Title: Establishment of the Tokenomics Committee
Authors/Squad: davoice321#4405 gav#8283 Above Average Joe#5427 LiveTheLifeTV#5415
Formatted Document in Detail:
Establish and fund a new entity within the DAO: The Tokenomics Committee (TC). The Committee would have the power to research, develop, implement, supervise and adjust $BANK utility bolstering activities (via tokenomic and other methods) that would be approved by the overall DAO membership and supervised/audited by the Treasury Guild.
Since the DAO’s inception, the community has been engaged in a broad conversation about the overall value and role of the $BANK utility token. These discussions and polling revealed that the community believes the value of $BANK should be safeguarded and that the DAO should take active steps to bolster its utility. Increasing the utility of $BANK will attract talent and enable the DAO to fund more projects that drive the DAO’s mission and values.
By increasing the economic bandwidth and utility of the BANK token, the overall strength of the DAO treasury will be multiplied, leading to enhanced capabilities and increased productivity across the DAO.
Specification of the proposal:
What is the TC
Initial $BANK allocations to the TC
Oversight and accountability
Auditing the TC
The language for the snapshot poll that will signal community approval for the creation and funding of the Tokenomics Committee
This Snapshot will seek approval for the following:
– Yes: The DAO shall establish a Tokenomics Committee (TC) with the following responsibilities:
Research and propose ideas to boost the utility of the $BANK token
Create a process for Treasury Committee formation and recruit individuals from across the DAO to serve on the Committee
Establish an initial budget of:
500,000 $BANK to support previous activities related to securing community consensus, developing initial strategies and more. Post Snapshot approval, a portion of these funds will be used to drive the organization and formation of the Committee and leading its initial activities.
2,000,000 $BANK to support development, implementation, auditing and reporting of Committee activities on an ongoing basis
Formation of the Tokenomics Committee
The Tokenomics Committee will be established in two phases:
-Conducting research and analysis on potential utility bolstering strategies to propose to the Committee after it is formed, including smart contract development and economic strategy
-Recruit individuals from across the DAO to potentially serve on the Committee and develop a process for community approval of Committee members
-Outline the powers and responsibilities of the Committee and seek community approval for initial activities.
Phase II: Formally establishing the Committee and engaging in initial tokenomics strategy implementation activities
What is the Tokenomics Committee?
The Tokenomics Committee will be an entity with cross-DAO scope, with the following responsibilities:
Developing and implementing strategies for bolstering the utility of the $BANK token (see below for strategies currently under consideration)
Gathering consensus from the community on which strategy (or strategies) would be implemented
Deploying and reviewing the impact of $BANK bolstering activities, tracking results, reporting to the community and making adjustments where necessary.
Current Status of Tokenomics Committee and Activities to Date
Phase I of the Tokenomics Committee formation process is more than 60 percent complete. The squad has engaged in the following activities to date:
- Gathered initial community consensus around the idea of actively bolstering $BANK”s utility and developed strategies for achieving this aim
- Outlined four initial strategies for bolstering the utility of the $BANK token for potential Committee review and approval
- Established a preliminary organizational framework for the Committee and its initial membership
- Engaged in cross-guild conversations related to how much non-$BANK revenue would be allocated toward utility bolstering activities
-Developed a preliminary roadmap of initial Committee activities that would guide its efforts during Seasons 1 and 2
- Recommended preliminary thresholds for the utilization of non-$BANK revenue to increase the utility of the $BANK token (e.g., 25% of the DAO’s revenues to increase the utility of the $BANK token).
Establishing a Budget for the Tokenomics Squad and Committee
The initial budget of 500,000 $BANK (funded from the community treasury) would be utilized to:
- Compensate existing squad members for activities conducted during Phase I of the Tokenomics Committee research and formation process, as outlined in the table below. (60% of budget, 300,000 $BANK).
|Squad Member||Activities||Estimated Hours Spent on Activities|
|Davoice431||-Gathering initial community consensus supporting the concept of engaging in activities designed to bolster the utility of the $BANK token|
-Contributing to the development of initial strategies for bolstering $BANK’s utility
-Helping to flesh out Tokenomics Committee concepts
-Planning for initial Tokenomics Committee activities and roadmap|100+ Hours|
|gav|Engaged in community discussions to form consensus around how the Tokenomics Committee would look and operate
Wrote initial proposal and worked on updating the document following tokenomics meetings
Discussed and fleshed out different strategies that the committee could engage in
Worked with the legal guild to have clarity over how the committee would be able to operate if it is created|~50 hours|
|AAJ|-Coordination and advancement of Tokenomics discussions
-Shepherding of proposal versions
-Research coordination for strategies|100 Hours|
-The remaining 200,000 $BANK will be used to fund the following Phase II activities:
Phase II Activities, With Estimated Budget
|Committee Organization: Includes fleshing out initial roadmap, recruiting Committee members from across the DAO, etc. Explore other DAOs and external professional service providers that can help develop tokenomic models with the TC||~20,000 $BANK|
|Utility Bolstering Strategy Development|
|Includes fleshing out initial utility bolstering strategies, developing additional ideas and beginning implementation efforts||~70,000 $BANK|
|Strategy research and advisory, initial smart contract development, front and back end development, User interface designs, and marketing etc.||~110,000 $BANK|
After the Tokenomics Committee is formally established it would receive a budget of $BANK (from the community treasury), allocated per season, beginning in Season 2. These funds would be used for expenses associated with the further development of smart contracts, interfaces, research, analytic, and operational administrative costs and renewal of various incentives, such as liquidity provision (e.g., Balancer pool).
- Initially, we recommend the Committee receives 2 million $BANK for Season 2
- For subsequent Seasons, the Committee would provide the Treasury Guild with a proposed budget, which would need to be approved by the Guild and ratified via Snapshot vote as part of the overall DAO seasonal budget
- Any unused funds will be rolled over to subsequent seasons
Committee Activity Oversight, Accountability
The Committee will have the right to:
Suggest initial and ongoing thresholds (percentage of non-$BANK revenue and value accrual activation thresholds) – and present these thresholds to the DAO for ratification via the forum
Plan and Implement strategies and tactics on a proactive basis – and present these strategies for community ratification via the forum
Perform certain interactions with smart contracts (if necessary) to allocate Treasury revenue to various $BANK value bolstering activities (via a multisig)
¾ multisig to include Yves, Gav, Above Average Joe and Davoice321 (for Phase I activities). The multisig members will be expanded once the Committee is formally established
The Committee’s activities will be overseen by the Treasury Guild.
In most cases the Committee will have the power to enact policy and implement activities associated with the value accrual strategies ratified by the DAO (via the community forum) on its own. However, before recommended activities are undertaken, there will be a notification period so that members of the DAO can comment on strategies and provide feedback.
Major and significant recommendations and strategies will be put to a DAO-wide vote prior to implementation.
If a strategy is put in place that – in the future – the DAO wishes to substantially change, it can be modified via a community-wide vote that will require a supermajority consensus (+66% approval rate) to be enacted. (Note: As mentioned above, all proposed strategies will go through a process of development, review and community vetting/voting prior to enactment.)
Auditing the Tokenomics Committee
An auditor from the Treasury Guild will be assigned to the Committee who will have the following responsibilities:
Reviewing Tokenomics Committee activities and strategies
Ensuring that Committee members are acting in the best interests of the DAO and aligning with agreed upon goals and agreed KPIs of DAO, and reserving the right to advocate for the removal of any Committee member not in alignment.
Move To Snapshot for ratification and on-chain execution
- Move To Snapshot As-Is
- Make modifications (Comment below)