Proposed NFT Product to Enable DAO Participation

Currently the MNDE locking model which produces an NFT which you can add to and represents your position locked in Tribeca.

This is similar to the sunSBR model that was discussed in discord where you pool SBR under one governance aggregate (Sunny).

The SBR Model = (1 * User * X Tokens) * Y Users

The MNDE Model = (1 * User + 1 NFT(1 User * X Tokens) * Y Users

The sunSBR Model = ((1 * User * X Tokens) * Y Users) + (1 * sunSBR * Z Tokens)

The new MNDE Model = (1 * User + 1 * NFT(1 * User * X Tokens) * Y Users + (A DAOs + B NFTs ( 1 * DAO * X Tokens) * C DAOs

This new proposed model takes the benefits that SunSBR provided aggregating governance at the L1 level but instead of doing it at the L1 we add a new L2 which are DAOs. If we aggregate community governance at the DAO level DAOs can get a MNDE NFT locked in their treasury then fractionalize their NFT (tools Frakt already has built) into fungible tokens. These tokens represent the weight of the voting of the DAO’s MNDE vote.

What this allows is a DAO to initiate a position in MNDE via a community funding event. Lets say they want to buy 100,000 MNDE at $50,000 and lock it in an NFT. The DAO has $30,000 and two other users contribute $10,000 each. They then fractionalize the NFT into 1000 daoMNDE tokens which the treasury gets 600 daoMNDE and the other users have 200 daoMNDE each. 1 daoMNDE is worth 100 locked MNDE and can vote via DAO level gauges to vote. This now gives the DAO a asset in the treasury to use, gain rev share from and can use to incentivize activity or to trade other DAOs with.

But lets take it one step further lets say the DAO (monkeDAO in this case) initiates a fundraising event ( for shits and giggles lets say an IRL party) and charge a cover of $50 to event which is a profit of $10 net. Lets say it was a success and 250 people join and you get $5,000 profit net taxes etc. That $5,000 is used to buy more MNDE and is able to buy 100,000 more MNDE but no new daoMNDE tokens are issues leaving the supply at 1,000. This means now each daoMNDE token is worth 110 locked MNDE or 10% increase in locked MNDE.

Basically what this enables is the ability to turn an individual DAO’s weight in MNDE into it’s own currency/economy within the DAO. Because daoMNDE holders are incentivized to grow the pool of MNDE under the DAO’s control you create an incentive system for DAO holders to participate. As well by using daoMNDE to as compensation you can nudge your community into learning more about the protocol and the governance behind it.

This should give a rough framework to turn mDAO into a decentralized governance system can scale sufficiently with the protocol and increases security by distributing the weight of voting further.