Building DAOnetworks

Apologies to the audience as this paper is, a little rough, and mostly concept oriented as there are many directions one can go with this in a practical sense. This paper is meant mostly to introduce the topic for discussion not to delineate the exact direction a particular DAO goes when creating their own DAOnetwork. (god help me on formatting… :frowning: )

Building DAOnetworks.

For some time after thinking about DeepLiquidity DAO DeepLiquidity - :seedling: Ideas - 1Hive , to stop communities from pairing their DAO tokens together in LP, I realized a better way for communities to support each other is by building a DAOnetwork. Many of our DAO communities are already supporting each other, with people, funds, development, cross investing, etc. However, when I survey the landscape, these efforts are fragmented and not focused. Below is my vision of how a DAOnetwork can form.

  • It is much harder to sybil as a DAO. Put simply, DAOs with their domains, webservices, discord, twitter, etc. are entities that are well known, where as wallets are not. This makes DAOs potentially better citizens than people when it comes to interacting with each other.
  • A DAO needs to build it’s own DeepLiquidity DAO DeepLiquidity but can do this with other communities as follows:
  1. A) DAO1 swaps community Token1 with DAO2 for community Token2.
    i) Types of conditions or things that can be done by each community with other community tokens.
    a) Can have vesting or vesting conditions. For LP farming, staking, to elect representatives to participate in governance or development/community decisions (or be non-voting)
    b) Can be used to be paired into the community DeepLiquidity to earn return as well as be a community investment.
    c) Can be used to pay devs in community 1 with Token2 for support and work for community 2
    d) For payment for business referrals.
    e) For bounties on joint venture projects
  • A DAO, by doing a token swap above, diversifies its market exposure, gains community exposure (PR, investment), and potentially supports another community by taking some of its stablecoin cash to provide DeepLiquidity for another comunity, earning that community a return on all the trading as well as possibly more ownership via staking. If communities hold some of the cross tokens, they get full exposure to gains if that community token does well. These relationships can remove Token supply from markets, reducing ‘float’. raise cash too.
  • A DAO in a DAOnetwork then has good reason to utilize resources or services of another DAO in the network because they cross own part of that DAO. In fact, it makes more sense to funnel business to a DAO you own than to ‘redo’ or ‘fork’ the work of another DAO. Certainly, they can still make a business ‘deal’, but loosely speaking, given a choice of between services of a DAO in the network or not, it makes more sense to go with in network because this keeps business within DAOnetwork family.
  • Every DAO can and should from its own network. The beauty of the DAOnetwork is that it becomes spoke and hub like as communities form their pair relationships with business links, cross investments, people, LP etc. Put simply, a DAOnetwork can quickly become much larger than the sum of the parts due to network effects. Also, as one DAO in the network does well, it will lift the values of their affiliated partners simply due to the cross investing component.
  • In principle, the DAOnetwork can take its own treasury assets or fractions of revenue streams and then tokenize those to create a DAOnetwork fund for cross DAO partnerships, lending, borrowing, etc. This allows the network to expand its asset bases and diversify revenue streams and the investment porfolio.

A practical example of a DAOnetwork is 1Hive via the swarms. 1Hive has a number of joint ventures and has effectively formed a DAOnetwork and while there is some cross-asset sharing, seed money placements, talent sharing, etc., nothing has been formalized in terms of the creation of the network. 1Hive has important intellectual property that can be used to grow and formalize their DAOnetwork.

  1. Honeyswap - a DEX where people can and do trade Tokens and the communities can build DeepLiquidity if they chose to commit to that as a network goal.
  2. Farming tech - the mechanics to incentivize farming on a per pair basis for one or more pairs. 1Hive could encourage communities to come by providing them with COMB rewards for their COmmunity Tokens via the Token-xDAI pairs on xHoneyswap (xHoneyswap is Honeyswap on xDAI) and Token-USDC on Polygon.
  3. Gardens- 1Hive has the community governance and fiducary framework to build out not just their governance structures but also their finance ones.
  4. Celeste - Integrated for dispute resolution.
  5. Agave - lending, borrowing.

I become more convinced that providing infrastructure so DAOs can build their own networks and cross investing in each other to seek return, diversify community asset portfolios, and grow communities will be the next major change in crypto landscape and the earlier communities begin to adopt a mindset of working with each other building on each others strengths vs. competing with each other the better off the space will be.

Posted for discussion and as a thought for a longer term approach to DAO building not just for 1Hive but for /r/ethtrader, vote.finance, Maker, SourceCred, etc.

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@Eth_Man the ideas you present always open up minds to forward thinking. I really like the concepts presented here. If something like a DOAnetwork as you suggested is to be spawned and start its organic growth, I would be interested where you suggest 1Hive should start? I mean which other DAOs would be prime for this level of partnership?

