EggsDAO Announcement
Let’s gather our forces and make something big.
The time has come, part of the TwitterEggs community is ready to go to the next level and make our TwitterEggs something other than just a historical asset.
It is time to launch the EggsDAO. The EggsDAO will build projects, will invest into the crypto world/metaverse and will be the place to discuss projects. The EggsDAO is composed of builders, highly motivated and like-minded smart people.
The goal of the EggsDAO is to maximize long-term value of the investment of each member. To avoid any conflict and anyone owning most part of the EggsDAO, the rule is that each member will own the same part of the EggsDAO: we are all whales and no dictatorship!
Together, we are stronger! The EggsDAO will be composed of different Committees (see Governance). Each Committee will have their own responsibilities and we will use a permutation mechanism to make sure every member participates in all aspect of the EggsDAO. Each Committee will be renewed on a regular basis.
Launch Date of EggsDAO: December 10th — 2 p.m. UTC
Permanent Members
Permanent Member: first X number participants to enter the project before the Launch Date + 1 week.
Prerequisite:
• 1 TwitterEgg.
• 3 ETH participation.
At inception — each Permanent Member will own (1/X)% of the EggsDAO.
New Members
Prerequisite:
• 1 TwitterEgg.
• New Member Committee to approve each New Member.
• After 3 months, New Members can become Permanent Members, subject to the Permanent Member Committee being supportive.
• New Members can ask to join the EggsDAO anytime.
• First 9 months Entry Cost: Multiplier x NAV*/N, Multiplier = 1.1.
• N being the total number of Permanent Members, NAV* being the Net Asset Value of the EggsDAO minus the investment from the existing New Members prior to the new membership being considered initial members are taking a risk by committing funds to something new. We will get new members if and only if we can show good results (profit, good alpha, recognized wallet etc etc…). The fee of 10% (number based on 2 dividends) is for new members to commit a bit more than the share of the EggsDAO they will get. It will as well increase NAV naturally and a way to reward existing members who participated in the success of the EggsDAO
• After 9 months, the EggsDAO will use an earnings multiple valuation to determine the Entry Cost, similar to business valuations conducted using EBITDA multiples.
The EggsDAO (the Change Committee) will release memberships based on the NAV times a Multiplier. The Multiplier is subject to a floor at 1.1. All members will be diluted but each member will keep the same share of the EggsDAO and that share will be worth more in ETH.
For example: After 9 months, the EggsDAO is composed of 50 members (each member = 2% of the EggsDAO) and the NAV at that time is 250 ETH. The Change Committee decide to sell 10 memberships on a valuation at 2x NAV = 500 ETH (Multiplier = 2) It means that the new Entry Cost to enter the EggsDAO is now 500/50 = 10 ETH After the 10 memberships being sold, the new NAV is equal to 350 ETH and each 60 members have now (1/60) = 1.667% of the EggsDAO worth then 5.833 ETH.
Net Asset Value (NAV)
•Each asset to be converted in ETH to compute the NAV.
• For illiquid asset (such as some NFT), the valuation should follow the below guidelines: Highest bid in the market if available Last sales price, if within the last 2 weeks of valuation, otherwise counted as 0.
• The calculation of the NAV will be handled by the Valuation Committee.
Exiting the Eggs DAO
• Permanent and New Members can ask to exit the EggsDAO anytime.
• They can either sell their membership to another TwitterEgg holder (outside the EggsDAO) or redeem their membership against their share of the EggsDAO.
• If there is not enough ETH available to facilitate the exit, the exiting member will have to wait until there are enough funds available.
• Once notice of exiting the EggsDAO has been given by a member, that member won’t be subject to any further dividend payment and will be removed from all Committee.
• The exit value will be based on the latest NAV on exit.
Exclusion from the Eggs DAO
• Permanent and New Members can be excluded from the EggsDAO.
• The Exclusion Committee has the power of excluding members.
• The process should be the same than the one above (Exiting the EggsDAO).
Investment Guidelines
• Innovation, common projects, development crypto related.
• NFT: max 50% of the NAV.
• Ether, Bitcoin and stable coins: max 100% of the NAV.
• Other cryptocurrencies: max 20%.
• DeFi protocol (including lending and borrowing): allowed.
• Leverage and Derivatives: allowed.
• ICO / Whitelist of NFTs or token presales: allowed.
• At any point in time, at least 10% of the NAV should be available in ETH.
• Each investment to be approved by the Investment Committee.
• Each sale of purchased assets to be approved by the Unwind Committee.
• All the assets will be held in wallets managed by the Treasury Committee.
Each investment should state:
• Minimum holding period (could be as low as 1 second).
• Target return (if applicable).
• Stop Loss (if any).
• Investment time horizon.
• If a Target return is applicable, the EggsDAO objective will be to lock the profit once reached.
Increase of the Net Asset Value
To start, the EggsDAO will be able to increase the NAV using one of the 2 below options:
• Option 1: Given the setup of the EggsDAO, the only way to allow further investment from existing members (New and Permanent Members) is through an unanimous vote, i.e. all voters are in agreement. Please note that this is unlikely to happen.
• Option 2: Subject to a vote from the Dividend Committee, a dividend can be reinvested into the EggsDAO instead of paid out.
Eggs DAO Dividend
• 20% per annum — paid quarterly (so 5% per quarter), to be revisited occasionally by the Dividend Committee.
