---
# System prepended metadata

title: Mystic Whales DAO
tags: [Internal]

---

###### 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