Tally Ho DAO - Flow of Funds

A Community-Owned Wallet

The Tally Ho DAO is intended to be a coordination mechanism for the community, and will have a multi-level structure as laid out in the DAO Structure Proposal on the governance forum. However, social coordination and governance structure is just one element of the Tally Ho DAO.

The flow of funds is a unique aspect that distinguishes the Tally Ho wallet from other wallets. It’s also an important component to ensure the project is funding essential work, as well as explaining where incoming funds are generated and the purpose of treasury allocations moving out of the treasury.

Some examples of what this could mean for the web3 ecosystem are the Gitcoin Aqueduct proposal and the ethers.js sponsorship. More on this later in this post.

But how does a community-owned project ensure it has the funds to support long term sustainable development?

This is a question we have asked ourselves as we designed and built the Tally Ho wallet and laid out the DAO structure. It is a question the DAO and community will continue to ask itself as it adapts and grows as a community-owned project. In any project, and especially one that claims to be building alongside the web3 ethos, the flow of funds tells a story about who is benefiting from the activity and utility of the product.

Basically this boils down to below three principles:

  • The product should generate an income stream
  • This income stream should flow to the DAO in its entirety
  • The DAO should decide on the use of these funds

These basic principles are important pillars of the Tally Ho DAO, and haven’t changed since day one.

Doing this well will have a snowball effect for the DAO.

The more income generated for the DAO, the more activities and development it can fund.

The more activities and development, the more features the product will have and the more users it will attract.

The more the product is used, the more income the DAO will have.

Tally Ho DAO - Flow of Funds

There are several ways for a wallet to generate income and incentivize users. The Tally Ho wallet will do this initially through its Swap and Earn features. All of the fees that are generated through these features will flow to the DAOs treasury. All of the incentives for these will come from the treasury.

At launch, the DAOs treasury will primarily consist of $DOGGO tokens. Through income and incentives, the DAO is diversifying it’s treasury and is distributing it’s governance tokens in the hands of it’s Community.

What are these fees and incentives going to look like after the launch? That’s up to the DAO. Anyone can propose and participate in discussions around these on our governance forum, and eventually voice their opinion by participating in governance as explained in this forum post.

Tally Ho Swaps

If you look at our inspiration, the fees from the MetaMask in-wallet swaps are flowing to a corporate structure which is supported by many institutions of traditional finance - not exactly who the permissionless and decentralized structure was supposed to benefit.

In fact, traditional finance stands to gain a lot by co-opting and redesigning systems on blockchains on their terms. We think this is a recipe for misaligned incentives at best, and truly a wolf in fox’s clothing or a trojan horse for traditional finance into web3 at worst. If you have interest in preserving the decentralization ethos (and we do), we need sustainable wallet alternatives that align incentives with users and the community - which we believe the Tally Ho wallet and DAO will do.

Metamask’s in-wallet swap charges an additional 0.875% of all trades in fees that flow to Consensys. In contrast, the Tally Ho in-wallet swaps currently run using 0x protocol, and charges a more modest 0.5% of all trades in fees. More importantly, those fees flow to the DAO.

Giving the community the ownership and control over the treasury management to support feature development, grants, and ultimately, whatever the community decides is worthy of supporting - the way web3 should be. Additionally, the 0.5% fee on Tally Ho is governable by DAO vote - the fee can be changed as needed through a proposal and vote.

Tally Ho Earn → Explore the Hunting Grounds

There are several allocations in the initial distribution to earn through your assets. For the Community this is an excellent opportunity to acquire a larger token position in the DAO, and by doing so help grow the DAO treasury as well.

How does using the Earn feature support the DAO? Users that deposit into Earn features are agreeing to share a percentage of profits through an ‘administration fee’ to the DAO. Do not worry, this fee will be by far offset through the additional $DOGGO rewards. It will also be one of the earliest yield farming opportunities for $DOGGO, and one of the only ways to capture some of the early supply. There will be both Pool 1 and Pool 2 mechanics, but more details on these pools will be shared at a later date.

How long will these Pools be incentivized? You guessed right, that’s up to the DAO. There will be set allocations from the initial $DOGGO supply to fund the initial Pools, but eventually these rewards will be fully distributed.

Once the initial distribution of rewards is exhausted, the Tally Ho DAO may choose to top up and continue rewards for Pool 1, Pool 2, both, or simply discontinue the rewards.

It’s also expected that different additional strategies will be developed over time. These could include things like yield farming strategies, services provided by the DAO, partnership agreements with other projects or DAOs, and more. We expect that the Tally Ho DAO and community will find new ways to innovate over time through collaboration, and responsible treasury management.

If you have an idea, please propose it!

Usage of the Tally Ho Treasury

Besides user incentives, the DAO treasury can be used to fund a variety of activities and projects, including the web3-ecosystem, other dev teams and products.

Major disbursements will be voted on by all $DOGGO holders, then carried out on-chain. For most purposes in line with the proposed DAO structure, funds will be requested via DAO proposal by each operational Pack (Growth, Build, Ops) for their own operation as well as the Dens that fall under their domain. Each proposal should be supported with a budget request for approval.

Grants and Bounties

In addition to operational funding for the Packs and Dens, the DAO can also sponsor grants and bounties.

What is a grant?

A grant is an amount offered to a person or team to work toward a long term goal, or to maintain a codebase for an extended period of time. Grants may also require milestone-based vesting, to ensure that incentives are aligned in the long term, or to retain the option to revoke a portion of the grant if the team is unable to complete the work at a production-ready standard. Grants are paid out as milestones are achieved, to support development while ensuring accountability.

