Consulting Governance Framework

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The Bankless Consulting Governance framework is a continual work in progress. The following is the Operational Governance as of January 28, 2022.

Bankless Consulting Governance Framework

Summary

Bankless Consulting is an extension of the BanklessDAO, providing a mechanism of project delivery for entities other than the BanklessDAO Grants Committee or BanklessDAO Guilds. Consulting takes many forms, but the primary mission of Bankless Consulting focuses on DAO-to-DAO (D2D), DAO-to-Business (D2B), and Product Incubation.

During Season 2, Bankless Consulting received funds for the purpose of creating a consultancy infrastructure, developing a functional service line, and covering some general start-up costs such as a website, email, branding, legal, etc.

This genesis governance framework intends to establish base operating guidelines to properly distribute funds and make organizational decisions. The following is an outline of Bankless Consulting governance roles, policies and project decision-making procedures.

Background

The intention of this document is to guide the members of Bankless Consulting in collaboratively executing the will of the consultancy. It is therefore necessary to:

• Assure decentralized, fair, and just governance of Bankless Consulting

• Define genesis governance roles and governance rights

• Provide guidelines for creating proposals and making consistent decisions as a consultancy

This governance structure will be tested during Season 3. Feedback will be gathered and improvements can be submitted in the form of proposals.

 

I. Why Bankless Consulting Exists

Bankless Consulting was founded in 2021 as an entity with a mission to allow for self-sovereignty of professionals working in the Web3 space while aligning with the Bankless mission to help one billion people go Bankless.

We believe in the future of decentralized money, and we believe that blockchain technologies and decentralized governance will disrupt all businesses in the decades ahead. We see the beginnings of this paradigm shift and want to play a large role in advising and implementing solutions that will unlock the infrastructure of the future.

Given our backgrounds as technology, management, and development consultants along with our passions and expertise in this nascent industry, we believe the impact we can deliver as an advisory partner is outsized compared to any group in the world.

We strive for independence. Independence from corporate monoliths; independence to work on projects we find interesting, challenging, and impactful; independence from traditional thinking.

We are Web3 native, and know that the pace of change is measured in minutes, not years. Our commitment to learning is based on our inherent inquisitiveness. We strive to share this knowledge with the crypto-curious, and help other organizations be early movers in the blockspace.

We are committed to continuous education of our contributors, making sure they are always learning, and always sharing this with our clients. We believe this creates the curiosity and drive to solve the challenge of onboarding organizations and individuals onto Web3.

We want to attract the best talent fleeing traditional big consulting in The Great Resignation. We want to create the mechanisms for people to be paid fairly, transparently, and based on decentralized governance.

II. Core Values

• Transparency - Everything we do is decentralized including governance and payroll

• Self-Sovereignty - We enable individuals to decide what they work on

• Fair Compensation - We create sustainable revenue streams that flow to contributors

• Integrity - We protect each other, our brand identity, and our clients above all else

• Honesty - We admit failure. We work through challenges. We hold each other accountable.

• Curiosity - We facilitate contributors’ and clients’ interests in how Web3 technology will change business forever

III. Governance Structure

Governance Roles

Bankless Consulting has a three-level governance structure:

1. Contributor - Any Bankless DAO member who participates in Bankless Consulting in any capacity. This can include, but is not limited to, attending meetings, working on a project, and providing administrative support. Contributors have no Bankless Consulting voting rights.

2. Associate
Bankless Consulting Contributors who have met the Associate Criteria
Completion of BanklessDAO onboarding
Accumulation of at least 8-hours with Bankless Consulting in meetings or other contributions
Sponsorship by a Bankless Consulting Associate or Representative
Successfully passing the knowledge exam presented in the Talent Coordination Guidelines of this document
Caveat: All Genesis Contributors are granted Associate status upon implementation of Bankless Consulting Governance. To qualify as a Genesis Contributor, a member needs to meet each of the following criteria:
Attend 7 combined meetings of Bankless Consulting and any Bankless Consulting Working Groups during Season 2
Cited by an Office Leader or Project Lead as a significant contributor to the completed Bankless Consulting infrastructure development
Associates are each expected to participate in at least one Bankless Consulting Office.
There is no limit to the number of Offices an Associate can contribute to.
Associates have Bankless Consulting voting rights in elections and may pose objections and enhancements to proposals.

