This proposal allows the t0wn team to reallocate the resources from Stage 1 of the t0wn project specifically toward building two apps that will more immediately and concretely benefit the t0wn project and CityDAO as a whole.
The t0wn team has been meeting weekly for months. We’ve had several meetings with the Próspera team about possibly acquiring real estate in it’s first tower as a first physical hub for t0wn. Those discussions remain ongoing. We’ve had all sorts of contact, discussion and meetings with potential member DAOs. Our aim is to reallocate the remaining funds toward building apps that will help push this project forward.
As of today, a little over $54,000 remains in the t0wn treasury. Our initial CIP called for $32K in comp and $20K in discretionary funds. $1K has been paid out in comp per member and no other money has been spent. Based on our internal weekly discussions, meetings with other DAOs and projects, Twitter spaces and independent research, we are clearer on how we think the discretionary funds should be spent. For transparency, we are asking the Citizens of CityDAO to allow us to reallocate these funds.
We would like to reallocate the remaining funds toward:
- A dominant assurance smart contract
- A identity verification app that KYCs individuals to global banking standards and ties the verified individual to one and only one ETH address with a soulbound token. This app will consist of two components:
a. KYC functionality - for example, a custom front end that utilizes the API of a third party KYC service like Plaid.
b. A NFT smart contract employing the ERC-5484 standard for soulbound tokens.
- Legal costs relating to analyzing the appropriate DAO structure
The t0wn team also requests $9,900 in additional funding for:
- Assurance contract “prizes” associated with t0wn’s deployment of the contract to secure funding from DAOs for our first “hub”
- A subsidy for CityDAO Citizens to use the KYC app for free up to $3K
Assurance contract: Our initial t0wn STAGE 1 plan was to have DAOs sign LOIs stating their intent to contribute to a t0wn treasury to buy land for a “DAO hub.” We decided it would not only benefit t0wn, but also CityDAO and the web3 community at large if we figured out how to program the essence of an LOI into a smart contract. Utilizing Alex Tabarrok’s Dominant Assurance Contract idea, we will create a smart contract where entities can pledge money toward a public good (like t0wn). If the funding threshold is hit by a certain deadline (which is programmed into the smart contract when it is deployed), the project gets funded. If the threshold is not hit by the deadline, everyone gets their money back and those that contributed the earliest get a small monetary “prize” for having been the first movers / believers. Details around the prize mechanics will be sorted out during development, one key component being the prize is big enough to incentivize early contribution but small enough to disincentivize entities wanting the project to fail.
Building a dominant assurance smart contract will not only be a boon to t0wn and CityDAO, but also, as we will make it open source, to anyone who wants to fund a public good on the blockchain without using methods such as Juicebox that take a significant percentage of funds.
Identity Verification: Part of having a community is ensuring that people are not sybils, that identities can be verified. Rather than using a method such as NFT + Gitcoin Passport or Proof of Humanity, we would like to offer individuals the ability to KYC to global banking standards, verify ownership of a wallet address, and then marry the two with a soulbound token. We will use the ERC-5484 standard for soulbound tokens which allows both the issuer and the holder to burn the token - the former being necessary in case of identity fraud and the latter being necessary in case the holder wants to disconnect or move their identity to a different address. Once the app is built, KYCs can be conducted at a cost of $2.15 per individual, and that price will go down with higher volume.
RELATIONSHIP TO THE ORIGINAL t0wn CIP (IPFS #QmWXdW6)
This proposal augments STAGE ONE of the original proposal by allowing additional uses of the funding allocated by that proposal. It also adds an additional potential STAGE TWO trigger—a deployed assurance contract that successfully raises at least $750k will automatically trigger STAGE TWO. The t0wn team will determine which avenue to pursue (ie signed LOIs or raising via assurance contract) following development of the latter.
BENEFITS TO CITYDAO CITIZENS
- All the benefits outlined in the original t0wn proposal remain.
- Should the KYC app subsidy be approved as part of this proposal, CityDAO Citizens will be able to use the app for free until the subsidy has been exhausted. Thereafter, CityDAO Citizens will be able to use the app at cost for a period of one year after the app is launched, subject to reasonable volume of usage and our team’s ability to handle such volume. We will make best efforts to allow CityDAO Citizens to use the app at cost for longer than one year, again subject to reasonable volume of usage and our team’s ability to handle such volume.
- Open use of the dominant assurance smart contract and the ERC-5484 soulbound token contract.
OWNERSHIP OF WORK PRODUCT
- The dominant assurance smart contract and the ERC-5484 soulbound token contract will be open source.
- The rest of the KYC app will be owned by the Friends of Town Foundation corporation.