Teia DAO Token distribution [Discussion]

Community
1

Hello everyone.

We are starting to get serious with the DAO development. Now it is time to discuss how we should distribute the DAO tokens

As it got clearer during the legal research, we should stay non profit (please read the articles below to get more background info) and we need a distributed token to start using it for voting. Being non profit means we wont sell tokens nor distribute gains among token holders. The token is not supposed to be an investment but a tool for voting and governance.

Worth mentioning also is that we plan to have a multisg wallet for representative figures of communities, minorities, equity representatives, that will vote on the proposals with around 30% of the overall voting weight, while the overall teia Token vote will have a voting weight of about 70%.

a general consensus seems to be that activity on hen/teia should be rewarded with Tokens and that there should be an airdrop for hDAO tokens held, what percentage of the total supply that will be is one of the points we want to discuss here.

Important resources for context:

Article #1:

a in depth writeup of the current state of governance, the DAO smartcontracts that have been developed, and some info for context

Article#2:

writeup of the legal discussion:

Article#3:

roadmap sketch for DAO registration (step-by-step)

Underlying data

@jagracar , who also wrote the DAO contracts, prepared a spreadsheet with parameters for all active users:

The table has 87237 users.

you can use this code to get the info and tweak parameters: teia-stats/python/scripts/teiaStatistics.py at main · teia-community/teia-stats · GitHub

The rules of distribution

(updated on May 13)

  • Active users receive TEIA tokens based on their activity interacting with teias/hicetnuncs smartcontracts. To receive tokens they need to have been active on H=N + teia for at least 7 days. Users with less than 7 active days do not receive any tokens (unless they had some hDAOs). This should remove dead wallets, and most of the bot accounts.
  • hDAO holders get 1 TEIA token for each hDAO they owned at the snapshot (the actual snapshot time is still TBD). It could be in the past or in the future). Overall, there are 650k hDAOs distributed.
  • Restricted wallets will be excluded from the drop.
  • Wallets that clearly washtraded in order to receive hDAO will also be excluded from the drop
  • We will probably add a list of contributors to the project (i.e. tool developers, teia github contributors, active discord members and community managers that will receive additional Teia Tokens (not more than 5% of drop supply)
  • The Teia DAO Tokens will have a fixed total supply. We would deploy a DAO token smart contract with the full supply initially assigned to the drop contract and no tokens can be minted after the inital mint.
  • The Token claim will happen within a fixed period (tbd). Unclaimed tokens after that period will be transferred to the DAO treasury along with a fixed amount for future drops. (we don’t expect every wallet to claim their DAO Tokens). A second drop (only rewarding activity) could happen for example one year after the first drop to distribute some tokens for active teia users.
  • The treasury can transfer/distribute Tokens only via a proper DAO proposal.

activity distribution model

The main point of discussion should be if we want to change these parameters around:

  1. 15% is distributed based on the number of days that the users have been active. The distribution is done linearly.
  2. 5% is distributed based on the number of days the users have been active in Teia (used the teia marketplace contract to swap or collect). The distribution is done linearly.
  3. 5% is distributed based on the user participation in the last 3 Teia voting rounds (2 for the name + 1 for the objkt.com swaps). The distribution is proportional to the square root: 1 vote = 1, 3 votes = sqrt(3).
  4. 15% is distributed based on the number of OBJKTs minted by the user. The distribution is proportional to the square root.
  5. 15% is distributed based on the number of different OBJKTs collected by the user. The distribution is proportional to the square root.
  6. 15% is distributed based on the number of connections with other users. The distribution is proportional to the square root.
  7. 15% is distributed based on the tez earned selling their own OBJKTs. The distribution is proportional to the square root.
  8. 15% is distributed based on the tez spent collecting OBJKTs. The distribution is proportional to the square root.

In addition to the tokens get by the users in 1) to 8) are scaled by a factor that depends on how “real” their account is. This is again to penalize bots.

  • Users for which we only know their tz wallet, and nothing more, have a multiplication factor of 1.
  • Users that provided at least a username in H=N, or tzkt, or tzprofiles have a multiplication factor of 2.
  • Users that in addition verified their twitter or github or discord identity using tzprofiles have a multiplication factor of 3.

