Hatcher Guidebook and Checklist

Navigating the Hatch Process

This guidebook is a supplemental resource that is designed to assist Hatchers who are participating within the Hatch process of the Token Engineering Commons.

Hatcher Checklist

This Checklist will make sure that you are completely prepared to participate in the Hatch Process.

☑️ Create a Web 3.0 Wallet

☑️ Trusted Seed

  • Review the Legal Documents

  • Apply to the Trusted Seed

  • Activate your Membership

  • Apply for Scholarship

☑️ Networks & Tokens

  • Acquire DAI

  • Convert DAI → xDai

  • Wrap your xDai → wxDai

☑️ Review the Hatch Process

☑️ Review the Hatch DAO Parameters

☑️ Engaging with the Commons Upgrade

☑️ Additional Resources and Contact Information

Creating a Web 3.0 Wallet

If you don’t already have a Web3 wallet, you will need one to participate in our Hatch and to interact with Web3 applications.


Metamask is required for using the Hatch dApp. Metamask describes itself as a "bridge that allows you to visit the distributed web of tomorrow in your browser today." Metamask is a browser extension that is both an Ethereum wallet and a Web3.0 provider. That means that you can interact with dApps right from your browser, just like you are interacting with regular web sites. It's a light wallet, which means it doesn't need to be fully synchronized with the Ethereum network to function. Extension is supported in Chrome, Firefox, Opera and the Brave browser.

A Tutorial on setting up your Metamask!

The Trusted Seed

The Token Engineering Commons community has voted to use the Commons Stack’s Trusted Seed as part of the legal strategy to protect Hatchers and community developers. An added benefit of this strategy is that it ensures all participants who are contributing to the Hatch are aligned with the mission and values of the TEC, and prioritize those individuals who seek to create collective benefits over individual profits. The Trusted Seed acts as an identity oracle allowing us to use reliable voting mechanisms through TokenLog and other decentralized applications.

Legal Documents

The legal structure of the Trusted Seed is designed for the most litigious legal environments (for example, within the United States -- where communities like this can be easily seen as general partnerships with heavy legal liability for individuals). The Commons Stack Swiss Association (CSSA) has been incorporated to protect Hatchers from legal situations that could arise from normal good faith actions within the Hatch process of our Commons.

Terms & Conditions


Summary of our Legal Strategy

Applying to the Trusted Seed

In order to apply to the Trusted Seed, you will need to provide some information that allows the Commons Stack team to verify your identity and intentions for participating in the Hatch of the TEC. The application is a simple typeform, and you will need to be prepared to provide contact information as well as an Ethereum address where you will receive your CSTK score.

Apply to the Trusted Seed!

Activate your Membership

Activating your membership is a requirement for full membership in the Trusted Seed. It is also required for participating in the Hatch of the Token Engineering Commons (TEC). Membership dues are 450 DAI (minimum) and will be used to cover operational costs, to achieve the Association's objectives and to cover the legal protections associated with member benefits. The CSSA uses Giveth to provide transparent tracking on the use of membership dues.

Activate your membership!

Tutorial on how to use our Membership dAPP!

Apply for a Scholarship

We understand that for many people, the 450 DAI membership dues are a huge barrier to entry. This is why we have developed a scholarship program through Giveth which allows you to get reimbursed for the DAI that you spent on your membership costs.

Apply for your scholarship!

How to apply for a Giveth Scholarship!

Networks & Tokens

During the Hatch Process, you will be interacting with two different decentralized networks, and four different tokens. There are very important reasons for our choices. It’s going to be easier that you think! Below we will go through the process of how to acquire the necessary tokens to participate in the Hatch, and some important tips that may make this process as efficient as possible.

Acquire DAI

Dai is a stablecoin (pegged at ~1 USD) that exists on the Ethereum Network. When you are utilizing your Metamask wallet, you are already connected to this network. DAI can be purchased from almost any exchange. You will need to utilize your Web 3.0 wallet to acquire DAI from a decentralized exchange (DEX) such as Uniswap if you want to participate in the Hatch. Once you have DAI, you will be able to convert it into xDAI.

Converting DAI to xDAI

The xDAI token is a stable token (worth ~ 1 USD) created from locked DAI.

xDai tokens are transactional tokens on the xDai chain that are used to pay for the execution of smart contracts and other associated resource fees. The xDAI Chain is a stable and more cost effective network to operate a DAO. The gas costs associated with operating on Ethereum are too high for us to create, vote, and execute proposals associated with the Hatching process. The xDAI Chain provides us with fractional gas requirements, making participation in the Hatch more affordable.

In order to connect to the xDai Network, you will need to configure a custom RPC Network within your Metamask wallet with the following information (if you have not already):

Once you connect successfully with the xDAI Chain, you can acquire xDAI by converting DAI from the Ethereum Blockchain to xDAI on the xDAI Chain via the Token Bridge.

