In an effort to build the good governance and incentive structure of the MangaDAO economy, which will be based on the utility in-game token $MAD, we hosted a DAO microeconomy workshop with various stakeholders on January 6th, 2022. Sixteen participants attended the workshop, which lasted for one and a half hours. We gained valuable insights and would encourage other projects to do this before launching any DAO to make sure to learn from stakeholders and eliminate the possible blind spots.
Variable voting power can be determined by several factors, such as the length of time the token has been held, the number of principals who voted for the delegate, and the quantity of tokens. The implementation and combination of these promises a fairer, more relevant voting system, one that is based on effort and commitment in addition to financial capacity. Simplifying, this means that a user holding 100 $MAD for a year may have more voting power than one holding 1000 $MAD for a day.
CurveDAO is a good real-world example of this as the vote is both amount- and time-weighted. CurveDAO tokens are lockable in a voting escrow for a period of time. User voting power is subject to a linear inflation schedule in which each user is boosted up to 2.4x, proportional to the LP tokens locked. This gives the DAO the capacity to introduce meaningful governance incentives and thus enable active members to benefit more from their commitment than short-term investors.
While we are prioritizing the utility of the CryptoMangaNFT, we should not underestimate the importance of psychosocial values as social behaviour is most motivated by the desire for rewards and reinforcement in the social space. If a picture paints a thousand words, an NFT profile picture can tell you so much more than the personal tastes of the person it represents. It serves as a key metric for the owner’s financial status, the clubs/societies of which they are a member and their network size.
To this end, it is worth reassessing what CryptoMangaNFT represents beyond the game utility?
What message does incorporating the NFT as a part of one’s identity convey? In an ideal situation, this identity can be collectively established in an organic manner through the course of a game and throughout the life of the DAO. However, there is also the option of a more deterministic approach in which members of the DAO get together to pre-define and align a common position as well as their own individual positions.
Arguably one of the most important elements of any successful DAO ecosystem is the incentive system designed to accrue value while being able to give out meaningful rewards and encourage desirable behaviour.
As Aragon puts it, DAO is a new operating system for coordination, it is also a breeding ground for novel incentive mechanisms. Due to the decentralized nature of the DAO, the incentive mechanism of MangaDAO is horizontal rather than vertical as seen in traditional organizations with hierarchical structure.
The research done by the Department of Economics at Boston University has confirmed that the horizontal incentive mechanism is more straightforward to align than a vertical one. Incentive problems can be overcome via a linearly designed compensation mechanism based on the measure of performance of an agent instead of ranks.
Therefore, the ultimate goal of the incentive mechanism design for MangaDAO is to create a system in which the most committed members of the community are much more favourably rewarded than higher-ranked members. In this context, commitment can be defined in various ways, including a temporal dimension (who contributes more regularly) and spatial dimension (who expands the user base most widely) as well as depth (those who score the highest or hold the largest NFT collections).
Considering the discussion above, it is important to mention the goal and objectives of the $MAD, an in-game utility token that will play a crucial part in the MangaDAO ecosystem and its governance.
To provide voting rights and a voice to the members and a key incentive mechanism for the ecosystem.
To provide utility as the in-game medium of exchange:
Rewards
Tickets
To facilitate user ownership:
Voting rights
Aligning incentives among various stakeholders
To provide liquidity to NFT holders:
Users can access in-game liquidity without having to sell their NFTs
Encourage long-term holding
To accelerate ecosystem adoption:
Expand audiences and accelerate user acquisition (users who are not interested in the game but are interested in participating in a DAO, e.g. illustrators, manga fans)
Airdrop to potential users
Token swap with other projects
We plan to finalise the design of the DAO Microeconomy, complete the $MAD token distribution and unlock the schedule to ensure that it reflects the considerations mentioned (above). Please join us on Discord to discuss the design and share your ideas and follow further updates on our Twitter account.
🧑🚀 See you there soon!
Aditya, Audrey - CryptoManga team Carl, Chaya, David - Manga collective Defidad Dennison - WithTally Darkforest capital, Nakamoto, Novacadroit, Urakai - CryptoManga community Jun Ryan, Peter, Yalor - Metacartel