3. Representative
Bankless Consulting Associate elected to the Governance Board.
7 Representatives on the Governance Board:
5 Office Representatives, 1 elected by each of the Offices
Operations
Go-to-Market
Finance
Legal
Innovation
2 At-Large Representatives
Two of the Bankless Consulting original founders will be granted the At-Large Representative roles at the onset of the consultancy for Season 3.
At the end of the 2-season term, the At-Large Representative roles will be filled via the Election Process.
Elected by Bankless Consulting Associates across all offices.
Associates can vote for any At-Large nominee from any Office

By definition, every Representative is also an Associate and a Contributor. Every Associate is a Contributor. A Contributor is neither an Associate or Representative.

IV. Governance Board Elections

Seasonal Nomination and Election Process

1. Elections for Representative roles for the upcoming season will take place at the end of each season during which the Representative’s term is concluding.

2. Nominations
Nominations for existing roles are collected 4-weeks prior to the end of each season.
Candidates are nominated, or self-nominate in a threaded discussion and require emoji support from at least 20% of their Office to be eligible for election.
In the event that no candidates meet the 20% threshold, the incumbent will run unopposed for the role

3. Election Voting
Elections are held 2-weeks prior to the last week of each season
Vote casting is open for 7-days or until a majority is determined
If there is only one nomination for a role, a minimum of 50% of eligible votes by Office Associates are needed to confirm the nomination, even if there are no other nominees. If not confirmed, the process will repeat until the role is filled or deprecated.
In the case of a tie, the tie will be broken during the last week of the season. We will further develop this, look into quadratic voting, rank choice, or other tie-breaking methods.

V. Formal Proposals

All Bankless Consulting level decisions that do have an impact on governance structure or individual violations related to the Bankless Consulting Code of Conduct.

1. Types of Formal Proposals
Revising Governance - A proposal to modify the Bankless Consulting roles and governance structure may be presented at any time via the Bankless Consulting Governance Framework and is considered part of the following elections. Examples can include:
Creating Roles - new roles may be proposed at any time using this governance framework
Eliminating Roles - roles that are no longer needed may be proposed to conclude at the end of a season using this governance framework.
Amending Bankless Consulting Offices - Offices that are no longer needed or can be consolidated into another Office may be proposed to conclude at the end of a season using this governance framework
In the event that an Office is eliminated, the Governance Board Representative for that Office will maintain their Representative role through the extent of their term. When their term is complete, the Governance Board seat will cease to exist for the eliminated Office.
In the event that an Office is added, the Office will not have Governance Board Representation before there is a Governance Board seat available.
Seasonal Budget - The Governance Board is expected to approve a budget for Bankless Consulting for each upcoming season.
Code of Conduct - Bankless Consulting reserves the right to discipline or excuse a Contributor, Associate, or Representative if they are either not fulfilling the responsibilities of their role or acting in violation of the Bankless Consulting Code of Conduct. The following is the formal process for discipline and removal of a member from Bankless Consulting:
A formal Complaint needs to be filed via Formal Complaint Form
The Governance Board receives the submission and discusses the Complaint or issue at the next meeting or via text discussion if it is an urgent matter.
To be brought to a vote, the Complaint requires verbal or emoji support from at least 2 Representatives of the Governance Board.
The Complaint is then formally presented to the Bankless Consulting Governance Board for a vote.
Removal of an Associate or paid role requires at least 4 of 7 Representative votes to pass the Governance Board.
Once passed, the individual is released from their role immediately and paid any funds due on a prorated basis.

2. Formal Proposal Process
A Governance Proposal can be proposed by any Associate or Representative according to the Governance Proposal Form.
Governance Proposals are collected and presented to all Contributors present at the weekly Bankless Consulting meeting.
To be brought to a vote, the proposal requires support from at least 20% of Bankless Consulting Associates and Representatives at the weekly Bankless Consulting meeting.
The proposal is then presented to the Bankless Consulting Governance Board.
Proposals require at least 4 of 7 Representative votes to be approved by the Governance Board.

Once approved, a Governance Proposal is enacted at the onset of the next Season unless otherwise stated in the proposal.

VI. Informal Proposals

Consultancy level decisions that are non-binding, have no impact on Bankless Consulting funds, active roles, or governance (e.g. coordination, informal polling, branding decisions, etc.). Informal proposals are to ensure transparency of operations.

