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LUNARDAO WHITEPAPER
THIS DOCUMENT IS OF A DYNAMIC NATURE, IT CHANGES ACCORDING TO THE LUNARDAO DEVELOPMENT. FOLLOW THE COMMUNITY CHANNELS TO SHARE YOUR FEEDBACK AND PROPOSALS FOR IMPROVEMENT!
Disclaimer
LUNARDAO IS A DECENTRALIZED ORGANIZATION, NOT BASED IN ANY JURISDICTION, NOT REPRESENTED BY ANY LEGAL ENTITY. IT IS A FULLY EXPERIMENTAL PROJECT. EVERYONE SHALL JUDGE BASED ON THEIR OWN RISK ASSESSMENT.
LUNARDAO STEWARDS DO NOT PROMISE TO UPDATE THIS DOCUMENT IN REAL TIME BASED ON SUBSEQUENT CHANGES.
Abstract
LunarDAO is an investment fund based on lunarpunk philosophy. By allocating funds in privacy projects & anonymity tooling we aim to expand freedom and ensure sovereignty. Squad wealth leverages collective strength and capture value in the ecosystem by building a portfolio of privacy assets. Anyone can exit at any time. Members are anonymous hence can participate in building this vision without fear of frozen funds, legal implications or any kind of repression. We aim to move to a full anon setup and develop infrastructure for a parallel economy outside of control and centralization.
LunarDAO's supports research on privacy technologies and creates a space for education. Our wiki is a space where people can acquire knowledge and master skills while developing a philosophical frame to generate the future path of lunarpunk ecosystem.
LunarDAO squad holds online events, publish blogposts and run community spaces.
Preface
The moon symbolizes many things, among those transformation and life, strength and power. Life is a continuous transformation. Life that is stagnant will cease to exist. LunarDAO is one part of the expanding forest against surveillance society. It was created out of necessity, but lunarpunks existed long before this DAO. The regulatory changes incentivize us to organize our defenses with more persistence. We constituted LunarDAO, because we believe in community, decentralization, individual responsibility and contribution to a common mission. LunarDAO is a community directed by Lunar Squad. It is a practical application of lunarpunk narrative.
Decades ago, cypherpunks foresaw the rise of censorship and surveillance. They understood that cryptography and economic sovereignty are necessary to ensure freedom. Bitcoin created an economy outside of financial hegemony and made it possible for people to regain agency. Over the years, the voices upholding the cypherpunk mission have become fewer and quieter, drowned out by a flood of easy money. The KYC regulated crypto diverged from that foundation. The advocates of crypto's liberatory mission lack unity as well as strategy.
LunarDAO provides such a strategy.
The more regulation is imposed on people the bigger is the thirst for anonymity and privacy. The development of anonymity and privacy results in stronger regulation. This loop is inevitable. Instead of closing our eyes to this reality, we choose to expand the forest and build a sanctuary where society can redefine itself, self-administrate and regain its economic, political and moral agency.
Read LunarDAO full manifesto.
Mission
LunarDAO mission is the manifestation of lunarpunk vision which enables the forest to expand. In practice LunarDAO:
- Invest in privacy and anonymity tech and infrastructure.
- Research and share information on privacy projects.
- Support education initiatives aligning with LunarDAO aims.
Investment Thesis
LunarDAO is an INVESTMENT FUND INTO PRIVACY PROJECTS & ANONYMITY TOOLING, a squad wealth based DAO spreading Lunarpunk narrative, philosophy and building infrastructure.
Problem
Anonymity and privacy oriented developers will face an increasing difficulty in finding support among traditional VC's and investment funds, because of regulatory measures. This will lead into a dynamic where the developing teams will be forced to sell their work underpriced to counterparties who don't share the same vision. This scenario portrays privacy as a taboo, developers are under stress and value is extracted from the ecosystem.
We don't accept the future to be so grim. The prospect of privacy is ultimately bullish. LunarDAO offers a solution.
Solution
We form a decentralized squad of sovereign individuals and lunarpunks, to allocate resources together and assemble squad wealth. The DAO leverages collective power and becomes an investor. The community discusses which tools are needed to empower the ecosystem, the research committee looks for the solutions, and lists them in the Investment Portal. The Squad members vote on the proposals and invest in the chosen projects.
Gains
- The privacy projects will get support from a decentralized, anonymous organization, aligned with their mission.
- The teams will be provided with the needed resources to develop, grow and deliver.
- LunarDAO Squad is a privacy investor building a treasury (portfolio) of accumulated privacy assets.
- The value is conserved in the ecosystem, both parties profit from the upcoming lunarpunk cycle.
- While leveraging collective power, every individual is protected against majority rule and can exit the DAO any time with 100% of their shares (without any fee).
