Author: Velora Growth Committee

Governance is work. In order to maintain a healthy DAO, governance work needs to be fairly compensated. Well-designed compensation programs help to incentivize the work that most benefits the Velora DAO, targeting the delegate base that makes up the DAO from a bottom-up approach. Velora is always innovating at the protocol level; likewise, our governance infrastructure must evolve too. The first 6-month cycle of the Delegate Incentives Program (DIP) crafted by SEEDGov consists of a tiered-based compensation program which seeks to fairly reward and professionalize active delegates of all levels.

This article breaks down what the DIP Cycle 1 is, why it was created, and how it works in a way that’s digestible for the broader Velora community.

Late last year, Velora launched a 3-month Delegate Trial Program aimed at boosting engagement in governance. The results far exceeded expectations: forum activity surged, new members joined as delegates, and many delegates achieved near-perfect voting participation with transparent rationales for their votes. In short, the trial successfully increased the quantity and quality of governance participation, amplifying diverse voices in decision-making.

Encouraged by this success, the community voted on PIP-58 to establish a longer-term Delegate Incentives Program (Cycle 1). The premise is simple: if we want dedicated, high-quality delegates who consistently engage in Velora’s governance, we should compensate them for their time and expertise. Well-designed incentives can motivate sustained participation and attract skilled individuals. As noted in the proposal, relying solely on altruism was unrealistic for maintaining long-term engagement; most top DAOs have experimented with paid, professional delegation programs. A carefully calibrated incentive program can strengthen Velora’s governance by incentivizing organic and valuable contributions, while avoiding the pitfalls of attracting mercenary participants.

Cycle 1 of the Delegate Incentives Program is a six-month initiative (March 1 – August 31, 2025) to reward active Velora delegates for their contributions. It was approved via governance in February 2025 with a maximum total budget of $180,000 (denominated in USD, paid in PSP tokens). Here’s a quick overview of how the program is structured:

• Duration: 6 months of rewards, designed as an experimental pilot. The program can be canceled or adjusted by the DAO at any time if it’s not meeting expectations. Before the six months are up, the community will evaluate results to decide on continuing, modifying, or ending the program.

• Participant Cap: Up to 10 delegates in the first half (March–May), expanding to 15 delegates in the second half (June–August). Initially, only the most active and qualified delegates were eligible (more on the requirements below). Mid-way through (in early June), the application window re-opened to let new or previously ineligible delegates join, up to the 15-delegate limit. This two-phase approach ensured a manageable cohort early on, with flexibility to include more delegates as they meet the criteria.

• Budget & Rewards: A maximum of $2,500 (USD value in PSP tokens) per delegate per month is available for rewards. If all slots are filled at the top payout, that’s ~$30k per month, totaling up to $180k over 6 months. Not every delegate will necessarily earn the max (this has historically been the case); the actual payout is performance-based. All payments are denominated in USD, but disbursed in PSP. If PSP’s price swings, the USD value of rewards stays consistent, avoiding sudden overpayments or underpayments. Additionally, rewards are subject to 30-day vesting to encourage longer-term alignment. Delegates can’t just “farm and dump” immediately; in fact, they’re encouraged to stake their earned PSP (as sePSP2) to support the protocol and even boost their own voting power.

• Program Oversight: SEEDGov proposed the DIP and volunteered to act as Program Manager for Cycle 1. SEEDGov self-excluded from receiving any delegate rewards to avoid conflicts of interest. There was no additional “operational budget” for running the program as SEEDGov is providing the administration free of charge for this pilot. The Program Manager’s duties include verifying delegate eligibility, tracking participation data, evaluating qualitative contributions, answering questions from delegates, and publishing monthly reports on the forum with each delegate’s performance and the payouts. If any issues arise or adjustments are needed, the PM works with the DAO to refine the program over time (e.g. based on early feedback,

One key aspect of the DIP is that not just anyone can hop in and start earning. It’s targeted at existing Velora delegates who’ve already proven their commitment. The eligibility criteria, as set out in PIP-58, include:

• Minimum Delegated Stake: At least 1M PSP tokens must be delegated to you. This ensures delegates have some skin in the game or significant community trust behind them.

