What’s the purpose of Allo Capital?
Allo’s purpose is to grow a thriving ecosystem of capital allocation tools by accelerating builders and their ideas through education, capital, connections, and beyond.
What’s the DAO’s role in this mission?
- Create network effects for the Allo Ecosystem
- Harness collective intelligence
- Grow the ecosystem’s value sustainably and scalably
Glossary of components:
- Juicebox. issue first governance tokens + raise conditional funding.
- Gardens. CommunityOS for scalable bottom-up governance.
- Governance Pools. Instances of capital allocaiton or decision-making
- 2 token model. Splits functions of governance and value accrual.
- Allo.Pool.Net Grow a vast network of projects through shared liquidity
Allo DAO Growth Stages
Stage 1 - Plant Seed
Spin up governance token + fundraising via Juicebox
Juicebox is a super easy platform for issuing dynamic governance tokens and raising capital publicly and without committing to payouts.
Having a day 0 governance token gives the community a chance to be decentralized at birth, which is WAY easier to keep decentralized vs. transitioning from a centralized organization down the road.
Parameters / Settings to choose on Juicebox:
- home network
- reserve % - % of governance allocated to community vs. given to financial contributors
- issuance + bonding curve - how many tokens per ETH and what % decrease in issuance per time period
- target $ - amount of funds raised where payouts are enabled.
- recipients - how many tokens go to ops, growth, liquidity, etc.
Stage 2 - Germination
Spin up a CommunityOS on Gardens
Gardens is a bottom-up governance framework where any number of permissionless communities can be set up, all with an Allo token as its governance token.
Allo communities on Gardens can choose whether to compete, collaborate, or complement each other in the ecosystem.
Parameters / Settings to choose:
- covenant - what is the purpose, values, and cultural norms of the community?
- registration stake + fee - how many governance tokens staked to join? is there a fee to join? how much and to what address?
- council safe - community moderators, who are they and how is this Safe governed?
Stage 3 - Continued Watering
Spin up Governance Pools
Using conviction voting on Gardens to fertilize growth of the Allo network, spin up pools to facilate capital allocation and decision-sourcing.
Examples of Pools that could be run:
- governance token distribution - allocate between contributors, partners, growth initatives, liquidity, etc.
- seasonal funding for Allo projects
- Allo Citizens - contributor list curation for sybil resistance, cookie jar, etc.
- angel grants - fund new builders and projects in the Allo ecosystem
- idea curation - source things the community wants
- contributor rewards - stream funds to the best builders for allo
- safe elections - democratize ownership of Allo’s Safes
- treasury allocation - determine the portfolio Allo’s endowment token will hold
See more in the Gardens Governance Pool Library.
Stage 4 - Bloom
Launch endowment token + governanance token liquidity
When the Juicebox is full (target $ reached), the DAO is ready to bloom.
- distribute Juicebox funds to payout addresses
- mint endowment token and add to LPs
- add first LPs for governance token
Target a stable value for the governance token, reserving “number-go-up” for endowment token with 100% of total supply minted at launch, all added to LPs directed by the community in Pools, and ongoing swap inflows from fees, grants, capital inflows, and any other revenue.
Read more in the proposal for a 2-token model.
Stage 5 - Pollination
Grow network of cross-project shared liquidity of governance tokens
Allo.Pool.Net is a platform for commitment pooling between several projects & tokens at once. This platform can enable:
- ongoing allocation of governance tokens for shared liquidity with Allo projects and partners.
- a diverse network of interconnected and distributed spokes of communities, groups of communities, and superclusters of groups of communities.
Challenges
Types of issues this setup could run into:
- Educational overhead - while this setup could be optimized for simplicity for end users, the DAO summoners unavoidably need to understand several different platforms and mechanisms deeply to help manage setup and maintenance effectively.
- Free-riders. Creating a diverse ecosystem means planting many seeds, which inevitably attracts opportunists. Participants need the “survival instinct” the drives them to being successful.
Conclusion
- This is the way.
Credits:
This proposal was possible thanks to the ideas and work of @afo @Coi @EvanHudson @willruddick Jango and @Zeugh to name just a few!