For the current list of primitives and projects discussed as possible investments, visit our Investment portal.
We believe that the loop of tightening regulations and growing demand for privacy and anonymity is inevitable, these events will happen with or without us. We can strenghten the ecosystem, capture the value and grow squad wealth, or be left out in the desert with regressive regFi.
Knowledge as a Value
The privacy investment sphere is LunarDAO's main focus. At the same time we see education as an essential value to fulfill our mission.
The DAO creates possibilities for technical literacy by building research and wiki and supporting educational structures such as the partnering project Adalan Academy, where people can acquire knowledge and master skills in programming and economy while developing a philosophical frame to generate the future path of lunarpunk ecosystem. Such education empowers the community and shape thinkers, who bring value back to the ecosystem. Education is a long-term investment.
Governance
LunarDAO keeps developing new solutions to optimize for the best results and further members anonymity. The squad's chosen fund management model is syndicate, new sub-daos will be summoned with new fundraising events. While governance logic is still valid, the exact implementation may change. Read LunarDAO Architecture chapter to understand current governance and investment design.
Access to resources is fundamental for everyone. Crypto provides the means for people to have power over their own resources. The concept of a DAO has been battle tested in all kinds of forms. LunarDAO aims to learn from the experiences of those before us. There is no single perfect format and stagnation leads to a dead end. A main limitation when pushing for changes is an inability to imagine the world we want to build. With curiosity, the frame of DAOs offers vast possibilities for progress and expansion. Anyone can join LunarDAO. It is a space where lunarpunks can come together, share ideas and knowledge, initiate and support projects, and build liberating tech in pursuit of autonomy.
Community
A Community member is anyone who sees themselves as a part of the DAO mission; participates on the forum, darkirc, telegram and contributes to the development of the DAO through work or by sharing experiences, resources and proposals. No token is required to be a part of the community. Community members have no voting power but can share there opinions in the community channels and meetings.
Squad
A LunarDAO Squad member is every community member who owns shares of the DAO. During fundraising event, anyone who joins become a squad member. Governance tokens represent the member's share of the treasury as well as voting power. LunarDAO Squad members can exit the DAO with their funds at any time through ragequit.
Voting
LIP (LunarDAO Improvement Proposal) is the basis of governance in LunarDAO. Anyone can share and discuss proposals on the forum. Only Squad members can submit and vote on proposals. In LIP-0001 there is a template and further information on the expected content and process.
The sponsorship threshold is a minimum number of DAO shares which is required to submit a proposal. This deposit is returned when the proposal have been accepted or rejected. Anyone else can submit a proposal by acquiring a sponsorship by offering a fee which is non refundable and will be sent to the DAO treasury. The size of sponsorship threshold and offering is dynamic as it's a subject to the (sub)DAO governance.
Proposals should be shared a week before the vote on the forum. Time period for voting and minimum votes for approval are subject to governance decision. Voting is followed by a Grace period, during which squad members can ragequit should they disagree with the result of the voting.
Delegation
Delegation is included in Moloch V3. Any Squad member can delegate their voting rights to others, whether they are DAO members or not. By doing this, the member no longer have governance rights, and cannot sponsor proposals. The delegatee, if previously not a squad member, will become one and just like before their shares (governance token) will represent a share of the treasury as well as voting power.
Minimum retention
To prevent dilution of assets, minimum retention is in place. That means that if X% of shares is ragequitted a proposal during the grace period, the proposal will fail automatically as the original circumstances when the proposal was submitted, including access to funds, has changed dramatically. The squad can re-submit the proposal if they want to vote on it with the new circumstance. Minimum retention size is a subject to governance
RageQuit
Ragequit enables squad members to exit with their funds, without penalty, if they do not agree with the result of a vote, or if they no longer want to be a part of the DAO. The designated time period in which members can ragequit after voting is called Grace period. Ragequit is possible no matter what the squad member voted on the proposal. This is an important function against malicious proposals and also a minority protection. With this function, all members are incentivized to bring forward proposals which are aligned with the community sentiment.
Grace Period
The Grace period, is the time period during which members can Ragequit if they disagree with the result of a vote. At the end of the Grace Period, the proposal which has been voted on is processed by calling the processProposal function. It is the responsibility of Stewards to call this function.
GuildKick
Guildkick allows the squad to remove a malicious member by forcing the them to ragequit. This is done by submitting a proposal which is then voted on. If this proposal is accepted, 100% of the shares owned by the squad member who is guildkicked is converted to loot and the member lose their voting power, while keeping their funds.
Read LunarDAO Architecture chapter to understand current design.