• Forum Tenure: You must have a forum account older than 3 months. Newcomers can’t just appear overnight to farm rewards; we require a history in the community.

• Established Delegate Profile: You need to have created a post in the forum’s Delegation section (using the standard template) introducing yourself and your values. Essentially, delegates should have already presented themselves to the community as candidates for voting power. This adds transparency about who you are and what you stand for.

• Governance Participation: A ≥80% participation rate in Snapshot votes since the start of the trial program (December 5, 2024) up to the DIP’s start. In practice, this meant that only delegates who voted in at least 4 out of 5 of the recent proposals at the time of the post (and generally stayed active during the trial) would qualify. This rule was crucial. It restricted the program to those who had already demonstrated a high level of activity and reliability in voting. For delegates who came in later or fell just short, there’s a second chance (see: Applications Re-opening)

• Application Requirement: Even if you meet all the above, nothing is automatic. Delegates still had to formally apply in the designated application thread once the program was approved.

When Cycle 1 kicked off, nine delegates met these requirements. These were essentially the highest-performing contributors from the trial period, each with 100% voting participation. A couple of active delegates fell below the 80% threshold initially, and some new delegates joined the forum after the trial began. To accommodate those who showed promise but weren’t eligible on day one, a second application thread opened for a few days in early June at the program’s mid-point.

What if more than the max number of delegates apply, meeting the criteria? The program set clear tiebreaker rules. Priority goes to those with the most onchain voting record in recent history. If there’s still a tie, the next factor is who started participating earlier (based on the date of their first vote). And if somehow it’s still tied, the final consideration is who created their delegate profile first. The tie-breaker had to be employed in July when the number of applicants rose to 16.

Unlike some delegate stipend programs that pay a flat rate, Velora’s DIP ties rewards to performance each month. Delegates earn compensation by maintaining a high level of participation and contributing real value. To measure this, the program uses a scoring system with four key components (weights in parentheses):

• Participation Rate (last 90 days) – Weight: 30%. This looks at what percentage of recent Snapshot votes the delegate participated in (rolling window). It ensures delegates remain consistently active over time, not just in spurts.

• Snapshot Voting (current month) – Weight: 30%. This is the percentage of proposals in the current month that the delegate voted on. It resets each month to track ongoing engagement. Essentially: did you vote on all the new proposals this month? If yes, that’s 100% for this factor.

• Communicating Rationale – Weight: 25%. Delegates aren’t just expected to vote; they should also communicate their reasoning to the community. This metric tracks the share of voted proposals for which the delegate posted an explanation of their vote (usually in their forum delegate thread) within about a week of each vote. Partial credit is given if you explained some but not all votes.

• Delegate Feedback & Contributions – Weight: 15%. This is a qualitative score out of 15 points that the Program Manager assigns based on the delegate’s overall contributions in discussions, feedback on proposals, and general involvement beyond just voting. It’s meant to incentivize quality over quantity in forum participation. The Program Manager evaluates how constructive, insightful, and timely a delegate’s comments and suggestions were throughout the month, rewarding things like well-reasoned analysis, contributing to improvements in proposals, active participation in community calls or working groups, etc..

Each month, these factors are assessed for every participating delegate. The weighted sum produces a Total Participation (TP) percentage. A perfect score (100% TP) would mean the delegate voted in all Snapshot polls, provided rationale for all votes, was active in discussions with high-quality input, and maintained a near-100% voting record historically. They’re essentially an ideal delegate. In practice, TP scores will range below 100, and that’s where the tiered rewards come in.

