DXdao Product Planning and Funding

I view this as a troll post which is why I didn’t reply, but I think of Rudyard Kipling’s poem IF and the line “If you can trust yourself when all men doubt you, And make allowance for their doubting too” . . It’s important to be critical of ourselves in our reflections. There’s much to be proud of when it comes to DXdao, our focus on decentralization, the quality of our people and organization, and everything we’ve built (Omen, Swapr, Carrot, DXvote, and more). And I am a firm believer that there is a lot of value in the long run in having truly decentralized tech. But from a critical perspective, DXdao hasn’t had much success when it comes to adoption of its products. Our only product generating fees is Swapr, and I give a rough estimate of the yearly protocol fees, using $500K daily trading volume and an average protocol fee of 0.025%, to be about $46K. To put some additional perspective on this, the current Swapr budget is spending about $940K per year, and that is without taking into account QA, auditing, or the cost of vested DXD incentives.

DEXes are the cornerstone of DeFi, and generate the most fees. For this reason, Swapr is an important asset for DXdao. However, Swapr alone will struggle to find success against well established and much better recognized competition. To realize the fee generating potential of Swapr, DXdao needs to build other successful products around it. This is the aim of new product development like Carrot. Governance as well can become important for DXdao’s business, but it also provides a fundamental operational capability for DXdao, one DXdao had little choice but to take responsibility for given DAOstack’s abandonment of Alchemy/Arc.

Carrot shows great promise, but in order for DXdao to be successful there needs to be a larger emphasis on new product development.

Products initiatives such as Jolt, Aqua, and Nimi, are great examples of DXdao pushing forward with innovation. However, looking at the current spending of DXdao there is just over 3 years of stables in the treasury, without taking into account any allocation towards new product development. This raises some serious questions for DXdao. While there is over 12000 ETH in DXdao’s treasury, which is over $18M at current prices of around $1500 ETH, the bear market has just begun and the future is uncertain. I think certainly it would be a bad look for DXdao to be forced to sell ETH at today’s prices or lower in order to fund operations, and as such DXdao should have plans for both a quick market recovery and for an extended bear market. Unfortunately, current spend rates don’t allow for DXdao to both prepare for an extended bear market and to allocate funds to new product development. This needs attention.

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This is true. Gladly, the current contibutor community is very talented and collaborating well together. It won’t be hard to leverage the collective potential to innovate, either by utilizing and building upon the current stack, or if need be from scratch.

The community should just be vigilant with timely checkups along the way.