I started working on this on the basis of the understanding that much of the creative potential of the cryptosphere is not only incompatible but largely invisible to the overwhelmingly centralised resource allocators. This premise, which I hereby propose as status quo, is visible in the fact that ‘crypto-native’ builders are viewed, if at all, as second-tier relative to their ‘web2.0’ grounded counterparts. Their competitive disadvantage lies potentially in that their value propositions are less attuned to venture capitalism’s soft spots and operating assumptions. Would therefore argue that much of the ‘crypto-future’ escapes the narrow borders of the aforementioned ideological framework.
Public goods are, by definition, universally good and should not be left up to charity. Public goods are predisposed to rival capital accumulation. This is not a trivial matter as it means that advancements requiring resources are evaluated in a narrow, overly conservative worthwhileness proving circuit. More trivially though, writing “build cool shit” gets your gitcoin grant censored. For me, that is unacceptable.
The biggest funder of ‘web3’ companies is, I’m guessing, A16Z. A16Z stands for the names of two contemporary natural persons and capital deployers, 16 being the counted letter distance between the start and end of their affixed surnames. Now, there’s a problem here. A distance of 16 letters between A and Z, doesn’t vibe with the plebs. Most members of the crypto public, if asked, will likely insist there’s 24 letters between A and Z. This shared fact is one of many english reality binding public goods. But not a universal good. The only infinitely demanding, for the better distance between A and Z that is proper to aspiring permissionless, universally good public infrastructure that vibes wit the many is 0. As such, the name points to forcing an arbitrage between the current state of corporate owned and curated web3 to peer-negotiated early stage funding. 0 is at least 16 times more efficient than 16. Also, potentially a good name for marketing purposes.
Value and Opportunity
- DAO ants tend to have ideas, but no clear path to pitching and seeding those ideas
- DAOs need to diversify their treasuries and throw money at specific local needs
- Incubating internally sourced projects is a potentially high quality income source
DXdao Specific Value
- places Swapper (uni.v2) as the core engine of DAOnomic activity
- gives structure and clarity to (dx)DAO seeding efforts
- globally accessible and transparently structured DXVentures liquid deals
This is partially implemented already. Some game-theory dynamics to be entertained and settled upon. All with the overall goal to provide DAOs with a framework for financing ideas in ways that preserves their local autonomy but produces standardised, globally intelligible and composable outputs.
If none of it makes sense so far, please take a second to look over the following link as the base concept of a Deal follows the logic expressed in cashcow.quest. The major difference is that instead of it being a protocol that aims to interface between individuals (builder - idea marketplace <-> VC) it is designed to primarily sustain DAO collaborative capacity.
To summarise, there’s two main overall steps to this, first,
DAOs self-register as incubators, doing so makes them able to mint incubation deals (ERC721) and outputs a DAO-DAOconomy ERC20 LP pool, and second, the minting of an incubation deal which launches a project’s ERC20 and a corresponding seed funding pool (Project - DAOconomy) that adheres to incubating DAO controlled conditions until the deal is sealed through an external acquisition, which, in turn activates corresponding conditions such as immutable, linear vesting.
Doing so results in efficient, 1-hop exchange of value across the DAOconomy, builds capacity, curates projects for third-party investors, makes DAOs more integrated and resilient. More importantly however, it makes liquidity more likely to reach public goods that are blasphemous to the current monopolising church.
Now, I am sure that this is composable or at least can be used in conjunction with all dxDAO products. If I got that right Swapr has some plans, to further adapt to and target DAO needs, and do something-something-dao-funding which can in my view amount to a meaningful competitive advantage. This is a way of acting on that with no initial effort from the swapper team. This might position itself awkwardly in relation to the platforming stuff announced out of PrimeDAO, with which you might be involved, unclear. So, this, all of it, for your exclusive consideration. I’ll try to answer questions, if any. Let me know if you feel you can support this work.