This is a thought. By no means take this as governance that’s being considered seriously, I just had some thoughts and wanted to get them out in longer form than Discord
Assumptions
- We desire to have the holders of the OG D4R NFT rewarded in some way that keeps them engaged over the long haul.
- We want to encourage engagement with the DAO and its projects, rewarded with the ERC20
- The ERC20 will in some algorithmic manner relate to representation in votes on DAO proposals
Concept
Weighted Voting
In order to emphasize that contribution is key, weight ERC20 balance of a wallet in the voting algorithm. I envision this as quadratic or another method that recognizes but mitigates whales, but am not a tokenomics / tokenized democracy expert.
Burn-to-Play DAO Seasons
Each DAO season will have a set cost (Gov’t Guild)) that will be burnt by a given account in the ERC20 to mark themselves as a participant in that Season. This means that long term engagement with the DAO is a seasonal cycle of contribute → reward → burn → contribute…
I don’t know if you can do a controlled burn that gets people entrance or not, or if that has to be a transaction to the treasury and then treasury does as it/governance sees fit.
Those setting prices for seasons could use that as a lever to induce turnover, grow/shrink the DAO, etc. I’ve never really put much faith in economics so someone else can run with this idea further, likely.
What I see as the value of being a Season Participant is that you’ll get a POAP (or NFT), but I need help pinning down what else it would entail. Thoughts on that:
- POAP / Season NFT
- Season specific Discord channels
- Season specific events?
OG NFT Hodlers
Make a every preseason airdrop NFT holders so that they can always afford to be a participant in the next season. If someone wants to sit on the sidelines and cash out their airdrop every season, so be it, the weighted voting mechanism will limit how much power a whale can amass even if they buy every token that hits the exchanges.
Rewarding Contribution
Regardless of the underlying mechanism, D_D could reward those who have notable levels of contribution during a season with airdrops in the lead up to the next season. Like quadratic voting, I recommend that we have a curve upon which contribution is graded: ideally we will be filtering out those with trivial engagement levels while also preventing a run on the bank (by which I mean airdrop distribution values) when we have some contributors turn out projects rapidly.
Tokenomic Starting Point
OGs
OGs are going to be getting a small stipend of ERC20s per season forever. Ideally, this will be small enough that those putting their tokens on the market will not cause undesirable changes in liquidity / concentration of power. A good voting mechanism should limit that as well.
Contributors
NOTE: OGs can still contribute and earn more
Contribution will (on a s curve) deliver some additional level of rewards. The shape of that curve definitely requires consideration, as well as what inputs drive what value on that curve (or if there are different curves for scoring Discord engagement, Discourse engagement, github engagement, qualitative project engagement, etc). My inclination is that we will need to generate curves that we do foresee and iterate on the process at the end of each season (I recommend the first several seasons include a manual review that awards ERC20s as well, as we should expect to find some gaps in the automated process).
Excess Tokens
Through the airdrop and contribution, some contributors will find themselves with a surplus of ERC20s. This can be used to:
- Weight their votes more heavily (per weighted voting)
- Allow for idling through one or more seasons (buy in but do nothing)
- Allow the contributor to cash out on an exchange
- Your thoughts here