# Moloch RDF | Alchemistresses OP Video

## Moonbirds & MOLOCH:
[Tim Ferriss Podcast with Kevin Rose - On Moonbirds.](https://www.youtube.com/watch?v=bYXa5RCGLiM&t=4886s)

* Tim: "Web3 is about Ownership, right? If 1.0 is Read only, 2.0 is Read / Write, 3.0 is owning a piece of what's on the plane."
* Kevin: [talking about how Moonbirds Holders have gotten Rekt since launch in April '22.]
* *"It's different, this is an equity, holding an NFT does not make you a shareholder... it's different."*

The "Ownership" and "Equity", that they are referring to, is the right to resell the NFT, not the 42069 ETH raised by Mint and Trade Volume.


Value was captured primarily in two places in Moonbirds:
* PROOF_XYZ absorbed around 80M, depending on the price of ETH.
* Early Holders - who were largely influencers, team members, VCs, project adjacent, or perhaps attentive onchain NFT traders, received the bulk of the speculative Value.

Following July '22, Moonbirds holders have only experienced capitulation and loss.

* Moonbirds was designed to be a profitable enterprise for PROOF_XYZ, and not an actual experiment in web3 ownership.

Moloch Value Flows differ in the following ways:
* Value Remains with the Community.
* Value Grows with DAO Owned Liquidity | Trade Volume
* Value Exists as Equity in a Community-Owned Treasury, with portfolio management determined by community governance.


## Solution No. 1 [Community-Owned Equity]


Moonbirds raised ~42069 ETH at the precipice of the Bear Market, and 21 months later, holders are still actualizing -97.5% PnL.

If the Moonbirds Community had a treasury that staked their capital with Lido, they would be earning around $3M a year rewards:

* They could have Adopted ~60,000 Owls per year.
* They could support ~24,000 Acres of Land Trust Management per year.
* They could have managed 3M per year as a Venture | Grant arm for innovative NFT Collections that raised funds for Non-Profits.

Imagine an 8 figure art project about Owls, that actually benefited Owls, all without breaking their underlying capital.

When an individual wanted to leave the community, they could sell their share, or burn it to claim their equity. The community persists onchain, until a vote is passed to dissolve it, at which point, each member receives their share, and the participants move along with their lives.

**Moloch RDF allows Communities to create positive-sum games by retaining value, and governance, in addition to simple custody.**

## Solution No. 2 [Community-Owned Liquidity]


Suppose Moloch Moonbirds were more profit oriented, and decided to become Pixel-Owl funded, Decentralized Wintermute:

* They could have chosen Optimism, as their Ecosystem of Focus.
* They would have absorbed massive amounts of OP by Liquidity Provision Incentives.
* The DAO as a political body, could have become an OP Governance Whale.
* They could have developed a Venture Arm, or been the defacto LP Service for DeFi projects on Optimism.

**Moloch RDF enables NFT Collections form Decentralized Hedge Funds and LP Cooperatives.**

## Solution No. 3 [Community-Owned Sudoswap Pool]


In Moloch Treasuries, Equity implies a floor value for NFTs.

Rage Quit means that Liquid Assets in the Main Treasury are claimable by burning your Moloch Share. It would also be possible for the DAO to vote to dissolve all assets, and unwind the Treasury as a group.

Moloch RDF Collections are likely to have Valuations which are related to the underlying value of their shares, and whether or not outside investment believes that the DAO will manage capital to achieve its goals.

Sudoswap enables Moloch RDF Treasuries to Market Make their own Collections:
* DAOs can decide at what Levels they are the "Buyer of Last Resort"
* DAOs can decide at what Premium they are willing to sell their shares.
* DAOs can earn Fees on Trade Volume and Royalties
* DAOs can use Batch Auctions to release new collection.

**Moloch RDF enforces "Fair-Launch" DAO-Owned LP, since expenses are born directly out of the Equity of Each NFT.**

## Building Moloch RDF with an Alchemix Grant:

The Alchemix Community issued a 15 ETH grant to test out these ideas, and build an LP Cooperative on Optimism.

DAOhaus recently completed Moloch v3, which allows for Moloch Shares to be designated as Transferrable. Dekan had been following ERC 6551, and designed a way for an NFT Collection to deploy Token Bound Accounts, and to summon a Moloch DAO which designated Shares into those accounts.

The Summoner is called Moloch RDF, and it works for any ERC 721 Collection.


The grant also funded shizzy.eth to paint a collection of provocative Alchemistresses.

Manifold was used to launch the collection, which allowed us to:

* Build a Pre-Transfer Hook Extension, which checks to see if a NFT still has its Moloch Share before allowing transfer or sale.
* To take advantage of Manifold's other Expansions | Developer utilities.
* To expand the Collection in Batched Releases, or offer Commissions while still having all of the NFTs on the same Contract.

