DAO Token, DAO Collection & DRB
Last updated
Last updated
For every DAO created, D4A will automatically generate an ERC20 token designated for this DAO only. Naming format of this token will be D4A_T xxxx (x being numbers). This token will be rewarded, on each DAO Recycle Block (roughly 1 day), to DAO Creator at a fixed rate, and to Canvas Creator based on its performance.
DAO’s NFT collection will be minted throughout its set Mint Window by minters. Every mint raises the price for next mint, and 0 mint for that DRB means price cut in next DRB. When all canvas works get no mint and continue to drop the mint price to DAO Floor Price, the latter lowers too, until a new successful mint. The philosophy here is to discourage overheated hype and encourage checking on more quiet ones. But it always comes down to the minter’s own sound and rational economical judgement.
DRB, or DAO Recycle Block, happens every 7,158 Ethereum blocks time or roughly 1 day. Based on mint sale volume, every DRB determines which Canvas Creator gets how much DAO Token as reward. In D4A’s current iteration, Canvas Creators will get 70% of their mint sale in Ether, directly and immediately. 30% of the mint sale will be injected into the DAO Asset Pool and a corresponding amount of DAO Token will be rewarded to the Canvas Creator.
Apart from the mint sale ethers that went into the DAO Asset Pool, which amount will not diminish for DAO Token holders in future swaps, all future royalties will also be injected into the DAO Asset Pool. Effectively meaning that higher the market value and volume of the collection’s NFT trading, more valuable are the DAO Tokens. This is the factor that align all interests of a D4A DAO’s all players. Note that for the lack of a compulsory royalty payoff EIP standard, the royalty revenue will come with different delays based on different trading platform policies.
Instead of letting whales and sharks vote with their controlling share of the token supply with virtually no cost, D4A’s approach to the key function of a DAO, voting, is by trading activities. First and foremost will be the mint. Minting an NFT at a certain price signals the minter’s confidence and valuation for the work, the Canvas and the DAO. After the Mint Window, secondary market trading also signals different information. Therefore, it can be projected other utilisations of D4A much more than art work collaborated production. For example, future UI and parameter settings update of D4A can be decided in the form of NFT mint that leaves the community to vote based on confidence and judgement. To put the money where mouth is, is the true web3 style.
