Idle Finance uses Karma's contribution scoring system for running their governance mining program. Governance mining is an initiative used by DAOs to encourage paricipation and engagement in the governance. Idle uses Karma's leaderboard to determine the most active contributors of the month and compensate them with tokens.
Idle DAO governs the development of the DeFi yield aggregator Idle Finance, a yield optimization and risk tranching protocol.
Idle started noticing less and less participation from their contributors in the governance of the protocol. There was less community engagement and voting participation, as analyzed in their report that included data from all voting proposals, on-chain and off-chain. They wanted to increase participation and also reward the loyal contributors who have been involved in the DAO actively. The problem was that they did not have the infrastructure built to measure contributor participation across different systems (Snapshot, on-chain contract, forum) challenge they faced was in identifying the active contributors on a monthly basis to identify the most active contributors.
Idle Finance team collaborated with Karma to identify the varoius systems where they wanted to track activity of contributors. We then worked with them on assigning different weights to activities and calculated contributor scores. All the activity stats were then displayed in a leaderboard for entire community to view. The leaderboard displays contributor activity across different timeframes such as 30 days, 180 days and lifetime. Idle uses the 30 day filter to identify the top 7 contributors and reward them with $24k Idle tokens every month.
Note: The scoring is fully customizable and open source.
Flexible incentives for existing and emerging governance contributors
Motivating new contributors by giving them visibility and a sense that they are recognized by their actions
Contribution Scores (once implemented) can serve as basis for further follow-up actions, such as adding additional voting power or granting permissions.