JuankBell commented 3 years ago

8% Hatch Tribute

Simulated Hatch Outcomes

	#Total wxDai Collected (wxDai)	Total Supply held by Builders (%)	Impact Hour Rate (wxDai)	Backer's RageQuit (%)
Minimum Goal	$888,888	30.8	40.65	64
	$1,000,000	30.23	44.53	64.19
Target Goal	$2,888,888	23.04	88.88	71
	$3,000,000	22.72	90.65	71.1
	$5,000,000	18.2	114.33	75.26
	$7,000,000	15.18	128.75	78.03
Maximum Goal	$8,888,888	13.12	137.99	80

Hatch Strategy

The Hatch is where the community comes together to bootstrap this economy. The Hatch parameters determine many important aspects of the economy, such as the initial token distribution between Backers and Builders. Backers send in wxDai and are minted Hatch tokens. If the minimum goal is reached, tokens will also be minted for the Builders who have earned Impact Hours. The precise number of tokens will be determined by the parameters set below.

Min, Max and Target

At 2,888,888 wxDai, the target goal is something to shoot for but not at all unreasonable given the market conditions.
The minimum goal, 888,888 wxDai, is equal to the soft commitments we already have. We will reach it; we have full commitment to this Hatch.
The max, 8,888,888 wxDai, is paired with a medium Membership Ratio and aims to provide a lot of money to initialize the economy, but also if there is a lot of interest we can still have unsatisfied demand within our community for the Commons launch..
This proposal is built off of the number 8 for strategic communication purposes. Memes carry a lot of weight in the cryptospace, but still this is a serious proposal made with intention, and then tweaked slightly to make it fit for meme-ing.

Builders Token Supply and Impact Hour Rate

_{The Impact Hour Rate determines the Minting Rate for Builders, making 1 Impact Hour equivalent to sending the amount of wxDai to the Hatch determined by the chart above.}

The Impact Hour Rate curve was designed to create a strong incentive to reach the maximum goal of 8,888,888 wxDai while also ensuring the Builders are rewarded.
There is a range of 16% in Backers’ ragequit % and a change of 18% in the Total Supply held by Builders, this should be very motivating.
If the Backers show up and contribute over the Target Goal, then they will get 77-87% of the tokens; and they will get between 69-77% if the Target goal is not reached.
At the Minimum Goal, Builders get 40 wxDai/IH as to ensure they are rewarded for their work for the cultural build, and as the amount collected approaches the Target Goal it rises to 88.88 wxDai/IH, however after that the there is relatively slow growth and at the Maximum Goal it’s only 138 wxDai/IH.

Hatch Tribute and Ragequit %

_{Redeem-ability of the DAO's wxDai: Shows who has rights to the wxDai held by the DAO. All of the DAO's funds are collectively governed but some can be withdrawn if token holders Ragequit. This shows the results of the parameter choices at the 3 different goals.}

It has an 8% Hatch Tribute to ensure the Hatchers are value-aligned and agree to fund the future of this project even if they disagree with the direction that the collective takes and may want to ragequit later.
It does not go to the extreme however and still allows Hatchers to receive 64% of their funds at the Minimum Goal and 80% of their funds back at the maximum goal continuing the 8 meme.
The reasonable Backers' Ragequit % will strike a balance between the collective and the individual so that both can be held in check. Backers can still Ragequit, especially if the raise is successful, but if the collective decides to go in a certain direction, Ragequitting isn't so painless, so the individual will likely want to stay with the collective.

Membership Ratio

The membership ratio is set at 8 wxDai/CSTK, so a Trusted Seed member with the minimum CSTK Score of 1125 CSTK can send up to 9000 wxDai to the Hatch.

Hatch Period

Trusted Seed members can send wxDai to the Hatch for 28 days which seems long enough to achieve our goals and not so long that it drags on.

Hatch Minting Rate

Backers will need to send in 1 wxDai to mint 8 TECH.
This will create a total supply of about 30,000,000 tokens at the Target Goal.

Hatch Parameters Settings

Parameter	Value
Target Goal (wxDai)	2,888,888
Minimum Goal (wxDai)	888,888
Maximum Goal (wxDai)	8,888,888
Impact Hour Rate at Target Goal (wxDai/IH)	88.88
Impact Hour Rate at Infinity (wxDai/IH)	188
Hatch Membership Ratio (wxDai/CSTK)	8
Hatch Period (days)	28
Hatch Minting rate (TECH/wxDai)	8
Hatch Tribute (%)	8

DAO Strategy

We do not anticipate many proposals to vote on using these parameters. They are not intended to serve as the long term governance strategy for this community. There will be the vote for the Commons Upgrade, and maybe other proposals such as an urgent technical patch or a proposal for funding for very specific cases, such as a trial run for a project.

Support and Quorum

88% support required ensures that maximum 12% of the engaged token holders can vote no on the Commons Upgrade proposal and it will still pass. We don’t have to fear that it is too high because we are not in an adversarial environment with a reasonable Membership Ratio of 8.
The 8% quorum is high for some DAOs but not unachievable considering our closed Hatch. It strikes a balance between potentially having to make some small votes expected votes while still requiring a large voter base for big vote to do the Commons upgrade.

_{Proposal Acceptance Criteria: Shows the range of possibilities for DAO vote outcomes and whether they succeed or not given the Support Required & Minimum Quorum chosen.}

Vote Duration and Ragequit Delay

The Vote duration is set to 4 days to allow for sufficient time for all Hatch token holders to participate.
The Ragequit Delay is set to 48 hours to allow for contemplation, and hopefully even open discussion, before the option expires.
Given these parameters, the time it will take between a proposal being submitted and executed, if passed, is 6 days.

Tollgate and Vote Proposal Buffer

It will cost 1888 wxDai to make a proposal and there will be a minimum of 8 hours between proposals so we can have at most 1095 votes per year and the cost to spam the DAO is 236 wxDai/h.
The tollgate fee is high enough to dissuade too much spam, but if the idea of trolling/advertising takes hold, this unique way of collecting funds is not out of the question.