Where are the funds going to be stored?
We will use the same strategy as ConstitutionDAO for the initial fundraise for MoonDAO. We'll store the funds in a Gnosis multi-sig with some of the core contributors, and then use Juicebox's protocol to raise funds. Once we have a coin we will use a snapshot to make decisions as a DAO.
The token represents governance over the DAO, but not fractionalized ownership of the DAO or any of its assets.
What are the risks?
Crypto and web3 involve emergent and rapidly-developing technology and there is always a risk of unforeseen issues could impact us. Although we feel strongly that we have made everything as secure and foolproof as possible given the time constraints, we feel that it’s important to inform the community that these are possible risks:
- Despite the many layers of protection we have in place, the Gnosis Multi-Sig wallet could be affected by theft, loss of keys, or fraud.
- While the community has thoroughly vetted these contracts and our contribution platform has been previously battle-tested with millions of dollars secured, there is always the possibility that a smart contract could be hacked due to an unknown vulnerability.
Am I receiving ownership in exchange for my contribution?
No. You are receiving a governance token, not fractionalized ownership. Governance includes the ability to advise on the mission, values, and operations of MoonDAO as well as the allocation of resources to projects that the DAO supports. MoonDAO is taking donations and donors are receiving governance tokens with no expectation of profit. These donations are not tax deductible at this point in time.
Will the core team receive any of the raised funds for themselves or get compensated in any way from this?
The core team has not received or pre-minted any tokens. We just want this to exist, we're not doing this for the money. If you want to tip anyone in the community with NFT-memes or give individuals something for their hard work, that's up to you. We don't see much of a distinction between the core-contributors and the rest of the people. Eventually we hope there is no distinction in the long term and the community and core contributors have the same powers.
Why is there a 50% reserve on the token?
The 50% reserve will be goverened by the $MOONEY holders, and can be used to pay contributors for their work on MoonDAO going forward, or could be even be burned if that is the wish of the community. We're not going to dump that reserve on secondary markets and dilute anyone without the consent of the $MOONEY holders. We belieive that the holders of the $MOONEY will likely only do things that doesn't hurt their interest, and that this is offers more protection to $MOONEY holders than letting the DAO potentially deflate the holders by minting more $MOONEY with no supply cap. Rather, we wanted to set a supply limit and leave the DAO with some portion to distribute for work done for the DAO.
How will governance work?
To start out we will have proportional governance up to a community decided limit. The limit is needed so that if one person buys more than 51% of the tokens they cannot centrally control the DAO’s decisions. To begin, we will use a 4% limit of the total coin supply, however anyone is welcome to purchase more than 4% if they would like to contribute more. The multi-sig will confirm transactions on behalf of the community, and in theory have a veto power to protect the community if there is an attack on the governance of the DAO. As the DAO evolves our governance will mature, and we will likely have more sophisticated and more decentralized governance structures -- these decisions will be in the hands of the token holders.