---
type: decision
entity_type: decision_market
name: "Dean's List: Enhancing The Dean's List DAO Economic Model"
domain: internet-finance
status: passed
parent_entity: "[[deans-list]]"
platform: "futardio"
proposer: "IslandDAO"
proposal_url: "https://v1.metadao.fi/deans-list/trade/5c2XSWQ9rVPge2Umoz1yenZcAwRaQS5bC4i4w87B1WUp"
proposal_date: 2024-07-18
resolution_date: 2024-07-22
category: "treasury"
summary: "Transition from USDC to $DEAN token payments for contributors while maintaining USDC DAO tax to create buy pressure"
tracked_by: rio
created: 2026-03-11
---

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

## Summary
The proposal restructures The Dean's List DAO's payment model to charge clients in USDC, use 80% of revenue to purchase $DEAN tokens, distribute those tokens to DAO citizens as payment, and retain 20% DAO tax in USDC. The model aims to create consistent buy pressure on $DEAN while hedging treasury against token volatility.

## Market Data
- **Outcome:** Passed
- **Proposer:** IslandDAO
- **Resolution:** 2024-07-22
- **Proposal Account:** 5c2XSWQ9rVPge2Umoz1yenZcAwRaQS5bC4i4w87B1WUp

## Economic Model
- **Revenue Structure:** 2500 USDC per dApp review, targeting 6 reviews monthly (15,000 USDC/month)
- **Tax Split:** 20% to treasury in USDC (3,000 USDC/month), 80% to $DEAN purchases (12,000 USDC/month)
- **Daily Flow:** 400 USDC daily purchases → ~118,694 $DEAN tokens
- **Sell Pressure:** Assumes 80% of distributed tokens sold by contributors (94,955 $DEAN daily)
- **Net Impact:** Modeled 5.33% FDV increase vs 3% TWAP requirement

## Significance
This proposal demonstrates futarchy pricing a specific operational business model with quantified buy/sell pressure dynamics. The structured approach—USDC revenue → token purchases → contributor distribution → partial sell-off—creates a measurable feedback loop between DAO operations and token price. The 20% USDC tax hedge shows hybrid treasury management within futarchy governance.

## Relationship to KB
- [[deans-list]] - treasury and payment restructuring
- 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 - TWAP settlement mechanics
- [[futarchy-markets-can-price-cultural-spending-proposals-by-treating-community-cohesion-and-brand-equity-as-token-price-inputs]] - operational model pricing

## Full Proposal Text

*Source: futard.io, tabled 2024-07-18*

The proposed model involves continuing to charge clients in USDC and using the collected USDC to purchase $DEAN tokens. These tokens will be distributed to DAO citizens as payment for their work, replacing USDC payments. The DAO tax will remain in USDC to hedge against $DEAN price fluctuations. This creates constant buying pressure on the $DEAN token.

Example: DAO Tax @ 20%, Cost of dApp review 2500 $USDC
- 500 $USDC goes to the treasury
- 2000 $USDC used for purchasing $DEAN tokens (560k $DEAN, price goes up)
- DAO Citizens paid 560k $DEAN; 80% sell to pay bills (448k $DEAN hits market)
- Price always achieves a higher low on each cycle

### Detailed Analysis
- Current FDV: $337,074
- Daily Trading Volume: $500
- Circulating Supply: 100,000,000 $DEAN
- Current Price: $0.00337

With 400 USDC daily purchase (80% increase in buy volume), estimated 24% price increase, 15% decrease from sell pressure.
- Initial FDV: $337,074 → New FDV: $355,028 (5.33% increase)
- Exceeds TWAP 3% requirement ($347,186)