AGP Discussion: ScoutDAO

TL;DR:

ScoutDAO aims to help the Aragon community validate ideas, get more devs working on the Aragon stack, and increase the value of Aragon as a platform.

The Problem / Background

What’s the problem(s) with Nest DAO?

  • Not enough deals are coming in
  • Interests are not aligned
    • None of the members are being paid to due diligence deals
    • None of the members are being paid if the projects they evaluate succeed
  • Nest DAO is operating more like an angel/seed fund, investing 50k-150k. But there is a funding gap at the family & friends / angel stage. Super early projects are not getting funded, and as a result, are not applying for funding. This is hampering innovation in the Argaon network.
  • The result?
    • Very Low deal flow volume.
    • Poor due diligence
    • Long decision making times

The Solution / Future

ScoutDAO

  • What is it?
    • An Aragon DAO dedicated towards sourcing and funding deals that are too early for NestDAO.
    • Acts as a deal generator for NestDAO
  • Why will it solve the problem for NestDAO?
    • Higher quality deal flow
    • More deal flow
    • Greater liklihood of shipping production ready products
  • Why will this benefit Aragon as a platform?
    • More developers building on Aragon
    • More projects shipping from NestDAO
    • Cheaper and faster than monolithic Flock proposals

More details can be found in the ScoutDAO draft document.

The official ScoutDAO AGP can be found here.

2 Likes

This feels quite redundant with NestDAO, it seems like much of the goals here could be done through the NestDAO directly rather than creating another process. The NestDAO could create a separate track for smaller scale proposals, and the NestDAO members could coordinate around potentially looser requirements for those if that is deemed worthwhile endeavor.

The new NestDAO and working group structure allows for these types of adjustments and is really just getting started. If there are problems with Nest currently, why not work within the Nest DAO to address and improve the status quo first?

Additionally,

Recently it’s been shown that teams can start to develop applications like conviction voting, Aragon DAO explorers, and many more with super small uber-micro seed funding of ~5k. 5k! We could literally fund 3 of these per week for a year for the same price as a Flock team, and then have money left over to pay for security audits and UX improvements. Think about it!

I think that this is largely misleading, there have been projects that have been granted 5k grants as an initial source of funding to keep momentum going, but those project have largely been started and worked on by volunteers previously. It’s not clear to me that simply throwing 5k around at more projects is likely to scale that sort of thing up, and it also reduces the budget for follow on projects.

I also question the claim that that “Not enough deals are coming in” to the Nest program, as the nest DAO has been oversubscribed in past budgets, and the output from nest projects in recent rounds has been quite high. (the most recent cohort of Dandelion, Empower the DAO, and Futarchy signaling markets) are all being executed well and are high leverage projects.

In short, I’m a big fan of the push to improve NestDAO @burrrata and @joeycharlesworth but think something like this should be deferred until after the new NestDAO launches and the Nest WG has had an opportunity to improve the existing process.

2 Likes

Interesting proposal, totally onboard to getting more early projects funded!

Echoing Luke’s view, I’d avoid adding a new program given that we already have the CFDAO and Nest (which could give smaller grants now that the DAO can have more bandwidth).

1 Like

Fully agree on this – I like your take @burrrata, but right now I think it would be a good idea to pause/withdraw this and take a step back to re-think Flock, Nest et all, especially after what happened a couple weeks ago

2 Likes

Hey everyone. Sorry for the late response!

Been diving into the financials behind Nest and Flock to better understand what is happening overall in the Aragon ecosystem. Upon further analysis, we (@burrrata and @joeycharlesworth) agree that it is not the right time for ScoutDAO (as cool as we think the idea is). We are working to find other ways to address the core problem of sourcing deal flow and attracting talent to Aragon within existing frameworks. This is as a result of the feedback provided here by @lkngtn, @jorge, and @luis (despite the fact that we did not respond right away), so thank you for the feedback and consideration :slight_smile:

2 Likes

Makes a lot of sense! Excited to see where these initial ideas take us

1 Like

Simplified and incorporated many of the ideas for ScoutDAO into suggestions for the Nest program. Our full report can be found here. We will also share a presentation at the upcoming NestWG meeting if you’re able to attend.