Authors
Prime Dao team (Luca Pantaleo, David Machuche, Lucas Ward)
Summary
We propose that Fingerprints DAO creates an open proposal to receive D2D deal pitches on Prime Deals. Fingerprints DAO will outline parameters for desirable swaps, joint ventures, or co-liquidity pools of the Fingerprints token between the potential partner DAOs treasuries. Fingerprints DAO will select 3-5 deal representatives to approve or reject submissions (can be the DAO multisig) and to spearhead the selection process.
Rationale
By outlining your token swap terms with the vision of and desired outcomes from a possible partnership, you could signal your interests for partnerships to the right candidates and kickstart your negotiations on a more solid and informational symmetric base.
You can read more about us here. For more on Prime and our other tools, see below.
Why Token swaps?:
We view this open proposal as a unique opportunity to identify partnerships between DAOs and solidify synergies by gaining a governance stake in each other’s communities. The proposal will allow the communities to:
- Partnerships with mutual ownership are more serious
- Swap deals create more valuable partnerships because your partner will actually be incentivized to help raise the value of your token, and vice versa.
- Partners might not be as committed, as there is no required skin in the game, but with Prim deals your partners are financially bound / invested in you. Our cliff and vesting periods features are bounding and on-chain, limiting possibilities of dumping.
- Identify compelling partnerships and Dao-to-Dao opportunities and Increase your DAO’s discoverability for deal-seekers:
- It is often difficult, especially during bear market, to source and filter deals between high quality DAOs. Prime Deals helps market your deal and serves as the intuitive interface for D2D dealmaking, including discovery, negotiation, discussion, and clauses.
- Diversify each DAO’s treasury:
- The low diversification in your treasury, might put at risk your short/medium term capabilities of operational budgeting. By diversifying in treasury, you spread the risk of negative downside in the bear markets and the chance of potential upside in the bull run.
Why Prime Deals?
Prime Deals is a framework for DAOs to collaborate and negotiate in a neutral environment, creating verifiable and enforceable social contracts. This ground-breaking architecture excels in creating meaningful and transparent agreements, which we hope to offer better trust and collaboration throughout the entire Ethereum ecosystem currently and soon expanding to other chains such as Celo, Gnosis and Arbitrium.
Benefits of Prime Deals
- Uniquely designed smart contract architecture is non-custodial, permissionless, escrowless, and secure.
- Clear on-chain negotiations & clearly defined expectations, a record of each DAO’s actions.
- Cliff & Vesting period that is automatically executed and enforced trustlessly.
Benefits of an Open Proposal
- No commitment: Submitting an open proposal does not obligate the DAO to accept a deal.
- Discoverability: Attract and discover multiple possible partners aligned with your vision & strategy, spread the word about Fingerprints DAO as well.
- Negotiate: Kickstart the conversation and build negotiations between partner DAOs
After a proposal is posted, Prime will publicize and perform marketing efforts to identify and connect with ideal partners and counteroffers for Fingerprints DAO.
Criteria for Success
One of the primary reasons to execute a token swap is to increase the diversification of the DAO’s treasury funds. This is especially important during bear markets when governance tokens may be more volatile/uncorrelated with the market.
Prime Deals can help solve this through finding the best partner for Fingerprints DAO and providing a safe and transparent platform to negotiate and partner with other high quality mission-aligned DAOs whose tokens would increase the stability of treasury funds and whose communities would make good allies.
- Governance
- Coordinating internally to determine satisfactory parameters for any potential deal.
- Can look like nominating reps to deliberate and then return to the DAO with a plan.
- Can look like another proposal post-discussion outlining metrics for the deal.
- Treasury
- How diversified is the treasury to begin with?
- How much more diverse do you want it to be?
- Lets try to reach that number incrementally (wont be solved with 1 deal)
- Partnership
- Is the partnership mission-aligned, or does it achieve your general goals?
- A lot of this will be evaluating a potential counteroffer to determine how qualified the submitter is.
Open Proposal is Non-binding
Submitting an Open Proposal does not lock Fingerprints DAO into execution of any D2D deal. If no satisfactory offers are submitted the representatives can reject or simply ignore them.
Next Steps/Voting Phase
The discussion will be open in order to collect community feedback and suggestions. After the vote, in case of positive outcome FingerprintsDAO will be invited to a workshop to shape the profile and post it.
This post has been provided for informational and discussion purposes only. It is not intended to, and does not, constitute legal, financial, business, or tax advice. This post should not be relied upon to provide any form of protection or business advice. No decision to buy, sell, exchange, or otherwise utilize any digital asset is recommended based on the content of this post.