OrangeDAO

To see with full formatting, see this Google Doc: https://docs.google.com/document/d/1XCU6u9K1hTeB_WzpG_dbYbHkTlGdMfu_Z3GpnRZHJvw/edit#

Goal: Fund one startup building an RFS that we choose by DAO vote.

Point of Contact: enx#8760

Sponsors: rmnnmrl#8419, luke#4975; enx#8760

Description: As we build the DAO, we have found products we need or want. Good initial work was done to capture these; a Request For Startups channel and web documents were built. This proposal builds off that work to generate at least one strong candidate for investment.

How this will work: Publicly publish and promote the top RFSes the DAO has come up with, choose the best candidate to invest in as a DAO, and complete a $100k investment from Orange Fund I.

Details: Week 1: sponsors narrow down RFSs to top 10 & get sanity check from GPs (30-minute Zoom call). Sponsors also update response to RFS intake form. Week 2-3: publicize RFSes for two weeks to get submissions Week 4: DAO votes on best investment Week 5: GP diligence sanity check & 100k investment gets made We will try go get a clear checklist in advance and publicize it to the RFS responding companies so that the list is pre-filtered

Suggestions for future exploration: i.e. things we’re leaving out for now, to move quickly with focused scoping, which could be explored in future iterations: Generating more RFS ideas Updating the RFS generation process (intake form, viewing, rating, shared editing, etc.) Getting DAO members to rank RFS ideas Incentivizing DAO members to rank or vote (i.e. 100 $ORANGE if you vote on x number) Pre-committing the Fund investment using smart contracts Co-investment by DAO members, either pre-committed or traditional

Benefits: Helps make Orange the first place for coalescing startups to look for assistance Fund does well because promising candidates identified (which ultimately increases the value of the treasury) Community members interested in investments get direct input into the process (and exposure to startups in which they might want to directly invest)

Success Metrics: Number of responses to RFSes submitted: minimum acceptable 4, target 100. Number of DAO members voting on submissions: minimum acceptable 25, target 200. Number of startups accepting investment: 1

Duration: Start: Within 1 week of approval End: Approx. 5 weeks after Start. Note: This OIP is tightly scoped; we anticipate submitting another OIP to continue if successful.

Tokens Requested: (Treasury control)

Much time and effort is required to read through, prioritize, and trim the RFSs.

The work performed has the potential to positively impact the DAO

The impact on the DAO may be tremendous if all goes according to plan, especially if the chosen startup is successful. It is similar to the core function of a fund General Partner. If the Fund makes 10 investments in a season, the contribution can be thought of as something like 1/10 of a GP contribution. Of course they have other obligations and legal responsibilities, on the other hand much of the work proposed here is not something GPs need to perform. Let us use 1/10th as a simplification. That gives 66k per Sponsor. Then, all community members who participate are also creating some of this value; by voting on candidates, creating requests, etc. If each Sponsor is awarded 50K (a simple number) then 16K per Sponsor is available for the community. If the tokens were divided evenly and all DAO members contributed, this would be approx. 48 tokens each (48000 $ORANGE / ~1000 members). In order not to dis-incentivize sharing among DAO members (i.e. hold denominator constant), let us award a constant amount for anyone who participates. Let us also round 48 up to 50 $ORANGE since these are not precise numbers. Then we have $ORANGE 50 each up to a total of $ORANGE 48000; capping the total $ORANGE also provides an incentive to participate early (tokens on only available to the first 960 members = $ORANGE 48,000 total / $ORANGE 50 each).

Finally, since this may be operationally complex, and the DAO seeks more ways for members to get involved (specifically non-technical members), allow Sponsors to allocate up to 2000 $ORANGE for member(s) assisting with accurately identifying and awarding DAO members who participated.

Then we have 200,000 total $ORANGE as:

$ORANGE Total: 200,000 For Team: 150,000 total (50,000 to each Sponsor) Create plan, proposal, gain DAO approval. Create, and share to DAO, an updated standard format for RFSes Narrow down RFSs to top 10 & get sanity check from GPs Collaborate with DAO members to publicize Gather responses Get DAO members to vote on responses Share final choice to GPs and confirm investment Share final results to DAO

For any DAO member that participates: 100 each up to 48,000 total (i.e first 480 to participate). At Sponsors’ discretion: 2K available to award for assistance with accurately tracking and awarding the correct DAO members

Token Distribution: (Sponsors’ control) For Team: ½ on Start, ½ upon completion. For DAO members: no later than start of following season; members must be identified and counted

RISKS: (Open to All Members) By [luke#4975,enx] Similar to LFG? LFG expected to focus on later stage startups and recommending for YC This (RFS) early stage ideas which startups could (have recently) form(ed) around

Additional thanks to Johnny Chin Alexander Mistakidis Don Ho Ben Huh Orion Parrott Stephen Caudill Angel Say Chris Stanley David H