Example proposal (aka Proposal 2)

for the sake of simplicity, we picked one of the distribution models we simulated to give everyone an example of how this could look like. This one is basically the middleway of the numbers we tried so far and is trying to find a compromise between the various opinions around this topic.

you can find some other simulated example models in this comment

  • Fixed amount of Teia Tokens minted: 2.500.000
  • 1.5M TEIAs for user activity. (Please note all the current spreadsheets are missing the contributors list bc writing that list will take some time to be fair)
  • 650K (ca 30% of first drop, ca 25% of total supply) TEIAs for hDAO holders
  • 350k remain in the treasury for future drops

Let’s discuss!

a distribution based on the above mentioned parameters could look something like this. Remeber we are here to discuss the activity parameters, the total supply (and as a result of that: the % of the supply that is reserved for hDAO reward), the amount reserved for future drops and the amount of tokens that will be rewarded to contributors (missing in this example)

please feel free to discuss your ideas here and ideally share some concrete numbers you would like to see.

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2

I think whatever the outcome, we should set the snapshot date before today to prevent the reliability of the data.

3

the percentage allocated to hdao holders is too low and there is no denying that the success of teia is due to the efforts of the team.

but hdao holders also put great efforts in building teia, especially when HEN just closed its website, they were very active in Twitter/discord/ and various communities, actively guiding users from HEN to teia, avoiding the loss of users and maintaining the brand’s influence.

As far as I know, since HEN shut down, hdao holders have made teia community their home and are willing to exchange all hdao for teia, because teia has more community spirit and can unite more people.

I think at least half of teia should be allocated to hdao holders, hdao holders that is the biggest supporter/investor , also the platform’s consumers, we should give them more tokens.

If hdao holders are only allocated 5% of teia, I guess this will make them feel sad and abandoned by the community.

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collection of some previously simulated models

Proposal 1

  • Fixed amount of Teia Tokens minted: 2.000.000
  • 1M TEIAs for user activity
  • 650K (ca 40% of the first drop, ca 30% of total supply) TEIAs for hDAO holders
  • 350k tokens remain in the treasuryfor future drops

Proposal 3

  • Fixed amount of Teia Tokens minted: 3.500.000
  • 2.5M TEIAs for user activity.
  • 650K (ca 20%) TEIAs for hDAO holders
  • 350k to the treasury for future drop

older distribution model proposals:

Distribution Proposal I

proposed by jagracar

Total supply: 1 million

There are several parameters from which one could get tokens:
1: active days on the site
2: participation in the last 3 Teia votes
3: number of minted OBJKTs 4: number of collected OBJKTs
5: number of connections to other users
6: total amount of tez earned selling their OBJKT creations
7: total amount of tez spent collecting
8: hDAO amount

For 2, 3, 4, 5, 6 and 7 i’m taking the square root of the actual number. 1, 2, 3, 4, 5, 6 and 7 are scaled by a multiplicative factor that depends on the user verification: - wallets that have no user name known, get a multiplicative factor of 1 - wallets with a H=N, tzkt or tzprofile user name get a multiplicative factor of 2 - wallets with a H=N, tzkt or tzprofile user name and that have verified their twitter or github or discord account using tzprofiles get a multiplicative factor of 2.5

Each factor has a different weight in the final distribution. 1 gets 35% of the TEIA tokens 2, 3, 4, 5, 6 and 7 get 10% of the TEIA tokens each 8 gets 5% of the TEIA tokens

They add up to 100%, so 1M TEIA tokens.

hDAO whales cope the top positions, but we decreased their shares in the TEIA distribution by a factor of 18.

the top 100 users have less than 5% of the tokens the top 1000 users have 18% of the tokens the top 5000 users have 47% the top 10000 users have 64% the top 40000 users have 93%

Note that there are probably no more than 5000 active users. Most of the users are either bots of accounts that minted/collected one OBJKT one day and they never came again. Those will be getting some tokens, but i presume that most of them will not claim the tokens, so those tokens will go to the DAO treasury.