Moloch RDF allows Any NFT on a given contract to claim a Share, and Manifold offered flexibility and latitude in building out membership.

## ALCHEMISTRESSES: A Moloch LP Cooperative on Optimism.

A [Launch Article](https://alchemixfi.medium.com/alchemistresses-fd0de2f4c2b9), released by Alchemix, outlined the investment strategy which would kickstart this Treasury. Funds were raised in the NFT Sale, and the Moloch RDF Summoner formed the DAO Treasury.


55 NFTs formed an LP Cooperative focused Alchemix Vaults, and building alETH/ETH LP on Velodrome.

We will approach the following communities for Art Grants to commission an artist of their choice, to paint unique art collections in batches of 69:

* SNX | LYRA | THALES | KWENTA
* OP
* VELODROME
* YEARN
* LIDO
* THE LLAMAS of CURVE
* SUDOSWAP
* REDACTED CARTEL
* QIDAO
* DAOHAUS

Collections would be deployed by the DAO, and each NFT would receive a Moloch Share. Unsold NFTs would become inventory in a DAO owned Sudoswap Pool.

**Moloch RDF can help Alchemistresses form a Social Layer of DAO Owned Liquidity for DeFi on Optimism.**

## Questions:
* **Does a Community Owned, and Community Managed Treasury pass the Howie Test in regards to depending on a third party for the expectation of deriving value?**

Moloch DAOs are an area of regulatory uncertainty in the US, because they are structured like Worker Owned Cooperatives, which derive their value based on self-governance, rather than a third party.

Worker owned cooperatives which use delegation to distribute voting power could coordinate around shared objectives, and reward contributors.

We have the tools for every online community to permissionlessly manage its own treasury. We should form these treasuries, and empower these communities to serve themselves.

* **Moonbirds sold out its collection, because it was designed as a zero-sum game. What if people don't want to play positive-sum games?**

It's possible that people prefer the risk of playing zero-sum games, because the potential for reward is built on using the greater fool to provide exit liquidity.

Moonbirds demonstrates that defining "ownership" as the right to two years of capitulation is the consequence of zero-sum games.

Moloch RDF allows communities to:
* Increase Financial Literacy for their Members.
* Empower Membership to coordinate around shared Treasuries
* Distribute the responsibilities of Liquidity Provision via Fair Launch Pools
* Access tokenized membership, and treasury management via DeFi.

DeFi literacy is difficult, but maybe as onchain organizations like this proliferate, the people involved will become more financially literate about the types of risk exposure that allow them to preserve their captial, and accomplish their goals.

# Project Details:

https://devfolio.co/ethdenver2024/

880d0f5893

Team must be submitted for review by Feb 23rd.

.:.

We are going to make a Moonbirds Knockoff called CC0wls that rewards Artists on Farcaster for painting CC0 Pixelart Owls, and donates weekly DeFi Yield to support Raptor Rehabilitation.

Each NFT will hold shares to a Moloch Treasury, using ERC 6551, and Molochv3. DAOhaus already built this tool, it's called Moloch RDF, and it works with Manifold on Optimism | Base.

The NFTs will advertise their sale using Farcaster Frames, and launch using Manifold on Base.

The ETH raised will be owned by a Moloch Treasury, and will be used as follows:
* 80% to buy and lock veAERO.
* 5% of the ETH Raised will go toward a DAO owned Sudoswap Pool for the Owls.
* 5% of the ETH Raised will go toward DAO owned HOOT-WETH LP.
* 10% of the ETH Raised for a bounty for the Launch Team.

The veAERO will be used as follows:
* 69% of the Vote will be used to vote for Bribes, and send crypto to support Owls.
* 31% of the Vote will be used to direct LP toward $HOOT, which is a Molochv3 Loot token, distributed to NFT Holders, and listed on Aerodrome.

Each NFT holder will be airdropped $HOOT, and the DAO Treasury will receive the rest of a fixed supply, which will be used for DAO owned LP, and an art incentive program.

$HOOT tokens are Rage Quit enabled tokens, which means that they can be burned for a share of the liquid assets in the treasury, but they can also be traded on Aerodrome.

Manifold contracts are indeterminate, and the minting permissions can be given to the DAO Treasury, or to the Moloch Shaman Admin. We can launch the project with some pixel art owls, and then open up to the Farcaster Community by creating a /hoot channel, and then inviting artists to submit Owls to be minted by the community to expand membership.

$HOOT Tokens will be given to artists who submit CC0wls.

The Owls will be minted by the DAO, and used to expand membership.