Fellowship Salaries (#50)

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

text/0050-fellowship-salaries.md

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+# 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](https://github.com/polkadot-fellows/manifesto/blob/5e01eef15eded63f1db9be808b0f7c11bb9f4a12/manifesto.pdf)
+- [OECD Average Wages](https://data.oecd.org/earnwage/average-wages.htm#indicator-chart)
+- [Indeed: Average Salary for Engineers, United
+  States](https://www.indeed.com/career/engineer/salaries)
+
+## Unresolved Questions
+
+None at present.