What is Underworld DAC?

Published in

DeFi Passively

4 min readJun 6, 2022

If you’re involved in the $METIS ecosystem, chances are you’ve seen a tweet or two on @Underworld_DAC. So what exactly is this project all about? Let’s dive in.

Content converted from the thread by BarryFried1 on Twitter.

Underworld DAC is taking a different approach,

creating an emission => treasury dividend model!

How will it work?

At launch, 2 NFTs will be available to mint: the “Sleeping Sleeve” and the “Phren Interface Ship”, with each collection having a supply of 2497 pieces.

To reap the benefits of the protocol, these 2 NFTs must be fused, creating a “character”. Then, the accrued $METIS from the mint will be staked, validating the DAC (the rest will go into the treasury). In addition, those who fused their NFTs will be eligible for a $KAIROS airdrop!

$KAIROS Token

Shortly after, 1 million $KAIROS tokens (10% of max supply) will be up for public sale at 1$ per token. The first 500k raised will be swapped for $METIS and placed in an LP with 500k $KAIROS (5% of supply), and the rest will go to the treasury (more on that later).

NFT Levels

Fused NFT holders will be able to upgrade/level up their NFTs, improving their overall utility/rewards! There are four levels, with each upgrade paid for in (you guessed it) $KAIROS tokens! After the fuse, NFTs will start on level 1, granting $KAIROS token emissions + governance (500 votes)

Leveling up to level 2 will cost 250 $KAIROS tokens and grant DOUBLE emissions, governance (1000 votes), and Treasury dividends! To reach level 3, NFT holders must pay 500 $KAIROS. This will grant quadruple emissions, governance (2000 votes), double treasury dividends, and a 10% $KAIROS staking boost (more on that later)!

Unfortunately, upgrading to level 4 will cost 2000 $KAIROS and has a limited supply (only 100 NFT holders can upgrade to level 4). Holders will receive 10x emissions, governance (10k votes), 5x treasury dividend, and a 30% $KAIROS staking boost! But that’s not all. Level 4 NFT holders will be able to enter a private discord channel, granting access to unique features, spoilers and utilities!

Non-escrow staking (NES)

Non-escrow staking (NES): As mentioned earlier, NFT holders will receive emissions in staking rewards. However, this staking model doesn’t require a deposit into an escrow contract. The NFT will never leave your wallet unexposed to SC risks!

Users can stake their $KAIROS tokens in exchange for $xKAIROS. (non-transferable). Once KAIROS is staked, users receive xKAIROS rewards every second! ($xKAIROS emissions will end when the ratio between KAIROS and xKAIROS is 1:1). Remember those staking boosts from holding level 3 and 4 NFTs?

Holders can receive a max boost of 100% APR! For example, a level 3 NFT has a 10% staking boost, meaning if you have 10 NFTs at level 3, you will have a 100% boost on $KAIROS staking rewards.

All $KAIROS used to upgrade NFTs, and from the NFT swap volume will be burned. However, instead of burning tokens out of circulation, a corresponding amount will be emitted as staking rewards. Once emissions end, KAIROS will become deflationary!

Treasury Funds

First, what exactly are treasury funds being used for?

Remember the governance power rewarded to NFT holders? They’ll decide on how the protocol utilizes the treasury!

Let’s face it; as much as we all love $METIS, their DeFi ecosystem is lacking. So let’s say voters decide to build one of these much needed DeFi protocols in the Metis ecosystem. Imagine the potential revenue to NFT holders through protocol dividends.

Team Allocation

Only 12% of the total supply is allocated to the team! (locked for six months, then linear vested over two years). Rumor has it the team will burn ALL emissions earned from their respective level 4 NFTs😏. Audits are on the way as well!

Keep an eye out on @Underworld_DAC 👀

Acknowledgment