Committees
There is an outstanding call out to form committees. Committees in LunarDAO are meant to be groups that facilitate and coordinate the works of the DAO according to their specific focus. The committees autonomously decide who can join. In every committee there is one person responsible for communication, who can be contacted if a member wants to get engaged. The committees decide their own work flow and formulate expectations, objectives and key results within the committee.
All committees give information about the ongoing works in the community meetings and are receptive to input and criticisms. Every three months each committee will submit a report to the community about the ongoing works.
The committees chosen during the intial formation of the DAO were Stewards (the core team), Sentinels (multi-sig of the initial DAO), Media, Research and Education. Currently the only active one is Stewards and Sentinels, however the LunarDAOII architecture is not based on multisig and therefore it's up for discussion if the Sentinels are needed and what exactly is their role.
Stewards
LunarDAO Stewards (LunarDAO core team) is a committee dedicated to support and guide the essential works of the DAO. Initially, at launch, they include founding members of the DAO. The number of Stewards should not be less than three and no more than ten. The LunarDAO Stewards responsibilities includes, but are not limited to:
- Operations
- Administration
- DAO development
- Community management
- Information: Making sure all other DAO members are aware of proposals and are notified in time to be able to participate in voting
- Implementation of community decisions
- Investment communication & coordination
- Partnerships & Networking
- Legal advice coordination
- Media & Presentation
Stewards have a separated 4/6 multisig for their operation. In the initial DAO fees of 0.25% from tribute and 0.5% per executed investment were sent to this wallet. Any other funding and budget has to be proposed via investment LIP and voted upon as any other proposal. Stewards' wallet: 0xab501a8eb58c9780eb04d683feb504fce391a2dd
How to become a Steward
To become a Steward any member can write an LIP and propose to join. This follows the same governance process as any other LIP, steps are shared in LIP-0001. The proposal can include interests, experiences as well as expected level of commitment within the DAO, ideas and suggestions which can support LunarDAO mission as well as initiatives and activity of the member within the community.
Sentinels
Sentinels is a committee which had a role of a treasury veto agent in the initial DAO. LunarDAOII doesn't have a multisig veto agent. The existence and function of Sentinels will be discussed after forming LunarDAOII.
Sentinel members
Builders and teams in our ecosystem of privacy oriented projects are often public, using known pseudonyms, and are recognized in crypto communities. In 'Why anon' we explained why anonymity and privacy are not only important for lunarpunk movement, but also the only choice for the Stewards (core team/ founders) of LunarDAO.
To build trust, and decentralize, the DAO is collborating with six Sentinels who are not core-members. People who committed to be LunarDAO sentinels are:
-
bZ; AssangeDAO.
-
Yves Edwards; FIAT LUX podcast host.
Governance process
- LIP (LunarDAO Improvement Proposal): A proposal is created using the template in LIP-0001.
- Forum discussions: A thread is created on the forum, where the LIP can be discussed. The proposal should be announced at least 7 days before voting.
- Voting: A proposal is submitted on-chain and the voting is opened for 72h.
- Grace Period: Follows voting for another 72h. Members can exit the DAO with their funds if they don't want to be affected by the decision.
- Execution: Proposals are submitted on chain, hence the changes will apply automatically with pushing the execution button. - If unrelated to treasury: Stewards update the documents.
The LunarDAO governance is not limited to LIPs or voting, decisions are also made in the community or committee meetings. Voting in LunarDAO is the practical implementation of the willpower of the community. The decision making process is not something technical and cannot be separated from our communication/interaction on the forum and on ircd. It is important to always seek discussion and encourage diversity in opinions within the community. This will aid our development in building a truly decentralized, anonymous and antifragile organization.
LunarDAOII Architecture
This entire chapter is focused on the current DAO - LUNARDAOII. LunarDAOII architecture is based on Moloch V3 design, deployed by DAOhaus jointly with sunsetting Firn Protocol team and customized to fit LunarDAO governance.
Note: Firn Protocol is discontinuing the frontend development and deposits are closed down, the team is committed to allow LunarDAOII participants to use Firn if they wish so for the raise. Withdrawals are open for everyone.
The design puts an emphasis on anonymity combined with permissionless entry for an antifragile Squad formation. Both are essential for a privacy oriented investment fund which aims to develop infrastructure for anti-surveilance technology and parallel economy.
Contracts
LunarDAOII smart contracts are yet to be published, the initial DAO contracts are in the archive.
On-chain vs Multi-sig
LunarDAOII is fully on-chain DAO with no trusted element inculded. All proposals are submitted, voted upon and (after grace period) executed on-chain.
Moloch v3
Based on the discussions with the allies & the community, the most feasible way for the LunarDAO architecture to meet its aim, was chose MolochDAO V3 primitive, designed by DAOhaus and customized entry through Firn to fit LunarDAO governance architecture. The Moloch V3 contracts have a full optionality on both the initial setup and throughout the DAO life as all parameters are in the hands of the DAO, which aligns with the democratic values of LunarDAO.
