Governance, Voted SHO & Guaranteed Allocations (Fusion System)
Automation & Guaranteed Allocation System
The DAO Maker Launchpad’s current process is quite complicated & difficult to understand for newcomers and even existing holders. To prevent this, we decided to implement some changes, including a new, elegant system that simplifies the whole user experience.
Proud to present the Fusion System
The fusion system minimises complexity and onboarding time for our users by 90%. The current process includes completing KYC, registering, receiving an email upon a few days wait time, checking the raffle spreadsheet and FCFS contribution. This will be replaced by a more straightforward process, which will consist of completing KYC, stake min. $250 DAO and deposit.
When contributions open, users will automatically get notified via email and will be able to contribute right away. The maximum personal allocation a user can contribute is calculated as follows.
Maximum contribution formula:
(Total_raise / average Total DAO_Power registered to sale (picked based on previous projects avg., ex. 25M) * 4 * User_DAO_Power
Example:
A user stakes 6430 DAO and the total raise of the sale is 600,000
6430 DAO = Tier 2, so his DAO Power is 7,073 (10% bonus)
600,000 /25,000,000 * 4 * 7,073 = 0.096 * 7,073 = $679
His/her personal maximum deposit amount will therefore be $679
Under Subscription:
If the sale is under subscribed, all users who contributed get the same allocation as the BUSD amount they have deposited.
Oversubscription
Oversubscription means that the total deposits are greater than the total raise. As users can contribute their maximum personal allocation, each sale can be oversubscribed up to approximately 400%.
Tl;dr
Your personal guaranteed allocation is calculated as follows:
(DAO power of user) / (total DAO power of all users) * (total raise)
The estimated guaranteed allocation range for each tier is shown on the respective SHO sale page.
As each user’s allocation is proportional to their DAO power, the more DAO tokens you stake, the higher your guaranteed allocation and maximum deposit amount will be.
You can choose the amount you want to contribute (BUSD bep20). Depositing more (up to your maximum deposit amount) ensures you will receive a bigger allocation.
In the case that there are users who contributed less than their personal guaranteed allocation, the remaining of that allocation is distributed to other users, in proportion to how much they over funded.
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In depth explanation including all formulas:
For this example the raise is $600,000 USD and $1,200,000 have been contributed, the sale is 2x oversubscribed. 25 mio. total DAO power of all users was connected to the sale.
At the end of the sale, the smart contract calculates guaranteed allocations for each individual user with this formulation:
guaranteed allocation = (DAO power of user) / (total DAO power of all users) * (total raise)
Example: (7,033 DAO Power / 25,000,000 DAO Power) * $600,000 = $168.8
Case 1) If a user contributed less than or equal to his guaranteed allocation, he will get the exact amount he has deposited.
Example: The user with 7,033 DAO Power deposited $160. He will get the allocation for this amount because it’s less than his calculated personal guaranteed allocation size.
Case 2) If a user deposited more than that, the smart contract calculates the additional allocation of user (on top of the guaranteed allocation) with this equation:
additional allocation = ((total raise) — (total guaranteed allocations1)) / (total excessive deposits) * (excessive deposit of user)
excessive deposit = (deposit of user) — (guaranteed allocation of user)
total guaranteed allocations1 : The final total guaranteed allocation, which will be taken into the ‘additional allocation’ equation, will use the adjusted guaranteed allocations from each user into account. What does adjusted guaranteed allocation means? It’s very simple, if a user has a guaranteed allocation of $55 but deposits only $50, the adjusted guaranteed allocation is $50 and this amount will be taken for summation of all total guaranteed allocations for all users.
Example for case 2 (user deposited more than his personal guaranteed allocation):
The user with 7,033 DAO Power deposited $300. This is more than his calculated personal guaranteed allocation. First, the smart contract calculates the excessive deposit of this user:
Excessive deposit = $300 — $168.8 = $131.2
Second, the additional allocation will be calculated. For this example, we assume the total guaranteed allocations (summation of all (adjusted) guaranteed allocations of the users) are $450,000).
