> For the complete documentation index, see [llms.txt](https://bonding-curve-research-group.gitbook.io/bonding-curve-research-group-library/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bonding-curve-research-group.gitbook.io/bonding-curve-research-group-library/case-studies/dxdao.md).

# DXDao

<details>

<summary>TL;DR: DXDao Case Study</summary>

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.

</details>

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.&#x20;

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

<figure><img src="/files/NcredB9xuAOcqjMrLSaC" alt=""><figcaption><p>Reputation.Score = Amount.of.token × Locking-duration-in-days × Price.of.token.at.the.time.of.lock</p></figcaption></figure>

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:&#x20;

* locking ETH
* &#x20;locking tokens that were whitelisted and&#x20;
* traded on the DutchX,&#x20;
* registering on Magnolia (MGN), and&#x20;
* 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.