NEAR Ecosystem Treasury DAO

We currently have the CommunitySquadDAO and CreativesDAO funding initiatives and projects from the Community. How to best reconcile with the Ecosystem TreasuryDAO, more specifically Marketing and Guild DAOs?

One way of increasing value for our community is establishing a threshold amount where there is a min/max value for proposals reviewed by the Ecosystem Treasury. This way, below the threshold proposals can continue to be submitted and reviewed by the Community Fund DAOs. I will post more details on this on the forum.

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Correct, the snapshot time should match the re-election time.

The funds are coming from the “Community” and “Early Ecosystem” buckets in the initial token allocation. See details of these buckets here.

Ecosystem Treasury DAO should indeed only focus on funding things like Marketing DAO, Guild DAO and CommunitySquadDAO itself. We can define the size / timeline of funding (e.g. it will be larger check for longer period of time).

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This is a great initiative - NEAR will ultimately need a Treasury to oversee the allocation and use of funds.

Making such a Treasury representative of the entire community mainly via delegation seems sensible.

Although I can understand the concern voiced by eluzgin about a Treasury DAO being too small a group of people ultimately we need a group of people which is elected by the stakeholders and which can work well and decisively together. Large numbers militate against this .

Finally…the BIG question. Why focus on establishing the Treasury without due consideration of the strategic direction? Surely this is the most fundamental thing to get right first - a Treasury is just part of the enablement process.

Can I refer you to NEAR Governance - moving toward more community involvement - answering the questions posed here should help get strategy and direction right.

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I agree with limiting the number of initial members. I like the idea of 7 or 10 those are both numbers of completion and give more weight to voting initially. We can also easily find from the community or sub-DAO’s enough folks to fill these seats.

I’m glad to hear that these members will vote in the Chair as I wondered what the selection process would entail.

I also agree that there should be a representative or proxy from each of the sub-DAO’s to ensure their needs are being met.

The cap of 200M initially seems as though it could be distributed very quickly with sub-DAO’s in mind. I would recommend raising this to 500M. How will additional funding be added from the Foundation or is there a thought that there will be other contributors?

In terms of voting, I agree that it should be done by delegation of stake this is the voting mechanism at the core of NEAR and should be utilized. However, it would be nice to be able to delegate voting rights without unstaking. I know we are looking at things like this with MetaPool (stNEAR). Additionally, a voting system should be built similar to SnapShot on ETH to facilitate voting throughout the ecosystem.

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According the initial token allocation , there are 503,000,000 NEAR under the control of NF:

  • operations grants,11.4%=114,000,000
  • foundation endowment 10.0%=100,000,000
  • early ecosystem 11.7%=117,000,000
  • community grants,program… 17.2%=172,000,000

how many #NEAR left of “Community” and “Early Ecosystem” buckets by now?

Love this!

Considering 200M NEAR is quite a large amount, perhaps we should experiment with a variety of Ecosystem Treasury DAOs, in order to understand the different models and collectively decide what works best. I’d say that is already happening on the Sputnik DAO platform ~ so far, about 131K NEAR has been distributed as a result of 891 successful proposals going through 58 DAOs (23 councils have approved more than 5 payouts). Details: https://stats.sputnik.fund

Also, we have multiple DAO frameworks in our ecosystem, including Sputnik, Catalyst (akin to Moloch on Ethereum), and potentially others. How might we choose an optimal design for this Ecosystem Treasury DAO? Ultimately, who will decide what our validators must decide?

Of course, I understand the need to keep it simple and focus on this root DAO of DAOs. Establishing a legitimate process for transparent decision making at the highest level would facilitate progress toward responsibly decentralizing the NEAR Community Fund.

Eventually, might be worth pluralizing each categorical “sub DAO” that receives allocations. For example, we could have many interconnected Marketing DAOs with unique names, goals, members, configurations, and projects. These would probably emerge from the official Marketing DAO, similar to how Creative DAOs like NxM operate as beneficiaries of the Creatives DAO. Smaller amounts requested by these particular DAOs would mean less risk and more granular accountability for the overall Ecosystem Treasury DAO(s).

