One small step for GOB DAO, one giant step for Goon-kind! The first, exciting, vote of the GOB DAO has concluded, and two great options were up for debate, for Proposal #1.

The proposal sought to establish if the entry condition for GOB DAO rewards would be Goon NFTs held or $GOB tokens held. In either option, the GOB DAO yield itself would be factored off of the number of tokens held. Neither option would affect voting power, with 1 $GOB equalling 1 vote.

Now that it’s been decided that $GOB token balances will be used as DAO Tier Access Conditions, let’s review how the reward basket will work, starting with some minor changes to the $CHUNKS tax model.

$CHUNKS Tax Model Changes

Let’s take a step back and re-examine the $CHUNKS tax model - a 10% tax on token buying and selling activities. In this model, the portion going to Operations/Marketing is 3% on buys and 3% on sales, with GOB DAO collecting 2%/2% (buy/sell), and finally, Goon NFTs receiving 1%/1% reflection fees in $CHUNKS tokens.

After discussing with advisors and industry experts, it was suggested that we reduce our tax model to 8% (buy/sell). We also received recommendations to increase the Auto LP replenishment and burn categories, on sales, to mitigate the depletion of the Liquidity Pool (LP), during times of selling pressure, while also focusing on rewarding more, during times of token buying demand.

The new tax model is 8%/8% and will work as follows:

Reward Structure for NFT Holders

As shown in the DAO Treasury graphic, participants of the GOB ecosystem get access to multiple reward sources. However, on top of this, Goon NFT holders earn an exclusive 1/1 portion of the $CHUNKS tax.

With the current model, holders will be able to earn rewards in 3 different ways:

1. Goon NFT holder: 1/1 tax in $CHUNKS

2. Tiered $GOB holder: half of DAO Treasury in the yield basket, paid out in $GOB and $ARB

3. $CHUNKS holder: 1/1 reflection in $CHUNKS

This model takes care of the entire ecosystem, gives back to our loyal OG holders and creates less barriers for new participants to participate in the DAO.

GOB DAO Yield Basket

The entire basket is split between $GOB holders and $yGOB holders, where 50% of the basket is allocated to tiered $GOB holders and the other 50% is routed to $yGOB holders (a burn derivative of $GOB to unlock higher yield without any tier access conditions).

$GOB Holder Tiers

A minimum of 10,000 $GOB is required to unlock the 1st tier. Balances with less than 10k $GOB do not qualify for the rewards basket. To aid in the understanding of tiers, we refer to the 50% of the basket allocated to $GOB holders as “the half”.

• Tier 1: 10,000 - 49,999 $GOB - 10% of the half

• Tier 2: 50,000 - 99,999 $GOB - 20% of the half

• Tier 3: 100,000 - 199,000 $GOB - 30% of the half

• Tier 4: 200,000+ $GOB - 40% of the half

$yGOB Tiers

The process here is simple - burn $GOB to get $yGOB. That’s it.

Imagine there are 250,000 $yGOB tokens circulating as a result of people burning their $GOB tokens. In the case that 10 people were each responsible for burning 25,000 tokens, they would be eligible to receive 10% of the $yGOB rewards pool, which is 50% of the entire yield basket!

Practical Example

Scenario: GOB DAO Treasury collects $30,000 from taxes.

• $15,000 - to the foundation for marketing and operations

• $7,500 - used to buyback $GOB from the market and dropped into the basket

• $7,500 - used for investment opportunities which are proposed to DAO by the foundation. DAO votes.

Breakdown of the $7,500 investment portion:

• $7,500 is used to invest and generates a 2x return; DAO votes to have the profits taken

  • Principal amount of $7,500 is returned to the DAO for further investment opportunities

• Profit amount of $7,500 is routed in 2 directions:

  • $3,750 is used to buy back $ARB and is dropped into the yield basket

  • $3,750 goes to the foundation for marketing/operations

The total rewards basket now has $7,500 in GOB and $3,750 in ARB. For simplicity’s sake, let’s imagine that means $11,250 in USDT.

This $11,250 is split between the tiered $GOB holders and $yGOB holders:

• Tiered $GOB holders own $5,625 of the balance

• $yGOB holders own $5,625 of the balance

The first $5,625 is split among tiered GOB holders - 10%, 20%, 30%, 40% of the balance and divided by the number of members in each tier.

The second $5,625 is split among all $yGOB holders equally. For instance, if 10 participants decided to burn their $GOB for $yGOB, then only 10 people would split the entire amount among themselves.

