Cross-DAO collaboration and the competition scheme

Cross-DAO collaboration and the competition scheme

As of June 2020 there are 2 large treasury DAOs with expectation for more in the future. These DAOs are using the same codebase and therefore benefit from development, security, network effects, and additional features to Alchemy made by any of the other DAOs.

The goal of this post is to introduce and coordinate the first collaboration between DXdao and NecDAO on the competition scheme.
(A trustless framework for this collaboration, through a DAO, is in the works and I will share soon. Until then I can serve as an intermediary)

Collaboration MVP

Co-fund a second audit to the competition scheme. We received a quote for $3,000. to audit the scheme. This cost would be split between DAOstack, NecDAO, and DXdao at $1,000 each

This DAOtalk post will be the base of the proposal to NecDAO and DXdao.

The Competition Scheme

This scheme allows a new form of collaboration and decision making.

Right now all DAO proposals are a Yes/No proposal process. The competition adds an additional step.

Does the DAO want to run a competition, agree to distribute X funds to N participants, with Z parameters? (See parameters below)
If passed, then:

  • Any participant can send a submission
  • Reputation holders can upvote on submissions
  • Funds are distributed to the top N submissions


  • Number of winners (eg. 4)
  • Distribution to those winners (eg, 30,30,20,20 or 25,25,25,25, has to equal 100)
  • Number of times a rep holder can vote (e.g 3)
  • Submission start time
  • Submission End time
  • Voting time start (Which includes a Rep snapshot)
  • End time.

This an example of what this looks like ETHDenver

How can this be used

  1. New Feature specification process. Before funding a group or an individual for the development the DAO can run a competition to design the best product specification and only afterwards
  2. Marketing - The DAO can run monthly Marketing competitions with a set spending budget. Best Meme, Article, explanation, etc.
  3. Bounties - Define a Bounty requirement with a set budget, and pick the best submission.

The competition adds a game theoretical incentives and advantages for the DAO and participants.

  • Better DAO fund deployment – The DAO will pay only to the top submissions, but it has earned from the work of all submissions (Meme competition creates a lot of memes, with 1-3 winners getting the prize)
  • Winner guaranteed – once a competition is approved the money is locked. As a participant I know that if I produce the best submission I will win the prize.
  • Competitions in general push people to do better and collaborate and produce the best results.

Additional info

Check this link our if you want to learn more about the competition scheme (Contribution reward EXT) and the further possibilities this can enable, or chat with me.

The Architecture of the scheme uses the contribution reward, but instead of going to a beneficiary it gets locked in the contract and awaits the “rewarder” for distribution instructions, in this case the rewarder is the Competition contract, but this versatile architecture can allow the development of other rewarder contracts, like multi-beneficiery, time-lock, or releasing the funds upon a certain threshold.

Also, this architecture is great from a security point of view as it’s using the standard contribution reward, if there is a critical bug or exploit this would only allow the hacker to draw the funds locked for the rewarder.