1. Types of Informal Proposals
Decisions to accept a project
Proposals submitted to clients
Project Teams established for a project

2. Informal Proposal Process
Every proposal needs to have an Associate or Representative member as a sponsor.
Proposals are presented in the #informal-proposals Discord channel.
All Associates of Bankless Consulting have the right to object to an Informal Proposal within the Proposal Enhancement Time Period.
The Proposal Enhancement Time Period is the time for Associate team members to ask for clarification on Informal Proposals and present improvements to proposals they feel are not aligned with the overall Bankless Consulting values and vision.
The default Proposal Enhancement Time Period is 72-hours. In the case of urgent issues, a Representative member can shorten the Proposal Enhancement Time Period.
In the case of an objection, the Informal Proposal goes to a vote and a majority of Associate members are needed to approve the objection.
In the case of no objection within the Proposal Enhancement Time Period, the proposal is considered approved.

VII. Meetings

Weekly Governance Board Meetings

1. Governance Board Representatives meet every week to discuss governance and proposals. A quorum of 50% of the Representatives needs to be present to start a meeting.

2. The Chair of the Governance Board is elected at the beginning of the season, should lead Governance Board meetings, gather all proposals, and assign someone to document official notes.

3. If the quorum is met, the Governance Board can vote on proposals directly at the meeting. All votes are recorded by the Chair and memorialized in meeting minutes in Notion.

4. If the Chair cannot attend a meeting, the role of the Chair is delegated at the onset of the meeting to another Governance Board Representative.

Office Meetings

1. The purpose of Office Meetings is to build standardized processes for the repeatable functions of Bankless Consulting.

2. Each Bankless Consulting Office is expected to formally meet at least twice per month. Offices can decide to connect their meetings with another Office, to optimize synergies. As Offices do not perform formal votes, there is no rule for a quorum.

3. The focus of Office meetings is to share experiences, ideas, and codify best practices for the betterment of Bankless Consulting.

4. In Season 3, Offices will primarily be managed by Bankless Consulting Associates who are actively participating in client projects or otherwise part of the Business Development process. Several support roles will be allocated as needed.

5. In future seasons, it may be decided that Bankless Consulting can financially support additional administrative roles to operate each of the Offices.

VIII. Treasury

This section defines the governance framework for Bankless Consulting Treasury Management. It is a set of guidelines for Associates to determine treasury management strategies such as acceptable currencies, asset security, investments, and distribution.

Treasury Management

1. All treasury management changes or implementation of new strategies are required to go through the Formal Proposal Process described in the section above.

2. Bankless Consulting manages one MultiSig Ethereum wallet for all financial activities except tax payment.

3. All finances from daily business operations pass through the Ethereum MultiSig wallet for the following purposes:
Reimbursing for approved project expenses that are within a project budget
Paying internal Bankless Consulting costs including fees, insurance, and marketing expenses
Compensating Project Teams and Offices, as described in Compensation Governance
Reimbursing BanklessDAO, as described in Compensation Governance
Investing funds according to approved Treasury Management strategy
Receiving payment for client projects

4. MultiSig Key Holders
There are currently 5 MultiSig key holders - all transactions must be approved by at least 3 of the 5 MultiSig key holders
Once this document is ratified, the MultiSig holders will transition to the 7 Representatives of the Bankless Consulting Governance Board.
All outgoing transactions must be approved and executed by at least 4 of the 7 MultiSig key holders.
MultiSig holders execute payments according to approved proposals, as per this Governance document.
Aside from existing Associate and Representative voting rights, MultiSig holders do not have additional rights to decide on payments
If a Bankless Representative chooses not to be a MultiSig holder, they can opt-out and delegate the function to another Bankless Consulting Associate through the Formal Proposal process.

5. Fiat ($USD) bank account
Primarily to execute tax payments
Will be opened when the Bankless Consulting legal entity is created
Management will be described in more detail when that happens

Reporting

The Finance Office of Bankless Consulting is mandated to issue a Seasonal Financial Report at the end of each BanklessDAO season. The Seasonal Financial Report will be finalized and made public on-chain within 10-business days after the end of each season. Each Seasonal Financial Report includes:

• Summary of Bankless Consulting financial activities

• Balance Sheet

• P&L Report

• Tax Obligations

• Overview and impact of the season’s executed Treasury Management Proposal

• Summary of the next season’s planned Treasury Management Proposals

IX. Consulting Project Guidelines

The success of Bankless Consulting depends on Project Teams delivering projects to clients. These guidelines should enable them, support them and protect Bankless Consulting.

Key Aspects of Project Guidelines

1. Simplicity The project guidelines structure will be clear and concise. Accessible readability offers all Contributors the ability to comprehend and effectively participate in the project. Project Guidelines should be brief– not to exceed 4-pages, minimally use obscure acronyms, and limit technical language.

