Grape DAO Town Hall: 3rd Oct, 2021

Discussions and Conclusions

DAO Additions and Removals

• New additions from the DAO will happen every Sunday and removals once a month, at the beginning of the DAO Town Hall.
• sub-DAOs handle their own additions and removals. The DAO constitutes the overall general structure.

New DAO Additions

New inclusions are sourced from the DAO prospects channel and the evaluation is based on the criteria shown in the table below:

DAO Additions

Discussion on NFT sales

Grape owns Solana Ecosystem NFTs, coming exclusively from donations provided by the NFT projects becoming Grape Partners.

Arximedis: As we work with more partners we will keep getting NFT Donations. It is at our discretion how we use them.

Current Status

Currently, the Grape NFT Vault holds 52 NFTs including Piggies, Thugs, and Souls. The amount of which corresponds to approximately 700 SOL.

• NFT vault management has been under the discretion of @AlexPerts
• Certain sales of NFTs have yielded 53 SOL

Supporting the ecosystem remains the priority. Hence, having a “Grape NFT Museum” remains an interesting proposition. It is important to also not disincentivize projects from donating NFTs to Grape.

With that being said, there was a unanimous decision to treat NFTs as assets that should generally be liquidated and reinvested in order to contribute further to the growth of the Community Treasury.

And here a natural question arose regarding the management of SOL from NFT sales:

DeanTheMachine: What do we do with the SOL generated from NFT sales?

Discussion on this topic brought forward many alternatives including:

1. Creating a dedicated team managing an NFT Fund
2. Keeping a ratio of NFT revenue generation to be reinvested into other Solana based NFTs with the rest to be moved to the treasury
3. All NFT proceeds to move directly to the treasury
4. Not sell all NFTs, but give some NFTs back to the community

@Whales Friend: Forcing capital to be invested in NFTs is wrong. We should be selling them. A liquid treasury is important.

DAO members were keener to accept option 3 as the clearest one for risk minimization and responsibility specification.

In conclusion, the Research sub-DAO or the dedicated treasury management team will be responsible for the capital allocation and reinvestment strategies of the liquid treasury.

Here, it should be noted that these strategies do not necessarily exclude NFT trading.

Discussion on Treasury Formation Details

The need for safety measures to surround the treasury management team was reiterated: Everyone in the team must work for the benefit of the community. Some ideas regarding how the Grape Community can achieve interest alignment with the treasury management team are the following:

1. The team can be required to post personal collateral
2. hold a more significant GRAPE amount, far superseding Class A (20,000)

In the Town Hall, it was highlighted that it is exceptionally important for volunteers from the DAO to step up and organize the creation of the treasury team. These organizers, one of which was decided to be a Core Team Member: Whale’s Friend, will be responsible for the creation of the overall team and the formation of operations around the treasury.

A Proposal on the treasury team formation should be expected this week.

Delegating DAO Voting

The clear issue of lack of active participation, existent in all DAOs, to an extent, made @RyGuy07 come forward with the proposal on delegated voting.

The DAO members, while recognizing the interesting proposition, disregarded it, for the time being, for the following reasons:

1. Lack of DAO processes ironed out, including expectations and voting parameters that should be set in place before evaluating this motion
2. The DAO is too early in its evolution stage for this idea to be successfully implemented
3. Centralization concerns: danger of shadow voting
4. Operationalization is difficult off-chain

Conclusion: the proposal is dismissed for now due to the reasons mentioned above. However, the proposal will be reevaluated when the DAO starts operating on-chain.

Incubator Proposal with Groms

@adamdelsol, GROMs Founder, initiated the discussion by recapping the main points of his proposal for the incubation of his project that reached its final form after the valuable feedback by Arximedis:

@adamdelsol: The goal of GROMs is to build a learning community for the builders of the open metaverse. This includes but is not limited to education in the fields of creativity, technology, DAO governance, and philosophy.

GROMs Proposal Clauses

Note: The deliverables begin 45 days before the mint date. The incubation will last for a period of 1 year. The relationship can be revisited and negotiated should the organizations find it mutually beneficial at the end of the term.

2 different proposals were highlighted in the Incubation Discussion:

The first one was @adamdelsol’s that received feedback from @arximedis to finally propose a revenue-sharing model.

The second one was submitted by Whale’s friend who disagreed with two major points of the rev-share proposal since, the revenue sharing model:

1. does not adequately give back to Grape holders (limited value accrual)
2. It does not allow for a simple standardization incubation standardization process

Hence, this proposal had one, main difference. Instead of a rev-share model, GROMs should buy GRAPE-USDC LP placed in a publicly shared wallet, without staking, for the duration of the partnership.

Then after some discussion, the conclusion that was reached was that revenue sharing can be at least as standardized and value inducing as the LP proposition since:

• The revenue comes back to treasury: If the treasury decides to buy back grape then it does bring back value. Then the treasury has a strategy to benefit grape holders.

The result of the vote that took place right after was the following:

GROMs Incubator Proposal Results: Pure Rev-Share Wins

Orca Double Dip Pool

Context

Orca will be creating a GRAPE-ORCA token and has sent Grape a request asking if the Community would like to add any additional incentives to the ORCA-denominated yield.

Discussion on the Motion

After some discussion, the unanimity against the idea, for the time being, was clear, even though DAO members recognized the benefit of an even more liquid market. The main reasons are outlined below:

1. Liquidity is not a problem today: The Raydium pool has proven to be sufficient in terms of liquidity. There is a long time until rewards dry up
2. There is no clear consensus on rewards
3. Need for additional information in regards to possible options, including alternative pairs

The consensus was that the proposition should be reevaluated when the matter of liquidity becomes more relevant and options are clear for Grape.

Emissions Update

Up-to-Date Emission Allocations for the Remainder of this Epoch (finishing October 31st)

For next week’s agenda, the development and researcher proposals will be out. That will allow the Community to narrow down allocation further for this month’s emissions.

Note: it must be mentioned that the use of all emissions is not enforced per se.

Unfinished Discussions and DAO Tasks

1. Proposal on how to utilize remaining emissions: bootstrap amount for creators or new shows and decide how and what to allocate
2. Discussion on Design Initiatives to involve the community further
3. Finalization of the Github Proposal Submission Process