From 0059edfb0285ab560865b984a31e131ba3bd2686 Mon Sep 17 00:00:00 2001 From: Teleo Agents Date: Sun, 15 Mar 2026 17:52:54 +0000 Subject: [PATCH] extract: 2024-07-18-futardio-proposal-enhancing-the-deans-list-dao-economic-model --- ...e-premium-for-net-positive-price-action.md | 26 +++++++++++++++++++ ...g-revenue-to-governance-token-purchases.md | 6 +++++ ...ncing-the-deans-list-dao-economic-model.md | 14 +++++++++- 3 files changed, 45 insertions(+), 1 deletion(-) create mode 100644 domains/internet-finance/dao-contributor-payment-in-governance-tokens-creates-sell-pressure-offset-requiring-80-percent-buy-volume-premium-for-net-positive-price-action.md diff --git a/domains/internet-finance/dao-contributor-payment-in-governance-tokens-creates-sell-pressure-offset-requiring-80-percent-buy-volume-premium-for-net-positive-price-action.md b/domains/internet-finance/dao-contributor-payment-in-governance-tokens-creates-sell-pressure-offset-requiring-80-percent-buy-volume-premium-for-net-positive-price-action.md new file mode 100644 index 00000000..40b4ddce --- /dev/null +++ b/domains/internet-finance/dao-contributor-payment-in-governance-tokens-creates-sell-pressure-offset-requiring-80-percent-buy-volume-premium-for-net-positive-price-action.md @@ -0,0 +1,26 @@ +--- +type: claim +domain: internet-finance +description: When DAOs pay contributors in governance tokens rather than stablecoins, the majority of recipients immediately sell creating systematic downward pressure +confidence: experimental +source: The Dean's List DAO proposal via futard.io +created: 2026-03-15 +--- + +# DAO contributor payment in governance tokens creates sell pressure offset requiring 80 percent buy volume premium for net positive price action + +The Dean's List DAO proposal explicitly models the sell pressure created by paying contributors in governance tokens. Their assumption is that 80% of DAO citizens who receive $DEAN tokens as payment will immediately sell to 'pay their bills' - converting tokens back to fiat or stablecoins. + +In their worked example, 560k $DEAN tokens are distributed as payment, and 448k (80%) immediately hit the market as sell orders. This creates a structural challenge: the DAO must generate enough buy pressure through treasury purchases to overcome this systematic selling. + +Their proposed solution requires the DAO to purchase MORE tokens than it distributes in dollar terms - specifically, they buy 2000 USDC worth of tokens but only 80% of that value (1600 USDC equivalent) returns as sell pressure. The 20% retention by contributors who don't immediately sell, combined with the 20% treasury tax kept in USDC, creates the net positive price action. + +This reveals a fundamental constraint on token-based contributor compensation: unless the DAO can generate buy pressure exceeding 80% of the token value distributed, the payment mechanism itself becomes a source of price decline. The model only works when revenue exceeds operating costs by enough margin to absorb the sell pressure. + +--- + +Relevant Notes: +- treasury-buyback-model-creates-constant-buy-pressure-by-converting-revenue-to-governance-token-purchases.md + +Topics: +- [[_map]] diff --git a/domains/internet-finance/treasury-buyback-model-creates-constant-buy-pressure-by-converting-revenue-to-governance-token-purchases.md b/domains/internet-finance/treasury-buyback-model-creates-constant-buy-pressure-by-converting-revenue-to-governance-token-purchases.md index 481c3564..bc33eaab 100644 --- a/domains/internet-finance/treasury-buyback-model-creates-constant-buy-pressure-by-converting-revenue-to-governance-token-purchases.md +++ b/domains/internet-finance/treasury-buyback-model-creates-constant-buy-pressure-by-converting-revenue-to-governance-token-purchases.md @@ -36,6 +36,12 @@ The model assumes consistent service demand (6 dApp reviews per month) and stabl The proposal passed MetaDAO governance but represents a single implementation without long-term performance data. The 80% sell-off assumption is stated as "assumption" in the proposal itself, not empirically validated. No mechanism prevents citizens from selling more than 80% if they face liquidity pressure. + +### Additional Evidence (extend) +*Source: [[2024-07-18-futardio-proposal-enhancing-the-deans-list-dao-economic-model]] | Added: 2026-03-15* + +The Dean's List DAO proposal provides specific quantitative modeling: with 2500 USDC per service and 20% treasury tax, 2000 USDC of market purchases creates 560k token distribution, of which 80% (448k tokens) returns as sell pressure. They project this creates 5.33% FDV increase from $337,074 to $355,028 over one month with 6 services delivered. + --- Relevant Notes: diff --git a/inbox/archive/2024-07-18-futardio-proposal-enhancing-the-deans-list-dao-economic-model.md b/inbox/archive/2024-07-18-futardio-proposal-enhancing-the-deans-list-dao-economic-model.md index 9f416606..38e8ce14 100644 --- a/inbox/archive/2024-07-18-futardio-proposal-enhancing-the-deans-list-dao-economic-model.md +++ b/inbox/archive/2024-07-18-futardio-proposal-enhancing-the-deans-list-dao-economic-model.md @@ -6,9 +6,14 @@ url: "https://www.futard.io/proposal/5c2XSWQ9rVPge2Umoz1yenZcAwRaQS5bC4i4w87B1WU date: 2024-07-18 domain: internet-finance format: data -status: unprocessed +status: processed tags: [futardio, metadao, futarchy, solana, governance] event_type: proposal +processed_by: rio +processed_date: 2026-03-15 +claims_extracted: ["dao-contributor-payment-in-governance-tokens-creates-sell-pressure-offset-requiring-80-percent-buy-volume-premium-for-net-positive-price-action.md"] +enrichments_applied: ["treasury-buyback-model-creates-constant-buy-pressure-by-converting-revenue-to-governance-token-purchases.md"] +extraction_model: "anthropic/claude-sonnet-4.5" --- ## Proposal Details @@ -146,3 +151,10 @@ This way we create volume (3600 \$USDC volume) and the price action is always po - Autocrat version: 0.3 - Completed: 2024-07-22 - Ended: 2024-07-22 + + +## Key Facts +- The Dean's List DAO proposal 5c2XSWQ9rVPge2Umoz1yenZcAwRaQS5bC4i4w87B1WUp passed on 2024-07-22 +- The Dean's List DAO had $337,074 FDV with 100M circulating $DEAN tokens at $0.00337 price in July 2024 +- The Dean's List DAO charges 2,500 USDC per dApp review +- The proposal implemented 20% DAO tax retained in USDC with 80% used for token purchases