Framework for the Synergy between LockTrip and the Hydra DAO
Today we will explore another proposal made on the Hydra DAO, which aims to strengthen the DAO treasury via voluntary contributions by LockTrip!
The Hydra DAO operates via its dedicated treasury. It represents an important resource that can be used to fund strategic investments, issue grants to promising projects, launch liquidity mining campaigns or pay for marketing and developers (among other expenses).
Currently the DAO has a seed budget of roughly 4 million HYDRA. Once the newly developed HydraGon powered version of the chain goes live, a fixed 2% annual income (relative to the total supply) will be funnelled into the treasury, allowing it to operate sustainably without being dependent on any external party.
To further strengthen the DAO budget and improve the supply distribution on the chain, LockTrip proposes a 20% voluntary fee on its own staking income, to be directed into the treasury. To achieve this, delegation to a DAO-owned validator is proposed, which would be deployed with a 20% fee setting.
Summary of the Proposal:
- Company’s Voting Rights: To ensure fairness and avoid conflicts of interest, the company will not be eligible to vote on any proposals.
- Company’s Commitment to DAO Proposals: The company commits a fair share of the staking income it generates towards operational proposals that get approved. To achieve this, the company is willing to delegate most of its HYDRA balance to a DAO-owned validator which would collect a 20% commission. The commission would act as a strong form of contribution, without tempering with decisions, and without adding dependency risks.
- The contribution comes on a voluntary basis, in the spirit of growing the DAO and supporting the network. Adjustments to the contribution can be made unilaterally.
- To make the contribution possible, the deployment of a DAO-owned validator is required.
The combination of the first two items will strengthen the independence of the DAO and at the same time gradually shift value from the LockTrip company towards the DAO.
This also comes as a pre-step towards the medium term goal of migrating Hydra-related employees to become part of the DAO, thus increasing not only transparency, but also the influence the community will have over the development cycle.
The proposal will be put to a vote soon, so please make sure to leave your comments, feedback and questions on the DAO forum as soon as possible!
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HYDRA is a proof-of-stake blockchain optimized for real-world businesses. It tackles some of the most profound and challenging issues with existing blockchain economies and introduces a truly shared economy with fair treatment to all network participants.
