Intro
While we were calling the DAOsphere and the cryptoverse wild, we felt the wrath of the real world. These days, we are witnessing a terrible war. While all these are happening, endless rugpulls, runaway stories and scandals that have become the everyday normal of the ecosystem just adds a bitter flavor to the topping of the cake.
However, even though all these ridiculous things are happening, we may regard ourselves lucky that there are people out there still trying to come up with good and right ideas. Generating public goods funded through open source technology, constructing localized network, and building strong, robust and regenerative networks helps us not to lose our hope against humanity. We are merely at the beginning of this process that we may call Regen Economy, and we can turn this idea into a reality.
So, let us have a look at what we have for you in daoApe 3.
What's Cooking?
Regen Economies
Alright, as we are already in web3, we are assuming that we all agree that government-controlled public goods sector or privatization of commons have been failing to provide a desirable outcome for the users of these common pool resources. First, government control requires unnecessary funding for monitoring and enforcement activities to establish a standardized method to set up a win-win-win game. And second, as private entrepreneurs are profit driven actors, they naturally regard the funding of public goods as a negative sum game; hence decide to stay away from it. And third, non-profits are just not well-functioning mechanisms as they usually just beg for donations and there is usually a lack of traceability or transparency of how the collected funds are used.
Having said all these; however, today we are able to work on or experiment towards regenerative economies because we are able to build micro-economies based on tokenization. Through the use of tokens, people who are the mere users of a public good are given the voice to have a say in the governance of these commons. Moreover, people who may want to support a cause can attain tokens of certain initiatives they care about and participate in the economic or cultural governance decisions of any specific local network or a micro-economy. Of course, tokenization is appealing as it may have a huge potential of upside movement financially considering the current market cap of cryptocurrencies and the amount of money wasted by conventional organizations who have been repeatedly failing to solve problems on how to create a regenerative economy.
Giveth:
Giveth is a DAO building the future of giving on blockchain. Essentially, at this stage, it is a typical donation platform where individuals can donate cryptocurrencies to verified projects. However, people are incentivized to donate as they receive GIVbacks proportional to the amount they give. In the future, Giveth plans to implement GIVpower program and eventually Gurve, where GIV tokens will be used as the reserve asset in a bonding curve for projects that are encouraged to become a DAO on their own.
Token Engineering Commons:
Token Engineering Commons is working on the nascent area of, well, token engineering. Through the Commons Swarm of 1Hive, they have conducted research in the field and developed tools such as EVMcrispr and Augmented Bonding Curve.
1Hive:
1Hive is a community of activists experimenting with decentralized tools and funding public goods by distributing $HNY through conviction voting proposals from the common pool. So far 1Hive has developed Honey Faucet (A UBI like structure distributing HNY to BrightID verified individuals), Honeyswap (Uniswap fork on Gnosis Chain), Celeste (fork of Aragon court to solve disputes in conviction voting with BrightID integration), Gardens (a plug-and-play DAO creation tool based on conviction voting), Agave (Aave fork on Gnosis Chain allowing people with relatively small portfolios to experience DeFi) in addition to funding Swarms (working groups or micro-economies within 1Hive) dealing with marketing, translations and global reach, and community support.
BrightID:
BrightID is a tool to enable sybil-resistance in a decentralized environment in a non-intrusive manner. In order to achieve this, individuals get verified through verification parties and they are not asked to show their ID cards or whatever. All that is needed to be done is to prove that you are a human being. Considering the importance of sybil-resistance on the blockchain, BrightID can be used to create a reliable directory of unique individuals for projects to distribute UBI (which Mannabase is trying to do) or to filter out addresses for future token releases while doing an airdrop.
A similar system trying to achieve sybil-resistance is Proof of Humanity, which is also a great initiative. And it is distributing $UBI tokens to people who are in the registry.
Movement DAO:
Movement DAO is a newly formed organization promising to provide groups seeking to have real world impact outside the digital space with tools and initial funding through web3. Their approach is similar to Giveth's idea of enabling communities to form their own DAOs by way of tokenization. The promise is that they will be providing endowments to set up an initial pool with $MOVE tokens for projects which are deemed valuable to support. As of now, Movement DAO is conducting a presale for the $MOVE token, and they have received some generous donations from a few community members. Well, they have over $15 million dollars in the liquidity presale contract ready to be used for funding projects. If you have an idea that may have real world impact, join their discord, present your idea, get together a team, and expect support from the Movement DAO for tooling (which will be based on Tribute DAO framework by the way.
