We’ve seen the DAO boom over the past few months, but we’re currently keeping up with not just all the great organizations, there’s a lot of amazing research and experimentation with DAO utility, and if we’re going to start such an organization we These aspects need to be considered: 1. Mission 2. Community 3. Community treasury 4. Governance 5. Ownership, today I will talk with you about how to manage DAO’s community treasury.
What is JuiceBox?
JuiceBox DAO is a typical early DAO dedicated to developing DAO vault management software (both code and design documents are open source)
Community treasury – shared ownership – is the core element of web3 that makes DAOs valuable. The treasury is about how the community coordinates and deploys funds to achieve the mission. While every DAO is different, the correct way to use the treasury is an important step. The juicebox protocol is built to support small projects with big visions, as well as larger projects that want to involve everyday users/communities in their development efforts. At the same time, it is designed to give patrons and investors with different risk profiles confidence in their spending and financial health on projects.
DAOs crowdfunded on Juicebox are able to grow by calibrating incentives and investments by adjusting their funding cycle allocation over time. Specifically, each community-built DAO will have a funding goal, funding cycle duration, retention rate, bond curve rate, and discount rate at its disposal. These changes are collectively voted on by community members in order for the contract to approve the relevant transaction.
The Juicebox protocol signals to users that their funds will be used early by allowing project sponsors to commit to how their cash flow will be distributed before receiving payment. It acts as a payment terminal and programmable treasury for projects with mostly predictable costs (such as employee salaries, service subscriptions, donations, budget initiatives, etc.) and for communities that want to automatically reward them when they are successful The results of the members’ projects are very good.
The main advantages of JuiceBox
When someone donates to your project as a patron, they receive a proportional amount of your project’s governance token. The interests of both parties will be tied together.
Transparency and Accountability
The use of funds in the community treasury requires the approval of relevant community members to vote to take effect. Based on the transparent mechanism of blockchain, everyone can better supervise community governance.
How does JuiceBox work?
Every payment made by a user to a project through JuiceBox will mint and allocate the project’s Token to the payer, and allocate a certain percentage of Token (retention rate) to a set of addresses preset by the project owner. The total amount of tokens minted for payment is affected by its allocation discount rate, which incentivizes early contributors over time, who naturally take a little more risk. All funding a project receives that exceeds its funding target is considered a premium. These spilled funds become the coffers of the community. Each token holder has options on how to distribute these capital premiums, which they can exercise by redeeming (burning) their tokens.
Projects crowdfunded on Juicebox can configure the token distribution method in various ways. For example, a project with 0% discount rate, 10% redemption bonding curve, 10% retention rate and 50ETH financing target vs. a project with 20% discount rate, 100% redemption bonding curve, 50% retention rate and 10ETH financing target is a completely different economic model. There may be many interesting configurations in these gradients, and there is no way for project sponsors to know in advance what the best model is, because the vision of each project is different from the current one, and there is no precedent or data for decision-making, so each project Every project/community can experiment and find what works for their needs.
How did JuiceBox enter the public eye?
ConstitutionDAO was launched on Nov. 11 by a group of crypto enthusiasts to raise funds through the DAO to buy the first printed version of the U.S. Constitution auctioned by Sotheby’s. This version is the last private copy of the Constitution, there are only 13 copies in total, and the ConstitutionDAO hopes to transfer it to the community as a result. As of November 19th, the Constitution DAO raised funds on the JuiceBox platform to reach $47 million worth of ETH, and the number of contributors There are more than 17,000 people. During the fundraising process of ConstitutionDAO, donors sponsor a certain amount of ETH to obtain the corresponding PEOPLE Token. The Token determines the use of the copy of the Constitution by voting, including the exhibition venue and exhibition method.
Before the auction starts, Constitution DAO needs to keep some taxes and related fees. Finally, Sotheby’s verified the proof of funds. The highest auction price of Constitution DAO was 43 million US dollars. Unfortunately, the auction was lost to Ken Griffin, CEO of Citadel, The sale price was $43.2 million. Due to the failure of the auction, the project team announced the closure of the Institution dao and started an indefinite refund.
Due to the out-of-the-circle effect of ConstitutionDAO, the crowdfunding platform Juice Box has also become popular.
How is Juicebox DAO Governed?
JuiceBox DAO has its own fundraising system and governance token JBX, 35% is reserved and allocated to reserved addresses (teams), while the remaining 65% is sent to paying contributors. There is no cap on minting JBX, but as ETH donations increase, JBX minting will also decrease (currently 10% less JBX minted per ETH every 2 weeks).
What does it mean to be a member of JuiceboxDAO?
DAO members are responsible for proposals and voting:
1. How to allocate DAO’s financial funds.
2. Make changes to the protocol that the DAO agrees to manage.
3. Make changes to the formal procedures that the DAO agrees to follow.
4. Criteria for membership and limits for withdrawal.
DAO membership is recognized by the fundraisers and genesis team on the Juicebox protocol, and is for those currently managing its area of focus, and is open to those who choose to help run their community. Membership is through the use of the JBX Token issued by the Juicebox protocol itself. Members can withdraw at any time by burning any part of their tokens and get back part of the funds in the community treasury.
When the Juicebox protocol was launched, there was a governance contract controlled by a multisig wallet. A total of 4 holders are multi-signed, and the transaction on the contract can only be approved when more than or equal to the signature of 2 holders. This multi-signature wallet also has the power to propose refactorings to the Juicebox project of JuiceboxDAO. Decisions made by this multisig wallet can only affect the finances of JuiceboxDAO, not other projects built on the Juicebox protocol.
Multisig wallets require decisions to respect community voices, but how the community voices will be captured remains murky. Discussions on the redistribution of power will be led by the founding team.
DAOs provide a new way for humans to coordinate with each other over the internet and have collective ownership in it, how the DAO’s community treasury is managed is critical.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/how-does-the-juicebox-used-by-the-constitutional-dao-manage-the-dao-community-treasury/
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