---
# System prepended metadata

title: Creator-Collector Reciprocal Network

---

# Creator-Collector Reciprocal Network

## Preliminary References

- Dekan's Gigabrain was the primary stimulant for these thoughts
    - [DUCE - Decentralized Universal Comment Emitter](https://hackmd.io/@daohaus/HkEdZudYp)
    - [DIN - DAO Immutable News](https://ipfs.io/ipfs/bafybeihonphdxvmf4zx7lgztvy7gwez25bvxkqsjpmdhj7l5owiwgeunhi/#/articles/0x01ff831b99ff63ea60cee36f41cdddc7d57a587d1654980607c6d43e1a6549a7)
    - [The Governomics of DIN: Exploring On-chain Governance and Economics](https://ipfs.io/ipfs/bafybeihonphdxvmf4zx7lgztvy7gwez25bvxkqsjpmdhj7l5owiwgeunhi/#/articles/0xa1fdbdd1acef5a8e571092ced6ec12103e14b26d7a719477cb72e89a018f1c39)
    - [Mechanism Mining: Empowering Authors and Consumers in DIN](https://ipfs.io/ipfs/bafybeihonphdxvmf4zx7lgztvy7gwez25bvxkqsjpmdhj7l5owiwgeunhi/#/articles/0x3cf6c49be091b699aab457c4845ac7c20f3b9a8c1a9c0126152f38acf8eb8d6c)
    - [Immutable Comment System and React Component: Proto-DUCE](https://hackmd.io/@Dekan/ByimpTLi2)
    - (Probably many more ragehacks over the last year that haven't been properly documented but would provide invaluable structure to this project)
- [Typto's Design for DIN](https://www.figma.com/file/TIp1OgZA5EQGanSybz1X8c/DIN?type=design&node-id=35%3A1461&mode=design&t=fp4ZjKmjp05l0fjw-1) - Figma
- [**Pluriverse Index**](https://hackmd.io/@pluriverse/r1Wq1FdZn/https%3A%2F%2Fhackmd.io%2F%40pluriverse%2FByKPSF_W3) - Lots of ideas generated over ~1 year span, designing a Moloch DAO for decentralized lore stewardship. Shoutout to **plor** for his countless contributions to these concepts.
- **JP** + **Boilerrat**'s experiments with knowledge graphs like Obsidian and Logseq. Very inspiring but never utilized (at least as far as I know) ideas for sharing knowledge within a DAO walled garden. Knowledge is our power!

## Overview

**This project is centered around the creation, distribution, and valuation of digital cultural artifacts within a unique ecosystem comprising creators, collectors, and a wider public.** At its core, it utilizes a dual DAO structure: the *Creator DAO* and the *Collector DAO*, each with distinct roles and interactions within their autopoietic (closed) ecosystem.

The Creator DAO consists of individuals dedicated to producing and curating artifacts. These creators contribute their intellectual and creative labor to a communal decentralized knowledge graph, fostering an environment of collaborative content creation. This graph serves as a dynamic repository and a springboard for the generation of new ideas and artifacts, which are then minted as Non-Fungible Tokens (NFTs). The unique mechanism here is the token gating via DAO shares which ensures exclusive access to the knowledge graph, thereby safeguarding the intellectual property and incentivizing continued contribution from the creators.

On the other side, the Collector DAO is formed by members interested in accessing and investing in these digital artifacts. They play a crucial role in the valuation of the artifacts, as they commit to purchasing the newly minted NFTs, setting their initial market value. This not only provides direct financial support to the creators but also establishes an economic benchmark for the artifacts.

"The public,"" forming the third pillar of this ecosystem, participates through a Nouns-style public auction mechanism. They can bid on the NFTs, with the winning bid granting them membership in the Collector DAO and a stake in its treasury. This introduces a dynamic market where the public's valuation of the artifacts directly influences the overall economy of the system.

![DIN-01](https://hackmd.io/_uploads/Sk9ppRLdT.jpg)

The economic model interweaves the contributions and rewards of both DAOs. It’s designed to ensure a continuous flow of value, where creators are fairly compensated for their contributions through a revenue-sharing model from the sale of NFTs, while collectors see potential returns on their investments through the appreciation of the DAO's treasury. Furthermore, the model incentivizes long-term engagement and growth, as the value of DAO membership and the underlying assets are intrinsically linked to the collective success of the community.

