## Golem Profit Sharing Proposal & Golem User DAO Proposal slide: https://hackmd.io/@rogervs/r1M6El7L_#/ --- ## "The Requestors Dilemma" - Providers earn GLM by executing tasks - Tasks stem from requestors - Beyond hackathons, there is no financial incentive for developers to write requestors. - Without requestors, providers can't earn rewards. - No incentive to maintain code - Requires constant financial injection from non-decentralised entity (for hackathons) ---  --- ### The Proposal > The developer of a requestor that runs on a provider gets a percentage of the GLM that the provider earns ---  --- ##### The Proposal (cont.) - Incentivises developers to write more requestors - More requestors equates to more users making requests - More requests equates to more profit for providers - More profit for providers means more incentive for developers to write more requestors - Snowball :rocket: --- ### Implementation Hurdles - How is the percentage calculated for the profit share? - How is this achieved on a technical level? - How is fairness/transparency ensured? - How is the likelihood of sustainability maximised? - Which economic framework will maximize growth and yield? - How to keep everything as simple/automated as possible? ---  --- ### What are DAOs? <https://ethereum.org/en/dao/> - Member-owned communities without centralized leadership. - A safe way to collaborate with internet strangers. - A safe place to commit funds to a specific cause. --- ##### What are DAOs? (cont.) - DAOs are an effective and safe way to work with like-minded folks around the globe. - Internet-native business that's collectively owned and managed by its members. - Have built-in treasuries that no one has the authority to access without the approval of the group. --- ##### What are DAOs? (cont.) - Decisions are governed by proposals and voting to ensure everyone in the organisation has a voice. - There's no CEO who can authorise spending based on their own whims and no chance of a dodgy CFO manipulating the books. - Everything is out in the open and the rules around spending are baked into the DAO via its code. --- ##### What are DAOs? (cont.) With DAOs you don’t need to trust anyone else in the group, just the DAO’s code, which is 100% transparent and verifiable by anyone. --- ### DAO membership Types There are different models for DAO membership. Membership can determine how voting works and other key parts of the DAO. - Token-based membership - Share-based membership --- ### Token-based membership - Usually fully permissionless, depending on the token used. - Mostly these governance tokens can be traded for permissionlessly on a decentralized exchange. --- ##### Token-based membership (cont.) - Others must be earned through providing liquidity or some other ‘proof of work’. - Simply holding the token grants access to voting. - Typically used to govern broad decentralized protocols and/or tokens themselves. --- ##### Token-based membership (cont.) ##### A famous example **MakerDAO** – MakerDAO's token MKR is widely available on decentralized exchanges. So anyone can buy into having voting power on the Maker protocol's future. --- ### Share-based membership - Share-based DAOs are more permissioned, but still quite open. - Any prospective members can submit a proposal to join the DAO, usually offering tribute of some value in the form of tokens or work. - Shares represent direct voting power and ownership. - Members can exit at anytime with their proportionate share of the treasury. --- ##### Share-based membership (cont.) Typically used for more closer-knit, human-centric organizations like charities, worker collectives, and investment clubs. Can also govern protocols and tokens as well. --- ##### Share-based membership (cont.) ##### A famous example **MolochDAO** – MolochDAO is focused on funding Ethereum projects. They require a proposal for membership so the group can assess whether you have the necessary expertise and capital to make informed judgments about potential grantees. You can't just buy access to the DAO on the open market. --- ### How do DAOs work? - The backbone of a DAO is its smart contract. - The contract defines the rules of the organisation and holds the group's treasury. - Once the contract is live on Ethereum, no one can change the rules except by a vote. - If anyone tries to do something that's not covered by the rules and logic in the code, it will fail. --- ##### How do DAOs work? (cont.) - And because the treasury is defined by the smart contract too that means no one can spend the money without the group's approval either. - This means that DAOs don't need a central authority. - Instead the group makes decisions collectively and payments are authorised automatically when votes pass. --- ##### How do DAOs work? (cont.) This is possible because smart contracts are tamper-proof once they go live on Ethereum. You can't just edit the code (the DAOs rules) without people noticing because everything is public. --- ### How to create a DAO * https://github.com/vbuterin/DAO - Bare bones DAO contract * https://aragon.org/ - DAO managment * https://colony.io/ - DAO management * https://daohaus.club/ - DAO management * https://daostack.io/ - DAO management --- ## DAO Objectives * Fund Requestor development and maintenance projects * Not just developers * Project managers * Marketers * Technical Support * Community Support * Advertisers * Seekers (people who find good ideas for requestors) --- ##### DAO Objectives (cont.) * Create template for profit share between providers and developer * Create a meeting point for people wishing to join a project * Create structure to manage larger projects * Distinguish between, and provide facilities for: * self developed requestors * DAO created/funded requestors. * Manage "copycat" requestor disputes --- ##### DAO Objectives (cont.) * Create and manage a website highlighting projects in space * Manage and verify security audits for projects * Facilitate negotiations between requestors and providers. * Act as a marketplace for price discovery between providers and developers * Price oracle * Human Price Negotiation * Automated Market Maker --- ### Funding "flow" * Feature added to Golem provider to allow profit to go to two or more addresses * Provider address is a contract that then splits profit * Income goes into the DAO and then splits * DAO Treasury takes a percentage to fund future projects --- ## Considerations * Economics * [Token Engineering](https://tecommons.org/) * [cadCAD](https://cadcad.org/) * Governance * [Commons Stack](https://commonsstack.org/) * Funding * [Gitcoin](https://gitcoin.co/)