Reward Tiers

Initially, the proposal set three tiers. After a couple of months of running the program, the community decided to fine-tune the tier structure, introduce a fourth tier, and adjust the ranges:

• Tier 1: TP ≥ 95%  → Up to $2,500 (unchanged top tier)

• Tier 2: TP ≥ 90% and < 95%  → Up to $2,000

• Tier 3: TP ≥ 85% and < 90%  → Up to $1,500

• Tier 4: TP ≥ 75% and < 85%  → Up to $1,000 (newest bottom tier)

In other words, if a delegate hits all the marks (almost perfect participation), they can earn the full $2.5k for that month. If they slip a bit (say they miss a vote or two or don’t write every rationale), and their TP comes in around 90%, they’d be in Tier 2 and earn up to $2k. The adjustment slightly raised the bar for the higher payouts and created a more scaled reward curve. Delegates who score 80% TP, for example, fall into Tier 4 (max $1k), whereas before they would’ve gotten $1.5k. The change was likely made to ensure the budget is used efficiently and to encourage even stronger participation for the bigger rewards. It shows that the DIP is adaptive and that parameters can be tweaked based on real data and feedback, which is exactly the point of a pilot program.

At the end of each month, SEEDGov publishes a monthly report (e.g. June) with all delegates’ scores and the resulting PSP reward amounts. This transparency lets the community see who is contributing and how funds are being spent.

As of now, the DIP has been running since March 2025, and monthly reports have kept the community updated on progress (participation rates, who earned what, etc.). The final evaluation will take place as we approach August 31, after which the DAO will decide whether to renew the program (Cycle 2), modify it, or end it.

The ultimate goal is to fine-tune a governance reward system to best incentivize the behavior we want: engaged, high-quality governance participants. So far we’ve already seen one adjustment (the introduction of Tier 4). Future cycles might iterate further. For example, new metrics could be added, weights could be adjusted, increased/decreased budgets or payouts, or automated tracking via tools like Karma could be implemented.

The Velora Delegate Incentives Program is a step toward strengthening our DAO’s governance. By directly rewarding those who put in the work to discuss, vote, and lead within the community, Velora is investing in a more active, informed, and resilient governance process.

Author: Velora Growth Committee

Governance is work. In order to maintain a healthy DAO, governance work needs to be fairly compensated. Well-designed compensation programs help to incentivize the work that most benefits the Velora DAO, targeting the delegate base that makes up the DAO from a bottom-up approach. Velora is always innovating at the protocol level; likewise, our governance infrastructure must evolve too. The first 6-month cycle of the Delegate Incentives Program (DIP) crafted by SEEDGov consists of a tiered-based compensation program which seeks to fairly reward and professionalize active delegates of all levels.

This article breaks down what the DIP Cycle 1 is, why it was created, and how it works in a way that’s digestible for the broader Velora community.

Late last year, Velora launched a 3-month Delegate Trial Program aimed at boosting engagement in governance. The results far exceeded expectations: forum activity surged, new members joined as delegates, and many delegates achieved near-perfect voting participation with transparent rationales for their votes. In short, the trial successfully increased the quantity and quality of governance participation, amplifying diverse voices in decision-making.

Encouraged by this success, the community voted on PIP-58 to establish a longer-term Delegate Incentives Program (Cycle 1). The premise is simple: if we want dedicated, high-quality delegates who consistently engage in Velora’s governance, we should compensate them for their time and expertise. Well-designed incentives can motivate sustained participation and attract skilled individuals. As noted in the proposal, relying solely on altruism was unrealistic for maintaining long-term engagement; most top DAOs have experimented with paid, professional delegation programs. A carefully calibrated incentive program can strengthen Velora’s governance by incentivizing organic and valuable contributions, while avoiding the pitfalls of attracting mercenary participants.

Cycle 1 of the Delegate Incentives Program is a six-month initiative (March 1 – August 31, 2025) to reward active Velora delegates for their contributions. It was approved via governance in February 2025 with a maximum total budget of $180,000 (denominated in USD, paid in PSP tokens). Here’s a quick overview of how the program is structured:

• Duration: 6 months of rewards, designed as an experimental pilot. The program can be canceled or adjusted by the DAO at any time if it’s not meeting expectations. Before the six months are up, the community will evaluate results to decide on continuing, modifying, or ending the program.

