**^🍌Moody'sDAO^^Due^^Diligence🍌^**

# Report of Pooled Prediction Market Portfolio
([Project number 32 on Juicebox V2](https://juicebox.money/#/v2/p/32))

## What is it?

The ICO (Initial Coin Offering) announcement can be read [here](https://karlstack.substack.com/p/press-release-ppmp-announces-first?s=w).

This project has been bootstrapped by Christopher Brunet (a Canadian known as karlstack.eth) and aims to transform the project token ($PPMP) from a memecoin to a trustless financial derivative. In order to do so, they will pool funds and build an investment porfolio in prediction markets.
Strictly speaking, this is not a DAO as the final decision are made by the owner (C. Brunet) or a small group of chosen delegates.

## How are the funds raised going to be used?

In the 1^st^ funding cycle (Jun. 2 - Aug. 31), the distribution limit is set at US$5000. Only this amount will be distributed and used in this funding cycle to make an intial investment to "build out the proof of concept and test out the technology" (dixit C. Brunet). Any extra fund will be redeemable by the token holders, via Juicebox.

## What's the utility of the project token?

The ERC-20 token contract has not been deployed yet. According to karlstack.eth, the project token at this stage has no other utility than sharing the financial value derived from investment success of the project.

## Who is the project owner?

An [EOA](0x89680047D2Ea72F7B36EE0116D9C783BFa06fCc4) with an ENS name karlstack.eth. This account got its seed capital from FTX and otherwise is a new address without any prior transactions (except to create the project on Juicebox).

## How is the project configured?

1. Distribution limit of each funding cycle is US$5,000. Any funds in the treasury above this amount are available as an overflow. Token holders can redeem their tokens in exchange of ETH from this treasury overflow.
2. Funding cycle duration is set to 90days. If any reconfigurations to the project are to be made, it will take effect after curent funding cycle ends. The longer the duration, the less flexible its configurations tend to be.
3. Discount rate is set at 5%. The issuance ratio of project token will decrease at this rate, compounded every funding cycle.
4. Redemption rate is set at 90%, which mean less motivation for long term holding of project tokens, as redemption can claim back a pro rata share of 90% of the treasury overflow.
5. Reserved token rate is set at 2.5%, which means 2.5% of the tokens minted from payment to the project will be kept in the treasury, entitiling the project to a small part of its own overflow.
6. Token minting is enabled, thus the project owner can arbitrarily mint any quantity of tokens, at any time.
7. Reconfiguration strategy is a standard 3-days delay. Any reconfiguration that needs to take effect in the next funding cycle will at least be done 3 days before the end of the current funding cycle.

## Does this project have a roadmap?

Yes, to some extent:

1. Short term: to build a minimal viable product with a capped US$5000, and use [Substack](karlstack.substack.com) as a minimal viable governance method. The project owner wants to build this project more as a memecoin than as a "real" DAO at this early stage.

:::warning

:warning: warning from project owner:

>**You should never invest money into a memecoin expecting that this investment will yield a profit. You should be working under the assumption that if you invest in PPMP’s initial tranche offering, you will lose all your money and all the tokens will always be worthless.**
:::

2. Long term: to turn this project into a legitimate financial derivative by hiring lawyers/accountants to audit the trades, before applying to register it formally within competent authorities.

###### tags: `Moody'sDAO`