Tips and tricks for dxDAO participation

A few thoughts that might be useful when participating in the dxDAO.

1) Chose the right wallet to participate
Reputation cannot be directly transferred. If you ever want to use a different key you would need to go through a complicated process of making this a proposal to the DAO. Instead, you should use a smart contract wallet that allows you to change what key has control over this contract. This would also allow delegate your vote to a specific process or another person. The most convenient smart contract wallet that is also tested for use with DAOStack is the Gnosis Safe.

2) Lock token or ETH twice
The maximum lock period is 30 days. You can get almost double the amount of reputation if you lock your ETH/tokens immediately as soon as the vote staking period begins on May 29th. Just make sure that you lock them just as long so that you can claim them back at the end of the period just to lock them again for 30 days. With this trick, you can effectively lock tokens and Eth in total for almost 60 days.

3) Participate in a MGN pooling contract
If you want to maximize the amount of MGN you generate but you don’t want to do a lot for manual trading or set up a trading bot you can participate in a “pooling contract”. Those pooling contracts constantly provide liquidity on the dutchX and are expected to generate a lot of trading volume. However - since they use a very simple trading strategy you should expect to lose money in this process. The more liquid the trading pair is (the smaller the spread between the price for sellers and buyers) the less you are expected to lose. Sometimes buyers even participate above market price in which case the MGN pooling contract can make money. Check volumes and spreads of trading pairs here.

4) Watch out for small GEN auctions
There will be in total 10 GEN auctions. Every auction will take 3 days and each will sell 1% of the reputation (= 10.000 Reputation) to all participant. If you are the only participant any amount of GEN tokens would buy you the full 1%. In general, the lower the GEN amount contributed the higher is your reputation payout per GEN token.

5) MGN is a token
You might want to trade with a specific account but later participate in the DAO from another account. You can do that by transferring MGN. Please note that MGN is by default locked when it is generated by trading. It needs to be “unlocked” which takes 24h before it can be transferred. Since MGN is a simple ERC 20 token it also might happen that a market (e.g. on uniswap) might be created for MGN.

6) Privacy
Keep in mind that everything on Ethereum is public. All your actions in the DAO (e.g. your voting behavior) is public. If you do not want to have that publicly attached to your real-world identity you should use a fresh account to participate that can also not be linked to you trough ETH or token transfers from an account that can be associated with you. You can always choose to link your identity to an account but you can never take this link back.

More resources here.

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hey @koeppelmann,

it seems like the link where users can check out the volumes and spreads of trading pairs requires a login. Any chance we can still check it out without a login?

Thanks for this awesome write-up!

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thanks for the note. Should work now.

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Hi how will the double staking work. Please explain, can you stake longer than 30 days? I am getting a mixed message

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You can “at any time lock for up to 30 days”.
So the best you can do is come on day 1 (May 29th) and lock for 29 days. On day 29 you can claim your ETH or tokens back just to lock them for another 30 days.

Does that make sense?

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Yes it make sense but what you referring to at any time must be the validation period, or? Will the link to sign up be on the, https://dxdao.daostack.io/ ?

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At any time during the “Vote Staking Period”
Yes, tomorrow after 2pm CEST this it what you will see on dxdao.daostack.io

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