Gitcoin:
Gitcoin is basically experimenting in providing sustainable funding for digital public goods. They are doing this by allowing individuals to donate to verified projects on matching rounds by using quadratic funding. So far, they have successfully organized 12 matching rounds, and 13th one is going on right when this article is published.
Oh and by the way, we also have a grant on Gitcoin Round 13. And we will be recoursing 20% of our donations to Giveth Matching Pool at the end of this round. daoApe: Newsletter Covering the DAOsphere
Anything else?
$ENS 🤝 Aave
The Gnosis Safe team has submitted a proposal to establish the safeDAO and launch a SAFE Token.
What a year! Agave celebrates its first anniversary.
Scandal DAO
We have witnesses so many scandals since daoApe #2 that we are really baffled which ones to show here. So, we decided to choose the most horrible ones.
- Metamask decided to "comply" with sanctions against Iran and Venezuela, causing people living in these countries to lose access to Ethereum Mainnet using the Infura RPCs. Such decentralization, much inclusion!
- Brantly Milligan, working as a Director at ENS Foundation, got to the center of the stage due to his extremely racist, sexist and obnoxious tweets from a few years ago. And he doubled down on his views. Upon this, ENS holders voted on his current employment at the foundation. With a majority vote, it was decided that he would continue to work at the foundation.
- The Ukrainian government announced that they would do an airdrop to those who donate crypto for their efforts of war against the Russian invasion. Upon this announcement, degens rushing to donate like locusts in hopes of getting an airdrop had no idea that they would get rugged again. Airdrop canceled 💩
- It was announced that Andre Cronje will not be developing for DeFi. After 0xsifu and Daniele, Andre pulled the rug as well. Are we surprised? No.
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Around $1.4 million worth of NFTs were stolen from Treasure DAO, the largest NFT market on Arbitrum.
Tools
DeWork is a web3 project management tool enabling DAOs to monitor the status of bounties and jobs.
You can manage community tasks and bounties in one place at DeWork. You can migrate your Discord, Github, Notion, and Trello accounts to DeWork or you can create a new DAO from scratch. Now, the most critical point. At DeWork, you can pay contributors with your own DAO tokens or whatever tokens you may want.
Game Changer
In this section, we will be introducing a real monster. Augmented Bonding Curve
Bonding Curve is a crypto-economic principle that allows tokens to be minted and burned according to predetermined rules. Special mechanisms of this technology enables a token to act based on a specific important rules. Let's take a look at what these are:
- Dynamic supply: There's no limit to the amount of tokens that can be minted, and every token can be burned to redeem the collateral.
- Detereministic price: The price of tokens increase and decrease (respectively) as they are minted and burned.
- Infinite liquidity: Tokens can be bought or soled instantly at any time.
Bonding Curves are made up of at least two different tokens: a reserve currency and an asset token. The reserve currency can be anything. For instance; xDai for $TEC or DAI for $GHST. These two tokens are mathematically connected; and it provides a relationship between the Supply of the asset token and the Price of the asset token.
The asset token can be minted or burned (created or destroyed) by the bonding curve contract. When someone wants to buy an asset token, they send the reserve currency to the contract and mints the asset token. Similarly, when someone wants to sell an asset token, the contract burns the asset token and returns the reserve currency.
So far, we have explained the Bonding Curve mechanism. Now, let's get to the most critical point: Augmented Bonding Curve - or ABC. The typical bonding curve mechanism is rather efficient; it enables a token to automatically move according to the market demand while securing a some collateral by acting as the primary market maker and a price discovery robot. Bonding Curves are especially useful in low-liquidity environments (for instance, as can be expected for a nonprofit or a local cause).
Augmented Bonding Curve works in the same way by incorporating Bonding Curve into its systematics with some significant structural differences - it serves as a treasury to fund public goods in addition to taking tributes from entries and exits. And this allows public goods to do some kind of a magical thing.
ABC introduces three new components to a conventional bonding curve contract: a common pool, a token locking mechanism and feedback loops between systems.
ABC model offers a scalable, feedback generating and protective framework for an continuous organization funded by a community. For more technical details, you can check this article by Commons Stack.
Thematic DAOs
DiccDAO
*Disclaimer, this is NSFW!*
With Irene DAO, the term SimpFi emerged. DiccDAO, presented to you by some simps is mocking this idea obviously. And they have just released their genesis mint of 1000 NSWF images called Defi Simps featuring Unicocks Chad, Daniele Sexta, Screw Zhu, Andre Schlonge, Andrew Wang, and Bangteg. The collection is created by pepecasso, who is also the creator of the Green Diccs in the Non Fungible Frens Collection. so, wen HentaiDAO ser?