Hi everyone! 
We have recently announced a new initiative dubbed Salsa Season in this tweet, and now we bring the discussion over to here with more details and to gather your feedback.
This is the first post on here from the TACO DAO team, so we clarify that Salsa Season is one of the latest additions to the broader TACO DAO project, not its entirety. To learn more about what TACO DAO is, check out our whitepaper or this concise summary thread on X. Expect our SNS Launch Checklist post soon 
Salsa Season is a first-of-its-kind initiative: a cross-DAO, user-facing rewards platform designed to drive engagement and activity across the ICP ecosystem. It consolidates rewards from participating projects into a single platform, making it easier than ever for users to discover, interact with, learn about, and earn from a variety of dApps.
The idea for a central ecosystem incentive program arose out of the DAO-focused ICP.Lab, hosted by the DFINITY Foundation, in Zurich Switzerland, from August 26th-29th 2024. As discussions progressed, the program began to take shape as an index token holding various assets, much like TACO DAO. The TACO DAO team has an exciting vision of how this program can be run and we have taken the lead on this initiative.
The Benefits of a Central Ecosystem Incentive Program
Encouraging Broader dApp Interaction
The program’s central hub encourages users to explore rewards across multiple DAOs. As they engage with a few, they are naturally drawn to discover and interact with dApps they might not have encountered before.
Streamlined Reward Collection
Consolidating rewards into one platform eliminates the need to navigate separate systems, saving users time and effort.
Simplified Infrastructure
A unified rewards program reduces the need for multiple upgrades or complex systems for DAOs, cutting down on technical overhead and ongoing maintenance. By focusing efforts on a single, well-optimized system, DAOs can collaborate to enhance functionality and user experience, avoiding the pitfalls of fragmented alternatives.
Centralized Analytics and Tracking of User Contributions
The program offers a platform to monitor user engagement across different dApps, providing a holistic view of contributions within the ecosystem. Users can track their own activity, be rewarded for interacting with combinations of dApps, and receive personalized recommendations for future activities based on their behaviour.
Salsa Season Interface
Salsa Hub: A list of all DAOs participating in the rewards program, detailing each project’s share of the current TACO rewards pool and the points the user has earned from each DAO during the current period. This page serves as a channel for users to explore dApps in the ICP ecosystem.
DAO Page: A dedicated display for each participating DAO, showcasing all actions that can earn rewards, a user leaderboard specific to that DAO, and an archive of the DAO’s contributions to the TACO DAO. This page allows users to see their engagement with each DAO in detail.
User Profile: A user’s activity overview, showing completed actions, total points, and recommended activities.
Leaderboard: A ranking of users who have earned the most points, both in the current period and all time, spanning the entire rewards program. This promotes healthy competition and highlights top contributors across the ecosystem.
Reward Pool Frameworks
Participating DAOs will configure their own reward frameworks. The TACO DAO team will support every project in collaborating with each other to develop sybil-resistant, meaningful solutions that drive real value. Below are a few potential frameworks that can be used within the rewards program, with templates provided by the TACO DAO team.
Multi-KPI Pool
This framework allocates rewards based on multiple Key Performance Indicators, allowing for diverse user contributions to be rewarded across various activities within the dApp.
Checklist Pool
This framework allocates rewards based on the singular completion of specific tasks rather than the frequency of their completion. Each task is treated as a checklist item that users must complete to earn rewards. This approach encourages participants to explore various aspects of the dApp. It can also serve as a tutorial, introducing users to the dApp’s features and educating them on Web3 concepts.
Constant Pool with Proportional Distribution
This framework allocates rewards proportionally to specific KPIs. It’s ideal for simpler or gameable metrics – like referrals – as it allows DAOs to minimize their impact with smaller allocations.
Constant Pool with Diminishing/Increasing Marginal Returns
This framework is designed to either prevent “whales” from dominating rewards or, in some cases, to reward users more for valuable contributions. In the case of diminishing returns, larger contributions receive smaller rewards as their size increases, encouraging smaller contributions and ensuring broader participation. Conversely, increasing returns can be used to reward users more for particularly valuable actions.
How DAOs Can Join Salsa Season
1. Proposal Submission
DAOs interested in joining the rewards program will submit a proposal to TACO DAO for approval. Once accepted, they can participate in the next rewards season.
2. Token Contribution
Participating DAOs send their tokens to the TACO treasury before each season. These are exchanged for TACO tokens (based on ICP values) and reserved as the DAO’s share in the rewards pool, configurable to fit their chosen frameworks. Alternatively, projects can acquire TACO tokens through their own means (such as Neutrinite’s DeFi Vectors) and contribute those tokens to join the rewards program.
Seasonal Schedule
Salsa Season runs on a quarterly schedule, divided into active and off-season phases:
Rewards Season (14 days)
Each Salsa Season is a two-week event designed to energize and engage the ICP community. Participating projects send their tokens before the season starts. If transfers are made after the season begins, they will count toward the next season. To maximize participation and engagement, seasons are scheduled with consideration for culturally significant events and universal periods of downtime. Each season can carry a unique theme inspired by the latest developments, milestones, or trends within the ICP ecosystem – creating an ever-evolving narrative that reflects the community’s progress.
Off-Season (10 Weeks)
Following each season, a 10-week off-season period provides a break, preventing user burnout while maintaining excitement for the next event. This downtime allows projects to analyse results, fine-tune their frameworks, and prepare for the next Salsa Season.
Synergies with TACO DAO
A brief introduction to TACO DAO’s broader project is necessary for this section.
The TACO DAO is an SNS designed to actively manage a diversified portfolio of tokens on the Internet Computer, as well as an OTC & Orderbook Exchange. Think of it as something akin to an actively (DAO)-managed decentralized ETF. Our model allows members to directly influence the composition of the portfolio by setting desired percentage allocations for each token through weighted votes. These votes are then compiled, and the portfolio is adjusted accordingly through trading on the TACO OTC & Orderbook Exchange. Our mission is to be the most accessible and balanced entry point into the ICP ecosystem.
There is natural synergy between the TACO DAO and the concept of a central rewards program. Both aim to serve as key gateways to Web3.
Trust and Transparency
The TACO DAO portfolio is built on active community involvement, ensuring that every token held is vetted through thoughtful, collaborative decision-making. This due diligence serves as a springboard for building trust in the participating projects.
Value-Driven Rewards
The TACO token, issued as rewards in the program, is backed by the value of the DAO’s diversified portfolio, giving users a tangible connection to the ecosystem’s growth. Users will have the option to burn their TACO tokens to redeem assets directly from the portfolio, at a value matched to the tokens’ worth. This redemption feature provides flexibility for participants while establishing a notable floor in the token’s value, supported by the combined liquidity of all trusted projects backing the portfolio.
Seamless Token Discovery
Within the same dApp, users can easily click right over to the TACO DEX and swap into the tokens of projects that impress them.
Current Status
Projects on board with this initiative so far include Windoge98, SNEED, KongSwap, Neutrinite, Catalyze, Gold DAO, and Dragginz. We’re keen to see more projects join this growing list and make Salsa Season the ultimate showcase of what ICP can offer.
Big thanks to everyone we’ve collaborated on this so far. We’re excited to see your feedback and encourage you to join the recently created DAO Circle Community on OpenChat.