Anatomy of a Moloch V3 DAO in DAOhaus. Courtesy of DAOhaus
Terminology
For full description read Governance above.
- Community: Anyone engaging on the forum & chats. To be a member of the community does NOT grant voting/governance power.
- Squad: DAO members holding shares, voting power.
- Stewards: Anonymous core-team/founders of the DAO, securing operations (can be exchanged, archived, scaled up).
The DAO
Every point marked with * symbol is to be further evaluated and decided upon by the Squad formed by all participants of the raise launch.
LunarDAOII is on Arbitrum, you can join anonymously using Firn Protocol or directly connecting your wallet.
The inital LunarDAOII governance will have these parameters, with all of them being further open to governance.
PARAMETER | VALUE |
---|---|
Minimum tribute | 0.01 ETH |
Shares price | 0.1 ETH donated mints 1000 shares |
Voting period | 3 days |
Grace period (lockup/ragequit) | 3 days |
Offering (new proposal for non members) | 0.1 ETH |
Quorum | 10% |
Sponsor threshold | 1 share |
Min retention | 66% |
Fees | None |
Max cap | 500k (in Arb ETH) |
Raise length | 2 weeks or max cap |
Shares are not transferable until escrow is executed!
Setup
- LunarDAOII is launched on existing contracts and customized version of the UI by DAOhaus.
- Further upgrades and customization will be discussed in the community and voted upon by the Squad.*
Joining the DAO
- LunarDAOII launch is permissionless in the sense that anyone can join/invest.
- Squad is formed during period of the fundraising events.
- People can join later by submitting a proposal.
Shares - Governance Token
**The initial DAO governance token (share) had a tick VOX. 1 VOX is an equivalent to 1 share. We keep that naming convention for new (sub) DAOs and add number based on the DAO index. LunarDAOII Shares are represented by the symbol VOX2. **
- VOX2 is LunarDAOII governance token.
- Minimum of 1 VOX grants squad membership and voting power.
- VOX2 is not transferable until escrow is executed!
- Every 0.1 ETH of tribute to the treasury mints 10 VOX2 to the member.
- When a member ragequits their VOX2 is burned.
- VOX2 value in the treasury stays the same for remaining members.
- Ragequitting member gets 100% of their funds with no extra fee.
Loot
Loot represents members' value of shares in a non-voting form.
- 1 VOX2-loot monetary value = 1 VOX2 (as both are shares of the DAO treasury)
- Symbol VOX2-loot represents loot.*
- VOX2-loot does not grant voting power.
Token Value
- 1 VOX2 (or VOX2-loot) = NET TREASURY VALUE / TOTAL AMOUNT OF VOX (or VOX-loot)
- VOX2 and VOX2-loot monetary value is equal. They both represent 1 share of the DAO treasury.
- The assets in treasury or existing amount of shares changes according to:
- Investment proposals voted upon by LunarDAO Squad (the DAO members).
- Future fundraising events.
Fundraising Events
- An investment deal is expected to happen at least once before between each fundraising event.*
- If there are still unused ETH (or DAI) from the previous raise, the number of fundraising events or max cap of such event can be adjusted to this reality. *
- During this time anyone can become a Squad member by tributing ETH to the treasury.*
Fees and Operation Costs
- LunarDAOII has 4 Stewards (core-team members, founders) at the time of launch.
- Several externals are supporting with design, administration, legal questions, software development and translations.
- To fund operation and development an LIP is submitted and voted upon.
Token Value Calculation
LunarDAO Squad (the DAO membership) is defined by holding the governance token VOX2. VOX2 represents voting shares and VOX2-LOOT non-voting shares (Loots) of LunarDAO treasury. In other words the value of VOX2 and VOX2-LOOT is the same, but only VOX2 can be used for voting. In the following definition and calculation we only use the term Shares - in this case shares refers to both VOX2 and VOX2-LOOT. The combined value of VOX2 and VOX2-LOOT is derived from the net treasury value divided by a total sum of VOX2 and VOX2-LOOT.
Terminology & Formulas
TOTAL SHARES: Amount of VOX2 and VOX2-LOOT in existence.
TOTAL TREASURY: The net asset value in the treasury (in our example ETH).
SHARES PRICE: Amount of shares per ETH or amount of USD per share.
- If the treasury is ETH only; Price in shares per ETH.
= TOTAL SHARES / TOTAL TREASURY
- If multiple assets are in teasury; Price in USD per share.
= TOTAL TREASURY USD NET ASSET VALUE / TOTAL SHARES
ALLOCATED ASSET: # ETH (or any asset) to be allocated to a recipient through minting new shares.
