⚙️DXDao

TL;DR: DXDao Case Study

DXdao is a decentralized collective that builds and governs decentralized products, aiming for transparent and fair consensus. It launched on Ethereum Mainnet on May 19, 2019.

• Reputation (REP): REP holders govern DXdao, with REP being non-transferable and tied to Ethereum addresses. Initial REP distribution involved 399 addresses through actions like ETH deposits and trading.

• Bonding Curve and DXD: DXdao introduced DXD tokens to raise funds, implementing a linear bonding curve model to mint DXD in exchange for ETH. The curve aimed to maintain a stable reserve ratio and fund the treasury.

• Treasury and Funds: DXdao has accumulated a treasury worth approximately $50 million, including 25,000 ETH, through various fundraising and trading activities.

• Challenges and Adjustments: The bonding curve faced issues like price discrepancies and arbitrage, leading to treasury drain. A proposal to pause the curve was eventually approved in December 2020 after extensive debate.

• Curve Redesign Considerations: Community discussions proposed halting the bonding curve and exploring new designs, including an exponential bonding curve, to better align with market conditions and system goals.

DXdao is a decentralized collective that builds and governs decentralized products and services for the world. It aims to be an open community that reaches consensus in a transparent and fair way.

DXdao launched on Ethereum Mainnet on May 19, 2019, through a collaborative effort of the teams at Gnosis and DAOStack. Reputation (REP) holders govern DXdao. REP is not a token; it is associated with an Ethereum address and cannot be transferred.A total of 399 Ethereum addresses participated in the initial REP distribution.

There were 3 major ways to receive REP during the launch phase:

• 380k in lock drops rewarded for depositing ETH (80k) or other ERC20 tokens (300k) for a two week period

• 500k from trading on the DutchX exchange and registering MGN

• 100k for purchasing REP with GEN

Reputation.Score = Amount.of.token × Locking-duration-in-days × Price.of.token.at.the.time.of.lock

At the outset, there were 1 million Reputation (REP) tokens available for voting within DXdao. Of these, 98% (980,000 REP) were earned during the Vote Staking Period through several actions:

• locking ETH

• locking tokens that were whitelisted and

• traded on the DutchX,

• registering on Magnolia (MGN), and

• bidding GEN in auctions.

The remaining 2% (20,000 REP) of the initial Reputation is reserved for allocation by DXdao during the Governance phase. During this phase, DXdao had the authority to award the unallocated 2% of Reputation to "DAO Storytellers," individuals who actively promote and support the DXdao.