This proposal is to gather community consensus via a poll included with this proposal about whether a Snapshot vote should be initiated on the following question:
“Should a percentage of revenue generated by the DAO (when the DAO has generated at least $250,000 in non-$BANK revenue) be utilized to increase the inherent value of the $BANK token?”
Over the past several weeks, the community has been engaged in a vigorous discussion on Discord and the forum focusing on the nature of the $BANK token, i.e.:
Whether it should be viewed as a “valueless token that simply represents participation in the Bankless DAO community”
Or, if $BANK should be considered a store of value in order to more reliably utilize it as an asset that will be readily accepted by external partners, community members and others as a means of payment, or for commerce.
I suggested that not only should $BANK be considered a store of value, but that the DAO should take affirmative steps to bolster its valuation utilizing a percentage of the DAO’s revenue.
To gauge community sentiment, I launched a poll on this question. 87% of respondents agreed that the DAO should utilize a percentage of the DAO’s revenues to bolster the value of $BANK.
The purpose of this proposal is to gather community approval to raise this question to a Snapshot vote.
One question we tackled early on was whether it is too early to begin thinking about diverting a portion of the DAO’s revenue toward increasing $BANK’s value given that the DAO has no significant revenues to date.
We believe that it is never too early to make a public commitment that the DAO will proactively work to bolster $BANK’s market value.
Having an early Snapshot vote on this question communicates that this is a priority for the DAO, and provides the team looking into the best method of Treasury utilization with the confidence needed to move ahead with this important and time-consuming work.
A second question is about whether boosting $BANK’s value will prevent individuals from joining the DAO due to $BANK’s rising price. There are already ongoing efforts to significantly reduce the amount of $BANK required to join the DAO, or even remove this requirement entirely. Doing so will reduce the barrier to entry and enable many more people to join the DAO.
To review additional conversation on this topic, please see my forum post.
This initiative would be implemented in two phases:
Phase one would involve conducting a Snapshot vote with two options:
- Yes, Utilize a percentage of the DAO’s revenue (when it reaches at least $250,00 in non-$BANK revenue) to bolster the value of $BANK
- No, do not utilize a percentage of the DAO’s revenue to bolster the value of $BANK
Phase two: After the Snapshot vote (assuming it is yes), a squad of DAO members will:
Conduct research into some of the best methods of utilizing DAO revenues to bolster the value of governance tokens
Present strategies for community consideration (current conversations revolve around using DAO revenue to buy $BANK from the market and either burn these tokens or return them to the Treasury), initiating a staking pool for $BANK holders to receive a share of DAO revenues and other tactics
Gather consensus about which strategy makes sense to pursue from the community
Develop a formal proposal designed to achieve consensus on whether to conduct a Snapshot vote on the preferred strategy
Conduct a Snapshot vote to codify the preferred strategy into the DAO’s operational framework, and receive funding to implement the strategy (develop smart contracts, etc.)
From a timing perspective, this research and consensus building work would take between 2-3 months.
Researching how other DAO’s utilize their revenues to bolster the value of their governance tokens
Developing a technical specification for the strategy implementation
Please indicate your preference as to whether a Snapshot vote should be raised on the following question: Should the Bankless DAO utilize a percentage of Its revenue (when non-$BANK revenue is at least $250,000) to actively bolster $BANK’s Value?
As a reminder, at this point we are looking to conduct a vote as to whether the community feels the DAO should to do this (use the Treasury to support $BANK’s value) at all.
A second vote would be held to agree on a specific mechanism (once that is determined).
- Yes, launch a Snapshot on the question of whether the DAO should utilize a percentage of its revenue (when non-$BANK revenue is at least $250,000) to actively bolster $BANK’s value
- No, do not launch a Snapshot on the question of whether the DAO should utilize a percentage of its revenue to actively bolster $BANK’s value