DAO tokenomics & sustainability of using Citizen NFTs

At the moment, we are using Citizen NFTs as -

A) a token representing one unique individual (citizen) of the DAO. I can see proof of humanity being discussed, for the future.
B) our internal currency to be used to reward contribution, etc (probably to pay suppliers in the future too).

These two are antithetical. If one token = one citizen, then it can’t also be money. Moreover, the Citizen NFTs are not fungible so using them to pay for contributions will become increasingly difficult, as their value grows (if somebody writes a blog post for CityDAO, will they get a Citizen NFT that vests over 10 years)?. Also, there are only 10k Citizen NFTs, so at some point the treasury will run out of ammo. Otherwise we will need to keep minting new NFTs and diluting existing citizens. The link between each NFT representing a citizen will become increasingly weaker.

I’m keen to know - what are people’s thoughts on this? It would seem to me logical that at some point we introduce a fungible token that would act as our internal currency, whilst we would retain Citizen NFTs on a 1 NFT = 1 person basis. There could be an economic link between the two, where NFT holders accrue interest on their NFTs in the currency token, etc. Plenty of options. Thoughts? Or is there any other way to make this sustainable, going forward?

26 Likes

Hi,

Here is my humble thoughts.

  • We need both Citizen NFT & City DAO Token (let’s call it $CTD)
  • Citizen NFT represent the Citizenship. If someone owns the Citizen NFT they are the citizen of City DAO
  • One person can own as many Citizen NFT as possible, however, they have only one Citizenship and their vote is considered as one citizen only. A proof of human possibly is the solution. This aims to move beyond coin voting governance and avoid the dominance of whales.
  • $CTD Token shall be used as a reward for Citizen NFT holders (25%), contributors (25%) and the rest is kept in City DAO Treasury.
  • City DAO Treasury is a place to keep all revenue generated by City DAO via Citizen NFT Sales, reserved $CTD, revenues from future projects and so on.
  • City DAO Citizen can vote to decide if they wish to generate a new batch of Citizen NFT to onboard new Citizens, how much per NFT, etc.
  • New Citizen NFT shall be purchased by $CTD. We can consider to burn all OR part of the $CTD token via voting. This will increase the demand of $CTD as times go by.
  • $CTD can be a mean to invest in City DAO. Currently, when someone one to invest in a city they need to buy houses, lands in the city. With $CTD, people can invest in City DAO without holding any houses, lands. This approach will allow more people to get involved in the development of City DAO, not just whales who are affordable to purchase land, houses.
  • $CTD can also be used as a means of payment for all projects in City DAO, includes Taxes.

Would love to hear your thoughts.

29 Likes

my two cents: i think a token exclusive to the community is a good idea. We can have low capped supply and these can be airdropped to citizenship holders and some can be retained in the treasury for the developments.

The home need token-cash , that’s indeed

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token is always a good idea but i think project needs to develop and prove it sustainability for some more time… otherwise it would look like a cash grab… already there should be funds available on citydao treasure coming from citizenship sales, and these funds should be utilized efficiently to prove people that if more funds are there, better things will happen!

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Strong support for issuing coins

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Agree! The timing to launch the $CTD token shall take into account of many aspects such as community health, Market cycle, tokenomics, etc.

I believe that the first priority right now is to set a shared vision and core values for our communities. Then experimenting some pilot project to see how thing is going on. $CTD token should come when we are more mature and pretty clear of our road map.

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Non-homogeneous tokens can better participate in voting and management, while homogenous tokens can be called a status symbol and can occupy a certain weight in voting, which does not conflict.

At the same time, non-homogeneous tokens can flexibly distribute profits to holders (if the economic model is involved), and the threshold for participation is much lower, so I support the issuance of tokens.

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agree with token issuance

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I am in favor of this idea

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This is really a good proposal, I totally agree。

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After thinked about possibilities here is my idea :

  • One time per year we issue another round of citizenship indexed to the price of the citizenship nft.

Lets imagine one citizen nft is valued 70k$, we issue 10k NFT and so we harvest 70 000 x 10 000 = 700 millions $ for the DAO treasury

  • The most active users with best ideas earn 5% of the raising

  • With the rest we build

So on there is rarity for the citizenship, implication on the dao to earn there 5% is on long term, we have time to think and build.

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FYI:

  • Technically speaking, as CityDao is using an ERC1155 contract token, all citizen tokens are actually fungible. BTW, the “non fungible part” of the story is that the first citizen token, a founding citizen token and a plain citizen token are not fungible.

  • The community is using snapshot for votes, and we can design a better voting strategy with existing snapshot voting strategy framework or even submit our new voting strategy to snapshot in the future, as snapshot is highly extendable.

  • The community is already using some tools to track member’s activities on discord using POAP. Although POAP is much less better than POH, maybe we can find a better solution later.

2 Likes

agree with token issuance

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By virtualizing the land, all the land is divided into 10,000 shares according to the NFT, and the land use right is the NFT owner. At the same time, the real scene of the land is placed in the virtual space for the development of field adventure games or the virtual development of real-life CS. CEEK VR cooperates. Realize the perfect combination of reality and virtual world.

  1. The field adventure in reality is made into an online virtual game to cooperate with the gold game;
  2. The actual CS game is made into an online virtual game, and the venue is developed according to the actual venue;
  3. Farming on wasteland in reality, making it into an online virtual farming game;

It is not suitable for currency issuance now, but priority should be given to the construction of cities. After the city is completed, currency will be issued when the currency is needed. Only then can the token have a real purpose.

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token is always a good idea

IMO, it is too early for governance token
should be contribution first, create value and afterwards capture that value through governance token

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Agree. This is can be very draft proposal to add to our roadmap. However, details shall be discussed later.

Just repeat myself

I believe that the first priority right now is to set a shared vision and core values for our communities. Then experimenting some pilot project to see how thing is going on. $CTD token should come when we are more mature and pretty clear of our road map.

2 Likes

By virtualizing the land, all the land is divided into 10,000 shares according to the NFT, and the land use right is the NFT owner. At the same time, the real scene of the land is placed in the virtual space for the development of field adventure games or the virtual development of real-life CS. CEEK VR cooperates. Realize the perfect combination of reality and virtual world. 1. The field adventure in reality is made into an online virtual game to cooperate with the gold game; 2. The actual CS game is made into an online virtual game, and the venue is developed according to the actual venue; 3. Farming on wasteland in reality, making it into an online virtual farming game;