FoxNationDAO aims to become the new standard of DAO in the NFT Space. Its essence is to gather a variety of skills from the crypto environment and bring them in different working groups operating in different fields, with the common target of enhancing the quality of the organization and generating profits for the holders and rewards for the members who will choose to collaborate in an intensive way to the DAO.
We want design an organization where the key concepts are simplicity and modularity.
Simplicity means that the workflow and the procedures are easy to understand for newcomers in the crypto/NFT space while modularity allows it to be flexible and easily adapt as needed to catch the best opportunities and to easily add patterns as needed and when DAO’s operational range will expand.
Consider all the procedures and structures in this document as the foundation ones: holders will always have the opportunity and the right to integrate, cut or replace them.
FoxNationDAO is a DAO where its access is based on an ERC-721 token.
There are going to be 10k Foxes, each one unique, and the minting price of FoxNationDAO will be 0.07 ETH.
For each Fox sold, 0.04 ETH will be reserved for the DAO Treasury, along with the 50% of the secondary market. At 100% minted, the total Treasury will consist of 400 ETH.
Different Tools are needed for the DAO operations, organization, compensation, access and discussion. They have different purposes and are natively integrated in FoxNationDao.
DISCORD: Discussions. We thought that “centralize” the discussions on Discord, the standard for NFT communities, was the best choice. In Discord you will be able to discuss proposals along with creating threads to bring them to the preliminary phase (see the proposals paragraph for further infos).https://discord.com/
COLLAB.LAND: The access to discussion channels will be reserved to holders: with Collab.Land we will be able to automatically verify the ownership of your tokens and have access to them.
SNAPSHOT: Snapshot.org is the most famous platform for voting proposals along the Crypto communities and DAOs. Holders will be able to express their preferences to proposals without spending gas.
GNOSIS SAFE: Gnosis is a Multi-Signature wallet. This means that more users have different keys and no one of them can execute a transaction only with his own key. You can find a dedicated paragraph about the Treasury in this document.
SUPERFLUID: Superfluid is one of the instruments that will be used for holders and working groups compensations. It allows to send gas-less transactions, work without just-in-time liquidity (you can deposit only the liquidity you need for the operations) and execute transactions automatically on chain over time in a non-interactive way.https://www.superfluid.finance/
Working Groups are one of the key features of FoxNationDAO. The organization will always look for contributors and/or enthusiasts in each operative field. The heart of each DAO are its contributors and the skills they bring to the organization itself. FoxNationDAO needs NFT traders, DeFi/Crypto experts and traders, Artists, Developers, Accounting/Financial Advisors. Each professionalism will find a creative and rewarding environment in the organization, along with the necessary resources to operate in it.
We chose to start with 4 different working groups, each one operating in a different field:
NFT trading
DeFi/Crypto
NFT Launchpad
Management (Accounting, Financial, Marketing, R&D)
Each working group will initially consist of 4 delegate members, with a % of Team Members in them that will decrease in 3 phases, reaching the total de-engagement of the Team at the 3rd one.The 4 delegates mandate will initially be lasting 30 days. At the end of the mandate, the holders will be able to review their work and confirm them or not in a DAO proposal. If a delegate it’s not confirmed, his position will be filled by a new election.
All WGs will have their own Multi-sig wallet and will be allowed to operate autonomously with a part of it but following some criteria. Those criteria are of course part of the starting guidelines and the holders will be able to modify them by making proposals. As we said before, nothing is immutable in the FoxNationDAO structure. (See the Proposals section for further infos).
Working Groups members will receive a direct compensation for their job, along with a % of the profits generated by their operations. (See the Compensation section for further infos).
Discussion will happen in dedicated Working Groups Discord channels and threads, which will be visible and easily accessible to all holders.
We think that Decentralization is a process. As explained in the first Medium, the full decentralization of FoxNationDAO will happen in 3 phases, with a gradual de-engagement of the Team from the Working Groups Delegates position.
50% Holders Delegates50% Team Members
In the initial phase the working groups will consist of half team and half holders, so 2 holders Delegates and 2 Team Members. This is necessary to imprint a direction to the DAO and to build confidence with its structure and procedures.
75% Holders Delegates25% Team Members
In this phase the number of Team Members Delegates involved gets limited to 1 for each working group, while the Holders Delegates become 3 for each working group.
100% Holders Delegates
This is the last phase: Team Members won’t cover the Delegates position anymore and the DAO will be totally in the holders hands. Team Members will remain active for general management and maintenance of the project but they will be an “instrument” of the DAO itself.
We aim to complete one phase each month from the beginning, closing the decentralization process at the end of the second month of operation.
At 100% minted, the total FoxNationDAO Treasury will consist of 400 ETH. Different portions of the total Treasury will be allocated to different Multisig wallets (one for each WG).
The allocation will be as follows:
The Treasuries keys assignment will be the subject of a proposal at the end of the first mandate (30 days from the start of the DAO’s operation). We are going to propose different schemes and phases for the assignment, with different involvement of the Team in them. The community will be able to decide if to keep the Team as Member of Guarantee of the Treasury operations or not, as well as create another working group with that purpose only, but at least at the beginning the Team has to have the custody of the keys for 2 main reasons:
1- Safely keep the Treasury away from malicious attacks and guarantee Compensations deposits.
2- Create confidence with the DAO procedures and between Delegates and Holders.
