BanklessDAO - PrimeDAO <> BANK Token Swap

Governance Proposals
1

Proposal Name: PrimeDAO <> BanklessDAO Partnership

Program Champion(s): Icedcool, Bl0ckB0y.eth

OP Date: May 10, 2022

Status: Forum

Date Created: 5/19/22

Date Posted: 6/1/22

TL;DR

  • BanklessDAO would like to create a partnership with Prime DAO because we share the mission of DAO2DAO coordination and collaboration
    • PrimeDAO provides crucial infrastructure and accessibility tools within the DAO ecosystem
    • With similar mission, their is a potential for both DAOs to launch products and go to market together
  • Proposed value of the swap would be:
    • 25,000 worth of $BANK for 25,000 of $D2D tokens (Taken at a 30-day average)
    • The tokens will be vested over a year with a 3 month cliff

Background

BanklessDAO (referred to as “bDAO”) is a decentralized community dedicated to stewarding the Bankless movement through media, culture, and education.

Since launch, bDAO has become a flourishing community with 15,000 Discord members and 4,525 token holders, catalyzing a number of promising initiatives ranging from content generation (the Rug, Decentralized Law, State of the DAOs, and more), education (Bankless Academy), consulting (Bankless Consulting), engineering and development work (Degen, Bounty Board), community NFT and merch sales, and new financial products (BED and GMI with IndexCoop).

PrimeDAO is a collective of DeFi builders and DAOists focused on researching and building next-generation coordination tools for decentralized organizations. Their mission is to enable DAOs to build a stronger ecosystem across web3. PrimeDAO provides crucial infrastructure and accessibility tools for both incumbents and new players allowing DAOs to be more resilient through cooperation and community.

Due to the high alignment in purpose to deliver tools and resources to DAOs, this token swap would signal a partnership relationship which could lead the two DAOs developing and going to market with products together. Additionally BanklessDAO could benefit from utilizing some of the key products being developed by PrimeDAO.

Key PrimeDAO Products

  • Prime Launch is a decentralized token offering platform that allows for fair an user friendly token launches
  • Prime Rating is a permissionless framework for quantifying DeFi protocol risk and quality
  • Prime Deals is an interface for DAO to DAO interactions
  • Prime Pools are DAO-governed liquidity pools that bridge liquidity between allied ecosystems and create index pools

Specifications

  • $25,000 worth of $BANK tokens will be swapped for $25,000 of $D2D tokens taken the 30-day average at the end of the vote on both sides
  • Both tokens will be vested for 1 year with a 3 month cliff

This swap would enable BanklessDAO and PrimeDAO to signal a partnership that will enable both parties to mutually work on products and go to market together.

Upon approval, BanklessDAO Tokenomics Department will use PrimeDeals to structure the swap with the vesting periods built in.

Stipulations

  1. Prime DAO will support the development of the Bankless DAO and, where possible, share learnings and resources with Bankless DAO.
  2. Bankless DAO will support the development of the Prime DAO and, where possible, share learnings and resources with Prime DAO.
  3. $25.000 worth of $BANK tokens will be swapped for $25,000 of $D2D tokens taken the 30-day average at the end of the vote on both sides.
  4. To ensure long-term alignment, Prime DAO will hold no less than 50% of the tokens received through 2023 and act as a meta-delegate in the Bankless DAO ecosystem. And Bankless DAO will hold no less than 50% of the tokens received through 2023 and act as a meta-delegate in the Prime DAO ecosystem.
  5. Both DAOs will actively share DAO operational learnings and workflows, starting with a bi-monthly knowledge-sharing session covering three topics relevant to both DAOs. The first session will be organized at the end of May.
  6. Both DAOs will work on article series on the DAO2DAO ecosystem, its culture, and its growth.
  7. The Partnership is open-ended and does not have an expiry date.
  8. Both organizations can at any moment terminate the agreement through their respective governance systems.

SUCCESSFUL METRICS OR KPIS

  • Increased treasury value from the token swap
    • If the $D2D token outperforms BANK, bDAO would gain exposure to the $D2D token value.
  • PrimeDAO adopts bDAO’s products or services.