2. Applicability Every item within the project guidelines needs to be applicable for at least 20% of the project cases. We want to assure that we tackle the key features without overwhelming Contributors with unnecessary edge cases. However, this can change over time and some features can be removed or added based on applicability.

3. Transparency Every project decision that is made should be visible to all Associates based on the established Bankless Governance Informal Proposal process. On top of that, if any decisions require more extensive reviews, they should be documented and stored in Notion, for future reference and to avoid repetitive effort.

Project Proposal Flow

Business Development Support Group

• Division of the Go-To-Market Office

• Functions to assist Associates with proposals and help other Bankless members with their go-to-market activities.

• Inquiries should be sent in the #business-development-support channel
Provide information about the nature of the opportunity
Support initiated by an Associate from the Go-To-Market Office

Qualifying leads - Fit-Fame-Fortune

All projects should be aligned with the values of Bankless Consulting. Project Teams need to consider both the risks and benefits when evaluating fit, fame and fortune using the following criteria to determine alignment prior to the Proposal Improvement Process. More information and guidelines can be found in Business Development Guidelines, including the types of leads that Bankless Consulting can receive.

Fit

• Alignment with the Bankless Consulting Mission, Vision and Values

• (Re)use of some of our products to deliver this project

• Solvable problem

• Timeline for the project

• Mutual interest in working together

• Capacity and resources to execute on a successful project

Fame

• Potential for future leads

• Client’s willingness to collaborate on a shared press release

• Client’s agreement to use their logo in conjunction with Bankless Consulting collateral

• Ability to create a case study from the project and client’s interest in participating

• Political issues

Fortune

• Client’s ability to pay for our services, at a sufficient margin, in a timely manner

• Client’s currency of choice

• Long-term cooperation vs. ad-hoc project

Once qualified, Team Sponsors should bring an official proposal to the Business Development Support Group to initiate the proposal creation and improvement process.

Proposal Submission and Project Approval

1. Every Bankless Consulting Associate is permitted to suggest submitting a proposal to a client in the #informal-proposal channel.

2. If there are no objections from other Associates or Representatives within 72-hours, the proposal can be submitted to the client.

Contracting

1. Projects can not proceed without a contract signed by each involved entity.

2. Contracts should be visible to all Bankless Consulting Associates, with the exception of confidential projects.

3. Bankless Consulting will be using an open web-based platform to allow for visibility of contracts to all Associates.

4. Contract formats being considered:
Approved on-chain proposal
Approved off-chain proposal with confirmation from client leadership
Standard Bankless Consulting Statement of Work (SOW)

5. Requires signature from an approved Bankless Consulting, LLC signatory

6. Client SOW following legal team review

Project Delivery

Project Team Setup, Roles, and Responsibilities

1. Project Sponsor
Required for every Bankless Consulting Project Team according to the Governance Framework
Project Sponsor eligibility requirements
Must fulfill overall Bankless Consulting requirements
Approval by vote
Sponsorship nominations from 2 or more existing Project Sponsors
Final approval by majority vote of Bankless Consulting Associates
Additional details in Talent Coordination Guidelines.
Determining Project Sponsor for a project when multiple Project Sponsors want to sponsor a project
The Governance Board will evaluate the project and candidates
The Governance Board will select the sponsor best suited for the project, by majority vote.

2. Project Team
Except for the Project Sponsor, all project roles will be assigned by the Project Sponsor in cooperation with the Business Development Team and Talent Coordinator
Team structure will be based on the needs and resources of each project.
Recommended positions for every Project Team
Project Manager
Subject Matter Expert(s)
Contributor(s)

3. Compensation
Determined by Project Sponsor, in cooperation with other project team members and described in more detail in Section XII (Compensation)
Defined for each team member in the Project Proposal

X. Talent Coordination Guidelines

Roles and Tags

The Bankless Consulting Talent Coordinator from the Operations Office will lead the initiative for a Contributor to acquire or be relieved of a tag, based on the criteria described in this section.

Governance Roles and Tags (RED)

Bankless Consulting Governance RED Tags signify the governance function within Bankless Consulting. Any individual cannot hold more than one RED tag at a time.

1. Representative (tag: BC Representative)
Governance role overseeing Bankless Consulting activities and ensuring alignment with long-term goals.
Representatives should not be heavily involved in project delivery as it can cause a conflict of interest between short-term gains and long-term success.
When Representatives are replaced via election or relinquishing their seat, they retain Associate status.
Representatives also take on the role of Office Coordinator.