The project utilizes a small stack of tools, some of which exist and others that will need to be modified for our purposes:

1. **Decentralized Knowledge Graph:** The foundation of the project is a decentralized knowledge graph, a dynamic and communal repository where creators contribute and curate digital content. This graph serves as a living database of creative ideas and intellectual property, *accessible exclusively to members of the Creator DAO*.

2. **Curated Sub-Graphs for Content Creation:** Creators within the DAO utilize this primary knowledge graph to form specialized **sub-graphs**. These sub-graphs are curated collections of member submitted content that outline the basis for new digital artifacts. These curated sub-graphs are minted as NFTs, representing the lineage of contributions, securing future attributions, and scaffolding the content the community will rally to create.

3. **Content Creation:** The content outlined by these sub-graphs is collaboratively written and developed by the community. At various key phases of the process, this content is minted as NFTs to capture the changes. Crucially, the metadata of these NFTs comprehensively includes all contributor attributions, ensuring transparent and equitable recognition of each member's creative input.

4. **DAO Mechanics and Member Shares:** The project operates on a dual DAO structure: the Creator DAO and the Collector DAO. Both DAOs have distinct share mechanisms, reflecting their roles in relation to each other. The Creator DAO members hold shares representing their desire to contribute, while Collector DAO members hold shares tied to their investment and consumption of the digital artifacts.

In the following sections I will outline each of these sections in as much detail as I can, albeit from a relatively non-technical background.

## Section 1: Decentralized Knowledge Graph

This section outlines the foundational framework for the decentralized knowledge graph, focusing on community-driven content submission and collaboration, enhanced by a dynamic, spatially-oriented graph.

![A flowchart diagram illustrating the user flow for a decentralized Knowledge Graph system.](https://hackmd.io/_uploads/rJZxSMUO6.png)

#### Overview
- **Value of Knowledge:** Emphasizes the importance of individual and collective knowledge within a community.
- **Goal:** Facilitate pooling of diverse knowledge sets into a community-owned and -held repository.

#### Core Mechanism
- **Decentralized Knowledge Graph:** Utilizes tools like [Obsidian](https://obsidian.md/), [Logseq](https://logseq.com/), or similar adapted to DAO-token-gated access.
- **Repository Setup:** GitHub-style, allowing community member submissions through a form. Ideal setup would be a repository that allows for admin-free ownership and stewardship by the DAO itself, not an individual member.
- **Roles/Permissioning:** Any individual should be able to start their own org, repository, and related graph. Access to all knowledge assets is granted through distribution of DAO shares.

#### Submission Process
- **Standardized Form:** Includes title, description, tags, and link to primary source material.
- **File Formats:** Potential for various file types based on community needs.
- **Identity Linkage:** Submitter's crypto wallet address linked to the submission.
- **Collaborative Submissions:** Multiple addresses can be associated with a single piece of research.

#### Content Scope
- **Types of Content:** Includes primary and secondary research, snippets, notes, opinions, diagrams, images, and other relevant materials.
- **Non-Textual Content:** Encourages submission of diverse content forms.

#### Access and Navigation
- **Spatial Element:** Content explored in a non-chronological, non-hierarchical manner.
- **Graph Dynamics:** The shape and quality of the graph depend on the contributed content.
- **Tagging and Coordination:** Emphasizes the use of common tags for organizing subject matter.

![Screenshot 2024-01-06 at 7.18.05 AM](https://hackmd.io/_uploads/SyxSbywda.jpg)

#### Basic Flow
- **Submission Process:** User fills out a form on the community website, submits content, and observes the dynamic change in the knowledge graph.
- **Community Interaction:** Encourages active community participation and contribution.

![DIN Diagrams](https://hackmd.io/_uploads/BJPEzJvuT.jpg)

#### Future Research and Development
- **Tool Exploration:** Investigate existing tools (Obsidian, Logseq) and decentralized repository alternatives to GitHub. Explore web3 alternatives and how to integrate with DAO share token gating.
- **Custom Form Development:** Design a form to capture essential metadata for submissions.
- **Content Curation:** Consider ways to curate content to reflect community biases, alignments, and disagreements. Dekan's DUCE offers Reddit-style up/down-voting. DH's Token Curated Registry (Signal app) provides a linear, hierarchical process that could be further democratized.

