DEFI

ApeCoin DAO's controversial compensation system, Animoca founder Yat Siu claims it is comparable to that of a director in a publicly traded company.

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ApeCoin DAO

Vulkan, who serves as the secretary of ApeCoin, released the organizational chart of the ApeCoin DAO leadership system on Twitter, sparking questions from users about the DAO's compensation system. The tweet also listed the monthly salaries for each role, including: Secretary $7,000, Governance Coordinator $8,000, Working Group Manager $9,000, Special Committee Member $20,833, and a monthly payment of $75,000 to WebSlinger, who is responsible for legal and compliance matters.

Composition and Origin of ApeCoin DAO

ApeCoin, the native currency of the Bored Ape Yacht Club (BAYC) ecosystem, was launched in March 2022. It is owned and operated by the newly established decentralized autonomous organization (DAO) called "ApeCoin DAO," which is composed of ApeCoin holders. Every ApeCoin holder is a member of ApeCoin DAO, making decisions together on fund allocation, governance rules, projects, partnerships, and other matters.

The ApeCoinDAO Special Committee functions similar to a board of directors, overseeing the management of the foundation at the request of DAO members and managing DAO proposals and servicing the community. The initial term of the board of directors is 6 months, after which DAO members will vote annually for board members.

Yat Siu Emphasizes Pay and Responsibility Alignment

Yat Siu, co-founder of Animoca Brands and an initial member of the board of directors who continues to serve, believes that compensation should be commensurate with the role's responsibilities and obligations. Through various reports, parameters suitable for a medium-sized public company were identified, with the closest match found to be public company directors. Although the role of the Special Committee differs somewhat, there are many similarities. Serving a DAO valued at tens of billions of dollars, along with the associated risks and responsibilities, underscores the importance and duty of each member. Siu also referenced statistics on public company compensation to demonstrate that the compensation provided by ApeCoin DAO is not excessive.

Regarding community demands for voting on salary reductions and reviewing job responsibilities, Yat Siu bluntly stated:

You get what you pay for. There is a reason for the company's compensation. The vote is yours! But consider the consequences. We should consider the type of talent we want and the risks and responsibilities associated with the role.

Previously, we introduced the rich compensation systems of Coinbase CEO Brian Armstrong and Tesla CEO Elon Musk. In the United States, where capitalism prevails, generous stock incentive programs are often used to attract and retain top executives. According to a survey in May 2022, the average income of a CEO in the United States is 670 times that of an average employee!

Although ApeCoin has been declining recently, its total market value still stands at $7.7 billion, ranking 43rd in the cryptocurrency market capitalization.