• No dividend for the first 6 months — so first dividend 9 months after launch. • Dividend is paid only to Permanent Members. The idea is new joiners will be New Members, and if everything goes well they will become Permanent Members after 3 months. They are not entitled to dividend payments during the first 3 months. Why? It is in line (and better) with what we will get at the beginning (first dividend in 9 months) and a way to make sure we attract only people here for the long term and people “adopted” by the Permanent Members (as they will become Permanent Members after 3 months).
• Exceptional Dividend can be paid anytime but should not exceed 25% of the available ETH in the EggsDAO. Please note that only if the money has a higher return for holders outside the EggsDAO, it is correct to pay the money out instead of saving or reinvesting it. The Dividend Committee will be responsible of deciding or not to pay and Exceptional Dividend.
• Dividend to be paid on the NAV, without taking into account any initial investment from New Members. Background on the 20% p.a. rate (at the time of writing).
• Current highest 30d average lending rate on eth is ~ 10% pa (Bitfinex, https://defirate.com/lend/?exchange_table_type=lend)
• To pay a dividend out of the EggsDAO, the dividend should have a higher return for members outside the EggsDAO (after taxes), otherwise it should be reinvested into the EggsDAO
• Assuming 40% tax, 20% pa is higher than that benchmark
• Obviously and as stated that dividend could be changed from time to time and exceptional dividend can be pay out
• 6 months freeze period (so first dividend in 9 months) to not reduce NAV of the EggsDAO during the building phase.
• If good profit are made at start, the EggsDAO can pay Exceptional Dividend
Governance
•Multi Sig Wallet: https://gnosis-safe.io/
• EggsDAO contract: eggsdao.eth
contract: 0x831282ba73dd03aA8A27d3725bA3bcaCb1bEBc46
Most users of Ethereum are used to a single key wallet, often referred to as an externally owned account (EOA). These accounts are secured with a private key, which can be transformed into a 12 word “seed phrase” for the user. If that private key is compromised in any way, the funds can be stolen. If your business comprises of more than 1 person, an externally owned accounts is not a secure way to manage your crypto business’s funds. If an employee goes rogue or is careless with the private key, the funds are gone forever. Even if your business is made up of just yourself, I’d argue it’s still a poor way to manage funds. So, what is the better solution? Enter the Multisig. Gnosis Safe is a smart contract wallet running on Ethereum that requires a minimum number of people to approve a transaction before it can occur (M-of-N). If for example you have 3 main stakeholders in your business, you are able to set up the wallet to require approval from all 3 people before the transaction is sent. This assures that no single person could compromise the funds. On top of that, Gnosis Safe gives you complete self custody over your funds. There is no risk of a bank giving you a hassle for running a crypto business and the smart contract that is deployed is completely trustless and in your control.
• Managed by the Treasury Committee (3/5 owners)
• Recommend each “Owners” to use an hardware wallet (Ledger or Trezor)
• Signature Policies
New Member Committee
• Composed of 7 Permanent Members.
• Renewed every 6 months through a vote from all Permanent Members.
• Responsibility: approve each New Member, make sure all members hold a TwitterEgg and an EggsDAO membership.
Permanent Member Committee
• Composed of 7 Permanent Members.
• Renewed every 6 months through a vote from all Permanent Members.
• Responsibility: approve each new Permanent Member.
Valuation Committee
• Composed of 3 Permanent Members.
• Renewed every 3 months through a vote from all Permanent Members.
• Responsibility: calculate the NAV of the EggsDAO.
Investment Committee
• Composed of 7 Permanent Members.
• Renewed every 1 month through a vote from all Permanent Members. The vote should consist as well of the max budget to spend over the next month.
• Responsibility: invest up to the allocated budget.
Unwind Committee
• Composed of 7 Permanent Members.
• Renewed every 1 month through a vote from all Permanent Members.
• Responsibility: look at opportunity to sell assets.
Treasury Committee
• Composed of 5 Permanent Members.
• Renewed every 1 month through a vote from all Permanent Members.
• Responsibility: manage all the assets and send/receive the fund/asset to the Unwind Committee and Investment Committee, invest into “treasury products” (low market risk, low risk staking/farming, cash and carry trades etc…), pay the dividends (upon decision from the Dividend Committee), send funds to exiting members.
Dividend Committee
• Composed of 7 Permanent Members.
• Renewed every 3 months through a vote from all Permanent Members.
• Responsibility: decide on exceptional dividend, decide is better to reinvest dividend into the EggsDAO instead of paying it out.
Exclusion Committee
• The Exclusion Committee is composed of all Permanent Members.
• Responsibility: Exclude members.
• Each proposal will be subject to a deadline of maximum 1 week for voting. The proposal is deemed to be accepted is strictly more than 50% of the voters are supportive of the proposal.
Change Committee
• The Change Committee is composed of all Permanent Members.
• Responsibility: amend the governance of the EggsDAO.
• Each proposal will be subject to a deadline of maximum 1 week for voting.
• Each proposal will be subject to a deadline of maximum 1 week for voting. The proposal is deemed to be accepted is strictly more than 50% of the voters are supportive of the proposal.
At the moment of writing 41 Egg holders have joined the DAO. The launch date of the EggsDAO is December 10th and Initial Members can join until the 17th of December.
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