Sample Case

DAO Lifespan

Since Alice and Bob are probably bored apes retired on their yachts by this time, we use Charlie and David for alias.

Charlie creates a DAO with a cool name and background storyline, striking manifesto and fitting picture drafts, with a 3% DAO Creator Reward and 5% royalty rate (Creator Fee). This DAO has a 3 months Mint Window and 10,000 pcs collection cap.

David as an artist creates a Canvas and starts uploading his works from Day2, along with other artist’s different canvas.

For the first DRB, no work gets minted since it’s too new and artists like David had not had the time to upload. So no Canvas Creator got their DAO Token as reward, nor did the DAO Creator. This became an empty block.

For the second DRB, David got 5 of his works minted with an average price 0.2 ethers, he will receive 0.7 ethers immediately in his wallet, and 0.3 ether worth of DAO Token. Other artists got 6 works minted. For this DRB, still, 3% of 1/90 of the total DAO Token went to Charlie, and the rest 97% went to David and other artists based on their total mint sale volume.

90 Days have passed, the mint is over. Charlie has received 3% of all DAO Token in his wallet, while other Canvas Creators shared the remaining DAO Token. David has got a good amount of his works minted by minters, they love him, amounting to a 20 ethers sale. This means David received 14 ethers in wallet already, and 6 ethers worth of DAO Token.

At this point, the DAO Asset Pool is of 100% DAO Tokens in user hands, and 100 ethers from mint sale. Should Charlie swap his 3% DAO Token, he will receive 3 ethers as reward back. Should David swap his 6% DAO Token, he will receive 6 ethers back.

Another 365 days have passed, this DAO’s NFT collection is hot on secondary market, the total trading volume is 100,000 ethers! A 5% creator fee means a revenue of 5,000 ethers went into the DAO Asset Pool.

Diamond hands Charlie and David haven’t sold any of their DAO Token, but some did. So now Charlie controls 10% of the circulating DAO Tokens, while David controls 20%. They will be able to swap their DAO Tokens for 500 and 1,000 ethers respectively.

From this over-simplified example of the DAO lifespan, the untold story is obviously the minters who got into early and proactively shaped this collection into what it finally is. Being able to influence the birth of a whole collection provides never-before-seen opportunity for collectors under optimised risk-return structure, they will benefit eventually with the most gains.

But for that 365 days period when the collection received a 100,000 ethers trading volume, a DAO Token holder and NFT owner collaboration is required at both high level and intricate details. Luckily all their interests are aligned in D4A’s incentive-compatible model.

Note that throughout the process, D4A fee policies applied.

Collaborative Writing

Other than your typical PFP NFT collection, one interesting example for a D4A DAO would be collaborative writing. Think of SCP Foundation, but with collector (minter)-regulated selection and writer (canvas creator) competition. Each Work can be a chapter or short story directly in the format of a picture, or link to an ipfs file with texts.

This can apply to writings other than loose POV style writing. For traditional linear narrative, minters can vote by minting the plot with high price to determine the storyline, others can refuse this by minting the conflicting plot like a hard fork. But ultimately the longest chain survives, so is the plot.