WavesDAO Initiation Proposal

Governance
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We propose to launch the “WavesDAO” on the Power Protocol platform as a For profit DAO dedicated to funding the development of Waves Blockchain-based projects and initiatives. $PWR stakers will govern the DAO, Each governor must stake 1 PWR tokens to be included, and a minimum total of 100 PWR must be staked for the initiation proposal to succeed. In the initiation period, The WavesDAO will receive a donation of 20,000,000 $XTN (worth ~$1M) from Sasha’s public account (3P84evXSWMchYMa6hkLLRmQ4usHf4cNsjNp) to initiate the DAO.

Investment Plan

The collected treasury will be invested into projects that aim to develop the Waves blockchain and its ecosystem including:

  • ChildDAOs built on Power Protocol
  • Decentralized social projects

This investing aims to grow the Treasury Net Asset Value (NAV) at least 10% in the first 3 month KPI period.

All Investors will receive LP tokens in exchange for their WAVES, these tokens can be sold on the open market during the KPI period. Once each 3 month KPI period is complete investors can withdraw all funds with profits.

Risks are mitigated by the Power Protocol slashing functionality: Any governor contributing to voting that leads to NAV depreciating more than 20%, will have their $PWR stakes slashed via governance vote.

KPIs

The following metrics will be used to evaluate the success of the WavesDAO:

  • Treasury NAV is in profit >10% in 3 months = 20% Profits distributed to governors and 80% to investors.
  • Treasury NAV is in loss >20% in 3 months = Governors are slashed at an equivalent percentage of their stake and their PWR is burned.
  • Treasury NAV is between 9% profitable and 19% loss = New KPIs are agreed in governance vote for next period.

Conclusion

The WavesDAO will provide a platform for community members to invest in Waves based projects and development. The DAO’s treasury will be managed by $PWR stakers, with skin in the game and 1 PWR staked each. The goal for initiation is funded via a donation of 20,000,000 $XTN (worth ~$1M) from Sasha’s public account (3P84evXSWMchYMa6hkLLRmQ4usHf4cNsjNp). The goal for activation is to increase NAV by 10% in the first KPI period of 3 months. Success in achieving WavesDAO’s goals will mean governors are rewarded with 20% of profits and investors with 80%. Those governors who can be seen as making failing bets contributing to NAV losses of more than 20% will have their $PWR burned. Every three months, KPIs will be recalculated, and profits will be paid out to managers and investors.

3 Likes
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  • Will you implement a high-water mark?

  • Will you use a benchmark for the investment? For example the DAO invests in ETH, makes 10% profit, but BTC price increased with 20%. BTC as the benchmark, the DAO underperformed by 10%.

  • Will you measure profit in $ or the asset(s) used to invest?

  • Since most of the treasury is made of XTN, will there be rules for selling XTN to not dump the price?

Whenever investment firms buys/sells for example stocks, they will not announce it or discuss it in public. Since it’s a decentralised organisation:

  • How will you prevent front-running for entry and exit?
  • How will you prevent insider trading?
1 Like
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I would suggest not to do any slashing during there first 3 months, until the first settlement.
I would not implement high water mark for now either. If the NAV growth is above 10% I suggest we distribute it to Power stakers.

I also suggest we calculate the treasury value in USD during the first 3 months period, since too few waves tokens have been invested.

We should not invest in anything that could dump XTN value. That is if we invest XTN there should be some kind of vesting agreement for it.

Rerarding the front-running: My idea would be to invest in projects during their pre-launch, basically receiving allocation with a discount, the way VC do that.

As for the voting quorum parameters:
I suggest majority voting with a minimum quorum of 50%, one week long.

4

Investing in pre-launch solves the front-running on entry, it doesn’t solve the front-running on exit.
Does the launch has to happen on a specific platform?

In my opinion you should rethink the USD calculation, without benchmark.
Example: XTN goes up in value by 50%, DAO makes a profit of 20% in USD, missing out on 30% profit, without doing anything.
(XTN is more volatile than WAVES, the last couple of months. Neither can the XTN be sold for a USD stablecoin, without dumping the XTN value).

The new project would have to raise XTN, but without selling XTN in a short time frame, but has to perform in a 3 month period.
Will there be a requirements list for projects to apply?