Background & Motivation
In Q3 of 2021, PrimeDAO concluded its Seed Round to accelerate the speed of development and start the transition towards the D2D token economy. In Q4 of 2021, the first liquidity for the D2D was generated through a Liquid Launch on Prime Launch which bootstrapped an additional $1,1M and distributed over 3M D2D tokens into the market.
Since then, PrimeDAO has grown steadily, shipped three out of the four core Products, and expanded its network with multiple key partnerships.
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Prime Launch went live in December 2021 and has hosted 3 launches since.
Launch is currently preparing for a ReFi launch program in collaboration with our partners Symmetric & Celo. -
Prime Rating went live in December 2021 and has seen over 60 contributors.
Rating has just attracted the first two sponsors for the seasons and launched research on-demand services. -
Prime Deals went live in May 2022 and has facilitated over $1M in deals.
Strategic partners are currently giving input for V1.5 of Prime Deals. -
Prime Pools is projected to launch in the second half of June, 2022
Pools has onboarded two Ballers, BalancerDAO community contributors to streamline the development and go-live of Prime Pools.
Prime has also contributed to the co-development of:
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Proposal Inverter
A funding primitive that allows multiple groups to collaborate on a common proposal. Developed by PrimeDAO in close collaboration with TEC, LTF and Radicle. Development in progress. -
Badger
A Governance tool developed by PrimeDAO that allows for better DAO stakeholder management. Development to continue in Q3.
To design and build these tools, PrimeDAO scaled up its builder groups and contributors. From an initial 12 FTEs in Q3 2021 to 26 FTEs in Q2 2022. PrimeDAO attracted new building groups in the form of ByteRocket, Daoism Systems, and Long Tail Finance. As a result, the USD burn of PrimeDAO has gradually increased from about $120K USDC a month to $230k a month.
After nearly 9 months of building The PrimeDAO Treasury is down to about $900,000 USDC with an additional $300,000 worth of partner DAO tokens and a combined holding between the Prime Treasury, Foundation & DAOplomat multi-safe wallets controlling over 63% of the D2D tokens.
At an average burn of $200k a month, these resources give Prime between 4-6 months of cash runway before it needs to start selling PrimeDAO tokens to fund its development. As Builders, we’re convinced of the long-term value PrimeDAO will bring to the DAO space and would rather distribute ownership to partners instead of the open market.
To facilitate a solution for the growth of PrimeDAO and improve the quality of the Prime products and services, a task force led by the DAOops squad has worked out multiple options to support PrimeDAO’s transition to the next phase.
The outcome of which is this Strategic Round proposal, with the following details:
Outline
A. Host a Strategic Round
PrimeDAO will host a Strategic Round where it will offer D2D tokens to value-aligned backers that want to take a stake in PrimeDAO.
Details
- 12M D2D tokens will be made available for this Strategic Round
- Price per D2D token in the Strategic Round: $0.50
- Tokens are locked for 3 months followed by a 3-month vest
The following types of groups will be prioritized:
- Partner DAOs that want to acquire a strategic stake in PrimeDAO
- DAOs that have used PrimeDAOs products and can provide useful product input
- VCs that have an interest in D2D coordination and/or have a stake in value-aligned DAOs
- Angel Investors that are involved in value-aligned DAO and can provide useful product input
We believe one of PrimeDAO’s most valuable assets is the network of individuals connected
to PrimeDAO. We want to incentivize the current PrimeDAO stakeholders to Involve groups
and individuals that they deem value-aligned with PrimeDAO. To accelerate this, we propose
a success fee to Contributors for bringing in a Strategic Backer equal to 3% of the backing
amount in USDC or 4.5% of the backing amount in D2D tokens vested for 6 months.
Rewards will only be distributed after the successful completion of the Strategic Round.
A budget of 50,000 USDC will be set aside by PrimeDAO to support the DAOops squad in
conducting the Strategic Round - this budget can be used to acquire strategic assets and
hire third parties to support and advise the raise.
B. D2D Tokenomics Update
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Merge the Foundation D2D holdings back into the PrimeDAO Treasury
When D2D was launched 8% of the total supply was vested to the Prime Development Foundation to support the development of PrimeDAO. Over the past months, the Prime Development Foundation has not needed such a large amount of D2D tokens and we think it’s better to retrieve these tokens back to PrimeDAO. This would bring the D2D holding of the PrimeDAO Treasury up to 63% (51% after the Strategic Round). -
Temporarily withdraw the PrimeDAO controlled liquidity in Balancer
PrimeDAO is currently market-making approx 3M D2D + 250K USDC in the 80% D2D / 20% USDC pool in Balancer to improve public trading efficiency. As we
This also allows PrimeDAO to re-evaluate how to deploy D2D liquidity when Prime Pools launches.
- Speed up the development of the veD2D token economy
Over the past weeks, several mechanism designers and researchers have worked on an improved token economic design for D2D. To facilitate a wider network of stakeholders to participate in PrimeDAO we propose speeding up the veD2D token economy timeline - with the aim to have a final draft published by June 7th, 2022, and a proposal to formalize a design to be submitted by June 14, 2022.
Impact of the proposal
If this proposal passes, PrimeDAO agrees to move forward with a Strategic Round that aims to distribute 12,000,000 D2D tokens (out of a total of 63,000,000 D2D tokens controlled by PrimeDAO) to Strategic Contributors in exchange for Stablecoins and Strategic Assets.
FAQ
Q1: I’d like to learn more about the Seed Round in general. Where can I do so?
A1: The Pitch will be linked to this thread once we have gathered sufficient feedback!