[Proposal/SOW] Act lll: The DAO

Foreword:

It’s been a long intermission since Forecast Foundation’s curtain call set the stage for AugurDAO, and there’s been an update!

The treasury is in the final stretch of being ready to transition to the community, but the ex-FF will not create nor run the DAO. So, it’s now up to the …vibrant Augur community to bring it to life and keep pioneering the development of $REP and decentralized prediction markets.

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Although maybe not the update some were hoping for, it could be worse. The funds have not disappeared nor been stolen, ex-FF have just been busy with their dissolution - and are now ready to set Augur free.

The time has come for the community to shine. The flame of decentralized prediction markets still burns. If you believe, help re-ignite it. If you don’t really care but are stuck with $REP bags, help too.

Structuring DAOs isn’t as intimidating as it was in the ancient days of early 2022. The space has matured into dozens of production-tested DAOs passing hundreds of various governance proposals. We don’t need to re-invent the wheel, we can copy what works and use streamlined tools/platforms/SDKs to customize for our requirements.

Now, we could either field holistic proposals from outside vendors and hope they align with what we want, or we could try a more novel approach and decide on these requirements as a community:

What will be the purpose of this DAO? How will it be governed? By whom? How will the community vote? How will grants/funds be distributed?
We’ll need to debate, align on, and action these directional questions.

Functionally, somebody will then need to:

  • Organize, facilitate, compile the conversations
  • Distill, document, maintain the requirements
  • Consolidate, evaluate, generate the recommendations/proposal
  • Procure, assess, contact the vendors/solutions
  • Coordinate, direct, align the resources
  • Certify, structure, audit the build
  • And finally, deliver and ossify the DAO – stepping away

Further, this needs to be done under the constraints of REP’s technical debt, and all while keeping the community updated and materializing their feedback. It’s a long process that could be simplified based on recommendations. But at the very least I’d like to get the ball rolling on a wireframe plan and solicit feedback.

My overall proposal is to facilitate a community-driven design through organizing and prioritizing required decisions as standardized specs that are open to discussion and iteration. I want to run this as decentralized as possible, allowing community feedback on every step and being bound by its consensus. I’ll provide base-layer thoughts for each spec that serves as the holistic project proposal, which is then open for changes.

Full disclosure, my interest in the success of the DAO is vested- which isn’t necessarily bad. I have pitched a PM project that I’m willing to pause it in favor of this effort, as I feel it’s the right thing to do for the space. This incentivizes me to not only do everything properly, but also in a timely manner.

My ask is $50k/month to cover expenses and opportunity loss of pausing my current project. I’ll commit full-time into this, filling out and maintaining all the design specs below while owning all the operation requirements above.

Design Ethos

Complicate preparation; simplify execution.

DAO creation will occur over 2 phases: Design and Build.

The Design phase will run until the end of Q1 2023 and output the full blueprint for the Build phase, which will run through the design phase and until the end of Q2 2023.

During the design phase, the community will review and interact with the base-layer proposals- creating their own iterations or suggesting minor modifications as needed. Some design specs will be prioritized to get a head-start on the build if there is consensus. Ex. “Policies-Voting-Token” should be a decision taken/approved early so that effort can begin on either creating a new token or somehow adapting $REP. The prioritization sequence probably isn’t ideal, but we just need to get started on making decisions and getting this moving.

Design specs

Below is the first pass at the design specs, which are decisions that must be made. Although the specs are visualized as discrete, there is overlap and interdependencies within their decision trees. I.E. Some of these specs may have upstream requirements and downstream implications.

It’s almost impossible to plan the sequence perfectly, but we know all the below decisions must be answered eventually. So, a rough H-M-L prioritization will be attempted with the intention of starting the build phase asap.

  1. Identity - Priority
    1.1 Name - L
    1.2. Logo - L
    1.3. Purpose - H
    1.4. Entity - H

  2. Voting Policies
    2.1. Token ($REP?) - H
    2.2. On/Off Chain - H
    2.3. Scheme - H
    2.4. Delegation - L

  3. Governance Policies
    3.1. Structure - M
    3.2. Reach (Decisions/proposals) - M
    3.3. Flow (Proposals → Vote) - M
    3.4. Roko defense - H
    3.4.1 Veto Authority
    3.4.2 Time-Locks
    3.2.3 Escalations

  4. Treasury
    4.1. Custody - H
    4.2. Funding requirements - L
    4.3. Limits – L
    4.4. Process - M
    4.5. Due Diligence - L
    4.6. Release - H

A sample of the design spec template for 2.1 (Voting Token), outlining the methodology and how decisions will be presented for community feedback:

If the proposal is approved and funded, I will research and create these design spec documents for all the above requirements.

Timeline

A rough project timeline has the DAO launching end of Q2 2023"

Conclusion

These are just some of my thoughts on a page as to how the Augur community can come together and launch this DAO in a decentralized way. It would still require a party to keep everything on track, which I’m willing to take on, but it would be better than a turn-key vendor that would just build according to their own specs without much involvement.

Let me know what you guys think, let’s revive Augur and $REP!