Converting xDAI to wxDAI

Wrapped xDAI (wxDAI) is an xDAI token that has an ERC-20 wrapper that expands its functionality. Native blockchain coins like xDAI can be converted to wrapped ERC20 tokens that live on the same chain. This increases potential use cases for DEX applications, swaps, and DAO interactions. We will be using wxDAI to help improve the Hatch process.

In order to send funds during the hatch you will need to wrap your xDAI tokens via the xDAI Chain WrapEth Tool. This will convert your xDAI to wxDAI.

Quick Tip: During the Hatch process you will be initiating several transactions on both the Ethereum and xDai Chain so be prepared to always have a little more DAI than you plan on sending to the Hatch to account for transaction costs.

Review the Hatch Process

The Hatch is the critical initial phase of the Token Engineering Commons (TEC). The Hatching Process is broken down into two distinct phases:

‌Phase 1 - Launching the Hatch DAO.

The Hatch DAO is the initialization environment developed for funding the Token Engineering Commons. We can look at the Hatch DAO as being a starting template for the Commons that exists for the sole purpose of receiving the initial funding for the TEC and upgrading the DAO with new features. The Hatch DAO is governed by TECH token holders through the initialized parameters that were voted on by the TEC community. These parameters define how the DAO is governed, for example, the rules associated with how proposals are created and executed, and how the DAO handles the funds raised.

This initial phase of the Hatching process ends after the 30 days allocated for the Hatch Period has passed or if the Maximum Target Goal has been reached. The latter triggers an automatic close of the Hatch so as not to exceed the maximum cap allowed.

If the Minimum Target Goal is reached by the end of the Hatch Period, the second phase of the Hatching process will begin. If the Hatch DAO fails to receive the Minimum Target Goal, the Hatch DAO will close and all funds received will be returned.

The first phase will include 3 major events:

ꙮ Event Closed ꙮ Upcoming Event

  • Proposals for the initialization parameters are submitted.

  • A community vote is held to implement one set of submitted parameters.

  • The Hatch Raise process begins.

‌Phase 2 - The Commons Upgrade

The next phase will be to upgrade the Hatch DAO into a Commons. This upgrade includes adding Augmented Bonding Curve, Conviction Voting, and Disputable Conviction Voting. As a TECH token holder you can now participate in the Commons upgrade proposal process.

After the Commons upgrade, TECH tokens will be exchanged for TEC tokens.

The second phase will include 3 major events:

ꙮ Event Closed ꙮ Upcoming Event

  • Proposals for the Commons upgrade parameters are submitted.

  • A community vote is held to implement one set of submitted parameters.

  • A vote within the DAO will pass or fail the Commons upgrade proposal.

Parameters Review

The Hatch DAO parameters establish the rules and boundaries during the Hatch process. Proposals for the Hatch DAO parameters were submitted and voted on, with the winning proposal (#83) being implemented. The parameters that affect you as a Hatcher are described below.

Sending wxDai to the Hatch

As a Hatcher, you will be sending wxDai to the Hatch DAO and you will receive TECH tokens in return. There are a few parameters implemented within the Hatch DAO that determine the boundaries of when and how much wxDai you are permitted to send, and how many TECH tokens you will receive in return.

Hatch Period (days): The Hatch Period parameter sets the amount of time the Hatch DAO is open to receive wxDai. This parameter is set to 30 days. Once this period ends, the first phase of the Hatch process will be concluded.

What matters to me?: Make sure you have your wxDai ready. You may send wxDai to the Hatch DAO at any point during this time period to receive a proportional amount of TECH tokens.

Minimum Target Goal (wxDai): The Minimum Target Goal parameter is the amount of funds that need to be raised during the Hatch Period for the Hatch process to move into the second phase. This parameter is set to 800,000 wxDAI.

What matters to me?: If the Hatch DAO fails to receive this amount of wxDai before the end of the Hatch Period, the Hatch DAO will close and any wxDai you have sent to the DAO will be returned in full automatically.

Hatch Membership Ratio (wxDai/CSTk): The Hatch Membership Ratio determines the max amount of wxDai an individual can send to the Hatch DAO during the Hatch Period. This parameter is set to 10 wxDai per 1 CSTK (see above section on Applying to the Trusted Seed).

What matters to me?: Your CSTK score, which can be see on the Trusted Seed dApp or verified in your Web 3.0 wallet on the xDai network, will determine the max amount of funds you can send to the Hatch DAO.

Hatch Minting Rate (TECH/wxDai): The Hatch Minting Rate determines the amount of TECH tokens that are minted in exchange for the amount of wxDai you send to the Hatch DAO. This parameter is set to 1 TECH per 1 wxDai.

What matters to me?: Depending on how much wxDai you send to the Hatch DAO determines how many TECH tokens you can expect to receive in exchange.


All TECH token-holders may exit their financial position at any time between the close of the Hatch and the Commons Upgrade except for when they vote Yes on one of the proposals while the proposal is still being voted on and the following 48 hours of the Ragequit delay.

