ShapeShift

SUMMARY:

This proposal relates to the creation of a ShapeShift DAO Workstream dedicated to tokenomics. The workstream would focus on a broad range of issues related to treasury management and FOX value-accrual (as outlined and scoped below). Also defined are the workstream’s initial structure, budget, and success metrics.

This proposal, if passed, would also install a Workstream Leader and set aside funding through March 31st, 2022. This initial phase will allow the community to assess whether the workstream’s activities, leadership, and budgetary outlays are a net positive for the DAO.

ABSTRACT:

Currently ShapeShift has an ad hoc workstream focused on tokenomics, with vibrant discussions already taking place–primarily around treasury management questions. These discussions are already bearing fruit (for instance, around the creation of a treasury management committee), but could benefit from additional structure and strategic direction.

Following community approval of this proposal, a tokenomics Workstream would be created, existing alongside other workstreams in ShapeShift’s org chart. The workstream’s leader would be Kent, this proposal’s author. The tokenomics leader would be tasked with bringing clarity to the current ambiguous structure and strategy, as well as providing guidance and direction to other community members operating in the workstream.

MOTIVATION:

Tokenomics is the lifeblood of most successful DAO’s. When a DAO has its own token (a governance token, in the case of ShapeShift), it unlocks a host of exciting possibilities, including:

Funding for the DAO via its treasury Sustainable business models that were previously not possible Value-accrual mechanisms for holders of the token, of which a subset are users of the ShapeShift platform Clearly defining the Tokenomics Workstream and a cohesive strategy will enable the ShapeShift DAO and FOX Token to achieve its greatest potential. The current workstream, operating as a placeholder until something official could be built out, has already made great strides in terms of a.) engaging community members and b.) contributing to discussions and decision-making around topics such as treasury management and engagement with novel DeFi protocols.

In light of the progress that’s already been achieved without a fully-funded and clearly-defined Tokenomics Workstream, it’s easy to imagine how much could be accomplished once these elements are in place. Equally important, a workstream budget would incentivize more community members to spend their time, effort, and brainpower on these issues. Additionally, these economic incentives might also bring invaluable new talent to the DAO.

SPECIFICATIONS:

The Tokenomics Workstream will focus on two broad questions:

How should the DAO manage its treasury? How will value accrue to FOX and holders of the token? What are the core responsibilities of the Tokenomics Workstream Leader?

1.) Define the strategic goals of the Workstream.

2.) Build a team of contributors who can help make those goals a reality.

3.) Work alongside that team as the Workstream devises and employs the tactics necessary to achieve its goals.

4.) Revisit and revise the strategic direction as necessary.

What constitutes success?

For this first four-mouth term, initial deliverables will include:

1.) Creating a “State of the FOX” snapshot that provides an updated view of our treasury, current partnerships, and value-accrual strategies. With a clear picture of where we are now, we’ll be better-positioned to execute on our strategic objectives.

2.) Creating strategic treasury management diversification goals, for consideration by the Treasury Management Committee.

3.) Diversification of the treasury (pending Committee approval).

4.) Building a team of tokenomics contributors.

5.) Contributing to the creation of new value-accrual mechanisms for FOX.

Voting “YES” does the following:

1.) Create the Tokenomics Workstream as described above. 2.) Install Kent as the Workstream Leader. 3.) Fund the Tokenomics Workstream with $95,500 through March 31st, 2022.