MpaceDAO is in the field of Investment DAO (Investment DAO), which is the most prominent DAO functional use case. This segment has a huge demand and is impacting the traditional financial fixed investment approach with the two main qualities of fairness and transparency. The decentralization and democratization of venture funds is achieved by transferring the functions of fund management, LP and GP roles to the DAO members, i.e. the DAO is owned and managed by its members. Investment DAO is usually a smart contract in the form of code on the chain to manage DAO operations, which alone can solve the “fairness” and “transparency” problems that traditional investment institutions are criticized for. The concept of “de-trust” advocated in Web3 era is being realized step by step.
MpaceDAO is a decentralized venture capital fund, where the community votes through proposals and the community members crowdfund as investors in a decentralized way. In this article, we will briefly explain the economic model and operation mechanism of MpaceDAO.
MpaceDAO Incentives
MpaceDAO allocates governance tokens ($MPA) to community users, not just to investors and development teams, which creates room for additional value in MpaceDAO and is also in the common interest of community users. When users pledge (staking) or provide other forms of asset liquidity, they will receive incentives in the form of MpaceDAO governance tokens (or NFT), driven by the same core interest direction, to contribute to the growth of MpaceDAO value, which will greatly stimulate the MpaceDAO governance tokens (or NFT) liquidity, and liquidity is value.
The initial incentive model for MpaceDAO is as follows.
1. pledge proceeds of 20% of the total supply of governance tokens to support long-term supporters of the DAO ecosystem;
2. single-coin pledge of governance tokens, with a fixed period of locked-in positions that will earn a certain amount of APY
3. LP liquidity pledge, adjust APY and release according to quarter (decided by members’ vote)
4. Governance Token non-locked pledge to get community voting rights, will have voting governance incentives
5. NFT pledge to gain community voting governance rights, there will be voting governance incentives
The promise of DAO governance can lead to the adoption of the DeFi protocol, resulting in an “equitable distribution” (i.e. all revenue tokens are allocated to the liquidity provider and not to the protocol developer). not to the protocol developers). In the future, there will be more possibilities for MpaceDAO and DeFi to use assets as collateral for lending transactions in the MpaceDAO protocol, etc. MpaceDAO will use the initial incentive as a basis for more incentive proposal changes that will help the DAO grow, all of which will ultimately be decided by the entire MpaceDAO membership.
MpaceDAO Diversified Vault
The treasury is one of the most important aspects of MpaceDAO’s organizational governance, and will provide financial support for MpaceDAO’s growth, investments, etc. This includes expenses such as community contribution incentives, marketing campaign funding, liquidity incentives, and investment program funding. Expanding DAO assets and profits and feeding the value generated by DAO activity back to the community and governance token holders is at the heart of MpaceDAO.
Below we will briefly learn about the MpaceDAO funding pool and how it can better serve the MpaceDAO community.
DAO Funding Vault will set up three sub vaults in the early days, which are: Fee Vault, Fund Vault, and Reserve Vault
- FeeVault:
mainly token secondary transactions will charge 1% fee and NFT transaction royalty will go to Fee Vault as fee income.
The allocation is as follows
1) Governance token transactions charge a 0.6% fee flowing into FEE Vault, which reaches 10ETH, it will initiate a 100% buyback of
MPA tokens, of which 50% of the repurchased tokens are destroyed ,and the other 50% are distributed to the member whose token is pledged.
2) 0.4% of the token transaction fee is used to add token liquidity, the higher the transaction volume, the better the liquidity.
2、Fund VAult:
as DAO investment funds and LP fundraising funds vault, used to fund projects and investment NFT/LAND and web3 project investment use; when the Fund vault 50ETH on support for foreign investment, by the committee and sponsors, etc. to initiate the proposal for project A investment, if the proposal is passed, it will be set up by the FUND vault multi-signatory project A sub vault.
A certain amount of funds will be allocated to the Project A sub vault, and the sponsor will be responsible for the investment and post-investment tracking, and the management of token release; each time a token is released from the invested project, 1% of the share will be taken out for buying back the governance token MPA, of which %50 of the bought back tokens will be destroyed, and the other 50% will be distributed to the governance voters.
This vault is funded by.
1）DAO committee members fund MpaceDAO’s ETH;
2）funds raised by MpaceDAO from select LPs, ETH/USDT primarily.
3）30% of Dream Bear NFT sales as FundVault funds, as an investment reserve.
4）25% of total governance token $MPA allocated to Fund Vault as investment fund reserve.
5）investment in the project’s token share, of which 15% returns to Reserve Vaul as a reserve; and repurchase governance tokens reserve.
6）Investment in metaverse NFT assets to gain appreciation, 15% of which goes back to Reserve Vault, as reserves; and repurchase governance token reserves.
7）100% of NFT secondary rights revenue back to Reserve Vault for maintaining the NFT secondary floor price and market cap liquidity.
MpaceDAO wants to decentralize its governance and needs the DAO Vault to be capitalized (incentivized), which will ensure its continued operation and allow them to invest in future growth. Diversification of the funding pool will provide higher stability and better financial security for DAO’s activities, and future development will be based on demand for DAO Vault investment in blue chip virtual assets into the pool, including not limited to Token, NFT, LAND …….
MpaceDAO plans diversification based on the expected annual outflows from the Vault, liquidity needs and risk-reward of the assets. Here are some examples of allocations considered by MpaceDAO.
