The Tracer DAO is, and always will be, decentralised.
With Perpetual Swaps and Perpetual Pools all planned to launch in the coming months, the DAO is in a position where it needs to efficiently onboard more high quality developers and advisors, and otherwise allocate TCR resources to effectively grow the Tracer ecosystem. It’s increasingly clear that there needs to be some level of expedited and coordinated decision making such that the execution of the Tracer project remains efficient, responsive and competitive within the market, while staying true to its vision.
An initiative that some established DAOs have implemented successfully is a “development fund” (for example, Yearn, Sushi and Reef). The problem usually solved by a development fund is the ability for large (in terms of membership and activities) and decentralised DAOs to efficiently allocate tokens to growth opportunities and operational expenditure. In these cases, development funds have been particularly successful for onboarding talent (Funding Yearn’s Future proposal & Yearn incentives proposal). One problem aimed to be solved by Yearn’s development fund was ensuring that it would have enough YFI and protocol fees to appropriately compensate talent. Tracer DAO is now in a position where it can get development resourcing right from the start.
As per the previous EOI, this proposal if successful, will allocate a portion of the Tracer DAO treasury towards commencing a 'Growth Fund’.
In order for a growth fund to be successful, a line in the sand needs to be drawn between:
- Those decisions that fall within the remit of the growth fund; and
- Those decisions that do not fall within the remit of the growth fund and; therefore, require a formal DAO Proposal and voting process.
As discussed in this Discourse post, Tracer DAO’s Proposal and vote period is currently 4-9 days. As the Tracer DAO continues to grow, in both membership and activities, it will become increasingly important for the DAO to do certain things without a 4-9 day delay.
It is important to acknowledge that, in a decentralised system such as Tracer DAO, the need to “do certain things” more quickly needs to be carefully balanced against Tracer DAO’s need to remain completely transparent to its stakeholders, and responsive to the demands of those stakeholders.
The following parties offer their services to the DAO in order to create and manage the Growth Fund, via a 4/7 multisig:
|Growth Fund Manager||ETH address|
|1. Raymond (Co-founder) of Mycelium||raymogg.eth|
|2. Ash (Co-founder) of Mycelium||0x7F12f21602fF600c9871fc46E298B8c07ff1B4b6|
|3. Pat (Co-founder) of Mycelium||0x9C58Bdf481Ab88CBfc9FFBb10aAd74bef78c3390|
|4. Michael and Vance (Founders) of Framework Ventures||0x65DCD62932fEf5af25AdA91F0F24658e94e259c5|
|5. Richard (CEO) and Aaron (Research Associate) of DACM||0xf8ccf1f5381956f4152B5570627C49D42eABB60e|
|6. Balder Bomans (Managing Partner) & Mathijs van Esch (Investment Manager) of Maven11||0xF66d7aB001B06b44B473E23d70eaC1E47B19e453|
|7. Chris Berg (Co-founder) of RMIT Blockchain Innovation Hub||0x219BaD06180F4024A06C372d754E882D175Df098|
Collectively, these parties will be referred to as the Growth Fund Managers or Managers.
The Tracer Growth Fund intends to incentivise efforts towards the the short-term and long-term development of Tracer DAO and Tracer. Growth Fund Managers will manage all further Service Provider proposals for development. This includes work that is streamlined through working ‘clans’.
To incentivise efforts towards the short-term development of Tracer DAO and Tracer, the Growth Fund may also be used to fund grants for contributions through a future ‘Grants Program’. The Growth Fund will also be used to fund community initiatives including events, art/design competitions and ambassador programs.
Service Providers may still request to provide services to Tracer DAO via proposal on Discourse. A new category of proposals will be made for requests to be lodged (Growth Fund proposals). The Managers will decide on accepting/declining these proposals. If a proposal is incorrectly categorised as a Growth Fund proposal, the Managers will refer the proposal to a different category e.g. normal proposal to the DAO.
Proposals that fall outside of the remit of the Growth Fund include:
- Changes to financial contracts and factory;
- DAO contract changes;
- DAO fund transfers;
- Chainlink price feeds (if there are no funds in the DAO, the Growth Fund may be used to fund as an operational expenditure);
- Future rewards (liquidity mining and airdrops);
- Public distribution events (Auctions, LBPs etc.);
- New Governors and Alpha Testers;
- Growth Fund Manager replacement; and
- Termination of Growth Fund vesting schedule.
