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tags: rangers, twitter
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# CCO article twitter thread

https://daohaus.substack.com/p/community-contribution-opportunity

## Thread

New post: A deep dive into Community Contribution Opportunities (CCOs)

- what they are
- why they're important
- how they work (in detail!)

🧵

https://daohaus.substack.com/p/community-contribution-opportunity

[...]

In short, a CCO is a new approach to capital coordination with lower risks and strong protections for capital contributors

By removing barriers to contribution, it increases funding available to projects

[...]

Why is this important? 🤔

Projects need funding, but the amount of capital available is greatly limited because of the potential risks that contributors face

Some risks stem from having to trust the project team to execute, not rug-pull, etc. 🤝

https://twitter.com/tony_intern/status/1478051008601366529

[...]

But what if those risks didn't exist?

With a CCO, projects could

- Have access to more capital
- Accept smaller contributions from values-aligned community members instead of larger cheques from a handful of VCs

[...]

How does it work? ⚙️

At the core of a CCO is a Moloch DAO where the capital contributors have loot shares

Contributors maintain full custody (via ragequit) over their capital until its spent in service of the project, at which point its replaced in the DAO by the project token

[...]

A CCO has four phases:

1. Setup 🧱
2. Contribution 💰
3. Buidl 🛠
4. Distribution 📈

[...]

Phase 1: SETUP 🧱

During this phase, the project team gets everything ready, including a Moloch DAO, ERC-20 token, a Vault, and Transmutation Minion.

Lots more detail in the article, but this is the result:


[...]

Phase 2: CONTRIBUTION 💰

During this phase, capital contributors send capital (e.g. ETH or DAI) into the CCO DAO and receive loot shares in proportion.

Again, more detail in the article, but this is what things look like once contribution is complete:


[...]

Phase 3: BUIDL 🛠

This is where the magic happens ✨

As the project team accomplishes milestones, they make proposals to spend the capital.

But if a capital contributor doesn't like what's happening, they can ragequit before their capital is spent (remember: strong protections!).

[...]

BUIDL 🛠 (cont)

As proposals pass and capital leaves the DAO, it is replaced by ("transmuted" into) the project token 🪄

Now, ragequitting would get you a mix of capital and project tokens. The %s depend on the degree of transmutation.


[...]

Phase 4: DISTRIBUTION 📈

Once all the capital has been spent, the project is complete, and capital contributors receive their portion of the project tokens

A few other things can happen at this point, too. Check out the article for more options.


[...]

Much more detail on the why and how of CCOs in the article!

https://daohaus.substack.com/p/community-contribution-opportunity

[...]

Special thanks to @0xBillW @JordanLesich @AaronSoskin @MuchnikYev for review and helpful discussion :pray:

And props to @0xd2 for the sweet sweet graphics :sparkles: