Koop: How does it work?
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Small collective DAO
DAOs are a framework for coordination, rather than the product itself. As a result, there is no single solution to governance. Across use cases, DAO governance should be tailored to the utility of its members. For example, collector DAOs such as PleasrDAO benefit from a closed network of curators, while treasury management DAOs like Juicebox benefit from an open network of builders. The most exciting DAOs are at the edge of social, curation, and new modes of work. Interestingly enough, these three instances meet at one focal point: NFTs.
There are two modes to approaching group purchasing of NFTs: item-first and people-first. To purchase an item, a group pools in funds, usually as a collective of strangers — all driven by the promise of the artist’s mission, returns, or the pudgy penguin’s face. We believe that the people-first model enables a better approach investing.
Wealth is more meaningful when shared with others.
Small collectives are the future of Web3 social. Each small group distributes risk and capital, while also coordinating alongside wider goals. A koop can become a a group chat that apes into projects or a large fund. The differentiation between the two become increasingly blurred in Web3.
Koops are borderless and permissionless.
Even more exciting, the opportunity to play and build is open to anyone. No previous history or significant capital required. Rather than token gating, Koop encourages social signaling and skill-based bridges. You can become a leader in a Koop as voting becomes more fluid. Social rewards drive good behavior and group consensus. Why is this powerful? Small holder does not mean small contributor. The two are typically inversely related as it takes more effort to involve yourself or be heard in a DAO without the wallet movement to back up your legitimacy.
Moving away from token voting
Token voting is skewed towards a few key influencers. Large players can largely sway voting, without having to prove their loyalty and staked interests in the long term viability of a group. While coin voting makes the Koop collectively accountable, each voter is also held individually accountable through a networked reputation.
The distinction between financial and social platforms are fading, but this does not mean we should settle for bundled economic and social components in governance. Points in a Koop are built to be non-transferable and non-marketable, thus ensuring that work decisions are made by those with functional role expertise. Inside of a Koop, you begin building your on chain reputation.
Being a collector and curator is a job, as well as a way to join a community. Our social experiences provide more utility and value than previously imagined, and we should be rewarded for doing so. Few products have been built with the intention of enabling friends to produce collectively and generate wealth fluidly. Koop changes this. Trust is reinforced through repeated socialization and coordination.
How governance works on Koop
What is Dunbar’s number for the amount of mindshare that should be allocated to a decision? Very few when there are experts in the room. Everyone should have a stake in governance, but there should also be mechanisms to encourage sending voting power to other individuals. Many times, a highly trusted, knowledgeable group of 2–3 individuals is capable of making better decisions than the whole.
Delegated democracy allows for specialized knowledge to be utilized. This frees up time within each collective, while also enabling passive income within koops.
Submit a proposal
A proposal is instantiated. Users can upvote or downvote the proposal. Voting alongside the consensus is rewarded. Your voting weight is based on your ETH contributed and your reputation as an NFT investor. Reputation is determined by the number of proposals you’ve submitted that have passed and that also returned a net positive return to the Koop.
Tiered contributors
Points act as a signal on which koops to join and which users to trust. There are three tiers:
Gold 🥇 — 30 proposals
Silver 🥈 — 20 proposals
Bronze 🥉 — 10 proposals
Points are set on a concave dividend rate, in which going from 0 points to 5 is worth more than going from 10 to 20.
Voting
There is a one week countdown on each proposal. If the majority of voting power says Yes (51%), the proposal is executed immediately. If 50% of the voting power votes no, it is immediately closed. 60% of voting points need to be present for a proposal to pass. We currently support immediate resale proposals on OpenSea. After an asset is resold, the koop closes. Users can then start a new koop, or join an existing koop.
El Fin
Individuals are enabled like never before. No lengthy paperwork, no joint bank account, and no maintenance fees. Shared wallets and NFTs are tools enabling easy decision making and skills-based working models.
Crypto is about communities, while fractionalization is driven by exit liquidity for large holders. An even more powerful primitive for group purchasing is a no code solution for spinning up a lightweight DAO, syndicate, or treasury-backed group-chat. This is what the future of work looks like — holding a balance sheet with friends, transacting across ecosystems, all while creating on -chain reputation as holders and contributors. Joining a mission as a group drives individuals to accomplish what would have been previously impossible along.
Friends bring friends into crypto. All you need is one degen to lead the way. The Internet is fun again. We need a mechanism to bring everyone into the new world of social, investing and collaboration. This is a call to action. Start a koop.
Get involved
We are incredibly excited to continue along this journey, and we are actively looking for members to help create the Koop community. There is so much to build.
Join us on:
Discord: https://discord.gg/Rfq9uJsp9Z
