Plutocats is being developed in phases. In the first phase, anyone can mint a plutocat to join the community. ETH from membership sales are held in a reserve that earns Blast native yield. Members can leave at any time and claim their pro rata share of the reserve by returning their NFTs. Next, we’ll hold a community vote to introduce DAO governance over the reserve yield. An ERC-20 token will be distributed to members of the community which will represent their voting rights in the DAO.

NFT

Plutocats are generative PFPs with art that is stored entirely onchain.

The NFTs are sold via continuous dutch auction, or VRGDA, where the price of each plutocat is dynamic and based on daily demand. The minimum price is set to book value of a plutocat (ETH in Reserve / number of circulating memberships).

Using VRGDA ensures plutocats find a fair market price that is based on temporal demand. Setting a minimum price protects existing members from dilution should they choose to leave the community at a later time.

Reserve

ETH from sales of Plutocats memberships are held in a reserve where it earns Blast native yield. Functionality of the Reserve is limited to holding ether, accumulating yield, and providing a pathway for members to exit fairly.

Exit

Plutocat members may exit at anytime and collect their pro rata share of the Reserve. NFTs from members that have left are returned to the Reserve and removed from the circulating supply.

Governance Bootstrap

Initially, a minimal governor (called the bootstrap) maintains all ownership over Plutocats contracts. The purpose of the bootstrap contract is to provide a sufficiently decentralized path to incorporate DAO governance. In the future, Plutocats founders (wiz, tm0b1l) will propose the address of the official DAO to migrate contract ownership to. Members will vote on the path forward, deciding if proposed DAO governance will be adopted by the community.

To prevent griefing, we retain proposer rights for electing an address to migrate contract ownership to. These proposer rights *do not* enable modification of the Plutocats protocol in any way and can only be used to provide the community with a path towards community governance. If a migration is successfully voted on by the community, contract ownership will be transferred to the DAO and the bootstrap contract will be locked forever. Only the yield earned from the reserve will be forwarded to the DAO treasury, enabling governance over a continuous stream of funds that will be used to fund Blast ecosystem projects and creators.

Future

After migrating to a DAO, the reserve will remain unchanged providing a fair exit path for members should they wish to leave.

Governance Token

Voting power in the DAO will be represented by a new ERC-20 token that will be distributed to Plutocats members. DAO proposals and token-weighted voting will determine how collective yield from the reserve is spent going forward. We’re still working on the details for voting rights distribution but we aim to make it as fair as possible. We expect to work closely with the community to find the most optimal path moving forward.

Final Thoughts

Social staking provides a new opportunity to structure DAOs in a way that is particularly suited to Blast and the native yield it provides. We think implementing mechanisms to protect NFT holder value, providing a pathway for fair exit, and only proposing the DAO spend yield removes many risks associated with classic onchain organizations.

Phase 1 will be launched shortly after the release of Blast mainnet. Follow @plutocatswtf on Twitter for updates and info on the launch.

website: plutocats.wtf

Unsurprisingly, low vote turnout is common onchain where 50-75% of votes go uncast. These uncast votes are a waste of DAO governance energy.

Federation is announcing Governance Pools, a novel protocol that incentivizes delegation by auctioning Nouns votes and awarding holders with auction proceeds. Nouns holders can delegate their governance rights on a proposal-by-proposal basis and earn ETH for doing so.

Federation + Governance Pools

Funded in Nouns proposal #229, Federation is exploring new ways of sharing governance rights and extending utility of the Nouns token.

Governance Pools

Auctions are initiated for each new Nouns DAO proposal. The winning bidder chooses whether the pool is used to vote For, Against, or Abstain on a proposal.

Nouns holders who delegate to Federation Governance Pools can withdraw auction proceeds scaled by the number of Nouns delegated.

We expect that creating a market for governance rights and returning that value to Nouns holders will increase participation in DAO governance by providing an incentive to delegate.

Potential Criticism

We expect some criticism from the release of this protocol. It is experimental and purposefully simple. A common thread of criticism we have heard is “you’re selling votes?” The answer is yes, but let’s take a moment to look at DAO participation over recent proposals.

Well over half of Nouns votes are uncast across proposals. Providing incentives for Nouns holders to delegate their voting rights will increase vote turnout, prevent waste of governance energy, and provide an opportunity for Nouns holders to earn ETH.

Getting Started

Delegate your Noun(s) to the Federation base contract.

1. Go to Federation Governance Pools and connect your wallet

2. Click Delegate button on the upper right to delegate your Nouns

3. Confirm transaction and start earning ETH

Withdraw your share of the auction proceeds when you’re ready.