# Hatch DAO

### About <a href="#about" id="about"></a>

The TEC community [**decided to launch the Commons in 2 phases.**](https://forum.tecommons.org/t/launching-in-2-parts-first-hatch-dandelion-then-vote-to-add-abc-cv/85/11) The Hatch DAO which has a **Dandelion Voting instance** is the first phase and will welcome hatchers to vote on the implementation of the **Augmented Bonding Curve** and **Conviction Voting** apps. If these proposals are approved, the Hatch DAO will upgrade into a Commons.‌‌

### Hatch Dao Main Actions  <a href="#hatch-dao-main-actions" id="hatch-dao-main-actions"></a>

* wxDAI can be sent to the Hatch DAO but only up to the hatcher **CSTK score** based on the [**CSTK Ratio**](https://forum.tecommons.org/t/cstk-ratio-deep-dive/141)
* When wxDAI is sent, **TECH** tokens are minted based on the [**Hatch Exchange Rate**](https://forum.tecommons.org/t/hatch-exchange-rate/190)​
* There is a hatching period that will be decided by the [Hatch Time Limit](https://forum.tecommons.org/t/hatch-time-limit-deep-dive/63/17). During the hatching period no actions other than sending wxDAI can be taken.
* If the [Hatch Min Goal](https://forum.tecommons.org/t/hatch-goals-deep-dive/62) is reached Cultural Build Tribute and Hatch Tribute are applied.
* The Hatch DAO is like a Moloch DAO. Hatchers can rage quit and redeem their share of the redeemable pool at any time unless they voted yes on a proposal. In this case they need to wait until that proposal is executed.
* Hatchers can Vote and control the DAO’s Funds
* Hatcher can Vote to upgrade the DAO’s smart contracts and parameters
* Hatchers can vote to mint and burn tokens
* Hatchers can vote on the wxDAI split ratio between reserve and [funding pools](https://forum.tecommons.org/t/guide-testtec-dao-3-bonding-curve/75)​
* People can create proposals in the Dandelion Voting app paying the required [tollgate fees](https://forum.tecommons.org/t/tollgate-fee-deep-dive/128).
* Hatchers can claim 100% of their funds back if the Hatch doesn't reach its [Minimum Goal](https://forum.tecommons.org/t/hatch-goals-deep-dive/62),
  * In this case, the funds will be available until they are claimed with no time frame.
* IH tokens holders will receive TECH tokens via the cultural build tribute if hatch [Minimum Goal](https://forum.tecommons.org/t/hatch-goals-deep-dive/62) is reached
* TECH token holders will be able to vote on token log to determine the parameters of the commons upgrade.
* TECH token holders will ratify the parameters for the Commons upgrade via TEC Hatch DAO
* When the parameters are ratified the Commons upgrade will move funds into a new DAO and everyone with TECH tokens will receive TEC
* Once the TEC Hatch DAO is upgraded to a full Commons, anyone can join the TEC via the bonding curve.

#### **What actions or outcomes are required?**  <a href="#what-actions-or-outcomes-are-required" id="what-actions-or-outcomes-are-required"></a>

* Participants of the TEC Hatch DAO are aware that unexpected behaviors can happen and the decision making power is all within the TECH token holders.
* Hatchers agree to the TEC Hatch Terms​
* It is required that Hatchers join the [Commons Stack Swiss Association for legal protection](https://forum.tecommons.org/t/tec-legal-strategy-proposal-vote/193).

**What actions or outcomes are discouraged?**&#x200C;

* Disrespecting our code of conduct
* Failing to comply to the [TEC Hatch Terms](https://docs.google.com/document/d/1voxAC_XZfbElTF8NRDTrB4Kaz3Js2J9ShvHx5FsUcdA/edit)