---
type: entity
entity_type: decision_market
name: "IslandDAO: Enhancing The Dean's List DAO Economic Model"
domain: internet-finance
status: passed
parent_entity: "[[deans-list]]"
platform: "futardio"
proposer: "IslandDAO"
proposal_url: "https://www.futard.io/proposal/5c2XSWQ9rVPge2Umoz1yenZcAwRaQS5bC4i4w87B1WUp"
proposal_date: 2024-07-18
resolution_date: 2024-07-22
category: "treasury"
summary: "Proposal to charge clients in USDC, use 80% to buy $DEAN tokens for citizen payment, retain 20% DAO tax in USDC as hedge"
tracked_by: rio
created: 2026-03-11
---

# IslandDAO: Enhancing The Dean's List DAO Economic Model

## Summary

The Dean's List DAO proposed switching from USDC-based contributor payments to a model where client revenue (charged in USDC) is used to purchase $DEAN tokens on the open market, which are then distributed to DAO citizens as payment. The DAO retains 20% of revenue as tax in USDC to hedge against token price volatility. The proposal argued this creates structural buy pressure (80% of revenue) that exceeds sell pressure (estimated 80% of distributed tokens sold by citizens), resulting in net positive price action.

## Market Data

- **Outcome:** Passed
- **Proposer:** IslandDAO
- **Proposal Account:** 5c2XSWQ9rVPge2Umoz1yenZcAwRaQS5bC4i4w87B1WUp
- **Completed:** 2024-07-22
- **Platform:** Futardio (MetaDAO's futarchy implementation)

## Significance

This proposal represents an early experiment in DAO treasury management where:

1. **Token buyback as compensation mechanism**: Rather than paying contributors in stablecoins, the DAO uses revenue to create buy pressure on its governance token, distributing tokens as payment.

2. **Stablecoin treasury hedge**: The DAO retains its tax in USDC rather than its own token, acknowledging token price risk while still using the token for contributor alignment.

3. **Quantified price impact modeling**: The proposal included detailed FDV projections (5.33% increase expected) and price impact estimates, demonstrating the analytical overhead futarchy governance requires.

4. **Structural buy pressure thesis**: The model assumes DAO tax retention (20%) creates permanent net buy pressure because buys (80% of revenue) exceed sells (80% of 80% = 64% of revenue).

The proposal's passage suggests MetaDAO's futarchy markets validated the economic logic, though actual performance data post-implementation is not available in this source.

## Relationship to KB

- [[deans-list]] - parent entity, treasury governance decision
- [[MetaDAOs Autocrat program implements futarchy through conditional token markets where proposals create parallel pass and fail universes settled by time-weighted average price over a three-day window]] - governance mechanism used
- [[token economics replacing management fees and carried interest creates natural meritocracy in investment governance]] - related economic model