements

Planned improvements to the reward system:

Automated escrow: Smart contract-based payment holds
Milestone payments: Split rewards across deliverable phases
Performance bonuses: Extra rewards for exceptional work
Referral rewards: Incentives for bringing in contributors
Streaming payments: Real-time payment flow for ongoing work
Multi-sig releases: Require multiple approvals for large payments

Next steps

Task management

Learn how tasks connect to the reward system

Role management

Understand role-based reward opportunities

DAO creation

Set up your DAO to start rewarding contributors

Get Started

Core Features

Guides

​Overview

​Reward types

Token rewards

NFT badges

Reputation points

Role advancement

​Token-based rewards

​Supported tokens

​Payment structure

​Reward distribution methods

​Manual distribution (current)

​Escrow-based distribution (planned)

​NFT reward badges

​Badge categories

​Planned NFT structure

​Reputation system

​Reputation factors

​Reputation benefits

Higher-value tasks

Role eligibility

Voting weight

Priority assignment

​Role-based rewards

​DEFAULT_ADMIN_ROLE

​TASK_MANAGER_ROLE

​AUDITOR_ROLE

​USER_ROLE

​Reward calculation examples

​Development tasks

​Design tasks

​Content tasks

​Payment workflow

​Treasury management

​Treasury operations

​Payment authority

​Integration with tasks

​Vesting schedules

​Vesting parameters

​Example vesting schedule

​Tax and compliance

​Best practices

Clear terms

Timely payment

Fair valuation

Transparent tracking

​Dispute resolution

​Future enhancements

​Next steps

Task management

Role management

DAO creation

Build docs developers (and LLMs) love

Overview

Reward types

Token-based rewards

Supported tokens

Payment structure

Reward distribution methods

Manual distribution (current)

Escrow-based distribution (planned)

NFT reward badges

Badge categories

Planned NFT structure

Reputation system

Reputation factors

Reputation benefits

Role-based rewards

DEFAULT_ADMIN_ROLE

TASK_MANAGER_ROLE

AUDITOR_ROLE

USER_ROLE

Reward calculation examples

Development tasks

Design tasks

Content tasks

Payment workflow

Treasury management

Treasury operations

Payment authority

Integration with tasks

Vesting schedules

Vesting parameters

Example vesting schedule

Tax and compliance

Best practices

Dispute resolution

Future enhancements

Next steps