Discord Poll: Treasury Guild Member [temp check poll]

Screen Shot 2022-06-01 at 8.00.53 AM
Screen Shot 2022-06-01 at 8.00.53 AM1212Ă—726 71 KB

PrimeDAO <> BANK Swap
  • Approve
  • Deny

0 voters

2 Likes
2

great proposal, I think there is so much alignment between those 2 communities and I am very supportive of this partnership.

But let’s not stop at the token swap or bi-monthly calls, let’s together help with DAO to DAO collaboration, let’s align our projects together, and define a common roadmap.

Our guild and projects are building very cool stuff and integration with PrimeDAO tools can be game-changing for both.

For example, our governance group has been using Prime Rating for governance research, but because we needed slightly different aspects, we couldn’t contribute to Prime Rating nor use their research. But if we have our roadmap aligned we might be able to better cooperate and move faster.

1 Like
3

I’m definitely down to utilize PrimeDeals. It’s a powerful tool if used right. But Im not convinced this is the right way. My response is related token swaps in general and how they seem inefficient. I welcome anyone to challenge/educate me on this. My current understanding of the benefit of token swaps is a public show of support and an investment in the other organization. The idea is that if we work together to improve both our organizations by combining resources and brain power, both our tokens will go up and create a return on investment. Other than financial, just getting more orgs in our network is a big plus. So my first question is - what are the deliverables of this partnership that would result in the social and financial benefits? Looks like 5 and 6 are those deliverables. Because there are many variables that go into calculating token price, how does sharing operational learnings and workflows result in financial gain? I’d like to see something much more specific than this. Operations seem separate from token price and industry clout. This is the problem I see with token swaps in general. I don’t see a strong correlation between the details of the swap and an impactful outcome. There is $50k in this deal. The BankessDAO name is already the most recognized in the space. What we lack is revenue. I’d rather see this partnership be used to create a mutually beneficial revenue generating product where we each stake our respective tokens towards the product. If the product team doesn’t deliver on the promises, the funds are lost or transferred to the organization who is delivering if the effort is not equal.

3 Likes
4

100% agree on this. Token swaps increase our interdependence in the DAO space and diversify our treasury but I don’t see how they improve our revenue flow; one of our biggest pain points as an organization.

@blockboy wish there were links to information about Prime Deals and other tools they are developing so users wouldn’t need to go hunting for info themselves. Prime Deals is the application itself and looking at partnered deals we see PrimeDAO working towards interdependence with a lot in the space, Celo, OlympusDAO, Bankless, Paladin, and Balancer.

@ManuelMaccou, based on my limited reading, it seems that PrimeDAO is situating itself as a permissionless infrastructure tool for DAO2DAO deals, ie. allowing for smoother transition of funds and deals between organizations. I’m not too sure what the interface is vs doing this manually on each end of gnosis treasury multisig, maybe @Icedcool can comment on that? Token swap with them seems to me that we are effectively staking our reputation with them for the potential upside in their efforts as a facilitator of DAO2DAO business – investing in the bear market buidlers.

1 Like
5

Love it and the potential and possibilities this collaboration offers. LFG! Upward

6

I think this is a valid critique of swaps in general.

It is honestly something that we’ve been chewing on in terms of the value of the swaps in tokenomics, and thought to take it forward with a few partners to explore the benefits.

In terms of PrimeDAO, I think they are an ideal partner in terms of what they are working to build in the space, ie PrimeDeals, PrimeLaunch, PrimePools, and PrimeRating.

Although, to your point, we can work together now without a swap required.
The swap does seem to only expose each DAO to the price of the other, and creates the possibility of sell pressure once vesting is up, UNLESS there is utility to the token.

I dig the idea! I think a bit beyond the scope of this initial partnership, but something cool to take forward :slight_smile:

I’m realizing there may be more context we need to add to this token swap, to better identify the value of doing the swap, or if we are exploring, that should be a post on its own to gain consensus at the DAO.

To that end, I’m going to pause this vote and take it to further discussion in Tokenomics.
(Got Bl0ckb0ys approval to do so).

3 Likes