🍪Valuing DOUgh
What is the value of Đ, DOU?
The ultimate value of DOU will be determined when the Cake is Baked. (see Baking the Cake)
Until the Baking event the DOU for the Cake has an arbitrary value. Each Cakes' DOU value is independent and decided by its' community.
At the time of founding the Cake: the first members should raise a proposal containing a document explaining their method of valuing DOU.
The simplest approach is to simply make the DOU for your Cake equal to the dominant currency of your members eg: USD, EUR, ETH, DAO Token etc.
However, simple is not always the best so give this some careful thought.
Multipliers / Ratios
By choosing the simple approach you may miss out on one of the most powerful motivators to early contributors and founders. At Accord, we advocate planning a multiplier system that rewards the contributions at critical points in your organisations' journey.
Conventional thinking is that a project is most risky in it's early stages:
1 in 100 startups fail. The same could be said for DAOs as they may never have a TGE.
Contributors at the early stages who develop the product, build the community are taking a bigger risk than those who come along when the DAO is successful, has customers, knows it's marketing proposition.
Is 1 hour of time of an early founder worth 100x that of someone who joins once the DAO has it's first investment?
It's may not be that simple. Use the be above argument to start the conversation in your DAO.
Whatever you collective propose, know that it needs to go through the governance system and approved. For all-of-time the proposal will be referenced as how you decided to proceed and will be used as a guide to every member who makes a contribution.
Also consider triggers for the multiplier to change. If you roll with a 50x multiplier to begin with, when will that change, what will it change to? Is it time bound or an event? what will you call those phases? What if the phase is never reached?
We're putting together a guide and template to help DAO founders reach decisions on multipliers. DM in the discord and we'll get you involved in the drafting.
Last updated