DAO Interactive Hub

Sanctum Community (SanctumDAO) Greythorn's Proposals
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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.

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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.

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

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First of all, thank you for your feedback. While I agree that the members of the DAO should primarily be driven by the ambition to contribute to the platform’s development, we need to be aware of market realities and dynamics. If the true goal is to attract talents capable of adding real value to the protocol, it will require a genuine commitment on their part. Given the time and the value of the skills needed for this task, it’s unrealistic to think that people will be driven solely by the ambition to develop the protocol.

Paradoxically, I find that many people struggle to grasp the idea that DAO members should be paid for their contributions. Personally, if I were to invest time in contributing to Sanctum’s development, I wouldn’t do it out of charity. This doesn’t take away from the fact that I am driven by the ambition to help develop Sanctum, because I really believe in what they are doing, and want to contribute.

That said, in an opportunity-rich environment like the crypto industry, if we want to build a DAO with a truly effective workforce, creating a compensation system to retain talent is inevitable—just as a product aims to retain users. This is the whole point of this proposal. It’s based on the reality that we cannot rely on free labor if we want to have a truly efficient and organized workforce.

Sorry for the delayed response, but I’ve been working on another project. That being said, this perfectly illustrates my point. There is little incentive here for me to get involved; I prefer to invest my energy, time, and skills into a project that rewards me for my work. It’s healthy, and it’s what I define as a perfect economic alignment between the community and the protocol. This approach respects the fundamental principles of accountability between both parties. I believe in that.

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The Sanctum model is a bit different from Jupiter’s. First, LSTs mean there is no need to stake and lock tokens—this is one of the protocol’s main value propositions. However, we can track how long members hold their LSTs and define a reward model based on that data. Second, Jup has a leverage that Sanctum doesn’t, which is their launchpad. These are two different protocols, so the DAO model needs to be adapted to their respective needs.

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I think the new model is getting community engage through their activeness by supporting the progress of sanctum.

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I know the INF token is an LST but the CLOUD tocken isn’t. I was think that staking CLOUD coyld be rewarded with LST devs in other projects. Im not technique at all so this might not be doable

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I completely agree with a compensation system that is fair.

I am also one who has done lots of work for free only to be frustrated afterwards because I can’t pay my bills. However, I have also loved every moment of the “free work” that I have done for the benefit of Sanctum and the community. Currently my circumstances allow for me to put more of my time and efforts there, but I will continue to give as much of my free time as possible to Sanctum when my circumstances change.

I would wager to say that most people don’t enter a crypto community expecting to get a job. If that is what you are looking for then I believe the Sanctum team is hiring (or at least they were). But from your comments it seems you already have a job in place, so you shouldn’t worry so much about compensation, in my opinion. For me, making a profit in my free time is a bonus for helping a project I fully believe in. I feel this is rewarding enough in a way. But that’s me, and you may feel entirely different.

A sad reality is that the crypto space in it’s current form is still pretty toxic at times and lacking of healthy structure, systems, and processes. I do not agree with a points system, which leaves the door open for gaming. If you have a way to shut the doors on unscrupulous types, then I would love to entertain the inclusion of points in our future DAO. I like seeing my numbers go up too! :partying_face:

If you get a chance, and you haven’t already, you should check out the successful structure of the Jupiter community. They include “Active Staking Rewards” as a kind of membership to the DAO. They then have developed “Workgroups” that handle different types of labor that supports the growth of the project in various ways. However, in my opinion the workgroup structure could use some slight adjustments to be a little more inclusive of those who spent their time and efforts.

Anyway, you have a good head on those shoulders and I enjoy hearing your views. I hope you stick around and help us develop an outstanding DAO!

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Oh, I see, you were referring to the Cloud token. Based on the logic I developed, we could indeed create a staking pool, but it should be tied to the point system to unlock rewards. Rewards in LSTs don’t make sense to me, as the DAO’s objective is to develop Sanctum and has no involvement in the development of other projects.

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My intention here is not about getting a job or being necessarily rewarded for the work done. When I advocate for financial compensation, I’m not doing it for personal gain, but rather from the perspective that if Sanctum wants to attract talented people with skills that are in high demand in the market, they absolutely need to find compensation, which doesn’t necessarily have to be financial. As you may have seen, I’m also in favor of developing rewards in the form of NFTs and badges, which help build a sense of belonging to a community. Personally, I find that rewarding, but I know that it might not be enough for others, so I had to take these profiles into account.

I quite agree with your vision and everything you’ve said. I’ve personally spent 90% of my time here working for free to contribute to project development. That said, as you’ve pointed out yourself, the mindset we likely share doesn’t represent the majority of people, so we need to take a more pragmatic and realistic approach. Even If I would like to get involved for free, I really don’t have time, and have personal ambitions to achieve.

I’m very familiar with how the Jupiter DAO operates. I studied it, and find it very confusing and believe it should be much better structured. It is, in fact, based on this model, which I find inefficient, that I decided to create this infrastructure for Sanctum. Thank you for your constructive feedback. It’s a pleasure to share ideas with you my friend.

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read proposal, and looked at protoype. shows thought and effort :heart:

my comment, gatekeeping the DAO with an LST seems like a lot of hoops to me. we have $cloud, but will also need another token to participate?

$cloud should be enough :muscle:

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Thank you for taking the time to read the proposal. The creation and implementation of an LST for the DAO works in synergy with the CLOUD token. In this case, the LST serves to generate revenue for the DAO. My goal here is to unlock a new use case for LSTs, namely enabling DAO members to self-fund the DAO. I believe Sanctum should be the first to develop this approach.

I see you have a Pathfinder PFP. So, I’m using the same mechanism here that allows the NFT project to fund itself. The yield generated by the LST is entirely allocated to the DAO for funding. With this, we can buy NFTs, CLOUD tokens, and other prizes, which will then be redistributed to the LST holders as a reward for the yield they are not receiving directly.

1 Like