Governance DAO For Startup Funding. A Viable Alternative to the ICO

KennethTheBreadManKennethTheBreadMan Posts: 4 Brand New
edited April 25 in Worker Proposals

I'd like to propose a funding standard.
An open model to be used by any startup or community member looking for financing through inflation.
This is an independent financing platform for BPs to contribute to. A way for BPs to give back and show value
to the community, without the platform itself having any ties to a given BP.

The idea here is for a platform that on the U.I side mimics Steemit. Except the posts being upvoted are funding proposals
from entrepreneurs trying to capture some funding from the community.

DAO Gov token to be airdropped to all EOS holders 1:1. This token will function like steem power for our funding DAO.
Once a month, at a given time a snapshot will be taken by participating BPs of the state of voting on the chain.

BPs are free to choose how their contributed inflation is dropped to the participating candidates. So long as their inflation is distributed in accordance with the voting weight on the DAO platform.

The idea is simply that a candidate submits a funding proposal for their project to the DAO blockchain.
Token holders vote on which projects the want to see the monthly inflation given to.
A snapshot is taken at a date and time dictated by the participating BPs which may or may not happen in concurrence.

-BP's voting for their own projects should be looked at as unauthorized spending of inflation, and be factored into the base layer voting on the EOS chain. That said, an arbitration agreement should be in place for entities colluding to finance their own projects.

I know that broadly, ideas like this are being explored right now. But this seems like a viable solution to the SEC concerns with retail investors in the United States. With users voting for inflation to be spent on the projects that they believe in, instead of directly paying into the projects themselves, US users aren't exposing themselves to the direct financial risk of investment in these projects. Likewise for the projects, they can hold off their airdropping of tokens until functionality of the utility is reached.

Comments

  • SamupahaSamupaha Posts: 52 Member - 2/5 EOS Tokens

    First, why BPs need to be involved in this?

    BPs should act mostly just as workers: they produce blocks and get paid for doing it. What they earn is their salary and the community shouldn't care how they use it. If the community feels that BPs are paid so much that they should give some of the money back to the ecosystem, it's much easier to just reduce their salary. Things will get very complicated if we pay too much for BPs and then demand that they need to use the overpay for something nice.

    Second, worker funds should be spend on things that benefit the whole ecosystem. They shouldn't be used for funding of startups.

  • KennethTheBreadManKennethTheBreadMan Posts: 4 Brand New

    BPs need to be involved because they capture the inflation, and it will be through them that the inflation be distributed to the system.

    Your belief that BPs should act as workers and burn the rest isn't an absolute truth of what will happen with EOS, it's simply your opinion.

    That said, there has been a discussed cap of BP rewards of 1%. If there is a cap chosen for what BPs are able to accept as payment with a higher % going towards things potentially chosen by the constituents of the BP. Worker proposals would be one of these items. That's where the funding from worker proposals will come from (block rewards).

    There will potentially be different ways for BP candidates to encourage a voter block to choose them. Creating a culture of what you as a BP stand for by giving back the excess inflation to projects on chain is a great way of developing loyalty in the community.

    Also, I believe that an alternative funding model to the ICO is potentially a huge benefit to the whole ecosystem. This isn't about what Joe Blows app is. It's about the ability for the whole community to decide what projects get funded. And to have the community as a whole potentially benefit from the fruits of that project being chosen.

  • thomasbcoxthomasbcox Posts: 148 Sr. Member - 1/5 EOS Tokens

    @KennethTheBreadMan said:
    BPs need to be involved because they capture the inflation, and it will be through them that the inflation be distributed to the system.

    The inflation is ALREADY configured to flow into a Worker Proposal Fund.

    The functionality you describe is already being worked on.

    If this was helpful, please UPVOTE. If not, please REPLY so I can improve.

    Thomas Cox
    blockchain governance expert - active in the EOSIO ecosystem
    US: +1 503.516.3886

    (all opinions are my own)

  • KennethTheBreadManKennethTheBreadMan Posts: 4 Brand New

    Thank you Thomas.

  • RomanCryptoLionsRomanCryptoLions Posts: 44 Jr. Member - 1/5 EOS Tokens

    Hey @KennethTheBreadMan, if you have any perspective on how/why/if a B2B Saas startup should launch on EOS, I'd love to hear your thoughts on my concerns: https://forums.eosgo.io/discussion/519/basic-question-regarding-b2b-eos-applications#latest

  • bluabalenobluabaleno Posts: 16 Jr. Member - 1/5 EOS Tokens

    Might be of interest if anyone still wishes to set up an investment DAO to study the Ethereum one closely.

    https://steemit.com/crypto-news/@dan/is-the-dao-going-to-be-doa

  • ojundiojundi Posts: 1 Brand New

    I agree with the BPs should simply be service providers.. discussed in EOS GOV too..

    Issue with the language of Article IV #23 - No Vote Buying of the constitution

    https://github.com/EOS-Mainnet/governance/issues/23

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