How the DeFi Growdrop could help bootstrap Next Generation DAOs
When Satoshi Nakamoto announced Bitcoin to the world, he was fielding 2 radical concepts: the decentralized autonomous organization (DAO) and a self-sovereign digital currency.
The ultimate release of Bitcoin Client ushered in the birth of the first successful DAO; comprising early supporters who dedicated their computing power to secure the blockchain network and process Bitcoin transactions in exchange for Bitcoin block rewards.
Today’s blockchain financing landscape, majorly dominated by the ICO and IEO, is not ideal for truly decentralized autonomous organizations. Unlike with Bitcoin inception whereby price growth was dictated by real market demand, for most projects today, early token price growth is driven by hype and trader speculation — leading to the massive cryptocurrency price fluctuations and market crashes witnessed over the past 2 years.
The Growdrop Model
Growdrop is a DeFi crowdfunding platform that guarantees supporter (investor) principal by depositing funds in the lending protocol pool and funding the project (DAO) with generated interest in exchange for the native DAO tokens.
Akin to the Bitcoin DAO, the Growdrop model doesn’t demand that early supporters give up control of their assets, but rather dedicate them towards a shared/common goal while still maintaining full control.
The Growdrop fundraising will act as a crucial forerunner event that helps consolidate the DAO core community, ahead of its network actual launch. Furthermore, it allows for a steady network roll-out that nurtures a sustainable DAO token price growth trajectory.
TokenPesa DAO: A Case Study
The TokenPesa DAO is the very first decentralized autonomous organization to bootstrap using the Growdrop approach. TokenPesa DAO Token (TDAT) will be distributed to early supporters in 10 monthly phases. Each phase distributes 1,200,000 TDAT to the Growdrop supporters, and 200,000 TDAT + 10% interest is deposited to Uniswap Exchange to create liquidity for the DAO token
Supporters join by depositing the WBTC stablecoin to Growdrop event. They’ll be able to withdraw deposited WBTC+ the TDAT Growdrop reward (according to % of WBTC interest contributed).
Initial Reputation Distribution
Growdrop supporters can later stake their TDAT tokens to acquire the TokenPesa DAO initial reputation (voting power). Unlike the native DAO token however, reputation is non-transferable and can be burnt by the DAO if its holder goes against DAO goals.
Reputation Rewarding & Slashing Factors (Shared Goals)
The DAO recognizes good behavior by granting reputation rewards; also punishes bad behavior (malicious actors) by slashing their reputation. Activities that influence reputation adjustments include:
i) DAO Proposals and voting
ii) Wrapped KSH distribution (for agents)
iii) Validation of blocks for the TokenPesa Substrate (a Polkadot parachain) that runs on its own Reputable Proof of Stake (RPoS) consensus algorithm
iv) Asset Management (Reputation holders lock TDAT tokens to earn collateralized REP)
Reputation holders will also mint new TDAT rewards for playing the above roles.
DAO Revenue
The TokenPesa DAO will operate the PesaDEX token listing and delisting. All DEX trading fees will be collected in the on-chain DAO treasury whereby DAO members vote on the fund expenditure.
Conclusion
Decentralized autonomous organizations will undoubtedly play a key role in shaping the future of blockchain innovation. Meanwhile, the Growdrop DeFi crowdfunding model will most likely be vocal in funding these nascent decentralized ventures.