## Section 2: Off-Chain Governance and Community Curation

This section outlines the process of community collaboration and decision-making in curating content, leading to the creation of sub-graphs and their minting as NFTs, with a focus on maximizing knowledge sharing and transparency among community members. It highlights the need for a user-friendly interface for curation and discussion, along with further research into tools and methodologies to support these processes.

![Off-chain governance and community curation.](https://hackmd.io/_uploads/ByPXUzLO6.png)

#### Overview
- **Purpose:** Facilitate community assembly to curate shared knowledge towards specific goals (e.g., articles, visual images, NFTs). This is essentially soft (off-chain) governance that might begin as guidelines/SOP, with the potential to evolve into a feature set that empowers advanced coordination (action) with minimal discussion or bureaucracy
- **Initial Use Case:** We will start by considering a community wanting to curate content for composing an original article, to be minted as an on-chain NFT. Future use cases could explore a similar mechanism repurposed for generating layered SVG artwork, music, organizational evolution, infinite etc.

#### Mechanism of Operation
- **Discussion and Curation:** Community members collaborate synchronously or asynchronously to share ideas and curate content from the decentralized knowledge graph. 
- **We Know What We Know *and* What We Don't Know:** Curation references what exists on the graph. If information is missing, those absences are submitted as placeholders so members can return later to fill in the blanks. Even incomplete knowledge can point towards significant insights.
- **Issue Creation:** Identify gaps in information, leading to the creation of GitHub- issues for new content submissions.
- **Interface Requirements:** A platform for accessing the graph, identifying nodes, and curating them into a collective pool. A fork of Obsidian?

![Obsidian UI](https://hackmd.io/_uploads/Hy-VHJvOT.jpg)

#### Emergence of Sub-Graphs
- **Differentiation of Ideas:** Smaller sub-graphs emerge through member interactions, focusing on specific topics according to their interests. Total alignment (consensus) across the DAO is not necessary, nor are permissions required to act in any given direction.
- **Ownership and Attribution:** These sub-graphs begin to define ownership over ideas and content. Any tidbit of submitted content includes the contributors address. 
- **Sub-Graph as NFT:** The curated sub-graph is minted as an NFT, serving as a roadmap through the larger primary knowledge graph. 
- **Inclusion of Metadata:** Compiles references for future indexing and attributes individual contributions. As smaller bits are curated into medium sub-graphs, the attributions are maintained. The final artifacts becomes a composite constellation of all previous nested sub-graphs.

#### Basic Flow
- **Idea Presentation:** User proposes an article idea and schedules a community meeting.
- **Community Collaboration:** During the meeting, the initial curation is critiqued and refined, and missing nodes are identified.
- **Minting Process:** Final curation and meeting details are compiled into an NFT subgraph and integrated back into the primary Knowledge Graph

![DIN Diagrams](https://hackmd.io/_uploads/SJKWP1vda.jpg)

#### Additional Research Areas
- **Sub-Graph Creation:** Explore tools like Obsidian, Logseq, and GitHub for creating and managing repos, graphs, and sub-graphs. (Continued from Section 1)
- **Minting Mechanics:** Research the process of minting graph nodes as NFTs, including metadata integration and ownership aspects.
- **Collaboration Tools:** Investigate synchronous and asynchronous tools for effective, low-friction community collaboration, maintaining attribution lines and capturing live discussions.
- **Note-Taking Mechanisms:** Consider AI transcription tools or human note-taking strategies for documenting meetings, identifying issues (of missing knowledge), creating summaries for members that couldn't attend, etc.

## Section 3: Composition of Artifacts

This section outlines the creation of a collaborative tool for composing artifacts from curated content, emphasizing the need for a user-friendly and efficient platform to facilitate the writing and editing process, ultimately leading to the minting of the completed work as an NFT. 

![The composition of artifacts.](https://hackmd.io/_uploads/r1KhUGU_6.png)

#### Overview
- **Objective:** Develop a tool for synchronous collaboration on curating content into a fully realized artifact (e.g., an article) to be minted as an NFT.
- **Starting Point:** Utilizes the curated subgraph from Section 2 as the basis for composition.

