Introducing humanDAO Advisors & Multisig and Clarifying Questions & Concerns
Prior posts on humanDAO tokenomics and what makes humanDAO different.
Two days ago, the HDAO token launched on Ethereum Mainnet and Polygon Network and started day 1 of a 4.5 day Liquidity Bootstrapping Pool (LBP) on Copper. As we begin the next phase of this journey, we are excited to announce some updates and address some of the most commonly asked questions we’ve received since the auction began.
As outlined here, we made a decision to avoid pre-seed or seed round investments, token pre-sales, and any other monetary incentives that would take away from giving as much of our token supply to our community, who mostly hail from underserved communities, as possible.
Many DAOs partner with VCs before launching a token to bring validation to their project. That validation provides security to participants that they’re not going to get rug pulled. Big investor = legit project.
At humanDAO, we chose a different path. Because crypto has built in verification tools, like a multisig that is controlled by reputable and credible builders/people outside of humanDAO, we think we can overcome this legit/validation/rug pull concern without taking in any investor funds. Our relentless commitment to our mission of improving lives through crypto is what has helped us attract a community of over 17,000 people from all over the world through 100% grassroots efforts. This momentum, along with a mission driven group of builders, allowed us to assemble one of the strongest groups of advisors.
With that in mind, we wanted to address a few questions that came up during day 1 of the auction:
Token Generation Event
Here is a high level overview of humanDAO tokenomics.
We received questions raised around how the Token Generation Event (TGE) would impact HDAO supply and the Token price. We wanted to take a second to outline what the TGE is and to provide some more concrete numbers.
First, we want to address the TGE for Founders, Builders, and Advisors. humanDAO is just getting started. Our founding team is in place, led by Christopher Chase, but the Builders and Advisor teams are small and still formulating. Most of the tokens are unclaimed and will go into the humanDAO Multisig (more below). You can see our actual TGE numbers below:
Key things to pay attention to here are:
Only 6.05M tokens of the 20 million TGE have actually been delegated and will circulate.
The remaining 13.95M will go into the Multisig (explained below).
These non-delegated tokens are for future builders and advisors. This is an ambitious project. We want to have these tokens/incentives for future builders/advisors as the DAO grows and new challenges appear. We are not trying to push out a protocol or dapp and be done with it. We are trying to impact communities over decades. This is why our structuring is fundamentally different.
All well known projects have all of their advisor/team tokens delegated pre-launch. Nearly all projects with 0 founder TGE took VC/private sales. They guaranteed their salaries or lined their pockets pre-launch in return for giving away 20–30% of the total tokens to a small group of privileged people (investors). Only 10% of the total allocation of HDAO goes to a small group, the founder’s allotment, compared to 30–45% (founders & investors/pre-sales) of most launches.
This does NOT mean VC or pre-sales are bad (read here). The whole point of this structure is to have more tokens to incentivize and reward underserved communities and builders, which is why we will stand up/defend our allocations/tokenomics against any other DAOs. This DAO can have more social impact than any charity while having a huge revenue stream.
Again, the founder’s allotments with 0 TGE are due to private/pre-sales. Other projects launch with a founders TGE of 2.5–5%, BUT they have 15–25% total allocation to founders. Thus they have equal to or more than humanDAO, with only 10% total going to founders. And when zoomed out, most project’s founder allocations are fully circulating within 3–4 years. HDAO in 5 years and with only that 10% total. Because we didn’t guarantee salaries and have no idea if this launch will even be a success, we figured this is the best way to incentivize the people who have spent their time and money to continue to buidl.
Next to address is the TGE for the Community allocation. 55% of the 1B tokens are allocated to community and there is a 10% TGE, which means 55M will be unlocked by the TGE. These tokens will go directly into the Multisig and the community will decide how to use them for:
Acquisition Initiatives
Education Initiatives
Retention Initiatives
Growth Initiatives
DAO Contributors
Staking/Liquidity & Launch Rewards
Because a lot of the infrastructure will NOT be in place to facilitate this distribution (i.e., education modules aren’t live) over the coming year, we don’t foresee this total amount being used up in the first year and can be pushed to the following. Or the community can decide to increase the rewards staking/liqudity rewards.
It’s also important to note that we have never seen an LBP auction sell the entire amount. Even the wildly successful MC launch sold only 55%. The remaining unsold tokens will go to the multisig to be used as the community sees fit. Perhaps to start/incentivize a liquidity pool.
In total the initial circulating supply COULD actually be less than the 50m in the token launch auction.
humanDAO Multisig
We mentioned that the unclaimed tokens from the Founder, Builder, and Advisor TGE and the Community TGE will go into the multisig. The multisig is a critical component of how humanDAO is building trust with its investors and community. We strive for security and transparency, and utilizing a multisig can help alleviate fears and mitigate bad actors.
Think of the multisig as the gatekeepers of your investment and the ultimate decision-makers in the humanDAO ecosystem. Typically, a DAO’s multisig consists of only the founders and VCs, but we’ve elected to compile a group of 5 diverse, prominent, and trusted members of the DeFi/Ethereum ecosystem. We hope to add two more multisig signers before the end of the auction, which would bring our total count to 7 signers and require a minimum of 4 votes to execute a transaction.
We’re excited to announce the following members joining @Chris2pherChase on the humanDAO Multisig:
Mona El Isa
Founder of Enzyme and CEO of Avantgarde.
Defi Dad
DeFi super-user and Partner at 4RC.
BanklessDAO — Above Average Joe
The BanklessDAO community will be represented by @Abv_Avg_Joe- An Eagle Scout, founder of DeFiPedia, and BanklessDAO community manager. Father of one, friend to all.
LexDAO- Ross Campbell
@r_ross_campbell is a corporate attorney and web3 developer with SushiSwap and LexDAO.
In addition to the Multisig, we are very excited to announce some additional advisors. This list is continuing to grow by the day:
Tyrone Ross
@TR401 is the CEO and Co-founder of Onramp Invest and Founder of 401stc
Diana Chen
@ddwchen runs Content at RabbitHole
Ready Player DAO
@ReadyPlayerDAO is putting the community on equal footing with the studios by making P2E the dominant model of gaming and harnessing the collective power of play to create equity for all
The “Core” Team
Up to this point, nearly the entire operation was funded by myself, Christopher Chase. This community/server grew from the scholars and applicants. That is the core team thus far. HumanDAO was never my goal when I entered P2E. But hearing people’s cries for help and knowing blockchain gaming will be HUGE, I saw the opportunity to wrap this revenue stream around a social impact mission.
The people who have built what you see thus far are part-time contributors, mostly Filipinos, scholars, and applicants. They run the community, while a few full-timers got us to launch. The truth is the actual work/building doesn’t happen till post-launch. This is why we have those allocations for builders and an excellent portion to DAO contributors within the community allocation. In a way, we were already functioning like a DAO before the network even launched.
About HumanDAO
At humanDAO we are setting out to create a public good. Our mission is purposefully broad, and yet very clear: improve lives through crypto. Over 2 billion people in underserved communities live on less than $5/day. humanDAO is creating opportunities in crypto for those underserved communities to earn 2–10x that. All while creating profound, new revenue streams for our community and investors.
Website: https://humandao.org/
Community: https://discord.gg/humandao
Twitter: https://twitter.com/humandao?s=21