[NFTs, Governance, Funding] Upgrading Foundry to the 2020s ownership economy

Fryers!

TL;DR; The foundry treasury will be thin in 2022 if we do not take measures to fill it (so we can empty it lol). In order to increase participation wo burning funds for empty marketing we need to develop our narrative - NFTs could be part of it. Read on. Great references.

I think the 2021 NFT rush has not escaped you. The emergence of DAOs as a viable, more widely accepted, coordination mechanism has dawned upon you and your crypto frens (not without its . weaknesses … tbc elsewhere). Is there a lesson here? Read on.

If you paid any attention to the foundryDAOs activities, the Strategic Treasury topic on Telegram has not escaped you.

If it did, the gist is this:

image

It might not be that dramatic. But the bucket sale, undermarketed as it is, has a contract-based stopping “date” after which the treasury will stop filling unless some form of fees start rolling in.

  • Fees?
    • Foundry is a DAO shooting for economic freedom. Part of fulfilling that vision is building unstoppable decentralized software that fulfill critical needs for people who are under risk of economic censorship in classical business environments. Generating fees from the use of such software is a large part of foundryDAO’s long-term survival.

@coinop-logan mentioned in telegram that we stand at risk of not being able to pay salaries if bucket sales do not pick up significantly over the next 6 months. At current burn levels, the DAOs development capability is limited, aka. significant new product launches are not in the cards as of right now and development capacity is in competition with marketing spend.


Can the development vs. marketing spend dichotomy be broken?
Can we upgrade foundryDAO and actually make it to the :first_quarter_moon_with_face: AND help people?

tl,dr: YES.

Successful DAOs are built on several pillars:

  • hype, emanating from the shared humor, language and mission of the DAO memebers and fanbois
  • funding, from buy-ins into governance tokens or tribute payments or bonding-curve based-sales mechanisms
  • an economic flywheel that allows the first two to result in net-positive gains in the form of a virtuous cycle in both hype and funding. This is an explicit goal of foundryDAO, but it seems the DAO is stuck in the netherspace of having enough to keep going but not enough to scale up, both in hype and in funding.

Building this flywheel takes time, brains, community hype, marketing and development and design. In other words: a working organization. And the best, most resilient young organisations are those where stakeholders truly hold something that demonstrates ownership [Link 1]. In startups that is outright stake or stock options. In decentralized projects it can be reputation and voting rights.
However, humans have communicated with symbols and artifacts for millenia. Think of the native American totems, the Mayans, heck, even the British Royal family has artifacts that convey the monarchies power.

NFTs are the obvious next iteration of this concept - and this more relevant for DAOs than for anything else.

[1]: Trustless Blockchains make a true ownership economy (NASDAQ.com) incredibly easy to achieve


A number of very successful NFT projects started as nothing but a community of people who never met one another just launching a combinatorial (some say generative) art collection that can be owned as an NFT. And if you are in crypto less than a week then you know that is is not just about the tech - it is about the community (which sadly goes for scams too). Some select projects everyone should be aware of that are prototypical DAOs:

3 reasons this should matter to YOU

If you are a FRY community member that cares about the community, the token, the mission or the people who started it all (preferably all of the above) then the following reasons might compel you to dig deeper into this post:

  1. Cryptospace moves through innovation waves in rapid succession. Something that is still innovative from an outside point of view is considered dated in cryptospace - even if marketed hard. Timing matters for startups and DAOs. The time of NFTs is now.
  2. Strong cohesive communities (requirement for DAO survival) are built by engaging in human tribal behavior over the internet. That is not easy to scale. NFTs have shown that they can work really well towards this goal.
  3. NFTs are now in their first speculation bubble. A productive bubble (see Hype cycles) will emerge in the future. Being early and innovating in the realm of Governance NFTs builds valuable experience and knowledge capital that allows the DAO to mingle and interact with the wider space - increasing its perceived clout/valuation.

What exactly should we do [ELI5] ?!

  1. foundryDAO should discuss here and in Discord/Telegram if organic community growth through the creation, marketing and ownership of governance-enabling NFTs is a desirable.
  2. foundryDAO should estimate the cost of executing an governance NFT project, which, if the timing is right, might be the first DAO to do so with governance as the explicit goal (arguable).
  3. Put such a proposal up for voting - given that foundry has no formal governance model - this could be an accelerant or impediment to further DAO development.

This exposé is somewhat shallow and should be developed in greater depth.
But I do hope I can spark a healthy debate about what I consider to be the single opportunity that foundry can jump into a virtuous cycle that other projects have started. Why build ship to sail if you can get a seat in somebody elses rocket?