#### Tool Requirements
- **Non-Chronological Representation:** Nodes displayed in a non-hierarchical manner based on internal tagging, not external factors like views or timestamps.
- **AI-Assisted Organization:** AI tool (ChatGPT variant) organizes content into a scaffold or outline without altering it. 
- **Spatial Representation:** Nodes visualized spatially (like postcards on a bulletin board), with a switch to linear text document view.
- **Common Problems to Multiplayer Editing:** Address commenting, versioning, and content hosting issues.

[**Scrivener**](https://www.literatureandlatte.com/scrivener/features?os=macOS) (and other existing apps) provides a lot of this functionality. We don't need to reinvent the wheel, but the spatial constraints of the tool we use to compose will determine the spatial constraints of the ideas that are able to emerge from the collective knowledge base.

![Screenshot 2024-01-06 at 7.50.16 AM](https://hackmd.io/_uploads/SkvsK1Ddp.jpg)
![Screenshot 2024-01-06 at 7.50.26 AM](https://hackmd.io/_uploads/rJ_oKkDO6.jpg)

#### Composition Process
- **Initial Outline Creation:** AI assistant compiles subgraph nodes into a rough outline. Careful prompt engineering will avoid hallucination, or even content creation, and focus on organization of member submitted content. No AI writing! Human-oriented knowledge!
- **Collaboration:** Team members work together to rearrange and refine the outline, writing transitions to ensure coherence.
- **Documentation of Changes:** Records any additions or removals to the primary source material during composition, ie: versioning for reversions if needed, but also to mint these changes into the NFT metadata. Is this possible?
- **Inclusion of Metadata:** Incorporates subgraph details, contributor attributions, and a bibliography of all sources cited ammended to the end of the publication.

#### Basic Flow
- **Initiation:** User starts the outlining process, inviting contributors to collaborate.
- **Collaborative Editing:** Team works on rearranging and editing content, making comments, and linking to previous or future articles.
- **Finalization:** Once satisfied, the team mints the text as an NFT.

![Composition Flow](https://hackmd.io/_uploads/HJYt3yPOa.jpg)

#### Slightly More Detailed Flow for Composition Tool

1. **Initiating the Composition Process:**
   - A team, part of the Creator DAO, decides to start creating an artifact based on their subgraph.
   - The team lead initiates the process by accessing the composition tool.
2. **AI-Assisted Scaffolding:**
   - Upon initiation, an AI tool organizes the subgraph's content into a preliminary outline.
   - The AI tool considers tags and internal relationships within the subgraph to optimize the outline.
3. **Collaborative Editing Environment:**
   - Team members are notified and given access to the draft in the composition tool.
   - The tool presents the content spatially (like a mind map) and offers a switch to a linear text document view for detailed editing.
4. **Interactive Content Arrangement:**
   - Team members collaboratively rearrange the spatially represented content.
   - They discuss and decide on the flow and structure of the artifact.
5. **Drafting and Refining Content:**
   - Members work together to write transitions, refine arguments, and ensure coherence.
   - The tool supports commenting and version control for collaborative editing.
6. **Linking and Referencing:**
   - The team identifies and incorporates linkages to previous or future articles and includes a compiled bibliography for transparency.
7. **Final Review and Approval:**
   - Once editing is complete, the team reviews the final version of the artifact.
   - They ensure all contributions and sources are accurately documented.
8. **Minting the Artifact as an NFT:**
   - The finalized artifact, along with all metadata, is prepared for minting as an NFT.
   - The minting process includes all contributor attributions and source references.

#### Considerations for UX Design and Development

- **AI Integration:** Design the AI tool to effectively organize content without altering it, ensuring a reliable starting point for the team.
- **Visual and Textual Editing Interfaces:** Create a seamless switch between spatial and linear views, catering to different stages of content organization.
- **Collaboration Features:** Implement real-time collaboration capabilities, including commenting, version history, and notifications.
- **Document Management:** Ensure easy tracking of changes, source materials, and contributor inputs.
- **NFT Preparation Interface:** Develop a user-friendly interface for the NFT minting process, ensuring all necessary metadata is included.
- **Feedback and Review System:** Incorporate mechanisms for team feedback, final approval, and transparent documentation of the entire process. DAOhaus Signal app/TCR?
- **Accessibility and Training:** Ensure the tool is accessible to users with varying levels of technical expertise, and provide guidance or tutorials for using the tool effectively.

