Today marks the main-net launch of necDAO — one of the largest DAOs as of 2019 with c.17,000 ETH pledged. necDAO will have complete jurisdiction over the use of funds for the development of Nectar and DeversiFi. Read on to discover the how, what and why, as well as important dates. If you simply want to learn how to earn Reputation, skip to the relevant section!
- As of today, 18.12.19, the Bootstrap Phase has begun and will last exactly 30 days. This is the first Reputation claiming period, after which governance will begin. Claim Reputation here
- Users will need to use MetaMask to connect with the bootstrap dapp. You can use Trezor or Ledger to do so, but we strongly recommend using MetaMask directly to avoid any issues.
- During the initial Bootstrap Phase, a total of 1million Reputation is available through; locking NEC, an airdrop for NEC holders and GEN auctions
- necDAO will be owned by Nectar holders who claim Reputation. Anyone can claim by locking NEC for a pre-selected period, bidding GEN, requesting in a proposal or through an airdrop. Nectar is tradable against USDt and ETH on DeversiFi and Bitfinex
- necDAO is built atop the DAOstack framework and uses holographic consensus through the alchemy interface. It has full control over the use of funds with the goal of benefiting the Nectar/DeversiFi ecosystem
Why what and how necDAO?
To understand the necDAO, we have to go back in time to the work of the Ethfinex exchange. Ethfinex launched roughly two years ago and throughout their lifetime, they developed the Nectar token as an innovative loyalty and governance mechanism. They collected 50% of trading fees which were pledged to market makers of the exchange and developed novel governance tools such as the Ethfinex Token Vote. They strategically spent time putting blockchain to the test, building and experimenting with new ways to ensure TRUE stakeholders have REAL input.
Ethfinex closed their doors in August 2019, coinciding with the launch of a brand new entity — DeversiFi. DeversiFi’s north star is to build the infrastructure that facilitates this emergent transition to a new, open and decentralized world. As such, DeversiFi has carried the Nectar torch from Ethfinex, pledging the remaining funds — c. 17,000 ETH — into necDAO. One of the largest DAOs in existence.
Leading up to this, two concepts were ultimately fine-tuned in parallel: Nectar token and distributed governance.
Nectar as a Reward Token
Ethfinex created the Nectar token as a novel way to reward market makers of the Exchange. In short, they proportionally awarded NEC to traders based on their market-making volume. These NEC could be held for voting power (as detailed below), sold on the open market or used to redeem a pro-rata share of the 50% of trading fees sent to the Nectar smart-contracts every month. Early developments of Nectar proved successful with steady growth in users and trials in stakeholder empowerment paying off.
Nectar as a Governance Token
Not only was Nectar a reward token, but it was also a governance token. Before DeversiFi and necDAO, Ethfinex first trialled a number of innovative ways to place control into the hands of their traders. It was Ethfinex’s and is DeversiFi’s, belief that the end-user is the one best placed to dictate what they want. The best example of this in action is the Ethfinex Token Vote where they harnessed the innovative Kleros dispute resolution layer and allowed traders to decide which tokens they want to see listed next. ETV saw a total of 15 successful rounds of voting and offered the perfect learning ground to develop and prepare for the next phase
Bringing the Two Twogether — necDAO
The efforts of Ethfinex over the past 2 years have served to empower Nectar holders whilst playing their part in making DeFi technology more open, accessible and attractive to users of all levels. And this is precisely what underpins DeversiFi’s move with necDAO. All funds pledged to the aforementioned Nectar smart contracts have now been allocated to necDAO and are under the direct control of Nectar holders. The remit of necDAO will be to collaborate on the growth of Nectar as well as aspects of DeversiFi and the wider DeFi ecosystem.
Bootstrap Phase! Getting Reputation and Becoming a Stakeholder
The initial Reputation distribution scheme (distributing a total of 1 million Reputation) will begin today — 18.12.19 — and last exactly 30 days. During this period you will be able to claim Reputation in 3 ways:
After this initial bootstrap phase is completed, the redeem phase will start on 17.01.19, lasting one week before the necDAO is open for governance.
How to claim Reputation?
Navigate to the Reputation interface at www.nectar.community/dao to begin the claiming process. You will need to move your Nectar to an on-chain wallet to interact with necDAO.
- Staking Nectar Tutorial (85% of Reputation)
- Claiming Airdrop Tutorial
If you held Nectar in an on-chain wallet over the past week, you will have been included in the Reputation airdrop snapshot as detailed in our announcements here. If you are, you will be able to interact with the bootstrap UI to claim your airdrop:
- Bidding GEN Tutorial
Learn more about this here.