MetaGame DAO Discussion: Improving SourceCred DAOs with LOOT

# MetaGame DAO Discussion: Improving SourceCred DAOs with LOOT Whatsuppp been a while since I've written on this forum :smiley: # Abstract Build a Community owned treasury. Use the new Moloch v3 framework to abstract SEED Distributions to LOOT Distributions. This new structure allows control over their SEEDs, however also gives the DAO power to propose to use the SEEDs collectively. Moloch v3 offers a lot of perks like voting delegation, Rage Quit, Revenue Splitting, and Gnosis Ecosystem compatibility. # Current State For the past year, MetaGame has been run from internal guilds using 1 person-1 vote mechanisms to make decisions in Discord. After the [1.0 launch](https://open.substack.com/pub/metagame/p/124-if-you-havent-read-an-mg-newsletter?utm_campaign=post&utm_medium=web), MetaGame is looking to reinstate itself in the DAO space. On-chain resolution, decentralized voting, treasuries, etc. @peth just posted this short overview of a possible DAO structure: https://forum.metagame.wtf/t/proposal-39-dao-restructure-relaunch-draft/982 Peth's post covers a lot of issues Metagame had faced when attempting to DAOify in the past. Plutocracies, delegation, player representation, etc. I hope to build on this with a bit more detail on moving forward. ## The Distribution Problem - SEED Distributions are Bad for DAOs <hr> A DAO is an internet community with a shared bank account -- Cooper "CoopahTroopa" Turley <hr> While this is a gross simplification, the narrative rings true. SourceCred's biggest flaw in a DAO is it removes the shared bank account. It trades the DAO treasury for individual autonomy. One of its biggest strengths becomes its biggest weakness in a DAO context. How are we supposed to do anything useful with Seeds when they are divided between 200+ accounts. MetaGame does not ave a shared bank account. There is no strength in numbers if there is no schelling point. Another failure of the system is inactive player SEEDs continue to pile up. Tons of SEEDs sit in wallets unused. The DAO must contact these individual players and have them send their SEEDs to a multisig in order to use them. So, no more SourceCred? No more SEED distributions? That's not the MetaGame I know! ## The DAO Solution - LOOT Distributions and Moloch v3 I really like SourceCred. I don't want to get rid of it. Instead I am proposing a solution that gives us the best of both worlds. A unified DAO treasury that maintains individual autonomy. LOOT Distributions. ### What is [LOOT]((https://molochdao.com/docs/moloch-2.0-operating-manual/features-overview/members/#loot))? "Non-voting Shares in the DAO. Guilders can ragequit Loot to withdraw proportional amount of assets from the DAO based on current Share Value." In other words, you retain control over your tokens, but the DAO can also control them with your consent. ### What's the Plan Send SEEDs to the DAO treasury and distribute proportional LOOT to Players. #### How do players get their SEEDs? If Players want their SEEDs, they can Rage Quit the LOOT, to receive their proportion of SEEDs. This kills two birds with one stone as it handles profit sharing too. Any profits Metagame wants to split with Players can also be Rage Quit. ## Moloch v3 Moloch v3 brings a lot of amazing DAO features to the table that I believe fit MetaGame really well. #### Pros: - Community owned treasury - Everyone owns their share of the treasury. If they want to use their SEEDs, they can take them out at any time with Rage Quit - Inactive SEEDs controlled by the DAO - There are many players who contributed in the past who let their SEEDs sit in their wallet. This structure means these SEEDs can be accessed to benefit the DAO with the consent of the player. If the inactive player wants to keep their seeds, they can be Rage Quit before the proposal passes - Built in Voting Delegation - Voting shares can be delegated to any voting member - Revenue Splitting - Any profits added to the treasury can also be Rage Quit - Non-Player Member vetting - If a new member wants to join, a DAO vote must pass to mint the user DAO shares - Separation of LOOT and Governance shares - Voting shares can't Rage Quit from the treasury #### Cons: - New Beta Technology - The [DaoHaus Moloch v3 UI](https://admin.daohaus.fun/) is still in beta. Some things aren't finished. Some actions must be done manually through etherscan (e.g. controlling multiple safes, building custom proposals, etc). I've talked with DAOHaus devs and they've assured me the UI is the focus. - Lack of Boosts - As far as I know, there are little to no boosts yet. The previous vrsion of moloch allowed for Discord notifications, snapshot votes, token streaming, etc. V3 doesn't offer this yet - Moloch v2 - Moloch v2 is battle tested. Moloch v2 is much simpler. Moloch v2 has a nice UI. Moloch v2 has great Integrations. Why not use V2? ## Setup There are 3 main pillars that must be covered for the DAO to form. ### Initialization `1 LOOT = 1 Earned SEED` How do existing MetaGame players get shares in the DAO? -> Players pledge their SEEDs for LOOT ``` lootToMint = min(SEEDs owned, SEEDs earned) ``` In English, members can pledge as many SEEDs as they have earned through the XP system. Remember, members maintain ownership over their SEEDs These proposals can manually be cross-referenced with the [SourceCred SEED page](https://xp.metagame.wtf/#/) to make sure a member is not requesting too many shared ### SEED Distributions How do we distribute SEEDs SEEDs will be distributed to the DAO treasury. LOOT will be minted equal to the SEEDs earned to each player. This maintains the `1 LOOT = 1 SEED` ratio. Currently DaoHaus does not have a way to mint LOOT for multiple wallets at once. However, LOOT is an erc-20 token. MetaGame can use existing solutions, like [https://disperse.app/](http://Disperse) to make these distributions. DAOhaus may also want to build this functionality. ### Voting Shares LOOT shares don't carry any voting weight. How do we decide who gets voting shared? Some don't want voting shares. Some want to delegate their shares, some may want to buy extra voting shares etc. My initial idea is to trade X amount of LOOT shares for voting shares, analagous to how MetaCartel works. A player could trade 100 LOOT for 1 Voting share. There is also the idea @peth has of various guilds with equal representation This is an interesting problem. >From Proposal #39: > > To start our way towards MetaFam being only the founding guild of MetaGame, I think it would be wise to start splitting the voting power into 4 categories: > >* Players >* Patrons >* Guilds >* Elders This could certainly be done with subDAOs. ## Future Topics of Discussion Some things to think about for the future #### Handling Patrons Patrons do not have any XP. How do they get shares? Pledge pSEED maybe? #### Transferrable LOOT LOOT can be made transferrable or non-transferrable. Does this unlock anything interesting? #### LOOT Rewards Should Players be rewarded for keeping their SEEDs as LOOT shares? #### Coordinape @peth has shown interest in adding Coordinape to Distributions. Does that affect this?