Ahhh, the tension of waiting to learn the details of the DAO!!! Frantically hitting refresh in hope of seeing THE post. But as I lay awake at night, I have worries that keep me from sleep. Reading the occasional snippets of information Manfred shares gives you a partial picture, but with big bits missing which I can’t help but try and fill in.
To be clear, everything I say comes from a place of deep appreciation of all that Manfred has built and is doing. Anyway, think of these thoughts as a cross between shower thoughts, night terrors and a love letter to Manfred
In the recent post regarding fees in the DAO version of Bisq, he states that there will be a new Bisq DAO token. He also describes a new fee structure (which can be paid in BTC or in the new token with a discount of 90%) and discusses the fee going to the arbitrator. Distributed arbitration isn’t going to be in the next release.
So here are the thoughts that nag at me as someone committed to contributing to the DAO and project at large but willing to go all in if the model is right…
The DAO token holders must get a share of the fee right? I mean otherwise it’s just another cryptocurrency right? I mean a DAO token is a token that represents more than just a coin, it pays out a share of the profit it creates to its token holders who funded it’s development. That’s what a DAO is. It’s just Manfred has not said anything about dividends to my knowledge yet. If no profit share, Aaaaaaaahhhhhhh!!! Nightmare
If a profit sharing dao is what you want, why a new token? The whole Bisq platform is built around BTC. Why not sell Bisq DAO Tokens (which could be colored coins on the bitcoin blockchain) for 1BTC each, holding 90% and using the income for development etc and selling the other 10% of tokens to the public? Profits could be distributed every time the profit wallet became 1000 x the cost of a high priority BTC fee so tranaction costs were only 0.1%. That would make you the worlds first DAO paying out in BTC and could produce huge free press for the project.
Instead, the new DAO coin will be used as a currency by everyone because you’d be crazy to spend 10 x more for the convenience of using the native currency of the platform. It seems like a recipe for newbie confusion, extra steps and a lot of price instability for the next few years. So are we using a DAO token as a currency? which doesn’t make sense, or just a currency? In which case, how is it a DAO and not an ICO? Does the currency get mined? Is it proof of stake? Noooooo Aaaahhhh!!!
See the nightmares I’m having? I can’t wait to see the details for myself. It’s difficult when we are being asked for feedback on details like fee structure but not on the bigger question of how those fees will be distributed. Manfred is building something of great importance to the world and we don’t know how long we have before it’s critically needed by millions of people. I am one of the people who understands that and wants to be a part of funding a team of developers. I just hope that the structure is right and that it will be a success because there is a lot riding on it.
Sorry for the cathartic brain dump, I hope it’s received in the spirit intended. Have others been guessing what the DAO will look like? Want to share your hopes and fears while we await the announcement? I promise, it feels good