Distribution Model III:

proposed by denscimonk
outdated - updated proposal see dens comment

Distribution Model V

proposed by Jagracar

In this case there is a 1 to 1 exchange between hDAO and TEIA tokens. In addition to that 1.3M tokens are distributed for our users based on their activity.
In order to get some tokens, the account needs to have at least 5 active days on h=n or teia. That reduces the total list of users from 88k wallets to 37k wallets

There is a scaling factor for all those numbers. Users without any info (only the tz wallet), have a multiplicative factor of 1. Users with some user name in either H=N, tzkt or tzprofiles get a multiplicative factor of 2. Users that in addition have verified their twitter or github or discord using tzprofiles get a multiplication factor of 3.

This scaling factor only applies to the activity tokens, and not to the hDAO based tokens.
So with this numbers 1.89M tokens would be distributed. From those 0.59M would go to hDAO holders (will be larger since i didn’t consider LPs) and 1.3M for activity.
That means 31% of the tokens will go to the hDAO users. The percentage will be a bit larger when LP are considered.

  1. 15% for active days on the sites
  2. 5% for active days on teia. In this case everyone gets the same amount if they were more than 5 days active in teia.
  3. 10% for participating in teia votes
  4. 15% for the number of mints
  5. 15% for the number of collects
  6. 10% for the connections with other users
  7. 15% for the money earned selling their art
  8. 15% for the money spent collecting
5

I will update my main proposal from the comments above as:

Total supply: 2 000 000 TEIA tokens

950k tokens for HEN & Teia activity - First drop
1: Active days on the site - 10%
2: Participation in the last 3 Teia votes - 15%
3: Number of minted OBJKTs - 10%
4: Number of collected OBJKTs - 15%
5: Number of connections to other users - 10%
6: Total amount of tez earned selling their OBJKT creations - 20%
7: Total amount of tez spent collecting - 20%

Basic level of HEN & Teia contributors as multiplier x2
Active level of Teia contributors as multiplier x4
(The spreadsheet will be updated when we form the list of contributors)

650k tokens for the hDAO holders
Teia DAO tokens can be claimed 1:1 for hDAO tokens
This means that hDAO would make about 30% of overall token supply, if every single hDAO holder claims their Teia tokens, which is not expected to happen.

100k and remain unclaimed in Teia treasury

300k tokens for activity on Teia, for loyal supporters - Second drop
Remain tokens in a treasury for another activity drop in about 0.5-1 year.
We can use similar parameters for the second drop, but the data will be only collected from Teia contracts and with focus on governance activity more, such as voting and how gov tokens were used during this time.

6

based on the feedback from the twitter thread as well as further discussions and taking into account contribution levels here is the latest token distribution model:
— updated in later reply ----

7

little update around the token discussion:
Currently the main discussion has shifted towards setting up the DAO structure and registering before the distribution

see:

and

Based on the current state of the distribution discussion, we set up an exemplary token distribution model that is updated with the feedback from the community we got so far.

We also introduced the “contribution level” parameter, as announced in the latest DAO Thread: substantial contributors to hicetnunc and Teia will get additional tokens: There are two levels of contribution 8indicated on the distribution model with “0” and “1”)

please note that the list of contributors is not yet finalised, the current istribution model is based on a WIP list of contributors.

  • “Basic Level”: This level is for everyone who contributed to hicetnunc in substantial ways, contributed to the hicathon (both weekends), built tools for the OBJKT ecosystem or contributed to Teia with an estimated day of work or less or in the beginning of the Teia project but didn’t contribute that much after January 22.
  • “Active Level”: This level is for everyone who kept building and maintaining Teia since January 22 (official Teia launch) and members /builders of the wider ecosystem that played a vital role for Teia. We are still updating that list, so feel free to suggest additions and note that this is a unfinished list for distribution model testing and not final ye

For the drop, we need to determine the exact moment/block level of the hDAO snapshot. For this, Jagracar has set up a proposal that can be executed with our main multsig wallet and will determine a block for the hDAO snapshot using the fxhash random number generator. This way we can make sure no one can possibly know which block will be used for the snapshot prior to the execution of the random function. You can take a look at the proposal and learn more about it here. This jsfiddle file that can be used to calculate the hDAO block level once the proposal is executed.

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