###### tags: `Internal`

# Mystic Whales DAO

## DAO Specs

**Network:** Gnosis Chain
**Primary DAO Asset(s):** wxDai, wETH, USDC? + client tokens
**Treasury Size:** <$500k
**Active Members:** 5-10
**Proposal Velocity:** 4-6 proposals a day
**Voting Period:** 5-7 days
**Grace Period:** 2-3 days
**Proposal Deposit:** 20-50 wxDAI

- We don't need speed, we need security to ensure a safe environment to grow a robust treasury.
- leverage cross-chain safe minion with early execution for moving faster.
- keep majority of assets in main treasury
- stake into DeFi protocols via safe minion (DAO holds LP)

## **OPTION 1 -** Scaling Governance Model: Sweat Equity
How do members earn sweat equity in a sustainable way for the DAO.
- What are we trying to accomplish with an incentive model?
- treasury ownership
- governance power
- robust and diverse portfolio
- well compensated (happy) contributors
- How do we accomplish the above?
- Offer strong incentives for execution
- offer strong incentives for new client onboarding
- Maintaining a positive sum vibe
- Coordinape per project for stables payments
- Offer bonuses for milestones or achievements
- extra stables bonus for new client closed
- extra stables bonus for completing a major client project.

**Sweat Share Strategy:** Use coordinape to distribute shares.
- Allocate x amount of shares per month to distribute to contributors and split it proportionally based on GIVE allocations.
- Coordinape acts as partial compensation, while still receiving payment in stables and/or project tokens.
- maybe we keep project tokens in the treasury and only distro stables.

**Foundational Share allocations:**
- Base shares are structured to give more value to the founders and for previous work completed before Jeremy, Ryan and Amos joined the team.
- Determine retro share distro based on a coordinape epoch.
- Allocate x amount of shares for 'Earned shares' column.
- Note the contributions and reflect on if the coordinape allocations were fairly distributed based on those contributions.

Member |Base Shares |Earned shares |Contributions | Notes |
-----------|----------------|---------------|---------------|---------------|
yalor | 2500 (~27.7%) |
sydney | 2500 (~27.7%) |
will | 2500 (~27.7%) |
jeremy | 500 (~5.5%) |
ryan | 500 (~5.5%) |
amos | 500 (~5.5%) |

### important things to note
- Being a founder shouldn't mean permanently remaining a dominant share holder.
- Share percentages should accurately reflect contributions made to MW.
- contributors should have the option to participate in coordinape or just take payment in stables.
- while we want to promote a positive sum game, the scaling sweat shares do act as a bit of a zero sum accountability challenge.
- One must continue to engage with MW, onboard new clients and/or consistently contribute to client projects and the overall success of MW.
- Certain percentage of stables paid by clients should remain in the MW treasury

### open questions
- what is the most sustainable share inflation percentage and why? (maybe a sydney question)
- back share inflation with assets

## **OPTION 2 -** Static Governance Model: Equal Shares
- all MW DAO members receive equal shares (ie. all members receive 100 shares)
- all members get paid in stables based on contributions to client projects
- coordinape session for each MW project to distro stables accordingly
- standardize a certain percentage that goes to MW treasury
- treasury remains equally split between all DAO members
- sweat equity essentially leads to a 'partnership'
- contributor works for MW until they build up enough sweat to be considered as a 'Partner', where they would receive an equal share of the DAO.

Member |Total Shares |Stable payments |Contributions | Notes |
-----------|----------------|-----------------|----------------|------------|
yalor | 100 (~16.7%) |
sydney | 100 (~16.7%) |
will | 100 (~16.7%) |
jeremy | 100 (~16.7%) |
ryan | 100 (~16.7%) |
amos | 100 (~16.7%) |

### important things to note
- governance and treasury ownership remains positive sum
- this model could lead to discontent for members who feel they contribute more and/or if inactive members are reaping benefits of other's hard work.
- do inactive members get guild kicked?
- guild kicking is a permanent ban on the address
- by keeping majority of assets in main treasury, anyone kicked would still exit with their fair share.
- could use coordinape to reach 'partner' status based on GIVE allocations
- back partner shares with assets to prevent dilution