Native Token
NFT Blue Chip
Virtual Land
Stable Coins
web3 project tokens ……
Diversification of the Vault will be favorably safeguarded in the event MpaceDAO suffers from negative events such as uncertain attacks, bear markets, regulatory actions, etc. MpaceDAO will do a good job of diversifying the DAO Vault to ensure they can fund their operations and achieve their MpaceDAO vision.
MpaceDAO’s Liquidity Support
DAOs are different from traditional companies. DAOs enable liquidity and flexibility in collaboration. But mobility also makes it difficult for DAOs to retain talented people who continue to contribute and make an impact. In addition, this job mobility brings risks, such as active contributors getting frustrated by the performance of those who are less active.
This is why contributor retention is one of the most critical metrics for DAOs and one of the most pressing issues that emerging decentralized organizations must address. Only when the current contributor engagement problem is solved will the growth, expansion, and mass adoption of DAOs follow. When this problem is solved, more and more DAOs will grow due to their long-term contributors, which in turn allows their communities to gain the attention of people outside the cryptocurrency space and attract more new contributors, thus reinforcing this positive feedback loop.
Liquidity Support.
- 30% of DAO’s NFT series sales funds will be used to facilitate the NFT floor price and token market cap maintenance.
- 100% of DAO’s governance token IDO amount will be added to the initial liquidity pool to build the token pool.
- Token trading 0.4% fee is used to add liquidity, the higher the trading volume, the better the liquidity.
In addition token secondary transactions will formalities 1% handling fee, which will be allocated as follows.
MpaceDAO sponsors & voting rights
MpaceDAO will be composed of core members, committee members, DAO virtual asset holders and DAO-DID status holders to jointly govern the community. Any MpaceDAO related asset holder can initiate a proposal and vote; there is only agreement and disagreement in the MpaceDAO decision making system and it requires minority to majority, anyone can submit a DAO application + referendum. This makes community decision-making very direct and efficient. The direction of the proposal: ecological marketing, technical iteration, code audit, TOKEN airdrop, funding projects, DAO Vault management and other matters.
Membership division.
- Core members: MpaceDAO core initiators, technical contributors, etc.
2. MpaceDAO committee members: early funding MpaceDAO members can
become one of the committee, limited to 20 members
3. Virtual Asset Holders: Holders of OG NFT and MPA governance tokens who also meet the requirements can become one of the sponsors
4. DAO-DID status holders: Those who hold DAO-DID status and contribute to the community can vote to become a sponsor or not
Vote.
- Those who have a position in DreamBear NFT, get the right to vote by pledging NFT
- Those with $MPA positions will receive governance voting rights by pledging
- Users with a position in Fantasy NFT, get voting rights by pledging
- Users with a position in DAO — DID status can get voting rights by pledging
MpaceDAO — — DAO(X) to Earn
MpaceDAO is a decentralized, self-governing organization investment platform, where investors from all over the world cooperate while maintaining transparency and fairness, and receive ownership of MpaceDAO at the time of investment. There is no leader or individual here to decide who will be part of the DAO, here it is up to the majority. Everyone will profit and everyone is contributing to the organization. This is why MpaceDAO exists.
Before you understand D2E( DAO to Earn), you need to understand that a DAO is an internet community with a shared bank account. Decentralization means that there is no controlling body, such as a bank or government — no leader. Autonomy means the freedom to govern yourself, and organization means a group of people with a specific purpose.
DAO to Earn details.
- For each project funded, each time tokens are released, 1% is given to buy back MPA tokens, 50% is destroyed, and 50% is distributed to governance voters.
- For each project funded, 4% of the token share earned will be allocated to project sponsors, investment and research teams, community marketing support and other contributors.
- Vault investment in NFT or Land assets, with revenue earned through phase leasing, will give back 100% of the revenue to community contributors.
- Vault invests in NFT children AND assets, 5% of the auction value increase is used to repurchase MPA tokens, 50% of the repurchased MPA tokens are destroyed and 50% are rewarded to token pledgers.
Conclusion
MpaceDAO is a “de-trusted” investment DAO platform. the difference between MpaceDAO and traditional investment institutions is huge. traditional investment institutions are hierarchical, localized and opaque, while MpaceDAO is not a company, it has no single leader, and any decision made by MpaceDAO has a strong common vision attribute, in the interest of all members’ interests. In MpaceDAO you will get a lot of incentives if you provide asset mobility.
MpaceDAO is not limited to Tokens, but can invest and fund quality projects in the Web3 ecosystem by donating non-homogeneous digital assets such as virtual land and NFT. The diversification of investment credentials will contribute to the ecological development of MpaceDAO and the interests of its members.
At the same time, we will focus on three key factors in the MpaceDAO governance operation process.
Early warning mechanism — — the ability to detect potential risks in time
Assessment mechanism — — to assess the impediments to development through modeling, and then optimize them
Execution — — the execution of the governance process with security in mind
This will enable MpaceDAO to continue to develop better. In order to make MpaceDAO better, we hope that you will participate and build the future of MpaceDAO together.
About MpaceDAO
Mpace DAO is a decentralized autonomous organization built on ETH-EVM. Its mission is to invest and fund WEB3.0 ecological projects focusing on NFT assets such as MeatVerse digital land, and to make a continuous and significant contribution to the development of WEB3.0 and MetaVerse ecology.
Each Mpace DAO member has a unique community equity NFT, which can be redeemed in the future to obtain LOOT-based DID on-chain identity NFT, programmable and scalable.
Twitter: https://twitter.com/M_SpaceDAO
Medium:https://mpacedao.medium.com/
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NFTmint: https://mint.mpacedao.org/
