1,000,000 Target Goal

Simulated Hatch Outcomes

Hatch Strategy

The Hatch is where the community comes together to bootstrap this economy. The Hatch parameters determine many important aspects of the economy, such as the initial token distribution between Backers and Builders. Backers send in wxDai and are minted Hatch tokens. If the minimum goal is reached, tokens will also be minted for the Builders who have earned Impact Hours. The precise number of tokens will be determined by the parameters set below.

Min, Max and Target

• At 1,000,000 wxDai, the Target Goal is intentionally modest. Let’s blow it away!
• The Minimum Goal, 400,000 wxDai, is equal to the soft commitments we already have. We will reach it; we have full commitment to this Hatch.
• The Maximum Goal, 15,000,000 wxDai, is relatively high because there is no reason to disadvantage the raise.
• These parameters will make for a very successful Hatch. Given the high membership ratio, and low minimum and target goal, we should be able to hit the target early in the hatch period and be able to build on that success to try to reach our maximum goal.

Builders Token Supply and Impact Hour Rate

_{The Impact Hour Rate determines the Minting Rate for Builders, making 1 Impact Hour equivalent to sending the amount of wxDai to the Hatch determined by the chart above.}

• The IH rates are configured so that the **total supply held by Backers at the min and target raise are 50.6% and 44.7%, respectively. **
• Because the min and target goals are so modest, this feels like a balanced distribution at those goals (400K and 1M).
• There is a range of 40% in Backers’ Ragequit % and a change of 37% in the Total Supply held by Builders, this extremely motiviating.
• If the Backers show up and contribute over 3,000,000 wxDai, then they will get 70-89%. of the tokens; if they don’t reach 3,000,000 wxDai, they will get between 56-70%
• At the Minimum Goal, Builders get 42 wxDai/IH as to ensure they are rewarded for their work for the cultural build, and as the amount collected approaches the Target Goal (only 1,000,000) it rises quickly to 80 wxDai/IH, however after that the there is relatively slow growth and at the Maximum Goal (15,000,000 wxDai) it’s only 181 wxDai/IH.
• It is worth pointing out that, overall, this Hatch configuration rewards Builders with the highest percentage of supply but also is by far the most incentivizing for all participants to collect more wxDai in the Hatch.

Hatch Tribute and Ragequit %

_{Redeem-ability of the DAO's wxDai: Shows who has rights to the wxDai held by the DAO. All of the DAO's funds are collectively governed but some can be withdrawn if token holders Ragequit. This shows the results of the parameter choices at the 3 different goals.}

• This configuration has a 7% Hatch Tribute to ensure the Hatchers are value-aligned and agree to fund the future of this project even if they disagree with the direction that the collective takes and may want to ragequit later.
• It also gives Backers a fair Ragequit % if enough funds are raised. If 3,000,000 wxDai is collected they can Ragequit 70% of their funds and 83% at the maximum goal.
• The reasonable Backers' Ragequit % will strike a balance between the collective and the individual so that both can be held in check. Backers can still Ragequit, especially if the raise is successful, but if the collective decides to go in a certain direction, Ragequitting isn't so painless, so the individual will likely want to stay with the collective.
• There is more information on this in the next section.

Membership Ratio

• The membership ratio is set at 50 wxDai/CSTK, so a Trusted Seed member with the minimum CSTK Score of 1125 CSTK can send up to 56,250 wxDai to the Hatch.
• At 50x, the membership ratio is higher than the other parameter proposals. The result is a lower barrier to entry.
• For example, an individual might have a low Trusted Seed score as someone deeply involved in Token Engineering and a real believer in the TEC but does not have the bandwidth to be active in other projects. Or it could be someone brand new to the Trusted Seed that has done nothing other than activate their membership.
• The intention is to have a wide welcome to everyone in the Trusted Seed, whether they have a high or low CSTK Score, but to make it unattractive for anyone to come in with the intention of a quick exit.
• To compensate for the high membership ratio, the Hatch Tribute is on the higher end of the spectrum. If a contributor sends 56,250 wxDai to the Hatch and they would pay a 7% Hatch Tribute of 3937.5 wxDAI, which they lose if they ragequit.

Hatch Period

• Trusted Seed members can send wxDai to the Hatch for 28 days which seems long enough to achieve our goals and not so long that it drags on.

Hatch Minting Rate

• Backers will need to send in 1 wxDai to mint 12 TECH.
• This will create a total supply of about 21,000,000 tokens at the Target Goal.
• A salute to Bitcoin.

Hatch Parameters Settings

DAO Strategy

We do not anticipate many proposals to vote on using these parameters. They are not intended to serve as the long term governance strategy for this community. There will be the vote for the Commons Upgrade, and maybe other proposals such as an urgent technical patch or a proposal for funding for very specific cases, such as a trial run for a project.

Support and Quorum

• The support required is 80% in consideration of opposition votes. In this case, if 20% of Hatch token holders vote no, then the proposal does not pass.

• The minimum quorum is 10%, which

• 80% support required ensures that maximum 20% of the engaged token holders can vote no on the Commons Upgrade proposal and it will still pass. Good old 80/20 seems like a fair ratio here.

• The 10% quorum is high for some DAOs but not unachievable considering our closed Hatch and the Builders' share of the Token Supply, especially considering that there is only one important vote that needs to be passed.

_{Proposal Acceptance Criteria: Shows the range of possibilities for DAO vote outcomes and whether they succeed or not given the Support Required & Minimum Quorum chosen.}

Vote Duration and Ragequit Delay

• The Vote duration is set to 4 days to allow for sufficient time for all Hatch token holders to participate.
• The Ragequit Delay is set to 48 hours to allow for contemplation, and hopefully even open discussion, before the option expires.
• Given these parameters, the time it will take between a proposal being submitted and executed, if passed, is 6 days.

Tollgate and Vote Proposal Buffer

• It will cost 5000 wxDai to make a proposal and there will be a minimum of 8 hours between proposals so we can have at most 1095 votes per year and the cost to spam the DAO is 625 wxDai/h.
• The tollgate fee is high to strongly deter spam, a waste of everyone’s time and attention. This will not be a financial burden as very few proposals are expected between the HatchDAO and the Commons Upgrade, and they should only be for large, DAO-impacting decisions.
• The non-spam proposals will be able to request the tollgate fee be refunded from our conviction voting DAO after the Commons Upgrade.
• The proposal buffer is 8 hours, allowing for critical decisions that may require more than one vote under a constrained timeline.

DAO Parameter Settings

Click here to preload the Hatch Configuration Dashboard for this Hatch Config Proposal.