Product management

Managing Ownership

A brand new product may start out with very few contributors. It's probable that a single user owns most or all of the vested coins. In that case, the user has wide discretion in how to allocate further coins to subsequent contributors. Several questions arise, such as:

How much should I allocate for new bounties?

See our section on bounty valuations

How should I value the product throughout its lifecycle? Early? Middle? Late Stage?

It's up to you! But typically, a brand new product has very little value; you'll have more success if you offer a lot of coins to incentivize new participants. Conversely, an established, profitable product might have a lot of value. Then new entrants may not be able to expect a huge ownership stake. Try to gauge the amount of work that has been put into the product. If it's a brand new product, it might be smart to be generous to new participants. Owning 100% of zero is still zero!

Should I be afraid of losing majority control?

Probably not. Building something really awesome will involve working with others. You should try to be fair with the community. Remember that giving them ownership incentivizes them also to see the product succeed. Being too miserly means you have no one aligned with the same incentivizes.

Also the greatest risk any product has is obscurity. You are far more likely to miss out on value from a product that fails, than from having given out too much ownership. Bringing in talented people is essential and almost certainly worth the cost.

How many coins should I give myself in the beginning?

When migrating an existing product onto LET´s CREATE, you can choose to allocate to yourself any number of coins out of the original 10 million. Since the product was yours to begin with, it's totally up to you to determine how many coins should be vested (in your hands) versus unvested (available for payouts for new contributors).

Generally speaking, leaving a large portion of unvested coins might be wise. Unvested coins need not be spent; you are under no pressure to award them at a pace you are not comfortable with. Having a large number of unvested coins available gives you breathing room to compensate people for work done. It also allows you to bring in the best people. While leaving more coins unvested increases the upper bound of dilution that you could experience, it also expands the scope of better utilizing LET´s CREATE. After all, it's all about working with other people; having more unvested coins available facilitates that.

When to Award Coins

A user must complete a bounty to the satisfaction of core team members. When awarding a bounty, and for pricing one, as an owner you should ask yourself:

  • Is the product gaining in value?
  • Am I getting more value from this bounty than the extent of my ownership dilution?
  • Was the bounty clearly worded and precise? How can I make the product's needs more clear?

If work is incomplete, gently inform the contributor. Chances are that with a little discussion, any gaps can be filled. Also check that the bounty is precise and clear; one of the leading causes of bounty-failure is vaguely written bounties.

Valuing Bounties

Bounties come with prices denominated in App Coins for the product they inhabit. Determining the value of bounties is one of the most important parts of product management on LET´s CREATE.

LET´s CREATE aims to provide product owners tools, and rights, for managing their product. One of these rights is the ability to vote on a bounty price.

Product owners can each vote on the value of a bounty, in App Coins. Each owner's vote varies in weight based on his ownership in that product. The bounty value is thus a weighted-average of all owners' votes. This average is normalized against the fraction of owners who voted. This scheme has the following properties.

  • Owners get a say proportional to their contributions to the product; those with the most at stake have the most say.
  • Owners may disagree with one another; a compromise solution is still reached
  • Not all owners need vote. If 80% of owners do not vote on a particular bounty, only the votes of the 20% who did vote count. Within these 20%, a weighted average is conducted.
  • Users who have no ownership whatsoever get minimal voting weight. Thus they may voice their opinion, without significantly influencing the final result.
  • All votes are public. Abusive behavior becomes plainly visible.

Suggesting Bounty Values

LET´s CREATE has an internal algorithm for suggesting the values of bounties. A lot of users were unsure how to value bounties, so we provided a simple way of selecting reasonable values. In no way are users forced to select from the calculated, suggested values; they may always vote a custom amount.

Learn how our suggestion algorithm works.

The suggestion system is just that, merely a suggestion. By all means, whenever possible use a custom coin value that makes sense to you.

Writing good bounties

Good bounties should assume that the reader as little context to the product as convenient (i.e. well known projects can assume readers know a little more).

  1. Link to relevant Github repos
  2. Describe the problem
  3. List the goals
  4. List any blockers or subtasks
  5. Offer people to help out with it
  6. Preferably include images or supporting assets
  7. Mega bonus points for  quick video/screencast

Depending on the problem, go into more or less detail about the solution. (i.e. if it’s an easy but time consuming solution, spec it out clearly. If it requires more creativity stress the goals rather than the solution)