SIP #02: New SREP System and Launchpad Enhancements

SDAO Governance Proposal

Published in

SingularityDAO Ai-DeFi

6 min readMay 10, 2024

Greetings DinoForce,
Over two years ago, the SingularityDAO community overwhelmingly supported the creation of pools for guaranteed allocations on the launchpad. Subsequently, in June 2022, this evolved into a membership-based DAO.

With numerous upcoming projects making preparations to use the launchpad, an innovative new system merging DAO Membership with Guaranteed Allocation to foster inclusivity and reward loyalty is being proposed.

Voting

Starts: 12:00 UTC Monday — May 13
Ends: 12:00 UTC Friday — May 17
Vote: https://snapshot.org/#/sdao.eth

Summary

The proposal introduces a refined SREP system and updates the Launchpad tier criteria to reflect and reward member engagement and longevity in SingularityDAO.

Context

SingularityDAO proposes to implement the SREP (Singularity Reputation Points) system, aiming to revamp the current mechanism for DAO membership. This initiative responds to the need for a dynamic structure that recognizes varying degrees of engagement among members. It introduces a more nuanced and strategic approach to participation, moving away from the one-size-fits-all model to a system that acknowledges each member’s unique contribution to the ecosystem’s growth.

1. SREP Introduction and DAO Vault Transition:

A Dynamic SDAO Vault will replace the current unbonded and bonded SDAO vaults, establishing a more flexible DAO Membership vault.
Users can initially lock SDAO tokens for 30 to 360 days (locking up to 1000 days will be added later), directly influencing their DAO Tier and the associated benefits.

This change will democratize access to the launchpad, allowing both new users and long-term supporters to participate effectively.

2. DAO Tier Adjustments:

We will shift from the current SDAO-based tiers to an SREP-based tier system:
🏃 Ambassador — See Phase 2 Restructure section
🛠️ Iron — 500k SREP
🥉 Bronze — 1M SREP
🥈 Silver — 2.5M SREP
🥇 Gold — 5M SREP
💎 Diamond — 10M SREP
1 SREP equals 1 SDAO locked for 1 day, providing a clear, time-based metric for membership standing and privileges.
‘Number of SDAO’ x ‘Length of Lock’ = SREP

Example Situation 1:

User locks 1000 SDAO for 100 days = User gains 100k SREP instantly
(1000 x 100)
100 days pass and user can withdraw SDAO from vault, keep SDAO in vault not locked, or lock SDAO for another period
User decides to keep SDAO in vault without locking it for 100 days
200 days pass since first deposit = User has 100k total SREP
User decides to extend his lock of 1000 SDAO for another 100 days after the 200 days have passed = User gains 200k SREP instantly (300k SREP total)

Example Situation 2:

User locks 1000 SDAO for 100 days = User gains 100k SREP instantly
(1000 x 100)
100 days pass and user can withdraw SDAO from vault, keep SDAO in vault not locked, or lock SDAO for another period
User decides to withdraw SDAO from vault = -100k SREP (0 SREP total)
User decides to lock the 1000 SDAO for another 100 days after withdrawing = User gains 100k SREP instantly (100k SREP total)

This setup aims to offer benefits for sustaining SDAO allocations over time. If SDAO is withdrawn from the vault, the associated SREP will be forfeited, emphasizing the value of long-term participation and strategic planning in token staking and DAO participation.

3. Incentive Structure and Flexibility:

A withdrawal fee of 0.05% per day will be implemented for premature unlocking, promoting commitment while still offering emergency liquidity
Special incentives for 🥇 Gold and 💎 Diamond tiers, including refund options* for selected projects, will enhance the value and appeal of top-tier participation

Tier Pools Enhancement

Along with the existing benefits, all Tier Pools will continue to distribute SDAO as rewards, in line with our commitment to rewarding active and long-term members. Furthermore, airdrops and multi-asset rewards will be introduced in Q2 to early Q3.

Gold and Diamond tier members will have a unique advantage in the enhanced incentive structure during select launchpad events. After the token generation event (TGE), these members have a 24–72 hour* (this period may change based on per-launch specifics) window to assess the the newly launched token. If the launch doesn’t meet their expectations, they can claim the initial deposit token and deposit amount.

This feature, available for selected projects only, is designed to grant Gold and Diamond members greater control and flexibility in their decisions, enabling them to manage their risks and opportunities more effectively.

4. First-Come, First-Serve (FCFS) Participation Restriction:

Modify the FCFS allocation to require DAO membership, requiring SDAO to be staked, and ensure that dedicated and invested members receive appropriate rewards and opportunities.

Rationale

The introduction of the SREP System marks a strategic shift in how DAO members are engaged and rewarded. By allowing users to lock SDAO tokens over their chosen timeframes, a more tailored experience is offered, one that directly correlates to their level of involvement and future vision for the DAO. Key motivations for this proposal include:

Providing a system that rewards members for duration and consistency of engagement, encouraging a deeper connection with our projects
Offering additional benefits for members at the Gold and Diamond levels, including post-TGE allocation refunds based on market assessment, giving them more agency in their value allocation choices
Proposing a fee model that deters premature withdrawals while maintaining a safety net for necessary early exits
Restructuring FCFS allocation to prioritize members who demonstrate a long-term vested interest in the DAO’s success

Voting options

Accept the governance framework
Rework the proposal
Abstain

The proposed changes signify a significant evolution in SingularityDAO’s operational model, emphasizing a more inclusive and meritocratic approach. This proposal, identified as Phase 1 Restructure, focuses on revamping the SDAO and SREP system along with the introduction of adjusted DAO tiers from Iron to Diamond.

Phase 1 Restructure

The transition to a dynamic SDAO Vault system allows 30 to 360 days of token lock-up.
The introduction of an SREP-based tier system, adjusting membership benefits accordingly.
Implementation of a withdrawal fee structure and enhanced incentives for higher-tier members, particularly for the Gold and Diamond tiers.
Adjusting the FCFS allocation process to ensure it is tied to active and meaningful DAO participation.

Note: The new SDAO Vault system still provides SDAO rewards (in the same way that Epoch and Unbonded vaults used to). In the future, more features will be tied to this contract, like multi-asset rewards.

Phase 2 Restructure: New Allocation System + Launchpad V3

To be introduced in a subsequent proposal, post the conclusion of this vote, Phase 2 will focus on establishing a new Launchpad infrastructure, a solution for granting allocations, and an additional tier:

Tier 6 — Ambassador, will reward members for engaging with SingularityDAO’s products and social media platforms. This tier will offer a unique pathway for users to gain additional allocations irrespective of their SDAO holdings.
The current Launchpad was designed in Q1 2023. As technology progresses the team is designing a new launchpad infrastructure to set a new industry standard.

Members are encouraged to review the proposal details and vote according to their conviction on the future direction of SingularityDAO. We encourage all stakeholders to participate in this pivotal decision-making process. Your vote will shape the future of SingularityDAO and its capacity to innovate within the blockchain ecosystem.

Voting starts 12:00 UTC Monday — May 13 and ends 12:00 UTC Friday — May 17.

Vote Here: https://snapshot.org/#/sdao.eth

About SingularityDAO

SingularityDAO redefines crypto asset management with AI-driven strategies suitable for all market cycles. Focused on automated, secure, and efficient asset management, it leverages data-driven insights and robust risk management practices to benefit its users. Its dynamic ecosystem nurtures individuals and web 3.0 projects, fostering growth and innovation in the digital asset space through its comprehensive incubation program. From inception to market launch and beyond, SingularityDAO is committed to nurturing promising ventures and propelling the field of decentralized finance forward.