2. Associate (tag: BC Associate)
Contribution and Governance role
Roles and responsibilities
Voting in elections
Objecting to informal proposals when appropriate
Working with Project Teams to deliver
Internal operations
Requirements

• Be a Bankless Consulting Season 2 Genesis Contributor

Or all of the following:

1. Complete the Bankless Consulting training program

2. To start the training program every contributor must get an Associate as a sponsor who will guide the Contributor through the process and mentor them through the early stages of their career at Bankless Consulting.

3. Pass the Bankless Consulting core knowledge exam

• Genesis Contributors are members of the core team from bDAO Season 2. Genesis Contributors are granted Associate status if they have been actively contributing.

Active contribution:

• Attend at least seven meetings in Season 2

• Be an Office Coordinator or significantly contribute to any of the office deliverables.

1. Contributor (tag: BC contributor)
Strictly a contributor role
No governance/voting power
Can be a freelancer or other guild member
Access to required channels for project delivery
Every Contributor needs to go through initial onboarding to get a tag - more information in the Onboarding guide.
Any Associate or Representative can be a Contributor’s sponsor and mentor.
Contributor tag granted Contributor finalizes the official BanklessDAO onboarding and is familiar with Bankless Consulting activities.

Project & Functional Offices Roles and Tags (BLUE)

1. BLUE tags determine an Associate’s roles within a project or functional office.

2. Functional tags can determine compensation or enable some functions within the office
Voting for Representative
Access to a project Discord channel

3. There is no limit to the number of BLUE tags

4. Associates need to be active contributors to a project or office to hold their tag(s).

5. The Office Coordinator or Project Sponsor determines active Contribution

6. Functional office meetings are the best opportunity to begin participating with Bankless Consulting, connect with others, and start contributing.

7. Project roles
Attend weekly consulting meetings
Become part of the Business Development group
Monitor the #BD-support and #Informal-Proposals channel for opportunities to get involved

8. Blue Tags

Office Coordinator (BC Coordinator)

• Primary point of contact for each office

• Responsible for coordinating the office’s efforts

• Governance Board Representative for the Office

Office Contributor (depends on the office)

• Active contributor to the functional office

• Participates in office discussions

• Contributes to office deliverables

Project Sponsor (BC Sponsor)

• Critical role for project delivery and quality assurance

• Connects Bankless Consulting governance with Project Teams

• The only project role that needs to be fulfilled by an approved Bankless Consulting Associate

• Required on every project - all other roles are recommended

• Responsible for overall project delivery and need to fulfill these standards:
Project Sponsors must be skilled in business development and talent coordination.
Project Sponsors must have experience in project delivery and quality assurance.
Project Sponsors must be Associate of Bankless Consulting

• Requirements for becoming a Project Sponsor are the following:

• A Bankless Consulting Associate experienced at project delivery

• An understanding of project quality assurance practices

• Nomination from 2 Project Sponsors

• All associates will vote on this nomination, with the quorum being 25%.

Note: All Genesis Contributors can skip the nomination (3) and voting (4) but must comply with 1 and 2.

• Project Sponsor is responsible for:

• Getting proposals submitted to the Project Improvement Process and approved.

• Managing quality of the project delivery

• Defining the compensation structure for their Project Team prior to project commencement and getting confirmation from all team members that they agree to the structure

• Project Sponsors will need to consider including the following positions on a Project Team when submitting a project proposal for approval (per x.xx policy):

Finder (BC Finder)

• Business development role for Bankless Consulting

• Submits client projects to Bankless Consulting for consideration

• Not salary-based. Compensated upon successful project closure

Project Manager “PM” (Tag BC PM)

• Oversees the planning and execution of a client project

• Can be more than one PM on a project, given the specific scope and specifications

• Project Manager is a recommended role on every project

• Should be filled by individuals with experience in Project Management and passion for leading and organizing a team

Contributors (Tag BC contributor)

• Described in “Governance roles”

Office Associate Tags (Tag based on the Office's name)

• Grants the right to vote in elections of their specific Functional Office Representative on the Governance Board

• Can be granted or removed by the Office Coordinator based on active contribution quantity and quality

• Office Tags are limited to:

• Operations

• Legal

• Finance

• Go to Market

• Innovation

These five offices will have sub-offices to cover all activities within the Bankless Consulting back-office. An example can be Operations that will have talent coordination and project quality assurance sub-offices. Those sub-offices will be self-coordinated and work closely with the office coordinator.

