Basic Project FAQs
The programmability and composability of Open Finance allow for the creation of complex financial transactions without the need to rally on centralized infrastructures – instead entrusting open-source and verifiable code. While the dApps are fully interoperable and can coordinate without friction, the individuals and resources creating the system can not. These friction have resulted in many inefficiencies such as security risks, hacks, underfunded teams, and plain out Ponzi's dominating the market - limiting the pace of innovation and overall potential of the industry. For Open Finance to be able to provide a compelling alternative to the current financial system, secure and open access to all is needed, and coordination of the community will be necessary to bring it about.
PrimeDAO is a collective of experienced builders that intends to facilitate the wide adoption of open finance by coordinating and cultivating projects that promote safety, reliability, liquidity, and open access while avoiding centralized appropriation of critical financial infrastructure through decentralized governance.
PrimeDAO is not owned by a single entity; instead, it is governed and developed by the PrimeDAO contributors. The contributors collectively coordinate PrimeDAO's resources via the PrimeDAO Alchemy Dapp. The DAO will be democratized and decentralized immediately on deployment. The plan is to launch with 50 ecosystem governors at minimum and avoid centralized organizational patterns. The idea behind PrimeDAO is not to have a single group or entity calling the shots, but the co-governance of a broad range of DeFi and DAO actors who understand the space and want to work together to advance it.
The collaborative network that co-governs PrimeDAO
PrimeDAO is planned to be launched in Q4 2020.
In its initial form, PrimeDAO will be deployed on the DAOstack framework and follow a dual-token design. PRIME functions as a utility and reward token in PrimeDAO and REP, a non-transferable governance token, is utilized for PrimeDAO governance. By separating voting power from utility, PrimeDAO is better able to reward contributors according to their appetite and promotes strong alignment between governing contributors.
The $PRIME token is the contributor reward token used to coordinate internal resources, exchange value, and align stakeholders.
PrimeDAO practices Holographic Consensus, a governance mechanism native to DAOs powered by DAOstack that streamlines the attention of the collective. Central to Holographic Consensus is Reputation (REP), non-transferable voting rights used for voting on proposals.
REP can be earned by contributing to the development of PrimeDAO by:
- Submitting contribution proposals to the PrimeDAO
- Participating in a PrimeDAO working group
- Earned by locking PRIME tokens into the PrimeDAO locking mechanism (to be created)
There are a bunch of projects ongoing in parallel:
- DAO Governed Balancer Pool PrimeDAO will launch with a Balancer pool governed by the DAO.
- DAO2DAO Negotiations Interface This group is just now getting together; PrimeDAO wants to design a DAO2DAO means of swapping/exchanging tokens so the community can have a primitive form of "DAOpolitik".
- DeFi Ratings & Safety Interface A working group will be a safety interface governed by PrimeDAO.
- Forks of current DeFi protocols Existing DeFi protocols with token sinks can be forked to use PRIME in them.
- 1.Crypto — such as ETH or DAI — that will be raised from an IDO to be held tentatively in November.
- 2.DAO token — that is, PRIME
- 3.Reputation — that is, voting rights in the DAO
The ideal sustainable system will, in the long-run, maximize the use of (2) while holding its value through smart token design, such as token sinks.
- 1.Exposure to a wide community of builders and ecosystem advocates who can build on top of it — this is quite similar to the Totle router, which is being licensed to PrimeDAO as its first governed product, the idea being that the more folks have eyes on it the more it will be hacked and utilized as a technology.
- 2.Anyone can offer their product to the DAO as an exchange — e.g. my DeFi protocol in exchange for 2M PRIME.
- 3.Decentralization of authority — many projects/protocols eventually die or collapse from the overhead of maintaining themselves; ideally, a sustainable DAO will not have these long-term issues. Additionally, a DAO can govern the parameters of products/protocols and incentivize their use; think: a DAO-governed Uniswap where the DAO can set the fee structure or yield farming incentives.
The DAO consists of multiple organizations that contribute in different ways. Some provide governance oversight and advisory, others are active builder collectives who are creating the first round of products and protocols for the DAO. These roles — even roles that have more of a leadership aura — are fluid and always open to change. With this understanding, there is no core PrimeDAO team as such.