As we move forward in exploring the possibilities, I’m hoping to use a v1 Sputnik DAO for gauging opinions / feelings about off-chain proposal discussions and technical implementations. For that purpose, there is a new DAO here:

https://www.sputnik.fund/#/dao/join.sputnikdao.near

Everyone is welcome to submit a “New Member” proposal to join the council and vote in polls. Anyone may submit a reasonable “Payout” proposal in order to see what people think. Below is a guide for participation ~ help us experiment with governance of DAOs, by DAOs, for DAOs!

:sparkles: :sparkles: :sparkles:

Click To View Guide

Join Sputnik DAO

Step 1: Navigate to Join.SputnikDAO.near

Step 2: Click “Create New Proposal”

Screen Shot 2021-06-25 at 4.01.30 PM

Step 3: Select “NewCouncil” Proposal Type

Step 4: Input Account ID and Proposal Description

Screen Shot 2021-06-25 at 3.57.41 PM

Step 5: Link To Your Forum Post

Screen Shot 2021-06-25 at 3.59.54 PM

Step 6: Allow Transfer of 0.1 NEAR

This bond (deposit) will be returned if your proposal is approved.

Step 7: Notify Council Members

Telegram: Contact @sputnik_DAO

Submit a Proposal

Follow the steps above to create a poll. However, instead of a “NewCouncil” proposal type, choose “Payout” in step 3, like this:

Feel free to request a bit of NEAR for your time and effort. However, keep in mind, council members are less likely to vote if you ask for more than 1 NEAR.

The proposal description should be a YES / NO question for the council. Please try to phrase it carefully, so there is minimal confusion.

v2 Sputnik DAOs have a better polling feature, and this might be a very temporary experiment. However, I hope it can be a fun way to learn about contributing to NEAR governance.

Thanks for your attention! I’d appreciate any feedback :satellite:

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Will express my support for this as well - think it’s an excellent initiative that I am certain will accelerate growth across the ecosystem - unlocking existing talent and passion while also attracting more. I like visualization, so offer this up as my understanding of what is being described:

Initial Thoughts

On my first read through, it struck me as being a very hierarchical structure with a centralized decision making body, but I think it’s absolutely necessary to have that central council setting/directing strategic priorities - the importance of which would be represented through size of funding provided to the sub-DAOs (represented in the pic above: liquidity, grants, marketing, guilds).

Very much in agreement that setting up the ecosystem funding along functional lines makes sense. Give the sub-DAOs adequate resources and let them go off and do great things - each of them basically nurturing and growing communities within their functional domain.

Evolution

After visualizing what it might look like, was comforted by the fact that although it seems very centralized in terms of funding flow at the start (ecosystem treasury to sub-DAO to individuals/projects), there is nothing stopping the structure from evolving into a more decentralized entity creating links outside of the initial functional lines, interconnecting with DAOs and indivs/projects that may be operating in other functional areas as long as DAO interoperability is a foundational component.

For example, a project DAO funded by a grants DAO can submit proposals to a graphics design DAO funded by the marketing DAO. Get pretty excited thinking about all the different ways these various individuals/communities could start interacting.

To that end, I like what James mentions here (maybe because he mentions Catalyst :slight_smile: ) - but I think it’s a valid point that should be embraced:

DAO Platforms and Interoperability

By virtue of NEAR’s account model, pretty sure DAO platforms built on NEAR will at least have a basic level of interoperability in that DAO members on any platform should be able to submit proposals and receive payouts to a DAO account on a platform of their choosing. I think, from an accountability and transparency standpoint, it’s important that happens vice sending funding direct to a non-DAO (personal) account.

Accountability and Transparency

Would also recommend/emphasize that one really think through the accountability piece. Obviously transferring a lot of control/trust over to the sub-DAOs to achieve the strategic objectives in their functional domains. Ensuring that formalized/regular reporting on progress towards those strategic targets should be emphasized to keep things moving along with some thought on what happens when things don’t go as planned (unintentional negligence or worse).

That said, how sub-DAOs implement their own accountability systems should be up to them, but I’d suggest some kind of basic framework would be useful to get things started and facilitate mutual understanding.

Questions

Couple questions:

  1. Curious about the delegation piece. In Catalyst we’re building in ability to delegate or take back delegated shares (voting power) at any time. I guess I’m not clear on what the issue is with continuous delegation. The way we envision it - members of the DAO have submitted their contributions to the community fund - and once we figure out who to do it/build it, we want to put the fund into a staking position until it is needed - at which point funds will be unstaked and distributed. In doing so, we track how many shares each person has separate from that, thus the voting power can move around.

