The hic et nunc DAO implementation discussion

Community
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Thesis: in light of rebranding, new platform needs a NEW governance token with 1:1 swap from $HDAO

Reasoning for New Token:

  1. Rebranding of HEN: There is a high probably for a complete rebranding of HicEtNunc (Hicetnunc.art) into something new as Rafael wants it to discontinue.

  2. Hic Et Nunc DAO: After the rebrand, it doesn’t make sense to use $HDAO, Hic Et Nunc DAO token, to govern the new platform.

  3. 1:1 swap of $HDAO: There are 6,000+ investors of $HDAO who are die hard supporters of HicEtNunc, and many of them are collectors and artists around the globe. We would like to carry the same support and be the backbone of the new platform. $HDAO will be swapped one-way into the new governance token.

  4. DAO Reserve: For long term success, the new token needs to incentivize the future team working on the platform, and give them token that vests for 3 years. This is essential for core team, Hicathon WG, representatives, and volunteers. The new token also needs to set aside certain amount for potential retroactive airdrops, events and user growth campaigns.

  5. Stakeholders’ Voice to Be Heard: HicEtNunc was built to represent digital artists from around the globe, especially the ones in hemisphere south. Many of them don’t have token, so they cannot vote. The new token needs to be distribute to platform stakeholders.

Example of Token Distribution

Please note all numbers are subject to community vote to decide, this is just an example.

Total amount of new token: 1 million, this means ~30% dilutive for current $hdao holders. The new token consists of following parts:

  • $HDAO Swap: 650,000 new token will be 1:1 swap from $HDAO. Once swapped, the user’s $HDAO will be burnt and new token can be claimed. The new token cannot be swapped back into $HDAO and represents the governance for the new platform ONLY.
  • Dev Share: 200,000 new token for devs, marketing team & representatives who develop features, fix bugs, and maintain the platform. This part of tokens will be vested for 3 years, and controlled by the DAO.
  • Retroactive Airdrop: 100,000 goes to retroactive airdrop to HicEtNunc users - artists, collectors who has been active since the last $HDAO airdrop until now. With the new token, their voice can be heard.
  • Growth Reserve: 50,000 goes for DAO reserve for marketing, campaigns, events etc.

Pros and Cons for a New Token
Pros

  • Fresh Start: Have a fresh start with the rebrand, legacy Hic Et Nunc DAO does not govern the new platform.
  • Talent, Talent and Talent! Incentivize the people who contribute to the platform in long term, and attract more talents. Platform fee is somewhat enough to pay servers but the best devs will work harder if they have some ownership and voting rights for the platform.
  • Flexibility: reserve token can be used to plan for events, campaigns etc.

Cons

  • Dilutive for Existing $HDAO: as the total number of new token will increase, $HDAO can be dilutive and investor may lose some value. But I do think it is better for long term success.
  • Parameters are Hard to Set: there are many moving parts for the new token, so the discussion will be long and somewhat tiring.

Other Governance Mechanism
In this post, I did not mention about governance protocol. But I am supportive to @TaoZao and @tezexplorer visuals of DAO governance.
In terms of voting power, I am supportive to Quadratic Voting which curbs whales.

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