# 4.5 Membership Ratio

## Simulated Hatch Outcomes

| | #Total wxDai Collected (wxDai) | Total Supply held by Builders (%) | Impact Hour Rate (wxDai) | Backer's RageQuit (%) |
|--------------|--------------------------------|-----------------------------------|-----------------------|--------------------------|
| Minimum Goal | $400,000 | 29.02 | 16.81 | 67.42 |
| | $1,000,000 | 26.9 | 37.81 | 69.45 |
| Target Goal | $3,000,000 | 21.61 | 85. | 74.47 |
| | $5,000,000 | 18.06 | 113.27 | 77.84 |
| | $7,000,000 | 15.51 | 132.09 | 80.26 |
| Maximum Goal | $7,500,000 | 14.99 | 135.86 | 81 |

## Hatch Strategy
The Hatch is where the community comes together to bootstrap this economy. The Hatch parameters determine many important aspects of the economy, such as the initial token distribution between Backers and Builders. Backers send in wxDai and are minted Hatch tokens. If the minimum goal is reached, tokens will also be minted for the Builders who have earned Impact Hours. The precise number of tokens will be determined by the parameters set below.

### Min, Max and Target

- At 3,000,000 wxDai, the target goal **is something to shoot for** but not at all unreasonable given the market conditions.
- The **minimum goal**, 400,000 wxDai, **is equal to the soft commitments we already have.** We will reach it; we have full commitment to this Hatch.
- At the same time, this min goal isn’t totally sufficient for either Backers, in terms of governance, or Builders, in terms of IH rate. **The more money we raise, the more attractive for both!**
- The max, 7,500,000 wxDai, is high because **there is no reason to disadvantage the raise.**
- **The maximum goal is low but it still may never be reached because of the low membership ratio.** The idea is to have a very trusted governance base and promote a sense of FOMO after the launch. **The true maximum goal is capped by CSTK, so every CSTK not used will lower the max goal.)**
- For the chosen goals, this params configuration favors **moderation**.

### Builders Token Supply and Impact Hour Rate

_{*The Impact Hour Rate determines the Minting Rate for Builders, making 1 Impact Hour equivalent to sending the amount of wxDai to the Hatch determined by the chart above.*}

- The Impact Hour Rate curve was designed to **fairly distribute funds between Backers and Builders** relative to the amount raised.
- There is a range of **14% in both Backers’ Ragequit % and Total Supply held by Builders**, this should be motivating.
- If the **Backers show up and contribute over the Target Goal, then they will get 78-85%** of the tokens, if they don’t reach the Target goal, they will get between **71-78%.**
- At the **Minimum Goal, Builders get less than 20 wxDai/IH** as they failed to attract a large Hatcher base, but as they approach the **Target Goal it rises quickly to 85 wxDai/IH, and at the Maximum Goal it’s 135 wxDai/IH**.

### Hatch Tribute and Ragequit %
_{*Redeem-ability of the DAO's wxDai: Shows who has rights to the wxDai held by the DAO. All of the DAO's funds are collectively governed but some can be withdrawn if token holders Ragequit. This shows the results of the parameter choices at the 3 different goals.*}

- This configuration has a safe **5% Hatch Tribute to ensure the Hatchers are value-aligned and agree to fund the future of this project** even if they disagree with the direction that the collective takes and may want to ragequit later.
- It also gives Backers a fair Ragequit %. They can **Ragequit 67% of their funds at the Minimum Goal and 81% of their funds at the maximum goal.**
- The reasonable Backers' Ragequit % will strike a balance between the collective and the individual so that both can be held in check. Backers can still Ragequit, especially if the raise is successful, but if the collective decides to go in a certain direction, **Ragequitting isn't so painless, so the individual will likely want to stay with the collective.**

### Membership Ratio
- The **membership ratio is set at 4.5 wxDai/CSTK**, so a Trusted Seed member with the **minimum CSTK Score of 1125 CSTK can send up to 5062 wxDai to the Hatch**.
- This is the **lowest Membership Ratio to avoid possible speculators**, creating a feeling that being part of the TEC community is more rewarding. **This effectively caps the Hatch by CSTK Score and gives a very trusted base.**

### Hatch Period
- **Trusted Seed members can send wxDai to the Hatch for 28 days**, which seems long enough to achieve our goals and not so long that it drags on.

### Hatch Minting Rate
- Backers will need to send in **1000 wxDai to mint 1 TECH**.
- This will create a total supply of about **3,800 tokens at the target goal**.
- This will make **owning Hatch tokens feel very valuable**.

## Hatch Parameters Settings

| Parameter|Value|
|:-|-:|
|Target Goal (wxDai)|3,000,000|
|Minimum Goal (wxDai)|400,000|
|Maximum Goal (wxDai)|7,500,000|
|Impact Hour Rate at Target Goal (wxDai/IH)|85.0|
|Impact Hour Rate at Infinity (wxDai/IH)|226.0|
|Hatch Membership Ratio (wxDai/CSTK)|4.5|
|Hatch Period (days)|28|
|Hatch Minting rate (TECH/wxDai)|0.001|
|Hatch Tribute (%)|5|

## DAO Strategy
We do not anticipate many proposals to vote on using these parameters. They are not intended to serve as the long term governance strategy for this community. There will be the vote for the Commons Upgrade, and maybe other proposals such as an urgent technical patch or a proposal for funding for very specific cases, such as a trial run for a project.

### Support and Quorum

- **80% support required ensures that maximum 20% of the engaged token holders can vote no on the Commons Upgrade proposal and it will still pass**. We don’t have to fear that it is too high because we are not in an adversarial environment with a reasonable Membership Ratio of 4.5.
- **The 4% quorum is low in case we run into some technical issues we need to address, but may have trouble rallying support for since it may be a boring technical issue.**


_{*Proposal Acceptance Criteria: Shows the range of possibilities for DAO vote outcomes and whether they succeed or not given the Support Required & Minimum Quorum chosen.*}

### Vote Duration and Ragequit Delay

- The **Vote Duration is set to 3 days to be quick in the case of technical issues. It can always be extended socially by annoncing votes early before they are on chain.**
- The **Ragequit Delay is set to 24 hours to keep us nimble in the case of technical votes need to be done.** The results of the Commons Upgrade vote will be known via the dashboard so **if people want to rage quit they can do it during the Vote Duration.**
- Given these parameters, the time it will take between **a proposal being submitted and executed, if passed, is 4 days.**

### Tollgate and Vote Proposal Buffer
- It will **cost 800 wxDai to make a proposal and there will be a minimum of 8 hours between proposals so we can have at most 1095 votes per year and the cost to spam the DAO is 100 wxDai/h.**
- The **tollgate fee is relatively low at 800 wxDai, leaving trolls welcome to propose!** This makes it just attractive enough that some trolling/advertising might happen, which is **a unique way of collecting funds.**

## DAO Parameter Settings

| Parameter|Value|
|:-|-:|
|Support Required (%)|80|
|Minimum Quorum (%)|4|
|Vote Duration (days)|3|
|Vote Buffer (hours)|8|
|Ragequit (hours)|24|
|Tollgate Fee (wxDai)|800.0|</a>

## <a href="https://params.tecommons.org/hatch?ihminr=400000&tgihr=85.0&maxihr=226.0&ihtr=3000000&ihmaxr=7500000&hor=4.5&hpd=28&her=0.001&ht=5&sr=80&maq=4&vdd=3&vbh=8&rqh=24&tfx=800.0" target="_blank">Click here to preload the Hatch Configuration Dashboard for this Hatch Config Proposal</a>.