4 Governance token distribution model

[stephen-rowan]

(DRAFT VERSION IN BUSINESS PLAN V3)

[tttroyyy]

[tttroyyy]

NFT-DAO TOKEN DISTRIBUTION MODEL

The NFT-DAO will look at a token distribution model that covers five key domains. These are:

1. Operational Fund;
2. Incentive Fund;
3. Investment Fund;
4. Community Discretionary Fund;
5. Community Token Offering.

The Operational Fund

15% of total token circulation will be allocated to developing collaboration culture by funding operational holons, including Development, Marketing and Community. Team members and teams (in-house and out-sourced) within these holons will receive Paid Equity in the form of NFD tokens per rateable hours, as agreed by Holon consensus.

The Incentive Fund

15% of total token circulation will be allocated to incentivizing innovation and participation within the DAO network. Incentivization metrics will include Sweat Equity (for casual pro bono work contributed within the community); Social Equity (through a trust score metric shared between community members); incentivization’s for BOXCAR trailblazers whose markets are stimulating growth within the community; incentives for governance voting contributions; and dividend payments in the form of one-off or recurring token drops.

The Investment Fund

15% of total token circulation will be allocated to shared governance by building a community-driven investment fund. The fund will generate revenue from an NFT-DAO Global transaction fee (set at a fixed-rate of 1% plus a variable-voteable rate of x%); Marketplace Liquidity Mining – Fees and earning of NFD tokens by minting, selling, and buying NFTs; Stake pools; DeFi Offerings – including NFT liquidity pools and revenue rights granting NFTs; and Equity Investments in Internal and External ventures. Investment and the deployment of dividends from the Investment Fund can be voted for by the community through a bounties and proposals process, as patterned after Project Catalyst (for instance: after an epoch, 50% of the Global Fee may be applied to the Operational Fund while 50% may be deployed to token holders through an NFT drop).

Community Discretionary Fund

5% of total token circulation will be allocated to a Community Discretionary Fund. This fund may act as a surplus fund to be accessed under special conditions, as agreed by community consensus. Deployment of tokens from the Discretionary Fund can be voted for by the community through a bounties and proposals process, as patterned after Project Catalyst. The fund may support future network development, stimulate further growth in high yield areas, fund under capitalized projects or be gifted as a charity to people in need.

Community Token Offering

50% of total token circulation will be allocated as a Community Token Offering once the NFD token is launched. This may be offered as an IDO in conjunction with the launch of the NFT BOXCAR platform. It may also be a staged approach with tokens released at 5-10% instalments (split equally between the retail market and NFT-DAO membership). These staged or staggered token offerings can align with the funding requirements of the DAO’s developmental roadmap. It is the desire of the DAO to enable transferability between NFD’s, BOXCAR-minted NFT’s (NFB’s), Off-DAO NFT’s and ADA.

The model will be merged with the Our Strategy section of the NFT-DAO Business Plan #17, which is being decomposed here: https://github.com/tttroyyy/Governance-HOLON/tree/main/Business-Plan/11-Our-Strategy

[tttroyyy]

DELIVERABLE UPDATE

It is estimated that this deliverable is currently 90% complete.

The final stage of this deliverable will require expertise review and sign-off by core contributors.

NOTE: This work has currently been achieved while awaiting the release of $19,893 allocated by the NFT-DAO to the Governance Holon to achieve project deliverables. See fund allocations here: https://cardano.ideascale.com/a/dtd/Comprehensive-NFT-Framework-Collab/334521-48088