Title: BanklessDAO subDAOs and subTokens
Date: Aug 25
Faced with some stimuli received, mainly from Joaoh of BanklessBrasil, we began to think about how to create and organize subDAOs linked to BanklessDAO.
In none of the cases there would be the desire to terminate the link with BanklessDAO, but to continue to use both BanklessDAO and the subDAO.
The sub-DAOs could be of different types, for example:
- A local community that wants to create engagement in its own language, evolving towards a decentralized and token-based model;
- A group of DAO’s creators who decide to collaborate for some specific purposes using an ad hoc platform;
- A DAO’s project that wants to continue its efforts using governance elements or aims not present in BanklessDAO.
Following the previous examples, subDAOs could bring several benefits to BanklessDAO:
- Reach more people around the world. Or help shaping new communities without the pressure of too expensive stakes and retribution models;
- Get even more significant contributions from your creators;
- Allowing a greater degree of independence to some projects, without losing the link with it.
Each new subDAO should own and use its tools:
- A channel for the community, could be Discord;
- Tools to be able to collect contributions and exercise consent, soft and hard (Discord, Snapshot, DaoHaus…);
- A specific token, permanently anchored to the BANK.
To pursue the issuance of a new specific token that has the BANK token as collateral, which in the following example we will call subBANK, our proposal includes the following steps:
- The proponents of the initiative decide the amount of BANK to be placed as collateral to obtain the issue of the subBANK, for example 50,000 BANK;
- The subDAO and subBANK proposal is presented in the forum in order to request acceptance by BanklessDAO;
- If the proposal is accepted, BanklessDAO will undertake to place as collateral an amount of BANK equal to that decided by the proponents of the initiative, in this example equal to 50,000 BANK;
- The 100,000 BANK placed as collateral will be kept in the BanklessDAO treasury or in a specific smart contract;
- The subBANK will then be issued with a ratio (for example) of 1: 100. Against a collateral of 100,000 BANK, 10,000,000 sub-banks will be minted;
- 50% of the sub-banks will be delivered to the multisig of the supporters of the initiative. The remaining 50% will be hoarded by BanklessDAO.
In a different approach, the DAO could use a pool for swapping BANK and subBANK tokens (thank you Icedcool)
At the end of this process, the proponents of the new subDAO will hold 50% of the subTOKEN issuance and it will be their concern to find the best ways to increase the level of distribution and decentralization.
50% in the hands of BanklessDAO can be transferred to third parties against payment of the same in BANK, always maintaining the ratio of 1: 100 indicated (provided that it is not decided to opt for the free market and therefore agreements are made in this regard between BanklessDAO and the subDAO).
The reasons why I think it is important for the DAO to place 50% as collateral are the following:
- ensure that the subDAO has a minimum level of decentralization;
- preventing original subDAO team to act limitless;
- maintain a strong link with the subDAO and its members;
- create a system of subTokens that can enrich this new ecosystem.
I await your thoughts and reasoning. If this proposal is considered valid, I will collect all your advice and put it to a vote.
Thanks to the people who helped me reach these conclusions: Eagle, Frogmonkee, Icedcool, Joaoh