• Participant Cap: Up to 10 delegates in the first half (March–May), expanding to 15 delegates in the second half (June–August). Initially, only the most active and qualified delegates were eligible (more on the requirements below). Mid-way through (in early June), the application window re-opened to let new or previously ineligible delegates join, up to the 15-delegate limit. This two-phase approach ensured a manageable cohort early on, with flexibility to include more delegates as they meet the criteria.

• Budget & Rewards: A maximum of $2,500 (USD value in PSP tokens) per delegate per month is available for rewards. If all slots are filled at the top payout, that’s ~$30k per month, totaling up to $180k over 6 months. Not every delegate will necessarily earn the max (this has historically been the case); the actual payout is performance-based. All payments are denominated in USD, but disbursed in PSP. If PSP’s price swings, the USD value of rewards stays consistent, avoiding sudden overpayments or underpayments. Additionally, rewards are subject to 30-day vesting to encourage longer-term alignment. Delegates can’t just “farm and dump” immediately; in fact, they’re encouraged to stake their earned PSP (as sePSP2) to support the protocol and even boost their own voting power.

• Program Oversight: SEEDGov proposed the DIP and volunteered to act as Program Manager for Cycle 1. SEEDGov self-excluded from receiving any delegate rewards to avoid conflicts of interest. There was no additional “operational budget” for running the program as SEEDGov is providing the administration free of charge for this pilot. The Program Manager’s duties include verifying delegate eligibility, tracking participation data, evaluating qualitative contributions, answering questions from delegates, and publishing monthly reports on the forum with each delegate’s performance and the payouts. If any issues arise or adjustments are needed, the PM works with the DAO to refine the program over time (e.g. based on early feedback,

One key aspect of the DIP is that not just anyone can hop in and start earning. It’s targeted at existing Velora delegates who’ve already proven their commitment. The eligibility criteria, as set out in PIP-58, include:

• Minimum Delegated Stake: At least 1M PSP tokens must be delegated to you. This ensures delegates have some skin in the game or significant community trust behind them.

• Forum Tenure: You must have a forum account older than 3 months. Newcomers can’t just appear overnight to farm rewards; we require a history in the community.

• Established Delegate Profile: You need to have created a post in the forum’s Delegation section (using the standard template) introducing yourself and your values. Essentially, delegates should have already presented themselves to the community as candidates for voting power. This adds transparency about who you are and what you stand for.

• Governance Participation: A ≥80% participation rate in Snapshot votes since the start of the trial program (December 5, 2024) up to the DIP’s start. In practice, this meant that only delegates who voted in at least 4 out of 5 of the recent proposals at the time of the post (and generally stayed active during the trial) would qualify. This rule was crucial. It restricted the program to those who had already demonstrated a high level of activity and reliability in voting. For delegates who came in later or fell just short, there’s a second chance (see: Applications Re-opening)

• Application Requirement: Even if you meet all the above, nothing is automatic. Delegates still had to formally apply in the designated application thread once the program was approved.

When Cycle 1 kicked off, nine delegates met these requirements. These were essentially the highest-performing contributors from the trial period, each with 100% voting participation. A couple of active delegates fell below the 80% threshold initially, and some new delegates joined the forum after the trial began. To accommodate those who showed promise but weren’t eligible on day one, a second application thread opened for a few days in early June at the program’s mid-point.

What if more than the max number of delegates apply, meeting the criteria? The program set clear tiebreaker rules. Priority goes to those with the most onchain voting record in recent history. If there’s still a tie, the next factor is who started participating earlier (based on the date of their first vote). And if somehow it’s still tied, the final consideration is who created their delegate profile first. The tie-breaker had to be employed in July when the number of applicants rose to 16.