Project Association tags (Tag based on the Project's name)

• Grants the right to access project channels and be part of the contribution project structure.

• Can be granted/removed by the Project Sponsor based on active contribution quantity and quality

Industry Tags (GREEN)

Bankless Consulting Industry Tags (GREEN) indicate the resources and value a member can add to projects and Bankless Consulting as a whole. These tags and their utility is described in the Knowledge Management section of this document.

XI - Code of Conduct

Bankless Consulting Community‍ Commitments

The selection as a Bankless Consulting Member (Contributor, Associate, Representative) is conditional to the acceptance by each candidate of the Bankless Consulting Code of Conduct, COMMUNITY IMPACT AND ENFORCEMENT GUIDELINES, as well as Bankless Consulting Privacy Policy and Terms and Conditions.

Bankless Consulting reserves the right to exclude at any stage any participant of the Bankless Consulting members program in case of breach of Code of Conduct or any applicable terms and conditions.

Views, statements, and opinions expressed by Bankless Consulting members do not necessarily reflect the opinions of Bankless Consulting or any of its affiliated entities and shall be considered individual and personal statements of the selected candidate. Bankless Consulting shall not, in any case, be held responsible for any views, statements, or opinions of any kind expressed by the Bankless Consulting Members.‍

Every member must act and interact in ways that contribute to a culture that is open, welcoming, diverse, and inclusive. By participating in the community, every member agrees to make our culture a harassment-free experience for everyone, regardless of age, body size, visible or invisible disability, ethnicity, sex, gender identity and expression, level of experience, education, socio-economic status, nationality, personal appearance, race, religion, or sexual identity and orientation. Any behavior contrary to this spirit of tolerance is not acceptable and those acting otherwise will be immediately excluded from the Member Program and prevented from any and all privileges granted as a Member.

Community standards‍

What constitutes a positive environment for our community?

• Education is a priority

• Demonstrate empathy and kindness towards others.

• Be respectful of differing opinions, viewpoints, and experiences.

• Give and gracefully accept constructive feedback.

• Extreme Ownership: Accept responsibility and apologize to those affected by your mistakes. This only works when you learn from the experience.

• Focus on what is best for us as individuals and the overall community.

What is unacceptable behavior?

• Sexual language and imagery, including seeking sexual attention and making advances.

• Trolling, insults, derogatory comments, personal attacks, political attacks.

• Public or private harassment.

• Publishing others' private information (NCC and/or PII), such as a home or email address, without their explicit consent.

• Giving any type of financial advice, attempting to price pump tokens, or shilling illegitimate legitimate opportunities and scams.

• Other conduct which could reasonably be considered inappropriate in a professional setting.

Community Enforcement Process for Code of Conduct

Members will follow the guidelines listed below, which determine the consequences for any action which is deemed in violation of the Code of Conduct:

1. Correction

Cause: The use of inappropriate language or other behavior deemed unprofessional and unwelcomed within the community.

Effect: Deletion or removal of the post in question, in addition to communicating which rule was violated and how to avoid such violations in the future. Whether the discretion was in person OR online, an Associate or Representative meets with the member in violation to discuss the situation and document which rule was violated and how to avoid such violations in the future.

2. Warning

Cause: A single violating incident or series of incidents.

Effect: A warning containing consequences for ongoing inappropriate behavior. Continued violations of these terms may lead to a temporary or permanent ban.

3. Temporary Ban

Cause: A serious violation of community standards, including sustained inappropriate behavior, Intentional verbal, text, or physical attack of a client, or theft of intellectual or physical property

Effect: A temporary ban from any sort of interaction or public communication with the community for a specified period of time. No public or private interaction with the people involved, including unsolicited interaction with those enforcing the Code of Conduct, is allowed during this period. Violating these terms may lead to a permanent ban.

4. Permanent Ban

Cause: Demonstrating a pattern of violation of community standards, including sustained inappropriate behavior, Individual harassment, or aggression toward or negativity towards classes or individuals. Intentional corruption of client deliverables and harming Bankless consulting name.

Effect: Permanent removal from any sort of interaction or public communication with the community for a period of time. This shall be determined on an individual basis.

If an individual has alternate accounts, those will be removed as well. No public or private interaction with the people involved, including unsolicited interaction with those enforcing the Code of Conduct, is allowed.