As for the team’s gradual exit from the WGs, we think a similar path will be desirable for the Treasury keys.
In the last phase, a team member could keep one key (making five) as additional security for a limited time, but only if the DAO thinks it’s necessary. Decentralization is a process that must always take into account the fundamental factor of security. If the community requests it, we can retain a role as guarantor. The team is at the disposal of the community’s decisions.
All the holders will receive shares of the profits each quarter and will be able to claim them through a UI on the official website.
Working Groups Delegates will receive a salary along with a percentage of the profits they generate. We have decided to reserve 15 ETH from the main sale to cover the compensation expenses for the first quarter. Those not used for delegate salaries will be added to the Holders Pool and distributed with the other profits. At the beginning we chose to apply equal compensation for all delegates (0.33 ETH/Month) and will be paid via the Superfluid platform. Afterwards, as specified in the previous Medium article, the DAO may give different weights to the different kinds of contributions by diversifying the rewards.
The distribution of the profits generated by the WG proposals will happen according to the scheme attached at the end of this section.
While a portion of their profits will directly be addressed to them, another portion will go into a Compensation Pool (CP). CP is needed because the NFT Launchpad WG couldn’t generate immediate profit while the Management WG doesn’t generate direct profit but its actions have efficacy across the project itself. In addition to this, the DAO’s areas of operation could also increase over time and there could be more variety in the mechanics for which the delegates’ work will yield profits.
The distribution of the profits generated by the Holders proposals will be split in this way:
The increasing complexity will be perfectly absorbed by the flexible design of the DAO structure and the Compensation Pool is just one example of this native flexibility.The biggest share of profits will be used to reward holders (and WGs), while another portion will flow into the 4 treasuries to enlarge them and ensure growth.
We manage the treasury and make operations on it with a mix of direct and indirect democracy. Direct means that all the holders can submit proposals and all of them can vote (just like a referendum) while indirect means that the holders will elect a number of members that will have operative autonomy with certain limits: the Delegates.
We choose to use a different 2 paths decision making process in FoxNationDAO in order to create a core of elected contributors with a certain grade of autonomy of expenditure for faster operability, beside the usual DAO path where a suffrage is the only way to make a proposal executive. Timing is a key factor in all investments areas but in crypto and NFT it can become absolutely crucial. In so many cases a fast action is required, also for this we believe that a mixed DAO model can decisively optimize earnings.
The working groups will have, at the beginning, a limit of 2 autonomous actions per mandate (30 days). The maximum allocation for autonomous decisions is governed by a chart that proceeds to give inversely smaller percentages at the increase of the total capital available in each treasury: it starts from the 10% for a capital up to 100 ETH and reaches a 2% when the specific treasury will exceed 1500 ETH.
If the required amount is higher than the percentage limit, the proposal will need an holder’s voting. These limits are necessary (at least at the beginning) to test the ability of working groups delegates in their relative field and to avoid “bad” operability.
Anyway, both WG and Holder’s proposals will have a percentage limit of the treasury they can use for a single operation.
Proposals generated by a thread created by members, like those in working groups that exceed the maximum percentage for autonomous actions, will start from a maximum possible allocation of 33% of the relative treasury if it contains up to 100 ETH, until the 5% for a treasury containing more than 1500 ETH.
33% might seem excessive to begin with but remember that we are always talking about the specific allocation of one of the 3 starting investment areas and anyway we chose to target the DAO with a tight-aggressive character.
Let’s see now how the 2 paths will operate.
Direct path: All the holders can propose their operations on the relative treasury, opening a Thread connected to the relative working group channel on Discord. We choose the Discord Threads because we think that moving out the discussions to an external forum could create less participation to them. So, if you are active in the FoxNationDAO Discord, you will see everything the community is discussing about.
The thread needs to have an introduction and a topic, a required budget, a timeline and accountability for the required amount. A template for new threads opening will be given. Once the thread about the proposal has been discussed between the members and/or the delegates, there will be 2 steps to make the proposal executive:
1st Step: Preliminary Proposal
A Preliminary Proposal will be made on Snapshot.org and it will need to reach the 15% Quorum and the majority of consensus in order to get to the Final Proposal stage.
2nd Step: Final Proposal
Once a Preliminary Proposal matches the requirements, a Final Proposal will be made. In order to get executive approval, a Final Proposal has to reach a quorum depending on the amount of Treasury of its investment area is required:
Indirect path: Working group representatives are able to execute a maximum amount of actions without the holder’s approval, but only if some conditions are matched.At the beginning WG will be able to make 2 Proposals for each mandate (30 days).
WG will be able to use a % of their Treasury in autonomy, making proposals needing only the 50%+1 agreement between the WG members. In case there is not an agreement, a suffrage across the holders will be needed to make it executive.
For higher % and until 33% of the total allocated Treasury, they will need to propose the action to the holders to make it executive.
As mentioned at the beginning of this article, these are just some of the initial guidelines proposed by the team with the intention of leading the development of the DAO in the best and healthiest way but, like everything else, can be discussed, submitted to a vote and eventually changed. Even before the minting, the team is open to any discussion about the DAO structure: if some members have different views related to some specific points, they can easily advance them in the Governance discussion channel within our Discord.
We look forward to building a wonderful decentralization story together.
Discord: https://discord.gg/Vj3uFsWcEZ
Official Website: https://foxnationdao.com/