DXventures Grant Investment to Karma

Background

In February 2021, DXdao community members proposed the creation of a DXdao venture arm, coined DXventures. Community members quickly adopted the idea, and web3 projects have since approached DXdao regarding investment opportunities.

About Karma

Karma is a reputation system for DAO contributors. Karma aggregates and curates DAO member activity across various DAO tools to recognize their contributions and help build their reputation.

The blockchain space has seen an explosion of DAOs and contributors in the past 18 months. That has brought with it a number of challenges. There is very little visibility into these DAO contributors, how they have contributed to the DAO and how to discover contributors working across the DAO ecosystem. DAOs themselves struggle to understand who their contributors are, how to onboard new contributors and get a pulse of what is happening in their DAOs. Karma aims to solve this by integrating with various DAO tools, aggregating and curating this data and assigning a reputation score and mint an NFT for each DAO contributor for each DAO they belong to.

Every DAO is different with regards to operational structure, tools they use and how the contributions happen. Karma plans to work closely with DAOs to customize the reputation score for their communities based on various criteria defined by the community. Karma will also help showcase contributor’s work and make them discoverable. This NFT can become a lego block which others can use to build applications in the future. You can find MVP of ENS and Gitcoin DAOs here:

https://www.showkarma.xyz/dao/delegates/gitcoin

Karma wanted to help token holders decide to whom to delegate their tokens. By aggregating the delegate activity across various tools and assigning weights, a Karma score was created that can help decide their delegation.

Eventually, Karma plans to open source all the code, decentralize the aggregation and curation of signals and let the community drive the decision on what signals to curate and weigh them.

Roadmap

Phase 1: Plan to integrate with other DAO tools like Carrot, DXvote and others where DAO contributor activity can be captured

Phase 2: Introduce NFTs to embed contribution reputation and make reputation a building block in the web3 ecosystem.

Phase 3: Finalize tokenomics and introduce tokens in a way that makes sense to the product, community and ecosystem.

Traction

Karma received valuable feedback from ENS and Gitcoin communities and a number of DAOs have shown interest in adopting our reputation system.

Fundraising Status

Pitch deck, fundraising details/terms will be shared by Karma upon request

Grant to Karma

DXventures would like to formally seek the community’s feedback for an on-chain proposal to participate in Karma’s pre-seed round with an investment of $100,000.

If the $100,000 grant proposal is passed, DXdao would be issued a SAFE in Karma the company per the terms of the agreement. DXdao will also be issued a token warrant stating the percentage of tokens the DXdao would receive when a token is launched. The terms will be shared privately with all interested members.

Next Steps

If the DXdao community signals interest in going forward with a $100,000 grant to Karma, Karma will make an on-chain proposal on DXdao’s mainnet voting interface on Alchemy for the grant.

Feedback Wanted

Through this grant and partnership with Karma, DXventures looks forward to filling a need that many DXdao members actively face as contributors. Any feedback on the grant or ideas on how Karma can help contributors is welcome.

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Thanks for posting @JohnKelleher!

Hello everyone - I am the founder of Karma. Please let me know if I can answer any questions about me, the product or any other details :pray:

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I think this is a collaboration opportunity for both sides.
We’re very explicit about this in DXdao, but outside its not much the case, except Vitalik.
The ability to reliably quantify non-financial contribution in decentralized organizations is, in my opinion, the most critical, and unfocused building block for long term viable and sustainable governance systems.

I got a great impression from @mmurthy on the call and happy to have DXdao support him

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Hey @mmurthy nice meeting you! Thanks for joining and proposing this opportunity to DXdao.

I think this is a very important and needed tool for DAOs.
I also acknowledge it is one of the hardest problems to solve - Reputation…
Would love to hear more about the team, the proposed solution for karma scoring, and roadmap!

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Thanks @cmagan. Agree, it is hard problem to solve!

Team
I have a one frontend and one backend engineer (both contractors) who are working full time with me. I also have a part time designer.

Solution for Karma Scoring
The core idea is, there is lot of activity happening on various DAO tools (voting, forum, payments for work etc.) and I would like to integrate with all those tools and aggregate and curate contributor data. Then, you apply weights to data from each tool and calculate the score.

Take for example the ENS delegate dashboard. I apply different weights for snapshot voting %, total delegated votes, proposals created on the forum, proposals discussed, replies, likes and assigns points for each. The aggregate of all these is your Karma score. This is no way fully complete, I am working on more integrations and also ways to get quality data over just quantity.

I want to work with each DAO to define these weights because every DAO is different in the way they use these tools. And it is important to get buy in from the DAO and the contributors on how to quantify reputation for their DAO.

Roadmap
I want to tackle one usecase at a time. Right now, I am focusing on governance/delegates and their reputation. I plan to expand to other types of contributors over time. I also want to wrap this reputation in NFT so it’s on chain and can become a lego block on top of which other applications can be built. For example: You can give access to high reputation contributors to other gated communities, airdrop tokens as compensation, incentivize them to join other DAOs. They can showcase their work through on-chain resume. I have a very basic profile in the works you can see here

There’s also future roadmap in the OP above.

Please let me know if you have follow-up questions. Thanks!

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This is a cool dashboard! Interesting to see the huge difference in voting power between delegates that seem to have similar involvements metrics.

It would be very interesting to see how each DAO approaches it.
It’s hard to come up with objective criterions that are also hard to game / exploit.

Would you also work on purely on-chain-data based reputation?
One problem I see with collecting all this data from forums is you become some kind of centralized source of truth. Ideally the data and process can be verified and curated by the community.

Those are all great directions I believe.
You should def do the “Reputation” NFTs soulbound :grin:
I think privacy also plays a big role in those efforts. The tools to prove certain things without revealing the identity are being built with ZK tech and once available would very interesting as a building block

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Yeah

Yeah definitely. Also, in my roadmap is to first put all this data in Ceramic or something so it is not sitting in my database. Then, open up all the code so anyone can reproduce it independently and verify.

It’s a topic I am talking to lot of people and trying to find the right approach. You might have your NFTs across accounts and if you want to consolidate, you can’t.

I have made some progress on this front. As you said, once the tech improves and becomes feasible to use in applications, I will adopt it.

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Would love to get more info on the fundraising details. DM?

Sure DMing you the details and also my telegram

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Thank you for all your support DXdao community! The proposal passed and our wallet has been funded. We will regularly update the community on our progress. Please also follow us here for updates and support.

Twitter: http://twitter.com/showkarma_xyz
Discord: Karma

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Congrats! :partying_face:
Keep buidling great stuff. :woman_technologist: :man_technologist: :rocket:

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There is very little visibility into DAO contributors.

How they have contributed across the DAO ecosystem?

How they have contributed to your DAO or will contribute?

Karma aims to solve this by integrating with various DAO tools.

Karma is a reputation system for DAO contributors.

Read more here :arrow_right: Announcing Karma and funding round — Mahesh Murthy

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