Detailed Plan
<u>The DAO will have 3 purposes</u>
- Support Small & Sustainable Stake Pools
- Encourage Decentralisation Of The Network
- Make Staking Simple For New Users
Supporting small pools, and even seeding new ones is really important to help build a strong and stable network and as it stands single pools only control 20% of the total stake!
The DAO will enable SPOs to sign up and receive delegation distributed by the DAO to enable a 'rising tide' for single and sustainable pools.
ADA Holders can delegate to the DAO as a 'set and forget' delegation method, and the DAO will do the work of distributing all of the wallets of users to balance delegation across all of the stake pools.
This will enable the average user to support decentralisation without having to research pools or understand much about the decentralisation issues we currently face as an ecosystem.
It will also enable Stake pools to gain support without having to rely solely on marketing their pools or building a following - which, from my experience, a lot of particularly competent SPOs struggle with.
<u>How Will The DAO Work?</u>
The DAO will have its own governance token, which will be distributed on top on regular ADA awards, to users and SPOs as a means of governing/voting for changes to the DAO,
The DAO will accept applications from SPOs to join the Pools and will select which of the brackets they operate under (eco / bare metal etc.)
The DAO will collect all wallet addresses and balance the total portfolio of users to be evenly distributed between stake pools - smaller wallets will go to more saturated pools and bigger wallets will help make a bigger impact on smaller pools.
Users will have the option to specify the kinds of pools they wish to support, or take part in a general delegation strategy that encompasses all single pools in the DAO
The DAO will be able to seed new pools by either taking a % of portfolio or having a seeding option in the DAO so users can choose to help seed new pools to get their first block.
This will provide up to 5 Epochs of delegation to give them the chance to prove their competence as an SPO, before adding them to the normal distribution and moving seed wallets to another new pool.
<u>Membership & Managing Pool Behaviour:</u>
The DAO will have rules on membership, it will require pools maintain a certain variable fee level to ensure that pools are not gaming this system, and it will also track pool activity to make sure SPOs are acting responsibly - maintaining and updating their pools.
If a pool is flagged by the DAO it will be contacted with 1 Epochs notice to change, if it does not get updated or adjusted it will be spend an Epoch in limbo and finally there has still been no action then it will be removed from the DAO and any wallets delegated will be removed and redelegated to another pool.
Some extreme behaviour will not be tolerated if it shows signs of a bad actor, the DAO reserves the right to remove pools without warning.
<u>The Team:</u>
Rhys - SPO, Sales & Marketing, Web Dev
Edi - SPO, Software Dev (20+ Years), Plutus Pioneer
Dhruv - SPO, Software & Web Dev
<u>Funding Distribution:</u>
15K Web Dev
15K Blockchain Dev
5K Marketing & Onboarding
Funds will pay for the initial 3 months of dev work for both backend and web UI.
Once the initial development period of 3 months has passed the DAO will look to the community and token launch to build a treasury for the DAO.
This treasury will be how the DAO will pay for further dev work as needed, and to implement IPs submitted by the community.
<u>Definition Of Success:</u>
3 Months - Launch beta on Testnet & MVP Web application for users on mainnet
6 Months - Complete public launch of DAO on Mainnet
12 Months - Fully functioning DAO managing a portfolio of over 1B ADA supporting 1000 stake pools
