DAOs investing in DAOs

Motivation:

Even tho we have some traction on what we are doing atm, we are exploring possible pivot for our community. The idea is to swap veSHN tokens with some DAOs interested in supporting and contributing to our projects. What personally I like about it is that:

  • It’s way more scalable than looking for individuals interested in investing
  • DAOs can usually invest more → we can raise more $
  • We collect more fees
  • We diversify and increase the value of our treasury
  • We tap into network effects of those DAOs and align incentives with them
  • EVERYTHING that we’ve built so far, is still 100% useful and viable for this direction

The goal of this initiative would be to learn from mid-sized DAOs and their core members to validate or destroy our assumptions.

Where is ShineDAO atm?

ShineDAO is still on a mission to build a self-govern community funding and supporting Web3 & DeFi.

So far we built/supported 3 projects:

  • DeFi Options protocol (infrastructure, that allows individuals and DAOs to create their own options liquidity pools)
  • Kassandra protocol (infrastructure, that allows individuals and DAOs to create their own ETFs)
  • Degen News (decentralized news curation platform)

Other achievements:

  • Conducted interviews with over 30 early-stage DeFi/Web3 teams and over 50 DAO contributors to identify pain points and develop strong empathy for early-stage founders
  • Alighted and encoded incentives of all stakeholders through tokenomics and vote-escrowed design (forked Curves vote-escrow)
  • Built own token-gated fundraising platform
  • Sourced over 120 projects in the deal flow and partially automated the process
  • Grew community to over 1500 members, 250+ contributor applications, 100+ supporters, and $615.000 raised with zero marketing dollars spent

That said, our main question is always:

How might we maximize the impact in the industry? And focusing on DAOs rather than individuals might have bigger imact.

Goals:

Develop deep understanding about:

  • Willingness for DAOs to invest in other early-stage DAOs
  • Willingness to perform a token SWAP with ShineDAO
  • Willingness to participate in ShineDAO governance
  • Willingness to support our projects as contributors & advisors

Method:

Interviews with core members of small and mid-sized DAOs

Key Assumptions:

  1. DAOs are willing to swap their native tokens to be part of ShineDAO
  2. DAOs are willing to accept max locked veSHN for swap (this is how we prevent sell pressure)
  3. DAOs are willing to buy SHN to be part of ShineDAO
  4. DAOs are willing to participate in governance:
  • Accept projects for SEED
  • Accept projects and DAOs for SWAP with SHN
  • Vote on distribution parameters
  • Control assets in the treasury
  1. DAOs are willing to engage in evaluating projects and support other activities in the deal flow
  2. DAOs are willing to pay a 10% fee that will be distributed to veSHN holders and individuals who brought the most value (sourcing and evaluating projects in the pipeline)

How you can support?

  1. Give feedback on this potential direction
  2. Suggest DAOs we should talk to in #general or #suggestions
  3. Ask core members if they’d be willing to participate in a 15 min interview with me
    (0xRock#5540 - Discord, @OxRock - Telegram)

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1 Like

Other DAOs prob don’t want that we dump their token. And we need also like to have some liquid revenue. How do you approach this challenge?

3 Likes

Great points…

  • I think we can by default agree to not sell their tokens (unless there’s a proposal created by someone, in which case they can vote against it because they have veSHN).
  • We should only do swaps with other DAOs that we believe in and all swaps will be voted on by veSHN holders.
  • Us having their tokens also allows us participate in their governance and create proposals to invest in our projects, so I think we shouldn’t aim to sell them at all.

Alternatively, we can offer them to build ve style token design for them (they’d need to pay us for building that - ideally with SHN).

  • The main revenue stream for ShineDAO remain fees from SEED and treasury yield. My assumption is that SWAPs will indirectly impact revenue because:
    • Having an army of DAOs on board will allow us to convince grate A projects
    • DAOs are willing to contribute bigger allocations than most retail individuals → more capital can be raised (and we can collect more fees)
  • The direct impact of SWAPs is not revenue, but getting other DAOs to invest in promising projects through ShineDAO. The direct benefit here is treasury diversification.
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Makes me think that there could be some way that ShineDAO can leverage Kassandra and defi options dao some how. Kind of stream of thought:

  • we could swap some SHN on a dex for some tokens of daos we like
    • liq pools of SHN <> other DAOS
    • These could be put in some kind of ShineDAO frens index for kassandra
    • ^^ can create a dex twap oracle and sell long dated call options either on the index tokens or individual DAO tokens as collateral to those DAO holders via DOD (i.e. in those dao discords, we can just ask if ppl want to buy long dated calls of their dao’s tokens).

ve[INSERT NAME HERE] is non transferable so not sure how we’ll technically do something like this how things are now.

2 Likes

Good points @cinquemb. Would love to pick your brain on these ideas a bit. Will DM you! :slight_smile:


Anyone (even a smart contract) can deposit for someone else, but cannot extend their lock time and deposit for a brand new user. Locked tokens are then non-transferable. So I think we can find a hacky way to do it.