I have seen something like this with Yearn and some other protocols that they basically cannibalised. I guess its not a network as you suggest but they have taken a few protocols, defi dapps under their umbrella and one such defi dapp Pickle finance has had like a treasury exchange of their native token Pickle with Sushiswap with some vesting and other conditions.

I am starting to realise there are others in the same space as 1Hive like TEC and Metagame which may be prime candidates to actually start this network up. I would really like to support and work on this if and when this idea can be ratified.

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Couldn’t 1hive itself become this network? We already have partners in the space, we could strangthen those ties

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El camino es lo que la comunidad en su conjunto decida , si se toma como iniciativa intercambiar monedas con otros proyectos sucedera lo que sucede en Gitcoin con ataques de sybil donde no estan comprometidos con trabajar y buscan la ganancia,

Great write up Eth_man!

I think this is a great way to look about it and it should become one of the selling points for Honey. 1Hive has evolved a lot since the day of inception so our broad explanation of what 1Hive is and does can now have a more concrete direction; that is if that community votes for it. Also to clarify I’m not saying 1Hives missions statement will change but what we have now in a sense needs to be presented abit differently in what we do and how we do it.

example:

" 1Hive is a DAO that builds apps and tools for others to build organizations using blockchain technology."

How does 1Hive do this?

1Hive has built the tools that they needed when they first created the DAO and now they have made them plug-n-play.

What are these tools and these features 1Hive has?

1Hive’s dApp Gardens, is the simple version of honeypot where people can use the Gardens dApp to create, tokenize and start the journey to building an organization on the blockchain. Gardens gives you the ability to create proposals(allows voting) while it also comes integrated with our disputing mechanism Celeste. With these tools you can start your organization with ease. Once you are up and running you can list your token on Honeyswap, you can use Honeycomb to incentivize locked farming rewards and you can be on an ecosystem that allows for leveraged trading with Agave. All of these tools that are built out come with 24/7 hands on support as well as marketing within our ecosystem.

Open to thoughts and suggestions but i defiantly see 1Hive as the place to go to as a DAO starter which opens the doors to the DAOnetwork

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@D0SH this is one of the best simple explanations I have seen of the 1Hive eco-system. When I start to question what 1Hive as a collective really is and what we are doing, i find it hard as a newbie to put a narrative together. I think this narrative you provided should be put into a tweet storm and tag a working examples of DAO spawned from 1Hive.The tagged DAO should then be invited to eloborate on this narrative on how they used 1Hive successfully to build out the DAO. This could a powerful narrative. I guess we could add how we manage our common pool treasury, source cred and any other tooling built to assist a DAO function smoothly. I am willing to draft some tweets and send them to you to polish further. Let me know what you think about this idea. Sorry for taking the thread on a tangent - just wanted to make sure the feedback in captured.

As for this I agree sandpiper - may be we should form this DAOnetwork within 1Hive to put this concept to the test. I think AGAVE will be the ideal swarm to do such a collaboration with.

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As suggested every DAO can basically begin to form its own DAOnetwork with partners. The question is the details of the structure of the networks. %token swaps. Maybe some vesting component with this also potentially an angle towards forming creating DeepLiquidity to grow community values with a LP pair on a particular exchange or sets of exchanges. The idea is to have a coordinated set of principles and goals so that each DAO doesn’t have to redo everything but can in fact share what they have with each other. The first way to do this is by sharing ownership as an investment and holdings diversification strategy that leads to cross building shared liquidity reserves, trading venues (DeepLiquidity/LP, farming), revenue streams, and IP.

The concept with the above DAOnetwork is the idea that DAOs themselves can organize into groups to seek higher levels of interDAO cooperation and coordination from a investment, support, work, people perspective, as well as also a business, PR and higher level of governance perspective. This allows people to focus on building a greater network of assets that leads to building a larger community leading to a higher level of business activity, revenues, and user loyalty leading to a greater network effect generally.

I see this as something that eventually is going to happen and 1Hive IP is uniquely suited to provide the structures for the above. If 1Hive chooses to not look towards creating a stronger network other communities will. I already see different communities looking to create kinds of networks and they realize they lack some IP that 1Hive already has and are quickly looking to add it.

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The fact 1Hive had put together the IP for this is one of the reasons it came to me. I was thinking about what 1Hive had that no-one else had yet that we could leverage.

1Hive IP is basically a complete DAO factory (gardens). If we include within this factory a template for each DAO to build their own DAOnetwork I think this is appealing.

Your example: illustrates nicely a potential approach from a IP and PR perspective.

I want to point out that I think part of the network idealogy should also have a combined perspective on what it means to build community value. While DeepLiquidity doesn’t have to be a part of any community I think it would behoove one or more networks to utilize DeepLiquidity as part of the DAOnetwork mission statement. Having farming/staking rewards to incentivize this also a choice but could also be part of that mission statement. etc.

Point here is to simply have a prebuilt DAOnetwork framework so 1Hive doesn’t just give a DAO the means to manage itself, but also the means and framework to grow as a DAO into a network to join other DAOnetworks.

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