Hi dxDAO members. This will be a post that will take a few down memory lane, and share a story that many of the newcomers may be unfamiliar with.
Many don’t remember, but in the initial REP distribution in June 2019, 10% of the REP was auctioned for GEN to investors. The rest was given technically for ‘free’ to participants who locked tokens, in a fashion very similar to the “fair launches” we see today.
To make a long story short, I am not a rich investor, but I was one of the first few people to invest at the earliest stage in the dxDAO, and am in love ideologically with the idea of self governing businesses and futarchy. Us investors thought we were getting what today is DXD. In fact, I didn’t even purchase DXD in the sale because I was under the impression as a REP holder I already had a share of the 100k DXD in the treasury proportional to the percentage of REP I own.
Back in June 2019 I invested GEN in the fundraiser, worth $8,500 at the time and $16,400 today, for around 1.5% of the dxDAO (REP). I will share all relevant etherscan links in the future. But now, even though the project that I invested some of the first seed capital into has been a massive success (and is only still beginning in my view), us earliest investors have lost all our money. When a seed company pivots their product and finds success, it’s highly frowned upon to exclude their earliest investors and believers, who took the most risk. I don’t think the dxDAO is currently doing that, I just think today’s active members aren’t aware of the early fundraise that happened.
I have talked directly with some large REP stakeholders and they seem to be in agreement. It’s only fair if the earliest investors in the 10% REP that was auctioned get a portion of DXD as well. I’m not saying minting any new DXD and diluting anyone, but rather using some of the DXD already in the treasury. This shouldn’t negatively effect anyone. Otherwise us early evangelists who risked our capital basically lost all our money, even by investing in the right project and giving the dxDAO the early seed capital it needed to grow into the magical organization it is today.
I hope to hear people’s thoughts before I make a more formal governance proposal.