There is a need for short term funding to allow development on Dxdao projects to start before the launch of the Dxdao Fundraiser. Launching Omen and Mesa, and starting development on Mix will require developer bandwidth over the next couple months. There is an upcoming proposal to use Dao Debt as a payment for the development work on Mix, and there will be a need for efforts on Omen and Mesa as well.
Accepting Dao Debt as payment is risky for developers as it is uncertain whether the Dxdao will successfully fundraise and pay its debts. By tokenizing Dao Debt, we can allow developers to monetize their Dao Debt now by trading it at a discount on the open market. This will help incentivize developers to work for the Dxdao and help it launch its first products ahead of the fundraise.
The Dxdao could ratify a social agreement that declares:
- The existing DXD token will be renamed to the DXD Debt Token
- 1 DXD Debt Token will be redeemable for 1 Dai
- DXD Debt Tokens can only be redeemed three months after this signal proposal has passed
Making the DXD Debt Tokens redeemable three months from the date of the signal proposal ensures that the early investments made in the Dxdao Fundraise will not be drained by debt redemptions.