[DAO Discussion] - Structure the DAO
- Wonderlands goals, objectives & strategies
- The wonderland governance framework
- Enable the community to govern wonderland through the DAO.
- Set-up a governance before electing a new treasurer/management team, etc.
Provide a High Level Overview
- Wonderland has gathered a significant treasury.
- Wonderland is a community project that should be governed by the frog nation.
However, the DAO does not function effectively:
- Wonderlands ultimate goal is unclear.
- The frog nation is not enabled to govern wonderland effectively.
- Crucial decisions are not made through the DAO.
- The mandates of management and the DAO are unclear.
We can elect new managers now, but it will not solve the above problems. First, we need to set-up a governance framework, so that we can actually exert control over wonderland through the DAO.
Provide Low Level Details
The goal of wonderland is unclear: are we trying to maximise treasury growth?; Is our goal to maximise revenue?; Is our goal to maximise support for the other frog nation projects?; etc. A clear goal is necessary because it allows:
- The treasurer to decide whether investment opportunities help our cause.
- The community to decide whether DAO proposals help our cause.
- The team to spend their resources on things that enable the community to reach their goal(s).
- Setting up an effective governance framework in line with this goal.
Thus, I propose the following goal:
Wonderland maximises revenue on its treasury in order to share this revenue with its investors.
With the following initial strategies:
- Wonderland guarantees a minimum 7-day TWA marketcap to treasury ratio of 1:1 through buybacks.
- Wonderland guarantees a maximum 7-day TWA marketcap to treasury ratio of 1:2 through revenue sharing in claimable MIM.
Wonderlands governance is loosely defined, there are no rules for which decisions can be implemented by the team and which need to be voted on. A non exhaustive list of past decisions:
|DAO Proposals||Management/team decisions|
|Landing page design||Remove bonds|
|Lambo calculator||Provide buybacks|
|Invest in liquid staking||Revenue sharing|
|Invest in Xava||Invest in Betswap|
|Sifu as treasury manager (2x)||Mandate of treasury manager|
It’s clear that (I) decisions with most impact are made outside of the DAO, and (II) there is no consistency in which type of decisions are/aren’t put to the DAO. Most important, many key-choices that are made without consulting the DAO are extremely vague, and taken hastily as response to a crisis.
- Remove bonds — Suddenly it was announced bonds were no longer available, overnight it was deemed that the entire structure of Wonderland was no longer viable. So instead, treasury sales were implemented as the way forward. Which have been (afaik quietly) phased out as well.
- Provide buybacks — Sifu said there would be buybacks, so there were buybacks. Sometimes they happened after dipping a little bit below backing, sometimes after dipping a lot below backing, at the time of writing we’re 53% below backing.
- Revenue sharing — It was announced that there will be revenue sharing, how will revenue be shared, when, how much?
Currently, voting in the DAO is far from exerting control over Wonderland, it gets you a participation trophy. Crucial decisions must be put to a vote. At the other hand, we cannot put every little decision up to a vote. Some decisions must be made in confidentiality, or solely be experts. Thus, I propose the following:
|Decisions that must be made by the DAO||Decisions that may be made without the DAO|
|Definition or amendments of Wonderland’s goal(s), e.g. Wonderland seeks to maximise treasury revenue.||Developing tools that enable Wonderland to reach these goals, e.g. developing an investment dashboard|
|Approval of strategies used to obtain wonderland’s goal(s), e.g. Wonderland participates in pre-sales in the crypto betting space.||Executing strategies, e.g. Wonderland participates in the Betswap presale (provided that the general strategy was approved by the DAO)|
|High level treasury allocation, e.g. 15% of the treasury is allocated to pre-sales.||Low level treasury allocations, e.g. 20% of the allocation to pre-sales is invested in Betswap.|
|Structural changes, e.g. no more TIME will be minted||Execution of structural changes, e.g. the minting of TIME will stop on 1 feb 2022 00:00|
|Governance changes, e.g. changes to the scope of decisions made by the DAO.||Operational decisions, e.g. change the ux/ui of the wonderland website|
Business and/or technical requirements of the implementation of the proposal
This proposal entails a lot, it will have to be split into multiple proposals for the DAO to vote on. However, at this stage it is more productive for us to discuss it as a whole.
Implementation requires at least:
- DAO vote on Wonderland’s goal
- DAO vote on each strategy
- A governance charter outlining the DAO’s mandate in more detail
- DAO vote on the governance charter
- Updating of the docs
The decions that the team have made for Wonderland have been well-intentioned and often good decisions. However, to make this truly a community project as they envision, the DAO must play a much more central role. Bringing 100.000’s of frogs together is no easy task. This makes it so important that we define a common goal, so that we can move as one instead of all jumping in different directions.
The specific suggestions in this proposal are meant as illustrations and should be refined separately.
- Set up formal governance
- Keep the chaos