#### Additional Research Areas
- **Tool Exploration:** Investigate tools like [Scrivener](https://www.literatureandlatte.com/scrivener/overview), HackMD, Google Docs, and others for multiplayer text composition features.
- **Simplicity and Focus:** Aim for a simple yet optimized workspace for collaboration.
- **Integration Aspects:** Explore token gating for writing access, possibly starting with platforms like Charmverse.
- **NFT Minting Mechanics:** Research how to effectively include additional metadata in the NFT minting process.

## Section 4: On-Chain Governance and DAO Architecture

This section outlines the creation of two distinct DAOs: a Creator DAO for those directly engaged in content creation and curation, and a Collector DAO for those interested in consuming and supporting the content.

#### Overview
- **Objective:** Establish a system for community coordination on content creation (Creators) and shared treasury with firm commitments (Collectors).
- **Primary Tool:** A Moloch-style DAO assembled with the DAOhaus SDK.

#### Dual DAO Structure
1. **Creator DAO:**
   - **Purpose:** Focus on creating and maintaining a decentralized knowledge graph, curating content, and creating artifacts.
   - **Permissioned Access:** Token gating ensures exclusive access to the knowledge graph. 
   - **Membership:** Equal shares for all members, with continued attribution rights even after leaving the DAO.
2. **Collector DAO:**
   - **Primary Benefactors:** Comprises members who consume content without engaging in creation or curation.
   - **Membership Acquisition:** Through crowdfunding (Yeeter v2) at first. Later, through buying an NFT artifact at public auction. All members must buy in.
   - **Investment Club Model:** Functions similarly to a traditional investment club, the most familiar and battle tested DAO use case.

#### Basic Flow for Creator DAO

![Creator DAO Basic Flow](https://hackmd.io/_uploads/ryBCyeP_6.jpg)

1. **Formation of the DAO:**
   - Users come together with a shared interest in content creation.
   - They decide to formalize their collaboration by forming a DAO.
   - The DAO is set up on the DAOhaus platform using a Moloch-style structure.

2. **Joining the DAO:**
   - Interested creators join the DAO by acquiring membership shares.
   - Token gating ensures that only DAO members have access to the knowledge graph.

3. **Engaging with the Knowledge Graph:**
   - Members contribute to, curate, and pull content from the decentralized knowledge graph.
   - They participate in meetings to discuss and form subgraphs for specific topics or projects.

4. **Content Creation and Curation:**
   - Collaborative efforts lead to the creation of artifacts (e.g., articles, visual content).
   - The process involves discussions, drafting, and finalizing content for minting.

5. **Minting Process:**
   - Once the content (artifact) is finalized, it's prepared for minting as an NFT.
   - Necessary metadata and contributor attributions are included in the NFT.

6. **Post-Minting:**
   - The minted NFT is added to a collective portfolio or gallery for the DAO.
   - Members can view, share, and potentially sell these NFTs.

#### Basic Flow for Collector DAO

![Collector DAO Basic Flow](https://hackmd.io/_uploads/rJaxxxDuT.jpg)

1. **Becoming a Member:**
   - Potential members learn about the Collector DAO through various channels.
   - They join the DAO by contributing funds during a crowdfunding campaign or by purchasing an NFT artifact.

2. **Accessing Content:**
   - Members gain early or exclusive access to content produced by the Creator DAO.
   - This could involve special viewing rights, pre-sales for NFTs, or exclusive updates.

3. **Participating in DAO Decisions:**
   - Members have the right to participate in certain governance decisions, like setting price on artifacts (discussed in next section).
   - They may also have a say in which types of content or projects to support.

4. **Supporting Creators:**
   - Collector DAO members can directly support creators by purchasing their NFTs.
   - They can also participate in discussions or provide feedback on content.

5. **Portfolio Management:**
   - Members manage their collection of acquired NFTs, which can include trading or displaying them.
   - The DAO may offer tools or platforms for showcasing these NFTs.

