From Startup to Decentralized? Below is an example of what the process might look like for a project:

  • Alice has a great idea for a startup, a P2P photo-sharing app, and she would like it to eventually owned by the stakeholders and users of the platform
  • She would like the platform to have a lasting impact, and decides to have no token supply cap.
  • She targets year 5 as the year all initial stakeholder tokens will vest. At that point, 40% of the network will be controlled by initial stakeholders, 30% will be controlled by users of the platform, and 30% of the network will be owned by an ecosystem DAO.
  • She wants users who share photos or buy photos to receive tokens for doing so
  • The initial stakeholders will include her founding team and investors. She decides there will be an initial allocation of 1M tokens to these initial stakeholders, and 20% of these tokens will be for investors.
  • Alice wants the project to raise a bit of funds, then decentralize as soon as possible. She hopes that once the project is decentralized, the network will raise additional funds, and hopefully the network will continue to pay her team to develop the project.

Alice forms a company, and raises $1M from investors as a SAFG (which is a promise for 200,000 governance tokens once live). Once these funds are raised, the team executes and is able to build their platform.

1 year later, they are ready to start decentralizing the platform and giving away governance to its users.

  • The team implements the incentives via smart contracts (users who share photos or buy photos receive governance tokens)
  • The team also creates a vesting program for the initial investors such that their tokens vest over a 5 year period. At the end of the five years, the initial investors and team members will have 40% of all tokens, with the other 60% going to the protocol DAO and users of the platform. This means that at year 5:
  • 160,000 tokens will be owned by investors (20% of 40%)
  • 640,000 tokens will be owned by the initial team members (80% of 40%)
  • 600,000 tokens will be owned by the DAO (30%)
  • 600,000 tokens will be owned by users of the platform (30%)
  • This is approximately 1100 tokens per day minted: with 666 tokens going to users and the DAO.
  • After this initial vesting period, tokens for users and the DAO keep being minted at the same rate of 666 tokens per day, and can be changed by the DAO at any point.

After 6 months of activity mining, the project reaches sufficient decentralization, and the protocol is given to the DAO. 6 months later, Alice and company start asking the DAO for funds to continue building the product. Soon after, a handful of other companies start working for the DAO and contributing to the project.

Congratulations Alice, you created a decentralized network.

Source: medium.com/venture-dao/ by Eric Arsenault

https://www.jumpdocs.com/blog-post/should-all-startups-be-delaware-c-corps

https://livethelife.tv/dao/

https://github.com/livethelifetv/LL-DAO / https://livethelife.tv/llc/

https://medium.com/fairmint/running-a-business-like-a-boss

https://ramp.com/FAIRMINT INC

https://mercury.com/

https://gusto.com/

https://gilded.finance/

https://www.mainstreet.us/

https://www.opengrants.io/

livethelifetv/Ops
A place for tracking operational resources and tasks: Legal agreements for builders and spending proposals. After kickstarting as a multisig, we will mutate into a reputation-weighted DAO with lega...