Hatch Terms TL;DR
How Did We Get Here?
Congratulations! This document will matter when the TEC Hatch DAO has managed to surpass its Minimum Goal to launch and the community has to decide how exactly to evolve the TEC Hatch DAO. There will be a separate document that sets forth the initial terms for how exactly TEC Hatch DAO community members can put forward proposals.
For our purposes now it is important to understand that there are two different organizations. There is the TEC Hatch DAO which may eventually vote to evolve into the TE Commons.
A Small Word About DAOs.
It is no exaggeration to say that a DAO is a unique structure and one for which there is not yet much guidance on best practices on how to form and govern a DAO. In short, a DAO is a decentralized autonomous organization. It is a non-state actor with the autonomy that is capable of setting its own internal rules and boundaries.
The TEC Hatch DAO will be governed by the TECH Token holders and therefore, there is a real and serious possibility that the community will change the rules of how the TEC Hatch DAO will operate. But, as described below, the expectation is that the TEC Hatch DAO will upgrade into the TE Commons which will use an augmented bonding curve and conviction voting in order to execute proposals.
However, it is important to remember that these terms are merely temporary as the community will ultimately decide what the rules are going forward.
Voting in TEC Hatch DAO.
All DAO votes will go forward via Dandelion voting. The voting parameters will involve a Tollgate Fee of ____ wxDai, a Minimum Quorum of ___%, Support Required ___% and Vote Duration of ___ days. If a TECH token holder disagrees with a vote that passed and did not vote yes on it, they will have _____ days after the vote was passed to Rage Quit before the vote can be executed. Rage Quitting means they can redeem their TECH tokens for their proportional share of the wxDai in the Redeemable Pool.
What We Would Like to Happen.
In terms of what the TEC community members involved in the TEC Cultural Build would like to happen, there is an expectation that after a successful Hatch, there will be a vote to upgrade the TEC Hatch DAO to a “Commons” that will initialize an Augmented Bonding Curve (ABC) giving TECH token holders TEC tokens, and the ABC will create a continuous funding stream to a Funding Pool governed by Conviction Voting that will allocate funds towards advancing Token Engineering.
How to Make a Proposal in the TEC Hatch DAO.
We highly encourage engaging in an advance and consulting with the community via the TEC forum prior to submitting proposals. The TEC Hatch DAO has the autonomy to reject proposals that are contrary to its mission, vision, values, and terms and conditions. Off-chain communication within the TEC forum and Discord servers is expected to be necessary for proposals to pass. Submitting a vote to the TEC Hatch DAO is merely the tip of the iceberg of the work that involves the community as a whole.
Proposals for the Commons Upgrade will initially be made on Github and then voted on via Tokenlog for the TEC Hatch DAO community to reach consensus. However, anyone will be allowed to make any proposal to the TEC Hatch DAO, including proposals to upgrade to a Commons. The following proposals, however, are discouraged:
- Setting a quorum too high;
- Setting a tollgate too low;
- Allowing no time between a final vote and execution of the vote.
- Any proposal that has not gone through the advice process in the forum
What Are the Potential Risks of Participating in the Hatching of the DAO?
Participating in the Hatch carries some risks. While this list is not intended to be exhaustive, the community does want to highlight at least some of the risks that it believes should be considered:
- The community may not approve a vote to upgrade into a Commons with a Bonding Curve and Conviction Voting structure as imagined and instead, the community may end up maintaining the original structure of the TEC Hatch DAO;
- There may be a bug in the smart contracts that could result in an unexpected loss of funds. While auditing has occurred, we all know that smart contracts can contain bugs that are not recognized immediately until after deployment;
- The community may approve of proposals that you fundamentally disagree with and some TECH token holders may want to Rage Quit;
- There is no promise of any investment returns, in fact, because of the Hatch Tribute and Cultural Build Tribute, the TECH tokens will be redeemable for less wxDai than were sent to the Hatch to mint them.