Unlike some delegate stipend programs that pay a flat rate, Velora’s DIP ties rewards to performance each month. Delegates earn compensation by maintaining a high level of participation and contributing real value. To measure this, the program uses a scoring system with four key components (weights in parentheses):

• Participation Rate (last 90 days) – Weight: 30%. This looks at what percentage of recent Snapshot votes the delegate participated in (rolling window). It ensures delegates remain consistently active over time, not just in spurts.

• Snapshot Voting (current month) – Weight: 30%. This is the percentage of proposals in the current month that the delegate voted on. It resets each month to track ongoing engagement. Essentially: did you vote on all the new proposals this month? If yes, that’s 100% for this factor.

• Communicating Rationale – Weight: 25%. Delegates aren’t just expected to vote; they should also communicate their reasoning to the community. This metric tracks the share of voted proposals for which the delegate posted an explanation of their vote (usually in their forum delegate thread) within about a week of each vote. Partial credit is given if you explained some but not all votes.

• Delegate Feedback & Contributions – Weight: 15%. This is a qualitative score out of 15 points that the Program Manager assigns based on the delegate’s overall contributions in discussions, feedback on proposals, and general involvement beyond just voting. It’s meant to incentivize quality over quantity in forum participation. The Program Manager evaluates how constructive, insightful, and timely a delegate’s comments and suggestions were throughout the month, rewarding things like well-reasoned analysis, contributing to improvements in proposals, active participation in community calls or working groups, etc..

Each month, these factors are assessed for every participating delegate. The weighted sum produces a Total Participation (TP) percentage. A perfect score (100% TP) would mean the delegate voted in all Snapshot polls, provided rationale for all votes, was active in discussions with high-quality input, and maintained a near-100% voting record historically. They’re essentially an ideal delegate. In practice, TP scores will range below 100, and that’s where the tiered rewards come in.

Reward Tiers

Initially, the proposal set three tiers. After a couple of months of running the program, the community decided to fine-tune the tier structure, introduce a fourth tier, and adjust the ranges:

• Tier 1: TP ≥ 95%  → Up to $2,500 (unchanged top tier)

• Tier 2: TP ≥ 90% and < 95%  → Up to $2,000

• Tier 3: TP ≥ 85% and < 90%  → Up to $1,500

• Tier 4: TP ≥ 75% and < 85%  → Up to $1,000 (newest bottom tier)

In other words, if a delegate hits all the marks (almost perfect participation), they can earn the full $2.5k for that month. If they slip a bit (say they miss a vote or two or don’t write every rationale), and their TP comes in around 90%, they’d be in Tier 2 and earn up to $2k. The adjustment slightly raised the bar for the higher payouts and created a more scaled reward curve. Delegates who score 80% TP, for example, fall into Tier 4 (max $1k), whereas before they would’ve gotten $1.5k. The change was likely made to ensure the budget is used efficiently and to encourage even stronger participation for the bigger rewards. It shows that the DIP is adaptive and that parameters can be tweaked based on real data and feedback, which is exactly the point of a pilot program.

At the end of each month, SEEDGov publishes a monthly report (e.g. June) with all delegates’ scores and the resulting PSP reward amounts. This transparency lets the community see who is contributing and how funds are being spent.

As of now, the DIP has been running since March 2025, and monthly reports have kept the community updated on progress (participation rates, who earned what, etc.). The final evaluation will take place as we approach August 31, after which the DAO will decide whether to renew the program (Cycle 2), modify it, or end it.

The ultimate goal is to fine-tune a governance reward system to best incentivize the behavior we want: engaged, high-quality governance participants. So far we’ve already seen one adjustment (the introduction of Tier 4). Future cycles might iterate further. For example, new metrics could be added, weights could be adjusted, increased/decreased budgets or payouts, or automated tracking via tools like Karma could be implemented.

The Velora Delegate Incentives Program is a step toward strengthening our DAO’s governance. By directly rewarding those who put in the work to discuss, vote, and lead within the community, Velora is investing in a more active, informed, and resilient governance process.