I’ve been reflecting on the current strategy of the DXdao which is to fork popular DeFi projects to make them DXdao-owned and generate revenues for the DXdao that way. I think it’s a great strategy but I also think it is worth updating it a little given the recent developments in DeFi (fully agree with what @clesaege said here).
TL;DR Given its treasury, on top of building new products like DXSwap, the DXDao could (“should” imho) become an active governor in today’s decentralized projects. This would put the treasury to good use to start generating potentially sizeable revenues and increase the visibility of the DXdao
It seems like a perfect fit for the DXDao as it plays on its 2 strengths:
- the DXdao sizeable treasury. The treasury will make sure that the DXDao can earn enough tokens to be able to submit proposals in the projects it decides to be involved in.
- the DXdao ability to debate and take decisions collectively. Obviously, every proposal or vote on proposal will be put to vote to the DXDao members.
As these newly launched projects have liquidity mining incentives, all the tokens mined could be treated as revenues and put in the DXDao reserve, which will start lifting the sell curve of the DXDao to the benefit of DXD holders.
Note that, at this stage, it’s too early increase the
revenue_commitment of the DXDao (set at
10% today) but I would propose to have a decision on how to manage the revenues generated by this activity. For example, one could say that this requires say 2 persons full-time per project so we could have a revenue utilization like the following:
- Revenues generated by this activity are used to cover the day-to-day compensation of the persons working on it full-time (not accounting DXD and/or REP associated)
- Once (1) is covered, the reset is split like this: 80% goes to the DXdao reserve and 20% in the DXdao treasury
It should also be decided if the tokens earned by liquidity mining are sold immediately or held or a mixed of both. Projects that comes to mind where DXDao might consider getting involved:
- Swerve (pending audits I suppose)
<you name it>