# GnosisDAO x DXdao Mesa IDO suite agreement
###### tags: `DXdao` `Mesa` `GnosisDAO`
GIP: <to be assigned>
title: GnosisDAO x DXdao IDO suite agreement
author: Martin Krung, DXdao (@firstname.lastname@example.org), Alex, GnosisDAO
## Simple Summary
This proposal is to formalize the ongoing relationship between GnosisDAO and DXdao for the IDO use case.
Gnosis/GnosisDAO is creator of Gnosis Protocol (GP V1) which has been designed as a batched ring-trade decentralized exchange, but found mainly traction to be used in IDOs.
DXdao is currently running mesa.eth, a front-end to Gnosis Protocol V1. DXdao plans to build a product suite with different IDO mechanisms for different needs starting with "easyAuction" from GnosisDAO. Mesa has the potential to grow to a open platform where different mechanisms implementor provide token sale mechanism.
Both organizations have a working relationship with Mesa/GP V1 and Omen.
A collaboration between the two DAOs would be beneficial to leverage each DAO's strengths and to build a dedicated product for the found product-market fit of Mesa/GP V1. The workload should be shared equally between the DAOs.
The DAOs split the responsibilities in the following way:
- Design the mechanism/ smart contracts with the product requirements from the DXdao
- Audit the contracts
- Provide the code for the prototype of the front-end
- Provide additional product requirements
- Develop UX after prototype stage and host the actual interface
- Customer support for projects doing IDO
- ?End-user support (In consultation with the customer)?
- Customer acquisition for IDO
- Innovate the IDO use-case
A protocol fee will be applied at protocol level. Fee will be a percentage of the token pair in the sale. This fee will be split equally to both organization.
Fee level should be competitive enough to attract costumers and allow the organizations to cover the cost.
Directly after the sale, the earned fee is moved to a swapr pool and acts as first trading venue for the pair.
?Both DAOs are free to charge extra services cost for specific IDO?
***(mk):*** If we want to build a moat by doing building services around the IDO usecase this is work which is not going into the product itself. e.g if we are doing end-user support for the IDO project this could be charged extra.
?This agreement is limited to 2021?2020 and can be renegotiated anytime if both parties agree?
**Size of the fee**
Has to be discussed in depth.
I think its not wise to open a price discussion with every project. We should implement this on protocol level, not on IDO level.
My experience from my years owning a small business: you have to set a standard. Most costumers will accept the price set, but they are free to ask us for a discount or pay-back.
We start with a decent fee because lower the fee will be not a problem, but raising is not very well-received.
A fee triages serious costumers from freeloaders. Freeloaders generate a lot of noise but do not help us in any way and even may be a reputation risk.
I propose to set the inital fee to 1.5%.
High, but bouncer has 1.5% and we have got a reputation, and they are allowing permissionless IDO for shitcoins. (project doing ICO payed up to 10% for a token sale)
For API3 with a 1.5% would have been ($23m * 0.015% is 345'000, nice but if you set a 100K wage, then you get ~3 years of work)
**Move earned fee as liquidty to Swapr**
At the end of the auction, the earned fee on the IDO pair is forward to a new created swapr pool. This allows instant trading after the sale closes.
Because we are both DAOs and treasury management is slow, this should be done by the smart contract.
- The IDO project having a instant working market
- swapr having the chance ending up as the first and deepest pool of new traded coins
- This benefits DXdao and GnosisDAO earn trading fee on the trades. Because liquidity is thin and trading volume high, trading fee in early hours of a pool can be quite high.
- We can't sell the fee into the open market anyway. IDO Projects would not like the additional sell-pressure.
Implement protocol fee on protocol level on the sale pair.
Inital fee level is set to 1.5%, but should be changable on protocol level.
**Move earned fee as liquidity to Swapr**
test if pool exists:
send fee to DXdao Treasury and GnosisDao
create new swapr pool with token ratio of closing price
recive LP Token
send created LP Token to DXdao Treasury and GnosisDao