Why I won’t be participating in the DeanslistDAO futarchy market
The latest DeanslistDAO futarchy proposal contains an new economic model for The Dean’s List DAO, a strategy to enhance economic stability and growth. By utilizing USDC to purchase $DEAN tokens, the DAO aims to create consistent buying pressure that boosts the token’s price, but I’m concerned about its true intentions and the equitable impact on the community.
The primary goal of the proposed model is to increase the price of the $DEAN token by creating constant buying pressure. While this might seem like a promising approach to some, it overlooks the fundamental purpose of a DAO — to benefit its community members. Instead of focusing on providing equitable pay or enhancing the value delivered to the community, this model seems more interested in pumping up the token’s price. I understand it’s a requirement for a futarchy proposal to succeed, but fails to elaborate on how that added value to the DAO and top token holders could translate to added value to the community members.
The model’s emphasis on creating buy pressure to inflate the token’s price indicates a prioritization of short-term profits over long-term community well-being.
Encouraging the community to trade in such markets, especially when there is an asymmetry in knowledge and resources seems predatory. This approach seeks to extract value from community members without creating any genuine value in return.
The proposal acknowledges that most DAO citizens will likely sell their $DEAN tokens to pay their bills, which results in a continuous cycle of buying and selling. This churn benefits those with more knowledge and resources while exploiting less-informed participants, the “small fish”, in the community. By design, it would create a system where the community is encouraged to buy high and sell low, effectively enriching a few at the expense of many.
Despite the intricate calculations presented, the model doesn’t seem to address the actual compensation or economic well-being of the DAO’s members. Instead, it focuses on the token’s price movement and the supposed benefits of increasing the Fully Diluted Valuation (FDV). This highlights a disconnect between the DAO’s stated goals and its actions, emphasizing token value over tangible improvements in community members’ lives.
This not only undermines trust within the community but also jeopardizes the DAO’s long-term sustainability by breeding an environment of exploitation rather than collaboration.
By prioritizing trading profits over the genuine needs of its members, the DAO risks alienating the very people it should be serving.
I choose not to participate in trading this proposal because it represents a move toward short-term gains at the expense of long-term, equitable impact. True community-driven growth requires models that prioritize fairness, transparency, and mutual benefit, ensuring that all members — not just a select few — can thrive. The focus should be on creating value for the community as a whole, rather than simply inflating token prices to benefit the largest holders.
Does that mean DeanslistDAO is the problem?
No. This is the closest I’ve ever flown to the sun. To be clear, I am one of the largest holders of $DEAN.
That’s the thing, I love it here. Deanslist works tirelessly to make earning opportunities available to community members all around the world. It’s is a great example of how people can work together through varying differences, and a solid incentives framework to build on. It’s hard to implement a framework with so many varying degrees of opportunity or background.
Honestly, no DAO has done more for me, which is why I feel comfortable expressing these concerns. This feeling of incompletion, or compensation inadequacy, stems from a history of failed proposals, absent discussion, and misaligned goals. This is the only environment addressing these concerns head-on so consistently evokes equitable changes, which is why I dig my heels in yet again on incentives. There is no easy solution, as with belling the cat.
This proposal highlights an opportunity to realign incentives for top contributors with the long term success of the DAO, which will strengthen the community and overall services we provide. But, how do we align citizens with incentive for profit as an organization?
This requires a shift from a profit-driven mindset to one that values community-driven growth and equity.
Futarchy hasn’t shown promising signs of the ability to establish equitability for community members, but delivers a reliable framework on which the price of an asset can be programmatically increased. From a capitalist perspective, futarchy looks like the perfect embodiment of the alchemic transmutation of wealth-knowledge into wealth. In the right hands, this could empower communities to generate highly lucrative parallel economies, in which a true flat hierarchy can form.
In the wrong hands, it could finish hammering the wedge between the world’s highest and lowest earning populations.
Trade cautiously, or get swallowed whole.
*Disclaimer- Author is a holder of the $DEAN community governance token and active member of the DAO.
