Introduction
This week we are porting the DAO suite to Avalanche, where we will establish our DAO tooling footprint on the Avalanche blockchain.
It is FactoryDAO practice to conduct incentivised tests of all our tools whenever we transition to a new chain. We're inviting you to take part in our incentivised testing to help ensure the dApps are fully functional and secure in advance of our roll out with Avalanche projects who wish to start, or make the transition to, being a DAO.
Throughout this week, you will have the opportunity to have a risk free play with four of the FactoryDAO tools: Launch, Yield, Bank and Mint. Risk free because all of these tools will be deployed on the Avalanche testnet in advance of their mainnet launch on 6th June 2022.
For taking part, you can earn a share of $5k in $FVT, the native token of the FactoryDAO subDAO finance.vote, which is responsible for bootstrapping the FactoryDAO community over the coming months.
The DAO Suite
Throughout the week you will follow the launch of a DAO token economy. The tools you will experience are as follows:
Launch is a tool for bootstrapping a token economy with the launch of a token. It is designed to be a fair launch system that uses an auction design called the “exponential token auction”. The goal is to find a fair price for a token at the genesis of the network. All of the raised funds go to bootstrapping the liquidity in a DEX.
The principle is as follows. Everyone will appraise a network / DAO at launch and make a decision of what they’re willing to pay for the token. Launch is designed to iterate through the prices (up, down, up, down, etc.) until we find an average weighted buying price that determines the listing price on a DEX.
To do this, tokens are sold in tranches of increasing price and supply. Each tranche sells tokens at a flat rate, providing zero slippage buy opportunities of the token. Whenever a tranche sells out, the price immediately jumps to a new tranche with double the price and supply until all tranches are sold. Prices are discovered as the whole tranche price decays whenever it remains unsold.
Launch is designed to be part of FactoryDAO’s fair launch system. A consensus derived price is discovered throughout the auction. In combination with secure vesting or the tokens in Bank and the liquidity incentives of Yield, we give DAOs and networks the best chance of a healthy token economy at the beginning of their life.
Yield is a liquidity mining system that allows DAOs to control the emission of their tokens to LPs over time. It is designed to generate a wide distribution of tokens to LPs, rather than them all being hoarded (and dumped) by whales.
It does this by using a cryptoeconomic mechanism called harberger taxes. It works by breaking the emission reward pool into slots, which we call protocol properties. You hold a protocol property by depositing a stake of LP tokens and declaring a burn rate (the amount of LP tokens you are willing to pay in tax to the protocol). Tokens are emitted in a pulse that is set by the DAO e.g. 2 weeks.
The dynamic of this game is that you can evict an existing person from their protocol property and claim it, by depositing more LP tokens and paying a higher tax (burn rate). The result is a gamified yield farming experience providing the opportunity for pro players to win against the whales.
Bank is a wealth distribution tool for DAOs. It has three main mechanisms: airdrop, linear vesting and variable vesting.
Airdrop is as you imagine–you pick an allocation of tokens all in one go.
Linear vesting creates a stream of tokens that are issued over a period of time, to-the-token-to-the-second.
Variable vesting means you set up your own stream of tokens and the longer the vesting period you pick, the more tokens you get.
Bank is a tool that can be used to issue tokens to potentially millions of people. There’s no limit to how big DAOs can scale.
Mint is FactoryDAO’s minting suite purpose built for launching NFT DAOs. It is designed to gate minting access via merkle tree cryptography. This means that DAO membership can be curated intentionally, without whales hoarding tokens at the contract level during a mint.
Additionally, Mint has a price discovery mechanism called the continuous auction that allows NFTs to be issued one at a time with a dynamic price. This allows DAOs to issue memberships at the price determined by a market rate, rather than a low flat price that can lead to gas races.
The best DAOs will have the best token distributions, and Mint is the best mechanism on the market for ensuring that NFTs end up in the hands of the most people possible.
The Launch Sequence
As our first port of call we will be launching our fungible token package on Avalanche testnet as a cross community incentivised test, the sequence will go as follows:
24th May
Launch
26th May
Yield
30th May
Bank
Prize pool:
FactoryDAO will be rewarding testers for their participation in the test. A pool of $5000 in FVT (on Ethereum) will be distributed between the testers based on the amount of tokens they accumulate during the test launch. $2500 will be shared between the top 10 testers and the remaining $2500 will be split between the rest.
If you’d like to take part in the FactoryDAO Incentivised testing campaign for the dApps launching on AVAX, then join the FactoryDAO discord to get a tester role.
Shortly, we will also publish the guide via