NEW TOTAL SHARES: Amount of shares after minting new ones.
= TOTAL SHARES / 1 - (ALLOCATED ASSET / TOTAL TREASURY)
MINTED SHARES: Amount of shares to be minted to represent the value of ALLOCATED ASSET.
= NEW TOTAL SHARES - TOTAL SHARES
= TOTAL SHARES / 1 - (ALLOCATED ASSET / TOTAL TREASURY) - TOTAL SHARES
EQUITY DILUTION %: Decrease in existing shareholders' ownership percentage of the treasury as a result of minting new shares.
= ALLOCATED ASSET / TOTAL TREASURY * 100
Example
- Allocated asset = 5 ETH
- Total Treasury = 100 ETH
- Total shares = 10 000 VOX2
- Minted shares = 10 000 / 1 - ( 5 / 100 ) - 10 000 = 526.32
- New price (shares per ETH) =
= NEW TOTAL SHARES / TOTAL TREASURY
= 10 526.32/100 = 105.2632 - Equity dilution % = 5 / 100 * 100 = 5%
Example Conclusion
- Total allocated ETH: 5 ETH
- Total treasury: 100 ETH
- New total shares: 10526.32 (previously 10 000)
- New shares: 526.32
- New price: 105.2632 (# of shares per ETH. Previous price was 100)
- Equity dilution: 5%
Fund Management
LunarDAO makes investments in privacy projects through the governance process, which includes research, discussion, proposals and voting. The Squad allocates funds to selected teams while building a treasury of its investments. There are several ways how to approach treasury management and govern the funds. For easier understanding we summarized them under two main types: Portfolio (or Investment club) and Syndicate. These two approaches are explained with examples below.
After the genesis event (LunarDAO launch) the default approach to fund management is PORTFOLIO. However the Squad decided to start a sunset the initial DAO and start LunarDAOII. In the current scenario the different subDAOs are created according to needs and manage their own treasuries and their management is based on the SYNDICATE model.
The following table explains these two concepts.
Table 1: Fundamental approaches: Portfolio & Syndicate
FUND MANAGEMENT – Design Essentials | Portfolio - One mega DAO for all investments | Syndicate - A new DAO for each investment |
---|---|---|
Description: | All the assets in the treasury are pooled together as a common portfolio. Each share despite the time of purchase represents the same value (1 VOX = treasury asset net value / # VOX ). The Squad members can start different sub-DAOs or specific guilds just like in the “Syndicate” option. | Each fundraising cycle (or even each individual deal) is a separated entity in a separated subDAO. The investments or raising cycles can be separated into sub-DAOs or guilds or alternatively tokens representing the past investments are minted based on on-chain snapshot taken at the time of the investment. |
Exposure to the past investments: | Yes. New members are exposed to the old investments. | No, new members aren’t part of the portfolio of the past, only to the future investments. |
How often LunarDAO runs a raise event: | According to DAO Squad | According to the wish of the community and reasoning to do so. |
How often the LunarDAO opens for new Squad members: | Every raising event. If the Squad votes against new fundraising events while there is a strong community wish to join the DAO, a new subDAO fundraising can be opened -> switch to syndicate option. | As Portfolio |
Squad membership: | Everyone owning at least 1 VOX is a Squad member. Squad members have voting power. | Everyone owning at least 1 VOX is a Squad member, however members can vote on treasury decisions only in the guilds/ sub-DAOs in which their VOX (shares) are allocated. |
Overall governance changes: | Discussion -> LIP -> vote -> implementation | Either same like portfolio with LIP issued per subDAO or count all sub-DAOs together and as one DAO with vote event. Every 1 VOX = 1 vote, total majority wins. |
Portfolio and Syndicate fund management options are explained below, including examples.
Portfolio/ Investment Club
By default all the assets are pooled in the DAO main treasury. The new members joining are part of the same portfolio and exposed to the past investments. The Squad members can decide to set up any further guilds or sub-DAOs (just like in the syndicate design). Every Squad member can RageQuit at any time and transfer their VOX (shares) value to VOX-loot. RageQuited members can re-join during the next raising event.
Summary
- Permissionless but time & max cap limited entry.
- At any point members can exit with their funds partly or fully.
- The Squad can decide if, how and when to do next rasing events.
- A bonding curve to the price of VOX (shares) for every next raising event to balance investment dilution must be considered.
- Every member can add more funds during the next fundraising event.
- All Squad members share a RageQuitable portfolio together, equal to the size of their tribute.
- The Squad can decide to open separated guilds.
