Context

TLDR

If we want to improve efficiency and effectiveness in the use of resources (capital, attention, expertise, etc) across RnDAO Projects, we'd benefit from balancing selfish competition with a degree of pro-social, collaborative behaviour so that resources are allocated to the most promising opportunities and duplication of work reduced.

To enable the above, this proposal puts forward a token-swap-like mechanism for Projects and RnDAO.

Rationale

Projects need to be incentivised proportionally to their contribution to the network (retroactive), thus reducing the risk of dilution through unsuccessful projects. This gives us an alternative to trying to predict which and how much Projects will succeed or not.

The Mechanism

• Projects will issue a pre-money SAFT/E agreement to RnDAO for 10% of its future tokens (conditions for SAFT to be defined on a separate proposal or per-case basis)
• When a Project experiences a valuation event (investment, acquisition, merger, token sale, etc. at a specific valuation), RnDAO will provide the project with an amount of newly minted RnDAO tokens
• The amount of RnDAO tokens is calculated as follows:
  1. 4% of the valuation of the project
  2. 10% of the aggregate value of grants, revenue, and investment the project has received

Discussion

• discussion and loopholes of calculation 1?
• discussion and loopholes of calculation 2?

Additionally:

• Projects are incentivised to raise funds through a SAFT in the early stages so they can directly hit a higher valuation. This in turn means that RnDAO's initial 10% gets diluted less as it's carried until the valuation event (i.e. starting with a smaller round would lead to dilution of that 10% in subsequent rounds).