What is a bounty?

A bounty is an amount offered to complete a task that is a priority for the community, but outside the development team and Build Pack’s short term roadmap. This could include specific feature additions, video production, blog posts, graphic design, and more. The specifics of the bounties can be handled at the Den level, with funding managed by the Pack multisig. The bounty is paid when work is completed, submitted, and accepted.

Both grants and bounties may be managed internally or posted on platforms that could include Gitcoin, Radicle, DeWork, Layer3, and others.

Other Opportunities

The treasury could also be used to stimulate various project needs such as securing and driving token liquidity, paid marketing campaigns but also for funding public goods.

We are excited to be building the future of web3, wallets, and DAOs together with our community - all of you. Ensuring that there is sustainable funding and revenue flows directly to the DAO treasury is just the beginning.

Tally Ho!
(:dog:, :dog:)

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Thank you Kris for putting this Flow of Funds together. Lots of interesting and exciting opportunities will open up with this model!

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These are just discussions at this point right? I am unable to vote on anything as governance tokens do not exist yet?

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hello
:heart_eyes:
the great job

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That’s right - we are laying this out so that the community can discuss, but there has been no token launched yet.

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Perfect team . tnx we already move to Tally from …

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Who let the dogs out

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Sounds good like looksrare token distribution :eyes: nice work tally team :rocket:

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thanks for information .it was great .nice work tally team :rocket: :heart_eyes:

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Establishing a steady stream of revenue that flows into the DAO is paramount to the sustainability of the project, IMHO. I have seen many blockchain projects quickly fizzle out after initial launch; without immediate revenue to achieve anticipated baseline initiatives token holders often exit. When building out long term project initiatives, ones that require ongoing contributions from members or managing project-paid third party services, DAO members can sometimes get “burnt out” especially if there is no clear compensation structure. With no clear continuous operation structure, why should a contributing member keep investing their time? And if project milestones are never met why should an investor retain their tokens?

By using our swap fee mechanism as the “baseline and inspirational” revenue stream we can immediately establish ongoing sustainability of the DAO. The approach of offering an attractive swap fee will always draw new users and keep existing users engaged with the product. Why not? you’re literally saving money by swapping with Tally HO, and savvy users will quickly realize they are also getting additional rewards that double dip.

Over time, Tally Ho swap fees may need to remain competitive, if other wallets drop their fees to match or beat Tally Ho’s fee, so too must Tally Ho. But even if our swap fee were identical to everyone else, a Community Wallet will always have the edge, because the wallet pays rewards back to users, rather than (for profit models) that retain these profits in a non beneficial way. I think our swap fee revenue stream may fluctuate over time, but it will always remain consistent and reliable to support the ongoing health of our DAO.

Using our baseline revenue stream to fuel the concept of “inspiring” future revenue streams by way of DAO proposal grants and bounties is the gateway to organic project growth.

When creating a new or ingenious DAO revenue streams is met with a clear compensation reward, it encourages individuals (both new and existing) to bring their ideas and contributions, and advance the product. Milestone vesting compensations are the final key, ensuring these individuals to follow through their conceptual developments, and complete their proposed contributions.

This article was very well written! The flow charts are especially helpful, great work on this!

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Thanks. Everything looks great.

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Agreed this is great.

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Good economy. Swaps are our everything!)))

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I am in support of the in-swap fee, I think it is a great way to attract people especially for those who are less technical and more likely to use it. We should make sure to focus on those individuals, especially as medium/high-power defi user will stick to defi protocols.

We should use some of these funds from the swap fee to generate another product, because like nico186 mentioned, we could end up in a fee battle, reducing fees until they become little. We should take our advantage to build a strong treasury and slowly test other products and ideas that we can create to supplement the wallet or separate products to diversify the treasury.

I think we should incentivize the pool for 6-9 months and review it, initially incentives are amazing but after a while they lose their attraction, so we make sure to keep an eye on how much it attracts by using dune analytics and such. Other larger protocols like Aave slowly steer away from incentives once they have garnered enough users and incentives do not always attract long term users.

I think this is a great post kris! Always a big fan of your write ups.

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If there is a loss of the TallyHo DAO treasury for the use of funds, how should we to prevent such a situation or minimize the loss

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As far as I understand, our project is currently the most socially oriented DAO model of all projects known to me, where the community is assigned the most significant role in decision making and distribution of income. I am sure that other projects will follow our example.

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Could you elaborate a bit more on what you mean?

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I mean that TallyHo DAO treasury will be used of growth/build/ops.
Of course,every proposal will be voted, but how do we ensure the professionalism of these voting personnel and ensure that there will be no losses due to investment mistakes.
I believe everyone have right of vote,and i trust no one want to be lost own money because own unprofessionalism too.

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So all token holders will be able to self delegate and vote, or delegate their voting power to a delegate they feel aligned with.

The DAO also elects the pack leaders.

So I mean never say never right, I mean bad decisions could always be made, or decisions could be right at the time of making the decision were great but shortly after seem the wrong decision.

In the end of the day it’s all in the hands of the DAO, the DAO will be as strong as it’s members. And I’m feeling pretty good about where we’re at already with that :slight_smile:

Do you have any suggestions on your end?

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Yes.That’s right “never say never”.
We can try anything.No one can promise own choose always right.
I mean we could have a mechanism of our invest,we can track and intervene in the process of investment.
eg.When we lost 20%or25% of our money in a project.We must have re-vote about it.This should be a defined process that should be triggered when it happen.We should action not be re-talk when it happend Save time,save money

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