Portfolio Example
Genesis Event: DAO launch & the initial raise
- Price: 100 VOX (shares) = 1 ETH
- Minimum tribute: 0.1 ETH
- Fee: 0.25% from tribute, 0.5% per executed investment deal
- Permissionless entry
- Contract has an upper limit & time expiry, mints shares according to investors' tribute size. The price of everyone's shares is the same.
Example
In examples we will use place holders X, Y & Z for supported projects and Tx, Ty & Tz for their tokens. For simplicity, fees are not included in the example calculations.
In a real life scenario the amount of VOX (shares) will be arbitrary per each member as the tribute sizes will differ. Some members will likely RageQuit with their funds during the DAOs life cycle. This example is simplified to explain the portfolio logic.
- 100 people join the Squad for 10 ETH each -> 1000 VOX (shares) each.
- Treasury net = 1000 ETH; 100 000 VOX (shares) was minted.
- The Squad invests 500 ETH to X in exchange for their token Tx. Deal is 1 ETH = 1000 Tx.
- No-one RageQuits.
- Treasury net = 500 ETH + 500 000 Tx, represented by 100 000 VOX (shares).
- Each member owns 1000 VOX (shares) representing 5 ETH + 5000 Tx.
Second LunarDAO raising event
Because the new members have access to the deals of the past, the entry price is always 10% higher than the price during the previous event. This premium rewards members who entered past deals and stayed in the DAO exposing their part of portfolio to the new members. Any old member can RageQuit before the event with their assets and re-enter with ETH again.
- Price: 100 VOX (shares) = 1.1 ETH
- Conditions and minimum tribute to be decided by the existing Squad.
Example
- 100 new people join the existing Squad -> Each of the new member paid 11 ETH -> 1000 VOX (shares) -> 100 000 new VOX were minted.
- Treasury has 200 000 VOX total.
- Squad = 200 members
- Treasury net = 500 + 1100 ETH + 500 000 Tx
- Each VOX (share) represents:
- 0.008 ETH
- 2.5 Tx
- Every Squad member has the same amount of shares: 1000 VOX. Their shares representing:
- 8 ETH (1600/ 200)
- 25 000 Tx (500 000 / 200)
- The first 100 members paid 10 ETH each, the new members paid 11 ETH each.
- The Squad invests 800 ETH to Y in exhange for their token Ty. Deal is 1 ETH = 10 000 Ty.
- Treasury net = 800 ETH + 500 000 TX + 8 000 000 Ty
- Each member holding 1000 VOX (shares) is an owner of:
- 4 ETH
- 2500 Tx
- 40 000 Ty
Syndicate
Each fundraising cycle (possibly each investment) is treated as a separated entity, unique sub-DAO/guild. Members joining in future fundraising events share a new treasury (sub-DAO or a guild) without an access to the investments from the past. All treasury related proposals have impact only on the separated guild/sub-DAO in which the proposing Squad member is at.
There are cases in which all the votes across the subDAOs are seen as one DAO and vote on a decision together. In such cases the votes are counted and evaluated like if all the subDAOs were one DAO or there are separated LIPs issued to each subDAO. In case of one large vote, ie deciding over a new Steward member, regardless of different investments in the subDAOs, every 1 VOX = 1 vote. In a scenario like a core-team proposal to cover additional costs, is taken proportionally to the token weights of the subDAOs (and their members) and issued separately to each subDAO. If less than 50% + 1 VOX of total voting weight across the subDAOs is for the proposal, the proposal is rejected.
Summary
- Every new raise cycle is unrelated to the previous investments.
- New subDAOs mint shares without bonding curve bonding curve, price same for all new members.
- Old members are inaffected by the new members, no dilution.
- Each member can be part of multiple sub-DAOs.
- Decisions regarding the general governance is voted in all the sub-DAOs together and counted as one vote event or separated LIPs are issued.
- Core-team additional funding: Possible options to make one all-DAO proposal or divide them per sub-DAOs and their ETH weights.
Syndicate Example
Genesis Event: DAO launch & the initial raise
- Price: 100 VOX (shares) = 1 ETH
- Minimum tribute: To be decided as the the DAO launches as portfolio by default.
- Permissionless entry
- Contract has upper limit & time expiry. mints shares according to investors' tribute size. The price of everyone's shares is the same.
Example
In examples we will use place holders X, Y & Z for supported project and Tx, Ty & Tz for their tokens
In a real life scenario the amount of shares (the tribute) will be arbitrary per each member and some members will likely RageQuit with their funds. This example is simplified to get the understanding of the syndicate logic.
- 100 people join the Squad for 10 ETH each -> 1000 VOX (shares) each.
- Treasury net = 1000 ETH; 100 000 VOX (shares) was minted.
- The Squad invests 500 ETH to X in exchange for their token Tx. Deal is 1 ETH = 1000 Tx.