#### Considerations for UX Design and Development

- **Accessibility and Ease of Use:** Ensure that the DAO platform is user-friendly, with clear navigation and instructions for both creators and collectors (not something we have historically prioritized).
- **Incorporation of DAOhaus Tools and Knowledge:** Leverage DAOhaus SDK, providing a seamless experience for DAO formation and management. Put a DH stake in the territory of web3/decentralized content creation.
- **Token Gating:** Implement secure token gating for the Creator DAO, ensuring exclusive access to the knowledge graph. Knowledge is the community power and should not be given away for free.
- **Content Interaction:** Design an intuitive interface for members to interact with collected NFT artifacts, participate in simple signalling/governance, and manage their economic/share positions.
- **Feedback Mechanisms:** Include features for members to provide feedback, engage in discussions, and contribute to the DAO community. See: *DUCE* for up/down voting, community-centric meme emergence patterns, etc. Feature set needs to be elaborated.

#### Additional Research
- **Token Distribution:** Explore token share distribution mechanisms for both DAOs, considering bonding curves to automate market of token supply.
- **Yeeter v2 Parameters:** Determine token limits in the crowdfunding campaign to maintain balance, etc.
- **DAO Setup:** Research the concurrent establishment of both DAOs and potential on-chain reciprocity mechanisms in the contracts. Will likely begin as soft/off-chain agreement, but should move towards hard/on-chain contractual obligations to cement the bond between creators and collectors.

## Section 5: Economy of Creators, Collectors, and the Public △▽△

This section outlines a detailed economic model for the interaction between creators, collectors, and the public, focusing on the creation, sale, and valuation of cultural artifacts within a DAO framework.

![Flow of value and member shares.](https://hackmd.io/_uploads/S1zXqzU_6.png)

#### Overview
- **Objective:** Establish an economic model involving Creator and Collector DAOs and the public, focusing on the creation, valuation, and distribution of cultural artifacts.
- **Participants:** Creators (produce content), Collectors (invest and consume content), and the Public (potential new members and consumers).

#### Creator DAO Economy
- **Content Creation:** Members contribute their creative labor to produce new artifacts.
- **NFT Minting:** Artifacts are minted as NFTs, with the first edition going to the Creator DAO treasury.
- **Revenue Sharing:** A portion of NFT sales revenue is distributed among contributors.

![Basic Artifact Sale](https://hackmd.io/_uploads/S1DINxvdp.jpg)

#### Collector DAO Economy
- **Commitment to Purchase:** The Collector DAO is obligated to purchase the second edition of each NFT, setting the price themselves.
- **Treasury Management:** A percentage of the purchase price is returned to the Collector DAO's treasury, managing investments and sustaining the DAO.

#### Public Market Creation
- **Auction Mechanism:** The third edition of each NFT is sold at a public auction, setting the value for all editions.
- **Membership Acquisition:** Public buyers of the NFT gain membership shares in the Collector DAO.

![Slightly More Detailed Artifact Sale](https://hackmd.io/_uploads/B12w4gD_T.jpg)

#### Economic Flow and Valuation
- **Price Setting:** The price set by the Collector DAO influences the starting auction price and the perceived value of all NFT editions.
- **Attribution and Compensation:** Contributors to the NFT artifact receive a percentage of sales from both the Collector DAO and public auction.
- **Dynamic Treasury Growth:** The Collector DAO's treasury grows through sales, offering potential profit and investment returns to members.

#### Additional Economic Details
- **Economic Returns:** Contributors and Collector DAO members benefit from the sales, with contributors receiving direct compensation and Collector DAO members seeing treasury growth.
- **Membership Rights:** Public auction buyers gain exit rights with a proportional share of the growing Collector DAO treasury.

#### Research Areas
- **Token Distribution Mechanics:** Explore how membership shares and token limits impact the DAOs' decentralization, anti-capture strategies.
- **Economic Models:** Investigate the viability of the proposed economic model, including price setting mechanisms and attribution structures.
- **Psychological Dynamics:** Consider the psychological aspects influencing member behavior and investment decisions.

#### UX Considerations for Design and Development
- **Transparent Transaction Processes:** Design interfaces that clearly show the flow of funds and the distribution of revenues.
- **Auction System:** Develop a user-friendly and secure auction platform for public NFT sales: Nouns DAO mechanism for the sale and distribution of shares.
- **Member Dashboard:** Create dashboards for both DAOs, allowing members to track investments, content value, and treasury growth: maximum transparency.
- **Interactive Tools for Price Setting:** Implement tools that enable the Collector DAO to set and adjust NFT prices effectively.
- **Membership Management:** Ensure easy management of DAO memberships, including joining, exiting, and viewing rights and returns.

