ZooDAO’s Yield Snowball
We’re excited to propose changes to the yield distribution of NFT Battles. We suggest increasing the DAO’s income to 9.5% and minor changes to xZOO and Jackpots. Our reasoning for this proposal is detailed below.
Why?
A deepened DAO treasury aims to create a snowball effect of yield generation. As a result, in the future, ZooDAO will no longer need to rely solely on the APYs offered by various protocols; the ZooDAO treasury will be able to sustain user rewards. This approach has many upsides; if APYs dilute across DeFi, ZooDAO can reward users directly from the treasury’s yield — in addition to the standard direct-to-user farming rewards various DeFi protocols offers. In summary, the changed ZooDAO treasury income allows the DAO to give value back to its users regardless of the current happenings in DeFi or the protocols we build on.
We look to successful protocols across DeFi, such as Yearn.Finance for inspiration on their DAO income. Yearn’s DAO benefits from over 20% commission on specific strategies and many other protocols are in a similar ballpark. Therefore, ZooDAO needed to reflect and look forward to the longevity, sustainability, and scale we can achieve with a profound treasury.
A profound DAO treasury also means a direct benefit for $ZOO holders in a plethora of different ways. Marketing initiatives will include sponsoring major crypto and NFT events with live talks, workshops, AMAs and more. Stalls with ZooDAO merch (can you imagine how impressive the hoodies/t-shirts will be?), sponsored advertisement slots, community meet-ups, and much more will take ZooDAO to its destiny: mainstream adoption.
Will this take away from users?
No! The treasury’s yield will be distributed back to users so that the community doesn’t lose out in the short term but majorly wins in the long term.
The DAO treasury generates yield for winners of Battles continuously, it is very similar to a user staking the liquidity themselves, although, unlike users’ liquidity which may be removed, the DAO will continue to generate yield prizes for the community forever.
We’ve aptly named the proposal “ZooDAO’s Yield Snowball”. The more the treasury deepens, the more yield ZooDAO generates for users. The more yield it generates, the more lucrative and attractive the rewards become. The more users ZooDAO attracts, the further the treasury deepens — this cycle repeats itself.
Is this increase for the ZooDAO team?
No! The goal is to bolster the community’s treasury and maximise the reach of ZooDAO and $ZOO. The team’s yield percentage is and always will be humble. As ZooDAO matures, specific hires for tasks may use the DAO treasury only via community approval through proposals. For example, the DAO might need to take on a specialist for a particular job with a timeline (not a full-time salaried position). For example, “We need X person/team to consult regarding building ZooDAO in the Metaverse; they have quoted us $X amount. Here is their background of previous work” The community would then vote yay or nay in favour or against the release of funds for this specific purpose.
As most treasuries do, the DAO will have operational expenses, such as flights to a live event to speak at, setting up a stall with merch, etc. In summary, treasury funds will always be used strictly for the maximum benefit of the community: Our users directly via sustainable yield rewards and expanding the reach of ZooDAO and $ZOO.
What is the proposed breakdown of yield?
We propose the following changes:
NFT Voters: From 91% to 83.5%
DAO Treasury: From 2% to 9.5%
Jackpots A & B: From 1% to 0.5%
xZOO: From 0.5% to 1.5%
The ZooDAO Project Team unanimously supports this proposal
The ZooDAO Community has placed enormous trust in the team, extending support and encouragement throughout the development process and demonstrating confidence in the project by purchasing and holding $ZOO tokens. We wish, above all else, for a lucrative protocol for our community to enjoy for the years to come. These suggested changes drastically increase the protocol’s chances of success on the world stage.
How to participate in the vote
Snapshot voting decides the outcome of the proposal. To submit a vote, connect the wallet where you control $ZOO tokens to the dApp and select Approve / Reject bid. No gas fees apply.