The Managers will not receive any remuneration for the provision of these services.
The following tokens will be transferred to a multi-sig controlled by the Managers:
- 280,000,000 TCR Tokens (28% of TCR total supply) vested across the proposed distribution:
a. 80,000,000 TCR Tokens (8% of TCR total supply) vested linearly across year 1 (year 1 commencing as soon as Growth Fund is implemented); and
b. 200,000,000 TCR Tokens (20% of TCR total supply) vested linearly across years 2-10.
If this EOI succeeds, the Growth Fund Managers will commit to provide the following deliverables:
- A monthly update, via Discourse, including all activities conducted by the Managers; and
- Ensuring that the fund is effectively spent.
At this time, it is expected that the Growth Fund will be used to further the following initiatives:
- 80,000,000 TCR (8%) new Service Providers and contractors and employees of existing Service Providers;
- 80,000,000 TCR (8%) operational expenditure;
- 60,000,000 TCR (6%) cash reserves;
- 30,000,000 TCR (3%) advisors; and
- 30,000,000 TCR (3%) short-term development.
This proposal envisages that the remit of the Managers will be decisions involving growth opportunities and operational expenditure related to the the short-term and long-term development of Tracer DAO and Tracer. Each of the above initiatives are detailed below:
- Engaging contractors and new team members of Service Providers, to perform certain services on behalf of the Tracer DAO. For example, developers and auditors;
- Engaging professional services to support the operational and strategic decision-making of the DAO. For examples, lawyers, accountants marketing professionals etc;
- Cash reserves to cater for situations where the Growth Fund needs to exchange TCR for non-TCR tokens (particularly USD) to support the aforementioned activities of the Managers. For example, unforeseen expenses and DAO M&As;
- Engaging advisors to support operational and strategic decision making of the DAO;
- Engaging short-term contributors via proposal or grant (can be retroactively reimbursed) and funding events and programs.
Innovative solution ideas were raised within the ‘Tracer Drop’ call with RMIT Tracer Drop Episode #04: Development Funds. These ideas will be further explored using the Growth Fund and implemented where deemed suitable. Ideas included:
- Granting funds (TCR tokens) to ‘philanthropists’ to execute solutions for certain problems;
- This effectively combines a typical ‘Grant’ model with the long-term incentive structure of venture finance; and
- These ‘philanthropists’ in time will receive reputation for their work and will become trusted to deliver future work.
If the Managers is engaged to provide the Deliverables, it will:
- Not use tokens held in the Growth Fund to vote on Tracer DAO Proposals.
- The Managers acknowledge that, if engaged, its engagement can be varied by future Proposals. For the avoidance of doubt, the engagement of certain members of the Managers can also be varied by future Proposals.
- The Managers expects that any engagement will be terminated if they fail to deliver in accordance with the deliverables specified above. If the engagement of the Managers is terminated, all remaining tokens in the Growth Fund will be returned to Tracer DAO’s treasury.
In the context of the Tracer Project, conflicts of interest include:
- Existing Service Providers who are Related Parties; and
- Existing (vested and unvested) holdings of TCR tokens.
The Managers wish to declare the following conflicts of interest:
- Raymond is a Co-founder of Mycelium, an existing Tracer DAO member (Service Provider);
- Ash is also a Co-founder of Mycelium;
- Pat is also a Co-founder of Mycelium;
- Michael and Vance are Founders of Framework Ventures, an existing Tracer DAO member (Strategic Partner);
- Richard (CEO) and Aaron (Research Associate) of DACM, an existing Tracer DAO member (Strategic Partner);
- Balder (Managing Partner) and Mathijs (Investment Manager) of Maven11, an existing Tracer DAO member (Strategic Partner); and
- Chris (Co-founder) of RMIT Blockchain Innovation Hub, an existing Tracer DAO member (Academic Advisor).
Unless otherwise defined in this offer, all terms beginning with a capital letter which are defined in the Participation Agreement have the same meaning unless the context otherwise requires.
If this offer is accepted as a Proposal under the Participation Agreement, the Managers may more formally document aspects of that Proposal.
Copyright and related rights are waived pursuant to CC0.
In order for this Proposal to take effect, it must be pushed to Snapshot by a current DAO member and then be successfully voted on.
We encourage the discussion of this Proposal in the comments below.