## Example Scenario

This scenario outlines the economic flow and attribution scheme within the Creator and Collector DAOs, highlighting the importance of transparency, dynamic valuation, and member incentives in building a sustainable and engaging cultural ecosystem.

#### Scenario Overview
- **Initial Valuation by Collector DAO:** The Collector DAO assesses the artifact and sets the initial purchase price at 1 ETH.
- **Example Attribution Scheme:** We will assume the community has set the royalties at 30% back to creators that participated in the making of the artifact (the individuals, not the Creator DAO treasury) and 70% to the Collector DAO treasury.

![Example Scenario](https://hackmd.io/_uploads/B1v_HewOp.jpg)

#### Attribution and Revenue Distribution

1. **First Sale to Collector DAO:**
   - The Collector DAO purchases the first edition of the NFT for 1 ETH.
   - Revenue Distribution:
     - 30% (0.3 ETH) is distributed among the contributing creators.
     - 70% (0.7 ETH) is returned to the Collector DAO's treasury.

2. **Public Auction of Third Edition:**
   - The third edition is auctioned publicly, starting at 1 ETH.
   - The public buyer gains membership in the Collector DAO.
   - The final auction price sets the value for all three NFT editions.

3. **Revenue from Public Auction:**
   - Similar to the first sale, 30% of the auction price is distributed to the creators.
   - The remaining 70% is added to the Collector DAO's treasury.

#### Economic Dynamics and Member Benefits

- **Creators' Compensation:**
  - Creators benefit directly from each sale, receiving a percentage of the NFT's value.
  - This incentivizes continuous high-quality content creation.
  - The Creator DAO did not receive any funds, but the individual creators shared a pool of 0.6 ETH for their combined efforts. This encourages smaller, leaner teams to work quickly and optimize for rich content creation.
  
- **Collector DAO Treasury Growth:**
  - The Collector DAO's treasury grows with each purchase, balancing the outflow of funds with inflows from the public auction.
  - This creates a sustainable model for the Collector DAO, encouraging long-term investment.
  - In this example, the Collector DAO paid 1 ETH for an artifact. After the public sale, the treasury had 1.4 ETH flow back into it. Essentially, the Collector DAO paid 1 ETH to generate 1.4 ETH in value to itself, plus acquired an NFT with a validated evaluation of 1 ETH.

- **Public Participation and Membership Shares:**
  - Public buyers contribute to the Collector DAO's ecosystem, gaining membership and a stake in the treasury.
  - The value of their membership is tied to the DAO's overall economic health and growth.
  - In this scenario, an individual paid 1 ETH. In exchange, their received an NFT with a validated evaluation of 1 ETH and a proportional amount of shares in the Collector DAO.
  - Their newly acquired member shares give them exit rights to the Collector DAO, with a treasury currently valued at 1.4 ETH plus the value of their NFT portfolio.

#### Attribution Scheme Design Considerations

- **Transparency in Distribution:** Clear and transparent mechanisms for distributing revenues among creators and adding to the DAO's treasury.
- **Dynamic Valuation:** A system that allows for the value of artifacts to be dynamically set based on market demand and Collector DAO's valuation: bonding curves, etc.
- **Member Incentives:** Structures that incentivize both creators and collectors to participate actively and invest in the ecosystem.
- **Exit Rights:** Ensuring that DAO members have clear exit rights with a proportional share of the treasury, fostering trust and security in the investment. The goal is to make the incentive to support the community more lucrative than the value of their exit position.

#### UX Design and Development for Attribution Scheme

- **Interface for Revenue Tracking:** A user-friendly interface for creators and collectors to track revenue distribution and treasury growth.
- **Auction System Integration:** Seamless integration with public auction platforms, ensuring easy participation for the public.
- **Member Dashboard:** Dashboards for members to view their contributions, earnings, and membership stakes.
- **Educational Resources:** Providing resources to help members understand the economic model, attribution scheme, Moloch DAO terminology, and their rights within the DAO.

