Proposal information
Summary
Aragon and PrimeDAO core contributors propose for voting to their respective tokenholder communities a strategic token swap. PrimeDAO is a collective that enables DAO2DAO coordination by building tools that turn DeFi into a cooperative game. This proposal is initiated as we acknowledge a strategic product and governance fit. The current DAO2DAO tools have valuable functionalities, such as decentralized token offering and token swaps, that align as an extension of Aragon’s future product. With this proposed token swap, both parties are able to converge their products and goals by actively participating in each other’s governance.
Both parties propose a swap of $50k in ANT to $50k in D2D.
Proposal description
This proposal contains a strategic token swap between Aragon and PrimeDAO, of $50k in ANT to $50k in D2D.
PrimeDAO is a DAO builder collective focused on enabling DAO-to-DAO coordination. Launched in 2020, PrimeDAO has built a synergistic product suite that provides value to DAOs through their entire lifecycle, from project review and support to a token launchpad and DAO Dealmaking platform. PrimeDAO has strategic partnerships with different DAOs and completed token swaps with Balancer, Celo, Gitcoin, OlympusDAO, and more.
The current product overview of PrimeDAO is threefold, namely:
- Prime Launch:A decentralized token launch platform that allows DAOs to host a fixed-price launch (Seed) or liquid launch (LBP) effectively with support from a network of service DAOs and potential backers
- Prime Deals: Makes web3 partnerships simple, through an interface for DAO2DAO interactions, such as joint ventures and token swaps
- Prime Rating: A public good in the form of a permissionless framework that quantifies web3 project quality, and therefore provide transparency in the DeFi space
In parallel to the swap, the two teams will do a soft-integration. It will take the form of a detailed how-to guide that explains the potential joined use of Aragon Client and Prime Launch.
As PrimeDAO is actively monetising some of its products, a potential future deeper integrations will likely include a revenue share element accruing some of the captured value into Aragon.
Proposal rationale
Prime DAO is a prominent name in the DAO ecosystem and would be a powerful ally in terms of a team with a proven track record of creating DAO tools that are both conceptually sound and provably useful.
Aragon is focusing on building smart contract infrastructure for on-chain permission management systems. Ultimately this infrastructure should be connected/extended by tools that enable DAOs to interact with external agents or assets. Connecting to functional modules and products such as the aforementioned ones developed by Prime DAO, is an essential element of scaling Aragon’s value proposition.
By plugging into Aragon’s ecosystem, PrimeDAO will benefit from Aragon’s wider reach and offer its modules to DAOs that might otherwise be unaware of its value propositions.
This proposal enables a stake in each other’s DAO, and therefore the two projects will have both the incentives and the means (through governance participation) to synchronize product evolution and coordinate better while they decentralize.
Risks & Limitations
The current treasury of PrimeDAO has an estimated runway of 12 months. The risk of running out of runway could lead to product development being slowed down or stopped completely. While the technology is open-source and could be leveraged by Aragon and other DAOs even without the PrimeDAO organization being operational, there is merit in having it well-resourced so it can continue to iterate on the technology and provide its services. PrimeDAO is mitigating the runway risk by monetizing its tools, namely, a product fee on Launch (~1.5% per launch) and Deals (~0.3% per Deal).
Additionally, there is a possibility that PrimeDAO and Aragon products are technically infeasible to integrate, and ergo incompatible. However, close collaboration between both projects should mitigate this risk. Aragon’s new product is lean and flexible, designed in its essence to allow and encourage integration of products benefitting the entire DAO ecosystem - Prime’s products are a great example of that. As such, the incompatibility risk is low, especially as both parties have intentions of working together and look for ways to ensure product integrations.
Team information
Luuk Weber, an experienced DAO strategist, and Treasury manager. Leads Strategy for PrimeDAO and runs Kolektivo Labs, a Web 3.0 Venture Studio with 15+ contributors. Before co-founding PrimeDAO, Luuk ran a DeFi Fund from the Amsterdam stock exchange and spent some time contributing to BalancerDAO
Alp Ergin, the current Ops and Partnership Lead of PrimeDAO with a background in Impact Start-ups and Investment Banking. Alp carries loads of experience from his time in the core of Gitcoin and has also started multiple initiatives including Co-founding dCompass and Inverter Network.
Funding information
Both parties propose a token swap of $50k in ANT to $50k in D2D.
The amounts of ANT and D2D tokens correspond to the $50k value and will be calculated based on a 7-day backward looking TWAP (time weighted average price) taken at the time this vote is published to the respective voting infrastructure of each of the two communities.
The following terms are proposed for the strategic token swap:
- 6 month, soft lock-up period (token lock-up not enforced on-chain but on social level)
- Due to the soft lock, full voting power will be granted immediately upon closing of the sale
- Terms are symmetric for both parties
Disclaimer
This proposal is composed by @fartunov @Ricktik6 @juliettech, in collaboration with the PrimeDAO team