- No-one RageQuits.
- Treasury net = 500 ETH + 500 000 Tx, represented by 100 000 VOX (shares).
- Each member owns 1000 VOX (shares) representing 5 ETH + 5000 Tx.
Second LunarDAO raising event
Because the new members joining another entity, separated from the initial DAO launch treasury, raise looks the same like the Genesis Event. In such scenario each sub-DAO manages their funds on their own in parallel to each other.
Overall Governance Changes
Decisions regarding to the general governance is voted in all the sub-DAOs together and counted as one vote event.
Example
- Genesis event -> DAO launch -> 1m VOX across 100 members
- Squad decided to not allow for future onboarding to the DAO and there is a strong community will to join LunarDAO.
- New subDAO launches -> 500 000 VOX across 50 members
- Proposal to remove multi-sig from the DAO execution -> vote will be in the overall DAO consisting of the sum of all VOX in all subDAOs.
- Total VOX in all subDAOs = 150m.
- 1/3 of the members vote = 500 000 votes
- a) 50% + 1 VOX are for -> multi-sig gets removed
- b) 50% and less are for -> multisig stays
LunarDAO operation funding proposal
A core-team proposal to cover additional costs for the administration, dev, ops, media, research etcetera. The proposal can be approached in two different ways:
- a) Divided budget proposals to each sub-DAO
- b) One proposal to one DAO conposed of all the sub-DAOs
a) The team divides the total sum of proposed budget between the sub-DAOs based on their weight of the given asset (ie ETH) and submits each of them as a separated proposal. The size of these proposals is calculated:
SUM(total funding proposal ETH * sub-DAO ETH weight / sumETH(all sub-DAOs))
Example a)
- Genesis event -> DAO launches -> 1m VOX minted between 100 members (10 000 ETH).
- DAO invests in project X with 5 000 ETH -> Every VOX (shares) represent 50% ETH and 50% token Tx.
- Squad decided to not allow for future onboarding to the DAO and there is a strong community will to join LunarDAO.
- New subDAO launches -> 1m VOX minted between 1000 members (10 000 ETH).
- There are 2 subdDAOs now.
- The core team submits LIP to get 30 ETH funding for the work done. -> the proposal size will be divided between the sub-DAOS and voted upon by each of them separately.
- The division formula is:
- Total ETH: SUM(all sub-DAOs ETH) = (sub-DAO1 ETH) + (sub-DAO2 ETH) = 5 000 + 10 000 = 15 000 ETH
- Funding proposal = 30 ETH
- Proposal to sub-DAO1 = total funding proposal ETH * sub-DAO1 ETH / total ETH = 30 * 5000 / 15 000 = 10 ETH
- Proposal to sub-DAO2 = total funding proposal ETH * sub-DAO2 ETH / total ETH = 30 * 10000 / 15 000 = 20 ETH
- Core team submits 2 LIPs: 10 ETH to subDAO1 and 20 ETH to sub-DAO2
- Each of them vote separately according to the governance rules.
- Each sub-DAO and it's member votes as usual: 1 VOX = 1 vote, the votes only impact the decision in the given sub-DAO.
- The core team may be supported by all, none or either of the existing sub-DAOs.
- New proposals can be submitted per governance guidelines.
b) The votes are counted and evaluated like if all the subDAOs were one DAO. Regardless of different investments in the subDAOs. The vote would have to be based on the proposed asset weight per members' VOX (shares), ie ETH if proposal is for ETH funding:
voting SUM(ETH weight / VOX * # VOX)
Example b)
- Genesis event -> DAO launches -> 1m VOX minted between 100 members (10 000 ETH).
- DAO invests in project X with 5 000 ETH -> Every VOX (shares) represent 50% ETH and 50% token Tx.
- Squad decided to not allow for future onboarding to the DAO and there is a strong community will to join LunarDAO.
- New subDAO launches -> 1m VOX minted between 1000 members (10 000 ETH).
- There are 2 subdDAOs now.
- The core team submits LIP to get 30 ETH funding for the work done. -> The proposal will be submitted and voted upon in the parent DAO consisting of the sum of all ETH in all subDAOs.
- As the impact per member is on their ETH, the voting power is ETH weighted
- The vote calculation from all voting members: SUM(ETH weight/VOX * # VOX)
- sub-DAO1 member with 1000 VOX (shares) = 0.5 / 1 * 1000 = 500 votes
- sub-DAO2 member with 1000 VOX (shares) = 1 / 1 * 1000 = 1000 votes
- In this example: Each subDAO2 member has 2x voting power per VOX than sub-DAO1 member, as they have 2x bigger ETH weight and 2x bigger ETH exposure to than the sub-DAO1 members.