XII. Compensation

Resources Available for Bankless Consulting Compensation

Net revenue (gross revenue minus expenses) generated by Bankless Consulting’s project teams will be divided according to the following schedule:

• 70% to the Project Team

• 20% to the Bankless Consulting multi-sig and Back Office contributors

• 10% to the BanklessDAO Treasury until BC pays back the 675,000 BANK and 1 ETH of startup funding that we received from BanklessDAO at the start of Season 2

However, for Seasons 3 and 4 (roughly Q1 and Q2 of 2022), when Bankless Consulting is still in the startup phase of laying the foundation for the business, net revenue generated by Bankless Consulting’s Project Teams will be divided like this:

• 70% to the Project Team

• 20% to the Bankless Consulting Back Office contributors

• 10% to the Bankless Consulting multi-sig to build our treasury for future investments

Before the end of Season 4, we will revisit the distribution model for 30% of Bankless Consulting’s net revenue between the Bankless Consulting Back Office contributors, Bankless Consulting multi-sig, and the BanklessDAO Treasury for Seasons 5 and 6. Project Teams will continue to receive 70% of net revenue into Season 4 and beyond.

Intent of Compensation Guidelines

Bankless Consulting Compensation Guidelines are intended to reflect these core values:

1. Merit | We reward effort proportionally.

2. Skill | We reward talent disproportionally.

3. Motivation | People want to work with us.

4. Transparency | Payments are verifiable.

5. Low Overhead | The Back Office is intentionally lean.

What these values look like in practice:

1. Two people who have similar skills and provide the same amount of value on a project should be paid equally, even if one of them has been with Bankless Consulting for 10 years and the other person has been here for 10 months.

2. Someone who has elite, high-demand skills should be compensated more than someone who has common skills, even if they work the same number of hours.

3. Bankless Consulting compensation will motivate outstanding Project Finders, Project Managers, and Subject Matter Experts to work with us again and again because our incentives are better than their other opportunities.

4. Project Sponsors seeking BC approval will document the agreed-to compensation for their Project Team members.

5. To earn significant compensation at Bankless Consulting, it is most beneficial to work on Project Teams. The back office is intentionally slim to incentivize payment to project contributors and to minimize the typical consulting model bloat.

Project Team Compensation Guidelines

These are intentionally written as guidelines rather than policies. We believe it best to let the Project Teams working within Bankless Consulting’s framework choose how to compensate themselves for the value they create.

The compensation structure most appropriate for the work completed will depend on many factors. At minimum, teams will need to consider:

• Type of project (time and materials vs value-based)

• Expenses

• The product/service mix

• Size of project and team needed

• Skills needed for contract (Talent supply/demand)

• Timeline of contract (Short term bounty vs. long-term ongoing)

Compensation Structures to Consider

Depending on the above factors, it is recommended that the Project Team consider one or a mix of the following four compensation structures for each position on the team:

1. Salary | A negotiated total sum, usually paid in biweekly or monthly increments

2. Bounty | A negotiated total sum in exchange for an agreed-upon output, usually paid upon delivery of the output

3. Bonus | An additional amount given in exchange for meeting an agreed-upon goal

4. Democratic | An agreement to determine as a group how to allocate funds at some point(s) in time during the project or after it is completed. Coordinape is commonly used in BanklessDAO for its transparency, but another software tool could be used.

Project Team Members

Bankless Consulting’s Governance Framework requires at least one person for a consulting project team: the Project Sponsor.

1. Project Sponsor | The individual(s) responsible for getting the client project approved for work by Bankless Consulting.

1. Must be skilled in both business development and talent coordination.

2. Must be an Associate of Bankless Consulting.

3. It is possible for a Project Sponsor to complete a project by themself if the project proposal is approved by Bankless Consulting.

4. Most times, the client project’s scope and specifications will be such that the Project Sponsor needs help from one or multiple Project Managers, Subject Matter Experts, and/or Contributors. In addition, the Finder of the client project will need to be compensated, unless the Project Sponsor is the person who found the client project.

When a Project Team has multiple members, the Project Sponsor will detail the compensation structure and compensation amount for each member of the Project Team in the Internal Project Charter document (which needs to be created). This document is separate from the Project Proposal.

The Project Sponsor will need to consider including the following positions on the Project Team when submitting a project proposal for approval.

2. Finder(s) | The individual who brings a client project to Bankless Consulting. Finders connect with a Project Sponsor who will carry the proposal, budgeting, and team formation processes with the support of the Bankless Consulting business development team.

1. Finders will be incentivised to bring opportunities to BC.

2. Not all opportunities will lead to a signed contract, so there is potential for the Finder to "work” for no reward, until he/she finally gets a signed contract.