  2. Do you see the sub-DAOs essentially submitting business plans that provide a breakdown/justification of funding being asked for to conduct planned activities in their domain? Or is an initial allocation just sent to each sub-DAO to manage and they decide what to do based on what they are given?

  3. In my opinion, quorums are annoying :slight_smile: It is frustrating when a proposal goes through the entire voting period (which could be a substantial length of time) and doesn’t achieve quorum. Then the whole process needs to start over/delay everything simply because someone decided not to show up and vote. Maybe consider not baking a quorum requirement into the contract and take the view that those who are motivated/care about it are going to show up and vote. i.e., let it pass or fail based on who decides to participate and let the delegation take care of whether uninterested people remain part of the community (could also be something more formal like a member removal proposal).

Summary

Again, love the direction this is going. I think it will definitely bring some more apparent/transparent structure to better enable achievement towards operational/strategic priorities while improving understanding of how to seek/get support to build/contribute/participate in the ecosystem. And the best part, in my mind, is that we are looking at relying on and pushing the development of DAOs and open web tools to fully realize that.

Thanks for the opportunity to express my opinions/ask questions based on my meager understanding (hopefully they are somewhat useful). Keep up the great work all - I feel super fortunate/excited to see these types of initiatives take off.

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200M are all the funds that were allocated for community funds at initial distribution. 500M were the total that Foundation received and there are allocations to other places from those funds (see below picture posted by @jack).

As explained in the proposal, it’s only delegation of staked tokens.

It’s pretty much “Community grants, Programs…” + 30M of the Early Ecosystem that was mentioned as: One of these unannounced programs contains 30M tokens on a 6-month linear lockup. in the article. That program didn’t actually happened, and in result these funds got reallocated in to “Community” bucket.

Obviously part of this whole proposal is to increase transparency of the funds vs the current status quo.

As suggested, initially funding will be only fraction of this amount in the spirit of the running an experiment.

Correct, and these funds have came from Foundation and me. Foundation doesn’t have a clear framework to fund DAOs and have been very conservative with funding them. The goal of this proposal is to have a large enough DAO fund that can fund other DAOs for them to subsequently fund various activities in the ecosystem.

Exactly. The proposed sub-DAOs in the list are literally “suggestions” that I see clearly needed now. I expect a large number of applications to Treasury DAO with different positioning around the same topic. E.g. Grant DAOs to fund projects in India or students in universities – there can be 10s of grant DAOs like this.

I think one question that only starts to exist is cross-DAO accounting and accountability. E.g. if project / team have received funding from one of the DAOs but have applied at the same time in a few places. And then later when they are successful or not, how accountability is considered. This is part of the rules that must be established for this framework to work. One of the tools we need is a registry of the projects / teams funded that others can refer to.

Given there is no optimal design, the idea was to use rough consensus around this proposal. If by end of month there are no clear reason to not go with the proposed design - that design will be go live. Over time it can that morph as we will have elected members who can listen to their delegates and propose changes to the design.

If I was selected to be the member of this DAO, I want to make sure there is some permanence to this job. Not that it will disappear in tomorrow because someone undelegated. I’m going to be putting work in figuring out part of strategy, thinking through various DAOs and keeping them accountable. All this is non 0 time that is required from members. This is different from what you are describing, because members are not committing their own funds, they are elected to manage common funds.

I wouldn’t expect it to be super detailed initially, funding it’s a people business. I would expect that subDAOs should present what they want to achieve (goals) and methods of achieving this to the Treasury members. The presentation, background of subDAO members/founder and their governance approach all should be then considered for initial funding.

In subsequent funding, the performance and history of subDAO should be considered. How did fund allocation go, how did governance work, did members make decisions together, where there a lot of churn in the members, etc.

Subsequent funding is pretty much one of the main ways to manage accountability and do retrospective on the initial funding decision.

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Great point, we have been using a monthly reporting system for the guilds/daos that have received funding: [Guide] How to submit monthly reports to the Creatives DAO.

This allows us to not only have accountability for funds, but also transparency wrt what the funds were used for (after the fact). We allow each report to be in whatever method the group chooses (forum post required, but info can be in written, video, or even NFT format).

