# TribeDAO - a scalable Moloch + Colony mashup

### tl;dr:

MolochDAO caters to ETH-Whales. It allows to pool a fraction of your ETH with other wales to fund ecosystem improvements. Funds are distributed using voting while the success of the project can't be secured or evoked.

TribeDAO proposes a modification of MolochDAO that addresses this concern by catering to tribes. Allowing builders to pool capital and skills. The use of tributes combined with Colony tasks and reputation puts a focus on curration of tasks and fosters accountable collaboration in distributed teams.

## MolochDAO - pooling money for a common good

MolochDAO was launched in the beginning of 2019. It’s a new type of organisation that blurs and redefines the definition of a firm. Most members have a large supply of Ether (:whale:) and joined by exchanging ETH for MolochDAO shares.

**You have to make a sacrifice!**

**Once a member you can do 3 things:**
1. Vote on issuing new stock for applying members.
2. Vote to issue existing shares for projects to fund.
3. Destroy your stock to get access to its capital (ETH).

**DAO mechanics explained:**
* you have 10% of the shares and you destroy your shares, you get 10% of the capital that the organization currently owns.
* You can only get capital by destroying your ability to vote on who gets access to the capital.

The essence/motivation of MolochDAO is to more effectively coordinate resources for issuing development grants for Ethereum. A nobel cause!

Any member of a MolochDAO can create membership & funding proposals. The proposals are voted on for a fixed period of time. Once the community approves a proposal, there is a limited grace-period. Members opposing the outcome now can rage-quit & cash out their shares before the grace-period ends.

The members of the MolochDAO have no recourse towards approved funding proposals. If a team does not deliver on a proposal, no negative reputation is recorded in the DAO.

**To summarize:** The decision process is coarse, all members have to be aware of proposals and vote regularly, yet lacking control of the efficiency of the capital provided.


> molochDao sources:
[medium article](https://medium.com/@simondlr/the-moloch-dao-collapsing-the-firm-2a800b3aa2e7)

## Colony - Focusing on the talent

Once you join a distributed collective, you will get in contact with the individuals already performing work, sense a feeling for their routine and get invited to show your skills by completing your first task.

A task is the smallest unit of work in a colony. Each task is modeled as a separate smart contract and has a list of roles that interact to create, deliver & finalize it.

* A manager — a teammate sensing the need for work to be accomplished. She defines & proposes the task.
* A worker — another teammate that finds an overlap to his skills with the task definition and takes time to deliver the desired results.
* An evaluator — takes the reviewer role and evaluates the quality of the work performed.

By proposing, completing or reviewing a bounty, a share of the payout is rewarded to each role in money & reputation in a ration of 1:1. So for every coin earned, one receives an equal amount of reputation.

Every member of the TribeDAO can raise objections, if they sense that parts of the task are poorly performed or have a wrong outcome. Basically, the objecting member proposes to change one or several variables of the contract.

A dispute is raised whenever an objection receives enough support. Every dispute must be resolved by voting. All concerned members are entitled to vote on the issue, to either change the variables objected or keep the current state.

Depending on the outcome of the vote, the fractions of total reputation in the colony that voted for the winning side is noted. The loosing side has to fear a loss of their reputation. The exact amount is defined by the total reputation involved in the vote and how close the vote ultimately was.

Consequently, Colony prioritizes a uninterrupted workflow over continous decision making. Objections are only required and need the attention of members once :poop: hits the fan.

> sources:
[colony website](https://https://colony.io/)
[colony whitepaper](https://colony.io/whitepaper.pdf)

## TribeDAO - aligning skills & capital
Let's combine the ideas of MolochDAO and Colony into a single system.

Instead of receiving shares for a simple exchange of capital against equity, as practized in MolochDAO, TribeDAO creates a system in which reputation is a key factor for all decision-making processes.


### Joining a TribeDAO

- have an existing member of the TribeDAO propose membership, together with a juicy tribute in DAI
- existing members will vote about it with their colony reputation.
- Upon acceptance of the request, the tribute is tranferred to the tribe bank, you are given an entry reputation in accordance to the size of your tribute.

### Making a living in a TribeDAO

- pick tasks and take either role of completing, reviewing or leading a bounty to completion.
- completed bounties reward you with the native token and an equal amount of reputation
- accumulate reputation to participate in voting and pay yourself from the tribe bank.

### Paying yourself from the Tribe Bank

- you can request payouts from the tribe bank through a sacrifice of reputation.
- a token bonding curve serves as a automated market maker between a members tribute and it's reputation.
- to prevent excessive capital drain from the DAO, a payout from the tribe bank slashes comparably more reputation than a tribute rewards upon entry.

## Conclusion:
TribeDAO could help smaller collectives or communities to allocate funds more meaningful.

- funds are allocated in smaller portions to trusted members of the DAO.
- reputation keeps members accountable.
- a bonding curve disincetivises capital drain from the DAO.

=> what molochDAO has achieved for ETH-whales, to fund the public good more effectively, TribeDAO might scale for teams of skilled professionals, to unite skills and capital in a strong tandem.