Onwards and Upwards

Practical examples aside, we’d again like to celebrate the first successful adoption of a DAO proposal. It is important to highlight the fact that this is merely the DAO’s first steps, into self-governance. Both options were proposed by the team and would have beneficial impacts on the ecosystem. The next phase of DAO governance will be enhanced education on Snapshot and voting mechanics, by the team, education on proposal requirements, and finally, the discussion and voting in of proposals submitted by the DAO community. Exciting times lay ahead for GOB DAO and the Goons of Balatroon project, as a whole!

https://snapshot.org/#/goondao.eth

In the early phases of GOB DAO, the goal will be to encourage the submission of easily understood and well thought out proposals. As the DAO becomes more established, its aim is to shift from being semi-decentralized to fully-decentralized and a detailed framework of requirements will be released.

At the start, any proposal must:

• Come from a $GOB token holder

• Be submitted to a GOB team member, who will approve the proposal

The team member will ensure that the proposal has proper structure, is not illegal, and does not conflict with a recently-approved proposal.

General structure:

• Have an intro, body (explaining the vote options), and a conclusion

• Be submitted in English

Example Proposal

Proposal #1 - GOB DAO Tier Access Conditions

This proposal is to serve as an example of appropriate structure, but is also a real proposal to be voted on.

INTRO

Within the GOB DAO, there are two paths to earn yield: Standard and yGOB.

It is important to understand that the total rewards pool within the GOB DAO is broken down into 50% going towards the Standard path and the other 50% going towards the yGOB path. For the purposes of this proposal, we are voting on how access to the Standard path is conducted, not related to the yGOB path.

For the Standard path, to earn yield, there will be various tiers of membership. There are two parts to membership:

1. The access condition

2. The yield

Once the access condition is met, the $GOB tokens held will begin generating yield, with each tier providing a bonus to yield rate. No yield is earned on the user’s $GOB token balance until the access condition for the lowest tier is met.

For instance, a DAO member has 150,000 $GOB. Membership to Tier 3 could involve needing 100,000 $GOB (example of an access condition). Meeting the access condition would mean the member is now eligible to earn a base yield plus a bonus rate for their tier, on their 150,000 tokens.

Ordinarily, these tiers would be decided by holding a certain amount of $GOB tokens. This proposal seeks to determine whether the DAO should use a condition of Goon NFT balances instead of tokens. Tiers would coincide with the NFT holder roles (ie. OG Goon, Penta Goon, Chad Goon, etc.) and would be established after the vote. Goon Roles would only be used to unlock DAO tiers, and would not affect DAO voting mechanisms, for voting 1 $GOB = 1 vote.

Option 1: The amount of Goon NFTs held determines the yield that your $GOB generates.

Option 2: The amount of $GOB held determines the yield that your $GOB generates.

OPTION 1 - Goon NFT Balances

A vote to utilize Goon NFT ownership on the basis that Goon NFTs are the flagship product, within the Goons of Balatroon ecosystem, and inclusion may drive value and demand to Goons. Goon holders are some of the earliest participants of the GOB ecosystem and the decision to hold a Goon shows a high level of commitment to the project. While the addition of Goon NFTs to the DAO hierarchy does add some level of complexity and exclusivity, the existence of multiple tiers means the ecosystem is still accessible to newcomers.

The ability to convert $GOB to yGOB, in a one way burn, to access the other rewards pool, means that no matter how expensive Goon NFTs become, DAO participants without NFTs will always have access to yield if they choose to burn tokens. This allows the ecosystem to remain accessible to all participants but ensures access to higher yield tiers remains a desirable perk of of holding a Goon NFT.

Note: As always, for voting, 1 $GOB = 1 vote. In this scenario, tiers are unlocked by Goons, and rewards are based on $GOB tokens held + the tier you are in.

OPTION 2 - $GOB Token Balances

A vote to utilize $GOB token ownership on the basis that $GOB is the governance token, of the Goons of Balatroon ecosystem, and the inclusion of NFT requirements complicates the functioning of the DAO. With these requirements, it may be more difficult for those seeking to become involved with the DAO, as these structures are usually ERC20-token-based. At early stages, the utilization of NFTs as access conditions is not a notable hindrance, but as the Goon floor price rises it may become increasingly prohibitive.

Additionally, it is standard for a DAO to function via a governance token, without NFT inclusion.

Note: As always, for voting, 1 $GOB = 1 vote. In this scenario, tiers are unlocked by $GOB amounts held, and rewards are based on $GOB tokens held + the tier you are in.

CONCLUSION

I conclude this proposal by asking GOB DAO members to consider carefully how they wish to proceed. Including Goon NFT holdings in the requirements for DAO tiers could drive demand and value to Goons and ensure committed members of the ecosystem are rewarded. It could also discourage potential members from joining, especially as the Goon floor rises. Both the access paths have merit. It is up to the community to decide on the DAO’s first course of action.