What matters to me?: The amount of wxDai you can redeem for your TECH tokens is equal to the total amount of funds you sent to the Hatch DAO minus the Hatch Tribute and Cultural Tribute. These two parameters are described below.

Ragequit Delay (hours): The Ragequit delay is the amount of time TECH token holders have to evaluate the implications of a proposal within the DAO, and to decide whether or not they want to keep their TECH tokens or redeem them for an amount of wxDai that correlates with their overall Ragequit percentage. This parameter is set to 48 hours.

What matters to me? This parameter applies to all proposals submitted within the Hatch DAO.

Hatch Tribute (%): The Hatch Tribute (%) defines the percentage of funds that are permanently allocated to the reserve in service of our mission to advance Token Engineering. The Hatch Tribute cannot be redeemed by individuals who wish to exit the Hatch DAO. This parameter is set to 2%.

What matters to me? This means that once you send funds to the HatchDAO, 2% of that amount is allocated to the reserve as a participatory tribute and is non-redeemable in the event of exiting the DAO via rage quitting.

Cultural Tribute: The Cultural Tribute is the amount of TECH tokens minted for the builders of the TEC community. A builder is classified as anyone possessing Impact Hours Tokens (IHT). This is a dynamic parameter that is dependent upon the total raise amount during the Hatch period.

Note: The Cultural Tribute is calculated based on the following two parameters: Impact Hour Rate at Target Goal and Impact Hour Rate at Infinity.

What matters to me? The Cultural Tribute will reward those that have contributed to building the TEC up until this point. This tribute reduces the amount of redeemable wxDai for every Hatcher who chooses to exit the Hatch DAO via rage quitting.

Hatch DAO Voting Configuration

There are some DAO configuration parameters that you should be aware of when participating in decision-making in the Hatch DAO. Only TECH token holders can vote. There are several parameters that must be satisfied for a proposal to be considered valid and ready for execution within the DAO. Along with the proposal requirements, there are other parameters that set the boundaries of the decision-making space which provides additional security and transparency around these decisions.

Tollgate Fee (wxDai): The Tollgate Fee parameter establishes a required cost for submitting any proposal within the HatchDAO. This parameter is set to 1,000 wxDai. This mechanism is useful for when an organization wants to allow public proposals but prevent spam by imposing a cost on proposal submissions.

What matters to me? There is a cost to any proposal that is submitted to the Hatch DAO. This is to prevent spam during this period between the Hatch DAO and Commons Upgrade. This parameter may be changed as part of the Commons Upgrade parameters.

Vote Duration (days): The Vote Duration establishes the amount of time that token holders will have to vote on any given proposal submitted within the Hatch DAO. This parameter is set to 4 days.

What matters to me? As a TECH token holder, there is a limited number of days to cast my vote before the proposal either passes or fails.

Support Required (%): The Support Required parameter is the percentage of YES votes from the total amount of TECH token votes cast in order for a proposal to pass. This parameter is set to 88%.

Minimum Quorum (%): The Minimum Quorum parameter is the percentage of YES votes from the total supply of TECH tokens that are required for a proposal to pass. This parameter is set to 8%.

What matters to me? Your vote will count! If a proposal fails to reach minimum quorum it cannot be executed within the DAO.

Vote Buffer (hours): The Vote Proposal Buffer is the amount of time that must pass between the start of subsequent votes. This parameter is set to 4 hours. This parameter limits rapid proposal creation within the DAO which delays the execution of prior proposals.

Engaging with the Commons Upgrade

The Commons Upgrade is the focal point of all activities that occur within the Hatch DAO. The Token Engineering Commons is the first project that allows for the parameters of an economy to be designed by its stakeholders. As a Hatcher, you have the power to design the economy you wish to participate in. This power also has some responsibilities and will require your participation if we want to succeed.

The developers within the Token Engineering Commons have spent a significant amount of time designing and building the tools for you to submit your own set of parameters to be voted on, and to educate you on the implications that each of those decisions carry within your own design. The following links will provide you with a starting point to develop your own design, the proposal process, and how to vote on those proposals. Your economy, Your Choice!

Configuration Dashboard _Set and Propose the design parameters of the TEC Economy

TEC Forum _Learn about the Commons Upgrade Parameters

TokenLog _Vote on submitted proposals

Additional Resources and Contact Information

While this guidebook is helpful for navigating the Hatch Process, you may still have very important questions or concerns that may need answers. For direct inquiries, please visit our -help Channel inside our Discord Server, and a member of the Hatcher Outreach Working Group will assist you in a timely manner.

Also, as a Hatcher take a look to our Code of conduct.

Here are some additional links that are beneficial to browse if you run into any misunderstandings or are just curious about how our community has developed up to this point. Please don’t hesitate to reach out, and thank you for participating as a TEC Hatcher!

Discord Server

TEC Forum




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