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for people working closely on ecosystem DAO setup, might be worth compiling research from existing projects in blockchain space and their attempts to do something like this prior. E.g. worthwhile listening to this recording for learnings: https://twitter.com/i/spaces/1yoKMAADBNwKQ

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Thank you for this timely proposal. I agree with many others in this thread that for greater efficiency and transparency in funding community initatives, something like a Treasury DAO to allocate funds to sub-DAOs would be necessary.

Most of my initial questions have been discussed previously, but I’m still confused on how delegation of staked tokens work. If there are some resources or literature I could use to read up on this, please let me know.

Am I correcting in understanding that

  • delegated tokens will not be removed from their staking pool (if staked)
  • and they only function to determine the “weight” of each candidate, and do not carry economic value in this context?
  • Are the tokens un-delegated after the election or locked up for the duration of the period in which the elected DAO member serves?
  • Can I still use my delegated tokens to make transactions?
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It’s July 7th now. how is the NEAR EcoTreasury DAO now?

I owe here a finalization post and next steps earlier. Sorry for delay.

One of the main questions in the discussion was how to have functioning membership of the DAO, while having representation.

Generally, talking with other operational DAOs and other organizations, the number 7 have came up as a number where people are actively participate. Above this number of people in the DAO, it will require to have enforcement function for people to actually participate, as there will be always some people who are not active. It still important to have some rules around members relieving their seats due to inactivity (there are various reasons why this can happen).

Members who are representing some type of stakeholder have been suggested. I think it’s important part going forward, but will not be useful at the current moment. I would like to capture the need to revisit the structure in the Constitution of the Treasury DAO / NEAR’s governance in general. This revisit should include collecting opinion from various stakeholder to understand if the v1 structure represents them well or changes are rquired.

In short next steps will be:

  • Setting up the the voting structure. Next implementation is required:
    • Snapshot of the delegations from July 1st.
    • Smart contract that has a merkle root of this snapshot
    • Frontend that will look up given user’s account in the snapshot and send the merkle path.
    • CLI tool that generates commands for near CLI for users who are using custom key management or offline signing.
  • Constitution of the DAO: constitution will define the rules of the engagement of the DAO, what are roles and how long can single person be in the member/chair seat and how the changes to the constitution (and through it in governance) will be accepted. Pretty much this will cover things that will be hard or impossible to cover in the smart contract.
  • Code of conduct: it’s important that members and chair of Treasury DAO (and through this DAO - of other DAOs) follow Code of Conduct of NEAR ecosystem. Defining it will define the culture and maintain high level of the conversation. Again, this is something that hard to define in the code but is critically important for functioning ecosystem.
  • Use the election process to solicit ideas for developing next quarter strategy direction for the Treasury DAO. I’ll create a separate topic for people to self nominate/nominate others to as candidates.

I’ll follow up with github repos for these items in coming days.

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Correct. A snapshot will be used.

Correct, the “weight” will not be transferrable. Though one can assign value to the governance vote and potentially auction their vote off.

The real tokens are not touched at all in the current specification.

Delegated tokens for staking can not be used unless you are unstake them. The snapshotted “weight” for voting can only be used for voting.

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I believe that this kind of money should not just be handed out to everyone.
Projects that work with near and for near and do not have permanent funding must have their own network validators. And this money should be distributed as stakes to these validators.

  1. It is protected from scam
  2. Projects will be confident on a monthly basis that they have a budget to live and develop
    I will add this from a project that does not have permanent funding and is not yet developed enough to support itself on its own. Specifically for us, it would be a kind of salvation and good help in development.
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Please keep the community posted on how to apply to become members of the Treasury DAO. We will be referring back to this post and Github repo links as they become available. Thanks!

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How will the snapshot work with multiple lockups contracts? Maybe a mechanism to report lockup contracts to form a single identity?

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Could you clarify what you mean by this? Why would a project need to run its own validator to build on the network? There is no mechanism that requires bidding in or running validators just to deploy a dapp so I’m trying to understand the use case you’re highlighting.

Semi-related, there will be a network upgrade in the next few months which greatly increases the number of validator seats.

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In my country there about 500 council representatives and thousands of different civil servants. It is one of the most corrupt and inefficient country in the world. Bigger council does not mean less corruption. To be honest, the whole idea seems disgusting to me. You are trying to play politics when we all know how disgusting it works around us.

in this case, GalaxyOnline needs to be able to attract users for its game, and wants to be able to use staking rewards from running validator as marketing budget

1 Like