✨,✨Starcoin DAO 2.0 & DAOspace, Seed Member Program and Starswap ($STAR) in depth: Twitter Space #3 Recap [9/16/22]
Introduction to DAOs
Crypto to a large degree involves the movement away from centralized authorities towards a decentralized, trustless framework that anyone, anywhere, can use and participate in. Moving away from a top-down management infrastructure whereby a single entity, organization, or individual is in control empowers decentralized communities to cooperate towards a common goal. Applying this framework to blockchain, the purest expression of this is borne in the DAO (Decentralized Autonomous Organization).
A DAO (Decentralized Autonomous Organization) must be:
- Open– any individual can join, contribute, and be rewarded.
- Inclusive– design of DAO aligns stakeholders via incentives & enables community participation.
- Trustless– community changes & proposals can be made on-chain, without centralized intervention.
- Scalable– built-in ease of use combined with low barriers to entry provides a foundation that enables scaling.
- Transparent– verifiable open-source technology, which can be copied and iterated.
DAOs replace the top-down management approach with governance processes. Governance processes are expressed in the form of community votes, polls, and communities alongside programs that provide members ways to gain reputation and influence. Collective interaction leads to effective decision-making and successful governance leads to consensus in order to provide the decentralized organization legitimacy.
Due to the DAO’s nature, the role of a centralized authority is displaced, replaced by a set of fluid governance processes that serve the will of a broader community. Due to the wide range of potential goals of a collective, each DAO expresses itself in a custom set of governance mechanisms that enable it to function and achieve disparate goal-sets identified by its members. This flexibility to cooperate trustlessly transforms the will of a collective into outputs while eschewing centralization.
Foundational principles (general overview): Viewed at a high-level, every DAO must first be informed by its goals & objectives, then provided with rules for cooperation and governance processes. Foundational principles that inform the governance model are key inputs informing the creation of any DAO.
Let’s apply this context to Starcoin Blockchain and its DAO 2.0: DAOspace.
Starcoin DAO 2.0: DAOspace
Starcoin’s core ethos revolves around decentralization, so its development of a DAO platform is the natural progression from its original DAO mechanism, which has enabled on-chain governance since day 1 mainnet launch via $STC voting. As a community-owned, public blockchain, Starcoin is committed to building a decentralized system with, “people, (not power) as the core, based on a decentralized autonomy provided by technology and tools, and the freedom to gather together to maximize the value of the organization driven by the belief of individual rights and interests.”
Below we’ll dig into the official release of information regarding Starcoin’s DAO 2.0 governing principles, models, and responsibilities.
Starcoin DAO 2.0 Governance Design
1）StarcoinDAO 2.0 Governance Principles
Minimal governance principle, if a stable equilibrium can be reached by program calculation or market game mechanism, no governance is needed.
The principle of local consensus governance minimizes global governance and delegates specific functions to other professional DAOs for decision-making.
2）Governance model of StarcoinDAO 2.0
Starcoin DAO is an open DAO with no access restrictions.
The members of the Starcoin DAO are governed by on-chain voting, and each member’s SBT value in the DAO represents its voting weight.
3）Governance responsibilities of StarcoinDAO
Voting on the hard fork feature of Starcoin public chain.
Voting on the adjustment of consensus parameters of the Starcoin public chain.
Upgrade of Starcoin Framework, the system contract of Starcoin public chain.
Disposal of the STC reserved for ecological construction.
Disposal of the funds obtained through the public offering.
Starcoin DAO 2.0 Launch Plan
1) After the Starcoin Framework v12 release upgrade, the system Genesis account 0x1 will be upgraded to a contract account, which represents the account address of StarcoinDAO. At this point, the DAO membership is empty, and Starcoin DAO begins a one-week launch preparation phase, during which Starcoin DAO cannot perform on-chain governance.
2) The R&D and eco-incentive Tokens reserved at the Starcoin main net launch, including the unreleased portion, are transferred from the Foundation account (0xA550C18) to the Starcoin DAO account address (0x1).
3) Starcoin DAO member SBT airdrop. The Starcoin DAO membership SBT will be cast for on-chain accounts before the first anniversary of the Starcoin mainline through certain rules (see later). eligible accounts will automatically become Starcoin DAO members after receiving the cast.
4) Open the Starcoin DAO governance pledge pool. Pledge Starcoin to receive StarcoinDAO governance SBTs, the number of which depends on the amount and length of the pledge.
5) Opened a public eco-building program to bring in more investment institutions and eco-building companies and teams and launched an eco-building program: Seed Member Program.
6) Starcoin DAO 2.0 was officially launched one week after the governance consensus was negotiated.
Starcoin is building the next frontier in DAOspace
Starcoin’s DAOspace is a reaction to the growing trend in Web3 for diversified and systematic governance tools. While small-scale applications enable DAOs to maintain flexibility, the larger the DAO, the more inelastic DAO governance becomes. Enter DAOspace, a DAO platform equipped with a suite of codeless tools and plugins that empower developers to reduce bureaucracy and costs by providing a trustless, permissionless dapp. DAOspace is a chain-native, all-in-one tool-suite combined with a built-in system smart contract for on-chain voting that automatically makes changes to consensus.
