# Simple Total Supply Held by Builders

## Simulated Hatch Outcomes
| | #Total wxDai Collected (wxDai) | Total Supply held by Builders (%) | Impact Hour Rate (wxDai) | Backer's RageQuit (%) |
|--------------|--------------------------------|-----------------------------------|--------------------------|-----------------------|
| Minimum Goal | $800,000 | 25 | 27.41 | 73.5 |
| | $1,000,000 | 24.45 | 33.25 | 74.04 |
| Target Goal | $3,000,000 | 20 | 77.07 | 78.4 |
| | $5,000,000 | 16.92 | 104.66 | 81.42 |
| | $7,000,000 | 14.66 | 123.62 | 83.63 |
| Maximum Goal | $14,000,000 | 10 | 159.82 | 88.2 |

## 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, but exactly how many is 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**, 800,000 wxDai, is double the soft commitments we already have, and should be easy to reach while also ensuring we have enough funding for the Reserve and Funding pools in the Commons Upgrade.
- The **Maximum Goal**, 14,000,000 wxDai, is high because there is no reason to disadvantage the raise.
- These choices aim to provide a substantial sum in order to initialize the economy, but the reasonable Membership Ratio ensures that **only the more trusted people are able to become whales in this early stage**.

### 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.*}

- **This proposal is built around simple numbers for each of the Goals**. At the Minimum Goal, **25%** of the tokens go to the Builders. At the Target Goal, it’s **20%**, and at the Maximum Goal it’s **10%**. This makes it easy to communicate the alignment of incentives inherent in the design.
- **There is a range of 15% in both Backers’ Ragequit % and Total Supply held by Builders**, this should be motivating.
- The Impact Hour Rate curve was designed to **fairly distribute funds between Backers and Builders relative to the amount raised**.
- If the **Backers show up and contribute over the Target Goal**, then they will get **80-90%** of the tokens, if they don’t reach the Target goal, they will get between **75-80%**.
- At the **Minimum Goal, Builders get 27.41 wxDai/IH** as to ensure they are rewarded for their work for the cultural build, and as the amount collected approaches the **Target Goal it rises to 77.07 wxDai/IH**, however after that the there is relatively slow growth and at the **Maximum Goal it’s only 159.82 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.*}
- Ragequitting is historically very rare, this proposal takes that under consideration and **only has a 2% Hatch Tribute.** This is almost negligible to Hatchers and will not dissuade them from participating.
- The low Hatch Tribute creates a **high Backer' Ragequit %, ranging from 73% to 88%. This will be attractive to backers as they will not be as punished for taking back some or all of their Hatch contributions if they need the liquidity back** before the Commons Upgrade.
- **It will likely not make sense for anyone to Ragequit** with the Commons Upgrade plans.
- **The high Backers' Ragequit % will ensure that the option to Ragequit is real**, and individual token holders can hold the collective accountable to minority opinions.

### Membership Ratio
- The **membership ratio is set at 10 wxDai/CSTK**, so a Trusted Seed member with the **minimum CSTK Score of 1125 CSTK can send up to 11250 wxDai to the Hatch.**

### Hatch Period
- **Trusted Seed members can send wxDai to the Hatch for 30 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 **1 wxDai to mint 1 TECH** to keep things simple.
- This will create a total supply of about **3,750,000 tokens at the Target Goal.**

## Hatch Parameters Settings

| Parameter|Value|
|:-|-:|
|Target Goal (wxDai)|3,000,000|
|Minimum Goal (wxDai)|800,000|
|Maximum Goal (wxDai)|14,000,000|
|Impact Hour Rate at Target Goal (wxDai/IH)|77.07|
|Impact Hour Rate at Infinity (wxDai/IH)|226|
|Hatch Membership Ratio (wxDai/CSTK)|10|
|Hatch Period (days)|30|
|Hatch Minting rate (TECH/wxDai)|1.0|
|Hatch Tribute (%)|2|

## 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
- **88% support required** ensures that maximum 12% 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 10.
- **The 8% quorum is high for some DAOs but not unachievable considering our closed Hatch.** It strikes a balance between potentially having to make some **small votes expected votes while still requiring a large voter base for big vote to do the Commons upgrade.**

_{*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 4 days to allow for sufficient time for all Hatch token holders to participate.**
- The **Ragequit Delay is set to 48 hours to allow for contemplation, and hopefully even open discussion, before the option expires.**
- Given these parameters, the time it will take between **a proposal being submitted and executed, if passed, is 6 days.**

### Tollgate and Vote Proposal Buffer
- It will **cost 1000 wxDai to make a proposal and there will be a minimum of 4 hours between proposals so we can have at most 2190 votes per year and the cost to spam the DAO is 250 wxDai/h.**
- **The tollgate fee is high enough to dissuade too much spam,** but if the idea of trolling/advertising takes hold, this unique way of collecting funds is not out of the question.
- **The Vote Proposal Buffer is small since the edge case it is used for is unlikely to occur, but if it does, 4 hours is enough time** to get a transaction through if needed.

## DAO Parameter Settings

| Parameter|Value|
|:-|-:|
|Support Required (%)|88|
|Minimum Quorum (%)|8|
|Vote Duration (days)|4|
|Vote Buffer (hours)|4|
|Ragequit (hours)|48|
|Tollgate Fee (wxDai)|1,000.0|

## <a href="https://params.tecommons.org/hatch?ihminr=800000&tgihr=77.07&maxihr=226&ihtr=3000000&ihmaxr=14000000&hor=10&hpd=30&her=1.0&ht=2&sr=88&maq=8&vdd=4&vbh=4&rqh=48&tfx=1000.0" target="_blank">Click here to preload the Hatch Configuration Dashboard for this Hatch Config Proposal</a>.