The path toward Decentralisation
From Now to DAO with Colony
Document objective
Describe the evolution and the steps needed to move from a centralized Colony to a decentralized fully functional DAO Colony
Type of actors in our Ecosystem
Here is the list of the categories of participants that we will have at the beginning of the colony
Core team
Team
Contributors
Advisors
Investors
Service providers
Protocols
Here are the actors that we will have in the Colony at later stage
Community
Startup Founders
Teams
Here is a list of teams that we will have in our colony:
Root
Product Service
Marketing and growth
Partnerships
Tech
Venture Team
Community and Social
Reputation
Reputation can be awarded manually, but at a later stage, the way how someone builds up reputation is by getting paid for its contribution in the native token of the Colony. Reputation decay over time. This mechanism rewards people that remain active in our community. Reputation decreases by half every 3.5 months.
Matching teams and actors for skills-based reputation Token distribution strategy
The way we will bootstrap the reputation is first to ask people to map out their skills accordingly to their perceived expertise. It is not a perfect method, but considering that we know all the first participants at the beginning of the DAO, it will be pretty straightforward to identify imprecise data reported.
All the participants will be asked to fill the following table:
In this first phase, we are planning to allocate a max of 22% of our total tokens supply to operations, teams, partnerships, etc.
We will distribute 20% of the personal allocation to every founding DAO member first. Afterward, we will provide 10% more avery 3 months. It means that in order to distributinh the tokens to our DAO founders it will take around 24 months.
Token Challenge
It is not possible to change the token in a colony:
If you start without a token, you can’t add it
If you start with a token, you can’t change it
On the other hand, we don’t want to have our token public now.
The solution that we have implemented
We will mint a max of 22% of our tokens to start the operations in the colony. The tokens can be swapped at a later stage for our final token at a 1:1 ratio.
We will make sure that the swap will be done according to two parameters:
The token held by that address
The address should be whitelisted
It will not be possible to send our temporary tokens outside the Colony.
Token swap
The token that will be used inside the colony NEST is not going to be our final token (named HYPEN), but just a representation of it used at first to start to distribute governance.
The final token will be distributed according to the cliff and vesting scheduled agreed with the different actors in our collective.
It is necessary to be considered that exercising governance in the Colony implies gaining or losing tokens. E.g.
You lose tokens when you stake a motion that will not pass and vice-versa.
You gain tokens if an objection you have staked pass and vice-versa
You gain tokens for voting
This token economy prevents malicious behavior and incentivizes collaboration, for this reason, should be preserved in our governance.
It has to be considered that those gains/loses will be reflected in the future allocation of the official token (HYPEN).
E.g. Bob has an allocation of HYPEN token of 1M token that will be distributed with 12 months cliff from the TGE and 3 years linear vesting. However, Bob immediately receives NEST tokens to start exercising governance inside the Colony. After a few months, Bob participating in the colony has a total of 1,000,126 tokens. In other words, Bob got 126 tokens voting or staking motions/objections that passed. After the token Generation Event and considering his vesting schedule, Bob will receive 1,000,126 HYPEN. This would have applied also if Bob would have lost tokens.
Although we will have temporary tokens (e.g. NEST) the consequences of the usage of this token in the Colony will have a repercussion on the final token (HYPEN) allocation, on 1:1 ratio.
The generation of the temporary tokens NEST is different from our official TGE. The cliff and vesting schedule will be calculated according to our official TGE.
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