Idea for InitiativeDAO

[The below idea was inspired by this thread by Loie.eth and Austin Griffith.]

Idea:

What if DXdao allocated a small amount of targeted slush funds to a handful of community members (“Initiators”). These Initiators would have sole discretion to spend these funds on whatever they choose over the next two months towards seeking value creation to DXdao. At conclusion, each Initiator would provide a report with the details and results from funds spent. The community would vote on the performances of each Initiator to determine who the best spender of funds was. The winner receives additional funds to spend the next two month period and the other Initiators are replaced by new people, and the competition starts again.

InitiativeDAO is:

  • An experiment
  • Fast moving
  • Revolutionary
  • Impactful
  • Leveraging competition
  • Seeking optimization
  • A learning experience
  • Identifies change makers

Underlying belief to test: Really good Initiators that can act very quickly on their own choice can be very impactful to a larger, slower-moving decentralized collective.

Evaluation of Experiment: At the end of the two month period, we will judge how the Initiators performed and how the experiment went overall. What did DXdao get out of it?

Details to implement:

  • Seek out 5 Initiators from the DXdao community. Ideally, there is a diverse mix. For example, a core contributor, a core community member, a core product user, a core partner or a mix.
  • We could gather up all those who want to be Round 1 Initiators and then randomly select 5 from the bunch.
  • Execute on-chain proposal to send each Initiator $2,000 xDai from xDXdao.

Total cost to DXdao is $10,000

Additional thoughts:

My guess is that most of the money would be spent via bounty-like tasks. Getting more people paid by DXdao funds will likely attract some of those people into the ecosystem.

I think this experiment could also help us discover new innovative ways to drive value to DXdao.

This initiative helps overcome one problem-child of DAOs - small, smart ideas lose steam quickly and often because they are not worth putting through the “DAO process”. InitiativeDAO solves this.

We have also thought about a few different ways to structure this initiative, but I believe this structure would be the most interesting to watch.

Would love to hear any thoughts, suggestions or improvements.

10 Likes

I agree with the problem statement and seems like a plausible approach to addressing it. I have no idea if it will work, but seems worthwhile to experiment. We are only beginning to explore how DAOs can operate and it’s inspiring to see ideas and potential solutions being put forth. Interested to see the results of this!

10 Likes

From what I understand funds would be given out to core contributors/people initially, so there would be a decent amount of trust in them, but I would maybe find a way to avoid people just taking the money and not doing anything (even though at least at the start it wouldn’t be much, it would still not be great if it happened).
Maybe some sort of staking mechanism where you need to stake DXD to candidate yourself, or if the candidates have REP, a REP slash could punish bad behavior (even though there’s no economical value in REP).

Overall though, very nice idea. I’m in extreme favor of new experiments and trying out new things!

5 Likes

Quite interesting. Staking DXD would take technical time for implementation and may delay testing the initiative, but slashing REP should easier to enact in case anyone misbehaves.
In the future a dApp can be utilized to facilitate this process, so other orgs in DeFi could use it.
Example: 5 x 2.5k is put as collateral in 5 contracts, each under the pseudonym of 1 community member, for which the members are given conditional tokens. The condition is a community vote to approve personal campaign success. Each participant spends their own money. At the end of the period, each contract can be voted on and if the majority of votes approve, the participant can redeem 2.5k against the conditional tokens. If the majority votes in disapproval, the participant redeems 2k as reimbursement for their costs.

1 Like

All great suggestions so far.

One way to make this more “protected” (agree we don’t want people walking with funds) is the five Initiators actually have a quickDAO → 3 of 5 DAO (or MS) most likely on xDai.

One original goal would be to include some Initiators that don’t actually have REP but could be impactful, but we could make some REP a requirement for first Round. This is a great tool - REP. Let’s leverage it.

We want the funds to be easily accessible to the Initiator that is spending them, which is why it would be better for the Initiator to not have to ask the quickDAO for funds each time it is to be spent.

I think leveraging a clearly laid out “REP-at-Risk” system for this first Round would make the most sense, as long as people think it’s ok to limit to anyone with say at least 0.15% REP?

Yes, longer-term, it would be the idea to open InitiatorDAO to other communities as well (if it’s going well).

1 Like

Adding an extra carrot financially is definitely a possibility. Especially if you think that Initiators will need a financial incentive to participate in an initiative like this.

I was thinking people would likely be Initiators even without personal financial reward, but with only DXdao to gain.

1 Like

I like everything that was said here and speaking to Sky about this last week I think it’s an amazing idea and could create the spontaneity that is so crucial in the asymmetric growth of startups, a low cost initiative by one of the members will be able to create immense value,

I proposed a simpler model with a goal of maximum experimentation with minimum overhead.

  • Initiative Multisig gets $5,000 (Can double down to another round)
  • Anyone in the DXdao can request up to $500/$1000, with a simple prompt.
    1. What do I want to use the money for.
    2. How do I think this will benefit the DXdao.

The Objective
Create an effortless way for any DXdao member to spend money on things that he thinks could benefit the DXdao, it needs to be easy, simple, and most importantly to allow people to make mistakes.

The Goal
Progress anything DXdao – Get more contributors, visibility, marketing, partnerships, collaborations, … etc.

Initiatives could be be anything – funding a fiverr artist, donating to a charity, or minting NFTs on behalf of DXdao, or paying some shady promoter on twitter. There is a trust assumption some who receives money won’t use it for personal use.

We revisit this experiment in 3/6 months and see what did we fund, how did it work, if there are any successful endeavors that we want to double down on, etc.

Accountability
This comes at later phase with the understanding that many of the initiatives will bare little fruit.
It needs to be owned by several people in the DXdao.

1 Like

This is all fascinating. I like the idea of using REP. There was a conversation I had with a DAO in the music industry just a couple of days ago. We were discussing how a sub-DAO could work for artists that would have a certain amount of tokens allocated to this ‘artist collective’ who would all having equal voting rights within the holding DAO. Not sure if this is relevant or even helpful. I’ve never heard of a sub-DAO until that convo.