DAO Interactive Hub

Hello everyone :slightly_smiling_face:, here is a proposal to develop an interactive platform for DAO members. You can view a prototype of the concept here: sct-interactive-hub.netlify.app

DAO Interactive Hub

1/ Introduction

I have noticed that most DAOs operate in a somewhat anarchic and disorganized manner. In my opinion, a tremendous amount of energy and time is spent organizing the mobilization of the workforce. It seems clear to me that to operate and execute efficiently, a DAO must have a dedicated infrastructure that allows for the gathering of ideas and enables their execution with agility. But this is half part of the equation. To attract talents willing to invest their time and energy in helping Sanctum define new economic models in the DeFi, NFT sectors, and with this concept presented to you today, DAO infrastructures, it is essential to create a platform that aligns the economic interests of both the company’s needs and those of its economic agents (DAO members).

With this idea in mind, I decided to conceptualize a DAO infrastructure that enables Sanctum to effectively harness the valuable resources of its community. Keep in mind that this is a prototype (no blockchain interactions / only simulated interactions), in a raw state, focusing solely for this version at promoting the idea of a decentralized governance infrastructure coupled with economic mechanisms that reward its economic agents. This is a basic structure that explores how DAO members can interact with each other efficiently and benefit individually from their investments of time and energy in improving the protocol.

Obviously, the current version will require further in-depth development based on the direction chosen for the DAO features, and economic incentives to be implemented. The ambition is to create a user experience that redefines what a DAO needs to operate efficiently. I opted for a basic design to ensure a friendly and interactive experience for you. Naturally, the design will be completely revised in the next version, after I receive your valuable feedback on the direction to take. I could have presented you with a finished version with a well-defined artistic direction, all the features implemented, but that wouldn’t really align with the spirit of a DAO, and I would have missed the opportunity to collaborate with all the talents who will read this proposal to create a great product.

I would also like to emphasize that I strongly believe in the power of storytelling and how it can articulate and convey culture, which is an essential component that gives substance to a product. This is why I would like to create a fictional universe exclusively for the DAO, which would fit seamlessly and coherently with the one developed for Sanctum’s products. As you can see, we have a lot of work ahead of us, and here is the first draft of what could become our DAO interactive hub.

2/ DAO features

DAO access: A Sanctum product wouldn’t be complete without having an LST at the core of its economic model. To generate revenue through which the DAO can create its incentive programs, an LST will be created. In the prototype, the LST is named sctSOL. To access the platform, users will need to hold at least 1 sctSOL in their wallet. Holding sctSOL will allow DAO members to create a profile and to generate points that can unlock rewards.

It still needs to be determined what percentage of the generated yield will be used to fund the DAO. Personally, I would prefer an approach that maximizes revenue for the DAO, as the incentive to hold the DAO’s LST is not to generate yield for its holders, but to support the DAO’s initiatives and generate revenue. At the same time, economic incentives for holding sctSOL have been established to compensate holders for forgoing their yield.

Profile setting: Upon creating their profile, DAO members will be able to choose a username and a default avatar (and update it later by selecting their own custom pfp). Additionally, their personal points account, allowing them to be rewarded through their interactions with the DAO platform, will be created. The points counter is linked to a reward interface that will allow them to claim rewards based on the milestones reached.

Reward interface: A points system has been designed to reward DAO members for their efforts. 50% of the revenue generated from the LST yield will be used to purchase prizes, which will then be redistributed to DAO members when they reach a points milestone, and also to fund the monthly lottery event. The prizes will consist of NFTs, CLOUD tokens, and other SPL tokens.

Based on the number of points generated, a DAO member status is assigned. The status evolves according to the number of points accumulated and unlocks new rewards as members progress.

Holding sctSOL allows users to farm points on a daily basis. To prevent abuse of the points model, I plan to cap the number of points that can be farmed per day. This will give everyone a fair chance to access rewards and be recognized for their efforts. The reward model is primarily designed to reward active members for their contributions by submitting proposals and participating in their development.

The goal is to create incentives that give value to the points system. The incentives presented here are merely examples of what can be achieved through this system. My goal here is to create a funny and gamified experience. What I plan to add is an interface for the monthly lottery event where DAO members can submit their tickets and claim their prizes.

Proposal interface: This is the main interaction interface that allows DAO members to suggest product development ideas and exchange feedback. Every interaction is rewarded with points, whether it’s liking, commenting, making a proposal, or financially supporting proposals by donating CLOUD tokens. The idea is to allow every Sanctum user profile to participate and be rewarded for their contributions, even if they are not the ones initiating proposals. I believe that each community member, through their background and personal skills, can be a valuable resource for the DAO and the development of Sanctum.

I’ve opted to create four categories: UI/UX, LSTs, Product Design, and DAO. This will provide better visibility for proposals. Proposals are ranked according to user preference in the form of a leaderboard. The more likes a proposal receives, the higher it climbs in the ranking. Each like and comment on a proposal is rewarded with points. I’ve included a Super Like button that allows team members to vote for a proposal that aligns with the development of their products and represents initiatives they want to support. The Super Like will automatically place the proposal at the top of the leaderboard to help them get more visibility. That being said, only the number of likes received will be used to determine the winners, and not the super likes.

The creation of proposals will be limited to one per category per month for each user. The idea is to prevent abuse of the points system and to encourage DAO members to focus on quality proposals.

There is also the option to donate CLOUD tokens to support proposals and reward active DAO members. Donations will be added to a grand prize pool, which will be distributed among the top two proposals in each category every month. Donations will also grant lottery tickets, allowing members to participate in the monthly DAO lottery.

I believe that every profile contributing to the development of proposals, whether through likes, comments, or proposals that are not part of the top two in their category, should also be rewarded. That’s why I decided to create a Blind Prize Pool that will reward 5 DAO members each month randomly through a draw. The Blind Prize Pool will be funded by 50% of the yield generated by sctSOL. Each week, the generated yield will be used to buy CLOUD tokens on the market, which will be added to the Blind Prize Pool. As mentioned earlier, the remaining 50% will be used to buy prizes to reward DAO members based on completed points milestones.

Outro:

This brings us to the end of this “brief” presentation. To summarize, the goal is to propose an interactive platform for the DAO to increase its agility in generating and developing ideas and to create an incentive model that rewards DAO participants. It also introduces a new approach to funding DAOs through LSTs, where DAO members agree to forgo the yield generated by their SOL in exchange for a different form of reward that balances and aligns the economic interests of both parties—the company and its community. For a DeFi protocol like Jupiter, or an NFT platform like Tensor, this could create real incentives for DAO participation, encouraging a proactive approach from its members.

So, we now have a basic structure to work with in developing the DAO model that best suits the needs of Sanctum. Thank you for your time.

PS: I will not be available this week to review and respond to feedback as I am actively working on another project. I’ll do my best to get back to you as soon as my schedule allows.

2 Likes

Thanks for the presentation! Sounds cool. Here is my immediate feedback.

I don’t agree with gamifying a DAO in any way (points system). I believe DAO members should be moved by the core values and the mission of the project. However, I do think that passive rewards for ACTIVE membership is fair. This goes back to an “earnestness model”, not capital (which is already rewarded for holding any LST). And at this point it’s harder to reward earnestness with the cat out of the bag.

That being said, I fully agree that we need to get a DAO together and organized ASAP. The platform we use is up for debate. Your offering is still an intriguing one, in my opinion. And I know we all like rewards! :wink:

Please correct me if it seems I misunderstood your proposal.

2 Likes

It should work like the Jup DAO. Stake the vote and histoy bar to see. Linked via Dapp

2 Likes