- The proposal in it's entirety either passes or not.
- If the vote passes: 30 ETH are sent proportionally to the ETH weights per each LunarDAO member.
- 10 ETH is sent from SubDAO 1 members in total.
- 20 ETH is sent from SubDAO 2 members in total.
Investments
See LunarDAO Investment portal for current updates related to investments.
To support privacy projects by investing in them is the main purpose of LunarDAO. Planting seeds for the lunarpunk dark forest of cryptography, autonomy and users' knowledge. To choose meaningful projects and help them grow is vital. A reward for the LunarDAO community is the shared value of these projects in the form of their token and the knowledge and tools they build. It is a mutual harmony in which the growth of one empowers the other and vice versa. This symbiotic relationship slowly but steadily replaces the bare desert of surveillance and hegemony.
Investment Flow
Note: We use place holders X for the supported project and Tx for their token.
Project X is proposed to be financially supported by LunarDAO in exhcange for # of Tx tokens or any other value to the lunarpunk ecosystem. After a community discussion and research an investment LIP is submitted. In this LIP must be clearly defined:
1. Name of the project
2. Date
3. Project X's value to the ecosystem (problem solving, new primitives, tools, knowledge, monetary etc)
4. Requested size of support in USD terms
5. Offered amount of Project X tokens Tx and price per USD (if the project is monetary based)
6. Trigger event: Tokens Tx will be send to LunarDAO treasury/Time period needed for execution or expected time of launch (when Tx becomes liquid)
7. Is the team X supported by private investors or VCs, other DAOs (or plans to) or just LunarDAO?
8. If yes: In which size and what is the price of token Tx to other supporting subjects?
9. If project X is token based: Tx tokenomics/release schedule
10. Project X's wallet address to recieve the support
11. LunarDAO treasury address to recieve token Tx in agreed time, amount and price: 0x59f77dc848c2e45b5954975ee1969e7a22fa25f6
LunarDAO Squad votes on the proposal of investment (see Governance for more details). Project X escrows the promised tokens to LunarDAO treasury as a part of the on-chain proposal, or in case of an illiquid (yet) token Tx, a SAFT NFT will be minted by Project X for LunarDAO in exchange for the support sent to the project X's wallet address.
Conclusion
LunarDAO is an anonymity-first organization. Our mission is bigger than that. With the objective to build a strong united Squad accountable to the common mission and shared wealth. Looking into investment DAOs based on Moloch V1 & V2, listening to the allies in chats and multiple meetings with builders, we believe that LunarDAO should not kick-off as an experiment, instead start on well tested mechanisms.
The Portfolio and Syndicate fund management options are perhaps the largest question to be continuosly discussed. We believe that the launch may be easier and more interesting with the Portfolio option as a default, which leaves the door open for anyone to join the Squad and decide in the future how to manage further fundraising events, guilds, sub-DAOs and all the changes. The will of community had showed that Syndicate option is a way to go towards LunarDAOII as it allows for permissionless entry for everyone, new DAO summoning with imporvements and easier management.
We would like to remind all the participants to protect themselves and read our docs on anonymizing assets and a How to join guide to ensure network their identity protection and change RPC as a basis to join LunarDAOII.
SUPPORT THE DEVELOPMENT OF LUNARDAO ARCHITECTURE!
Resources & References
- LunarDAO web
- LunarDAO wiki & full manifesto
- LunarDAO architecture discussion
- LunarDAO: Investment portal
- DAOhaus Moloch 3 infrastructure
- DaoHaus Baal Github - Moloch V3
- Baal docs - Moloch V3
- Moloch Baal - V3
- DaoHaus
- Summon a DAO
- LunarDAO: Why are we anonymous
- LunarDAO: Multi-sig Anouncement
- LunarDAO: Roadmap
Archive
LunarDAO Contracts
These are the contracts of the initial DAO
LunarDAO Treasury: 0x59F77dC848C2E45B5954975ee1969e7A22fA25F6
Moloch V3 DAO (LunarDAO Governance): 0x747DA68Facd1459E9D9b8f928418DA30769D3Ba1
Sentinels' Safe (5/8 multi-sig): 0x622066aBA170c185c28cED6E7ccd1cB2047ef6ef
LunarDAO Stewards' Safe (core-team, founders): 0xAb501a8Eb58c9780eb04D683feB504fcE391A2DD
VOX (voting token/treasury shares): 0x33e6ded5073f512475e17b5f19dda90d9a782478
VOX-LOOT (non-voting token/shares): 0x94fadf770e44b7bc872fc712e4ba6aaf096fcba7
Genesis Event Onboarder Shaman: 0xFd7f0D849c1820F066aD1DEa8c8B90A59cA51Ef0