3. It is recommended that Finders be compensated 3-10% of the 70% share of the net revenue produced by the first contract signed with clients they bring to Bankless Consulting.
If the project is fixed-price, outcome-based (anticipated to be majority of cases), the Finder should receive up to 10% of agreed project net revenues (gross revenues, minus tax and expense) for up to 1 year (eg. if we agree on a $100K contract, the Finder gets $10K upon the client’s payment of the $100k.
If the project is time and material, the Finder should receive up to 10% of monthly project net revenues, paid monthly for the first 6 months (0% after initial 6 months, no matter how long the engagement goes for).
If the account is active and the originating engagement that "opened" the account was brought in by a Finder, the Finder only gets rewarded for the opening engagement. Future engagements with the client will be treated on a case by case basis with regards to the working team relationship and should be sorted by the project team and the Project Sponsor.

4. The % awarded to the Finder will be determined through negotiation between the Finder and the Project Sponsor.
Ultimately, the proportion of the Project Team’s share that goes to the Finder should depend on the level of involvement of the Finder in securing the client project.
The recommended fee for a Finder dropping off a project opportunity or new client to a Project Sponsor is 3%.
The recommended fee for a Finder participating in the project proposal, client negotiations, and project team formation is between 5-10%.

5. The Finder will be paid in the currency(ies) specified in the client contract.

6. The Finder can also be selected by the Project Sponsor to be the project’s Project Manager, Subject Matter Expert, or Contributor for the project.

3. Project Manager(s) “PM” | The individual(s) who is overall in charge of the planning and execution of the client project.

1. The Bankless Consulting Project Sponsor may decide that more than one PM is needed given the scope and specifications of a project.

2. The PM will be paid in the currency(ies) specified in the client contract.

3. The Project Sponsor can decide to be the PM. The PM can also choose to be the Subject Matter Expert of the project. Bankless Consulting’s talent coordination team will help determine if it is feasible for the Sponsor to also perform the other project duties, given the scope of the project.

4. Subject Matter Expert(s) “SME” | The individual(s) who contribute skills that are needed due to the specifications of the client project.

1. The Bankless Consulting Project Sponsor may decide that more than one SME is needed given the scope and specifications of a project.

2. The SME will be paid in the currency(ies) specified in the client contract.

5. Contributor  | An individual who is not a Bankless Consulting Associate, but has the skills to assist on a project.  Contributors will opt-in to this type of work due to the potential for remuneration, and will be appointed by the Project Team based on their commitment and experience relevant to the project.

1. Contributors will be contracted to assist the Project Sponsor, Project Manager, or Subject Matter Expert.

2. Contributors will always be paid, and will be paid in the currency(ies) specified in the client contract.

Back Office Compensation Structure

1. For Seasons 3 and 4 (roughly Q1 and Q2 of 2022), 20% of Bankless Consulting’s net revenue will be directed to the Back Office contributors.

2. Before the end of Season 4, we will revisit the compensation structure for Bankless Consulting Back Office contributors as we consider once again the split of 30% of Bankless Consulting’s net revenue between the Back Office, the Bankless Consulting multi-sig, and BanklessDAO. 70% of net revenue will remain with the project teams.

3. 50% of this Back Office share (10% of Bankless Consulting net revenue) will be distributed to the five Office Coordinators via Coordinape.

4. The seven Governance Board Representatives will participate in the Coordinape allocations of GIVE tokens to the five Office Coordinators.

5. The two at-large representatives can allocate GIVE tokens but will not be eligible to receive GIVE tokens in these rounds.

6. Office Coordinators may opt-out of receiving GIVE tokens, which will then be reallocated to the BC Multi-sig.

7. There will be 3 Coordinape rounds per season. The schedule will be approximately as follows:

• 1st Coordinape round: February 4, 2022

• 2nd Coordinape round: March 4, 2022

• 3rd Coordinape round: April 8, 2022

1. 50% of this Back Office share (10% of Bankless Consulting net revenue) will be distributed to the other contributors to the five Offices via Coordinape.
The five Office Coordinators can allocate GIVE tokens but will not be eligible to receive GIVE tokens in these rounds.
There will be 3 Coordinape rounds per season. The schedule will be approximately as follows:

• 1st Coordinape round: February 4, 2022

• 2nd Coordinape round: March 4, 2022

• 3rd Coordinape round: April 8, 2022

To be completed during Season3:

1. Risk Mitigation

2. Branding & Marketing

3. Internal Communications Guidelines

4. Additional Legal Considerations