Additional allocation= (($600,000 — $450,000)/($1,200,000-$450,000))*$131.2 = $26.2
It means his final allocation is guaranteed allocation + additional allocation = $168.8 + $26.2 = $195
Within a few minutes after contributions are closed, the smart contract will automatically return the excessive funds back to the user’s wallets.
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Conclusion:
Collectively, we are very excited about this change as it will vastly improve all aspects of DAO Maker, from user experience to creating a more time efficient environment for the team to operate in.
It will also enhance the conditions for smaller holders while having no real impact on larger ones. We were frequently asked questions regarding guaranteed allocations, now we can finally provide the answer that guaranteed allocations will start as low as tier 0 & each user’s staked DAO will play a major factor in it.
DAO Maker bases its decision-making on onchain data. This data shows a very clear correlation between new DAO users/stakers and project listings. The black vertical lines indicate SHOs and the blue spikes new DAO stakes.
Currently, we only accept 1/20 projects that apply to DAO Maker as we provide a strong indicator for long-term success. At the same time, DAO holders are not able to join the decision-making process.
Our newest product, Community Voted IDOs, will allow us to increase project volume and add a new utility to DAO, while increasing holder engagements & maintaining strong signal value from the DAO Core Team.
What are Community Voted IDOs
DAO Stakers will have the ability to vote on projects onto the community Launchpad.
Generally speaking, lack of participation, as well as lack of consideration in what users vote for, can lead to a snapshot mostly empty. These issues can be prevented, as the fusion model was developed to solve all the problems associated with voting in crypto.
How DAO community voting works:
The voting process is divided into two phases.
During the first phase, DAO stakers can vote by depositing BUSD into the Voting Contract. The community voting round will have to be oversubscribed during Phase 1 in order to move on to Phase 2. The maximum contribution size depends on several factors: total connected DAO staked to the sale, total raise amount, total BUSD contributed, and of course each user’s DAO Power. When a user contributes to the smart contract. They automatically pass their staking data as a signature.
Phase 1 can lead to 2 outcomes:
Under Subscription:
If not enough people deposit BUSD before the end of the voting period, the smart contract will automatically return everybody’s funds back to their wallets within a few minutes after the voting period is over.
Screenshot of under subscription:
Oversubscription
Oversubscription is a result of the total deposits being greater than the total allocation during Phase 1.
For example, if a total of $100,000 BUSD is available for sale and $200,000 have been contributed, then the sale is 2x oversubscribed. If the quorum of the sale has been reached, then the sale passes Phase 1 and moves on to Phase 2.
Screenshot of over subscription:
Incentivizing voters:
Once the sale successfully ends, voters (contributors) will be given guaranteed allocations for the sale proportional to their deposit and voting power (Staked DAO).
The calculation of the guaranteed allocation and refund of excessive funds for each user (if any) works exactly the same as it does for Private SHO’s (explained in the first section).
Consequences for Voters:
If a voter contributes to a sale that reaches the quorum, however ends up underperforming, that contribution will fall in value due to the substandard selection of the project. Unqualified users are safeguarded in the case they are the only ones that contributed, ending in the sale being under-subscribed.
Conclusion:
Introducing community-voted IDOs will convey a significant boost to new listings on DAO Maker as well as introduce a new token utility & allow DAO holders to play a part in the decision-making process. Combined with the implementation of the fusion model, this will add great value to DAO Maker as a launchpad and will make sure the users get the best possible experience as well as a guaranteed allocation to invest in IDOs.
About DAO Maker
DAO Maker is the leading crypto launchpad and incubator, with over 100+ projects launched and $30 million raised. DAO Maker aims to redefine Venture capital by making it accessible to the masses. We are on our way to achieving that with more than 170.000 users KYC’d and users spread around 158 different countries. DAO Maker has consistently onboarded market-leading projects onto the platform — such as Alice, Step App, or XCAD — setting trends in every market condition.