One of the great challenges of any new blockchain project is bootstrapping ecological development and funding itself. In a stroke of genius, Westar labs and the core $STC team lead by Tim Yang [Westar Labs co-founder, Starcoin $STC builder, former Weibo(NASDAQ:WB) chief architect and deputy GM] have a deeper intent behind the development of DAOspace: institutional investment and project incubation for ecological development.
Seed Member Program: Dual-pronged >>> [Institutional Investment & Project Incubator for ecosystem development]
Institutional investors have a different set of qualified criteria for investing, and Starcoin’s DAO 2.0 delivers these with its own unique flourish via its Seed Member Program. It’s important to understand that the timescale of institutional investment is much longer and risk-averse than that of the average investor, and so the staking period of 4, 6, and 8 years (@2% per annum APR) is one in close alignment with these interests. Core stakeholder voting rights are provided to those who stake STC to become DAO Prime Members, which are important considerations especially in the context of targeting institutional investment.
SBT (soulbound tokens) are provided in exchange for staked $STC, which are non-transferable governance tokens that will empower their holders to participate in governing key ecosystem projects and development. Taken as a whole, I think Starcoin has flawlessly set the hook and bait for institutional investors, especially those that have been exposed to Move by investing in the Proof of Stake L1 blockchains Aptos & Sui, which are still in the early development phase.
Project Incubator for ecosystem development
Starcoin’s DAO 2.0 plans on selecting the best submitted potential projects seeking to develop the growing blockchain ecosystem. Full support will be provided in terms of funding, traffic, technology, and operation depending on the specific project constraints. Developers seeking opportunity will be able to cooperate with Starcoin to build or share ecological resources to build a thriving, sustainable ecosystem. Any person or organization can take advantage of this DAO-style incubator and thereby join the front lines in the pioneering approach towards accomplishing ecological growth in blockchain.
This wraps up the section on Starcoin’s DAO 2.0 and DAOspace. Next we’ll dive into the section on Starswap in order to provide an in-depth look at key metrics so everybody understands what’s going on under the hood. DeFi yield farming is a key interest of many new community members, but we’ll also be tying this into our previous discussion points when we go over the currently active Starswap governance proposals.
STARSWAP ($STAR) in depth
Total Supply: 100,000,000
Initial Supply: 15,000,000
Circulating Supply (as of 9/16/22): ~14,776,259
One of the defining attributes of Starcoin’s main dex/swap in Starswap are the well-crafted tokenomics and calculations present in the $STAR token. The 100M total supply and low circulating supply prime this native token to make large price movements over time, especially as total TVL (total value locked) increases and the amount of unique wallets and token holders grows.
All of the information provided can be independently found in these linked documents provided by Starswap. However, snippets are included below for ease of reference and understanding of key concepts.
Providing Liquidity / Yield Farming
Currently, there are four available liquidity pairs available on Starswap: $FAI-$STC, $STAR-STC, $STC-$WEN, and $STC-$XUSDT. Varying APR is due to the distinct portion of emissions each farm receives paired with the boost factor applied by each individual farmer. The TVL of each individual farm informs how “far” the APR needs to be spread out. As TVL increases, APR decreases linearly. So, for instance, the max APR someone can achieve yield farming $STAR-$STC is around 145%.
Farm rewards are accrued by liquidity providers, calculated at multiplier rates that relate to the daily emissions of $STAR allocated across all active farming liquidity pairs. This translates into the APR sought out by yield farmers in DeFi. At a whopping 60% of the total supply, LP farm rewards are dispersed over time to farmers participating in the DeFi offerings on Starswap.
veSTAR & Boost Feature
- veSTAR is obtained when single tokens are staked, which cannot be purchased or transferred.
- When single tokens are staked, you can immediately obtain the corresponding amount of veSTAR. When these tokens are unstaked, you need to return the same amount of veSTAR.
- The amount of released veSTAR is proportional to the amount of staked STAR and the time of STAR staking.
- veSTAR will have the right to vote on community governance in the future.
- When Boost is started in the Farm, veSTAR is locked in the Farm’s mining pool. When Boost is canceled, veSTAR is unlocked from the Farm.
- In the Farm, you must first cancel the Boost before you unstake STAR.
- Unstaking any STARs will destroy all veSTAR released by staking these STARs.
Boosting speeds up liquidity mining in the Farm and activates higher yield rewards from faster mining. Boosting is a key factor in getting the most yield out of your farm, but veSTAR also has the purpose
- The more veSTAR you apply to boost your farm, the more mining rewards you obtain (Boost range is 1–2.5 times).
- Boost is used in the liquidity mining pool designated by the Farm. Please enter a liquidity mining pool to check whether Boost is used or not. More farming pools will likely deploy at a later date.
Active Starswap Governance Proposal [ends 09/18/22]
Hopefully everybody reading this with veSTAR in their pocket votes in the soon-to-end governance proposal for adjusting the $STAR stake reward. Proposals like these are important inflection points in on-chain DAOspace participation that will shape the future course of Starswap over time.
For those of you more inclined to read condensed written information over listening to the live Twitter Space, I hope you enjoyed this recap of Space #3 hosted by Starcoin Blockchain. We appreciate your interaction with the content and hope to see you around!