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Table of Contents

- RFC-0050: Fellowship Salaries
  - Summary
  - Motivation
  - Stakeholders
  - Explanation
    - Salary Asset
    - Projections
    - Updates
  - Drawbacks
  - Testing, Security, and Privacy
  - Performance, Ergonomics, and Compatibility
    - Performance
    - Ergonomics
    - Compatibility
  - Prior Art and References
  - Unresolved Questions

# RFC-0050: Fellowship Salaries

Start Date | 15 November 2023
Description | Proposal to set rank-based Fellowship salary levels.
Authors | Joe Petrowski, Gavin Wood

## Summary

The Fellowship Manifesto states that members should receive a monthly allowance on par with gross income in OECD countries. This RFC proposes concrete amounts.

## Motivation

One motivation for the Technical Fellowship is to provide an incentive mechanism that can induct and retain technical talent for the continued progress of the network.

In order for members to uphold their commitment to the network, they should receive support to ensure that their needs are met such that they have the time to dedicate to their work on Polkadot. Given the high expectations of Fellows, it is reasonable to consider contributions and requirements on par with a full-time job. Providing a livable wage to those making such contributions makes it pragmatic to work full-time on Polkadot.

Note: Goals of the Fellowship, expectations for each Dan, and conditions for promotion and demotion are all explained in the Manifesto. This RFC is only to propose concrete values for allowances.

## Stakeholders

- Fellowship members
- Polkadot Treasury

## Explanation

This RFC proposes agreeing on salaries relative to a single level, the III Dan. As such, changes to the amount or asset used would only be on a single value, and all others would adjust relatively. A III Dan is someone whose contributions match the expectations of a full-time individual contributor. The salary at this level should be reasonably close to averages in OECD countries.

Dan | Factor
--- | ---
I | 0.125
II | 0.25
III | 1
IV | 1.5
V | 2.0
VI | 2.5
VII | 2.5
VIII | 2.5
IX | 2.5

Note that there is a sizable increase between II Dan (Proficient) and III Dan (Fellow). By the third Dan, it is generally expected that one is working on Polkadot as their primary focus in a full-time capacity.

### Salary Asset

Although the Manifesto (Section 8) specifies a monthly allowance in DOT, this RFC proposes the use of USDT instead. The allowance is meant to provide members stability in meeting their day-to-day needs and recognize contributions. Using USDT provides more stability and less speculation.

This RFC proposes that a III Dan earn 80,000 USDT per year. The salary at this level is commensurate with average salaries in OECD countries (note: 77,000 USD in the U.S., with an average engineer at 100,000 USD). The other ranks would thus earn:

Dan | Annual Salary
--- | ---
I | 10,000
II | 20,000
III | 80,000
IV | 120,000
V | 160,000
VI | 200,000
VII | 200,000
VIII | 200,000
IX | 200,000

The salary levels for Architects (IV, V, and VI Dan) are typical of senior engineers.

Allowances will be managed by the Salary pallet.

### Projections

Based on the current membership, the maximum yearly and monthly costs are shown below:

Dan | Salary | Members | Yearly | Monthly
--- | --- | --- | --- | ---
I | 10,000 | 27 | 270,000 | 22,500
II | 20,000 | 11 | 220,000 | 18,333
III | 80,000 | 8 | 640,000 | 53,333
IV | 120,000 | 3 | 360,000 | 30,000
V | 160,000 | 5 | 800,000 | 66,667
VI | 200,000 | 3 | 600,000 | 50,000
> VI | 200,000 | 0 | 0 | 0
Total |  |  | 2,890,000 | 240,833

Note that these are the maximum amounts; members may choose to take a passive (lower) level. On the other hand, more people will likely join the Fellowship in the coming years.

### Updates

Updates to these levels, whether relative ratios, the asset used, or the amount, shall be done via RFC.

## Drawbacks

By not using DOT for payment, the protocol relies on the stability of other assets and the ability to acquire them. However, the asset of choice can be changed in the future.

## Testing, Security, and Privacy

N/A.

## Performance, Ergonomics, and Compatibility

### Performance

N/A

### Ergonomics

N/A

### Compatibility

N/A

## Prior Art and References

- The Polkadot Fellowship Manifesto
- OECD Average Wages
- Indeed: Average Salary for Engineers, United States

## Unresolved Questions

None at present.