ArrowDAO White Paper
ArrowDAO is a blockchain based community DAO (Decentralized Autonomous Organization) with active tokenised portfolio allocations (Arrows) which are intended to generate regular income in Ether or another cryptocurrency. Each Arrow is a fully decentralized, self-governing smart contract serving as a tokenized share in an underlying investment strategy.
Our vision at ArrowDAO: Take wealth creation out of the hands of the few and put it into the hands of the many.
A History of Financial Exclusion
We, the 99%, would love to be able to accumulate wealth, but there’s a huge chasm between accumulating wealth and earning income, and few of us are lucky enough to cross it. In the past, only people who already had wealth could significantly increase their wealth: they had access to capital and grew up in families with strong financial education.
Crypto’s Promise (and Current Limitations)
In today’s global economy, the wealthy are not the only ones able to achieve financial freedom. Crypto and decentralized financial systems offer us numerous opportunities — but they have not yet achieved their potential to enable true financial inclusion.
That’s because cryptocurrencies and decentralized financial systems require:
1. Expertise. To generate wealth through Crypto, one has to understand both the market and the technology.
2. Time. Monitoring trends and markets regularly requires a great deal of time investment.
3. Money. In addition to the initial investment required, many Cryptocurrencies have high fees for each transaction.
The obstacles of expertise, time, and money make an investment in DeFI a luxury available to a select few.
Arrow’s Solution: True Financial Inclusion Via ArrowDAO
We are building ArrowDAO to make it possible for anyone to participate in automated, risk-controlled, diversified investing across multiple areas of the economy. The DAO will issue a selection of Arrows — Tokenised Investment Products. DAO members will also have access to educational resources that allow them to make informed decisions, and share in the rewards.
From day one, ArrowDAO will be a completely decentralized community. ArrowDAO’s task is to advise on and suggest Arrow products designed to make a truly financially accessible future possible.
ArrowDAO tokens represent carefully curated baskets of assets, mostly known as ETFs — or Arrows as they are referred to in our ecosystem. These tools are designed to help you keep your investments simple. Arrows are made for people with busy schedules, no desire to waste money, and no time to research projects to find the next great coin. In other words, ArrowDAO is made for everyone, including people currently excluded from the Crypto world.
Core principles
- Transparency: Blockchain technology fosters transparency. It provides an unprecedented opportunity to ease the public’s growing frustration with — and distrust of — dysfunctional centralized financial systems. By distributing data across a network of computers, the technology allows any group of individuals to embrace transparency rather than central-entity control. The result is an unbiased, transparent, and highly efficient permissionless system — one that can improve and further financial inclusion for all.
- Community: We founded ArrowDAO because we believe better decisions happen when everyone can suggest ideas and make their voice heard. All ArrowDAO members can suggest ideas for current and future Arrow products, and any changes regarding the ArrowDAO treasury must be approved by a majority of ArrowDAO members. To foster open debate and a productive exchange of ideas, Arrow Inc. will post a set of community guidelines designed to ensure an atmosphere of respect and inclusion, as well as prohibit discrimination of any sort. To ensure the effectiveness of the community guidelines, they can be amended through an ArrowDAO vote. If an ArrowDAO member repeatedly violates community guidelines, they will be notified and warned to stop. If they persist in creating a hostile and unproductive environment for the rest of ArrowDAO by violating the community guidelines, they will be blacklisted and expelled from ArrowDAO.
- Excellence: At Arrow, we know good intentions aren’t enough: results matter. To that end, Arrow is committed to creating excellent products, executed to the very best of our abilities, based on the input of ArrowDAO members. Our current product, ArrowChain, is a KYC verification app that makes the customer verification process more efficient and secure for customers and companies alike, while also promoting data transparency. All products launched by Arrow will be of similar calibre so that they can effectively promote universal financial accessibility.
Taken together, our core principles of Transparency, Community, and Excellence will promote meaningful financial accessibility for all members of ArrowDAO and Arrow product users.
Path Forward
So where is Arrow heading? ArrowDAO will supply diversified exposure to DeFi blue chips, while charging no fees and farming yield safely. It is aimed at the long term passive investor as a safe set-and-forget investment. ArrowDAO will not be a yield maximizing token; safety and security of funds will always come first, and we will have strict inclusion criteria both for tokens and acceptable farms. New indices can be created to maximize-yield or carry out other mandates in the future, depending on market demand and community direction. They will have their own criteria to accommodate the risk profile and mandate of that index.
DAO Governance
ArrowDAO decisions are governed by the ARROW token holders. Through snapshot.org voting, ArrowDAO will propose key upgrades and changes to the protocol such as reward amount updates, treasury allocation, and membership price adjustments. Election timeframes and rules will be posted publicly in advance.
Treasury
ArrowDAO aims to fund decentralized financial business models through the creation of DAO treasury funds. We envision a future where the world is run by DAOs. As DAOs scale into the trillions by funding essential services, they will dramatically accelerate the impact of decentralized technologies.
ArrowDAO treasury will use a Gnosis safe multisig wallet with an odd number of signers for treasury funds. Using a voting mechanism governed by the ARROW token, holders will determine which proposals should be funded from the treasury. In order for this project to succeed, it requires participation from all stakeholders. ARROW smart contracts will not be able to eliminate the need for human decision making and this consensus mechanism must therefore always remain as fair as possible.
Implementation Plans
- Discord: ArrowDAO’s Discord Channel is the place for all Members to share, discuss or learn about Crypto! We will have category based channels for you to post your requests and comments related to each category. ArrowDAO Discord will be gated by a bot which verifies membership of each user. Once verified the user will have access to our full channel list.
- Gitbook: Gitbook is an open source tool designed for teams to quickly publish content and documents to distribute their knowledge. Gitbook will be the public knowledge hub of ArrowDAO.
- Medium: Medium will be used for blogs, updates, and supplemental educational materials about ArrowDAO.
ArrowDAO is the next step in Arrow Inc.’s mission of true financial accessibility and inclusion via blockchain technology.
A roadmap paper will be published following the release of this of this White Paper with additional details. Follow Arrow Inc. on twitter at @Joinarrowchain for updates.
