OIP-88: Orange DAO will create a Digital Nation of Founders

tl;dr - this proposal passing will mean

1. We diversify Orange treasury by swapping upto 10% of the $ORANGE supply or its successor token.
2. Perform a 100x split of $ORANGE. --

Single Point of Contact: Ben Huh Sponsors: Ben Huh, Don Ho, Orion Parrott, Johnny Chin, Berk Ozer, Mack McConnell, Ishan Goyal, Matt Voska, Fishy, Arthur Zubkoff, Colton Dillion, Jonathan Padilla, Cryptpal, Jamie Green, Alex Chumbley

Overview: This proposal commits Orange DAO to create a Digital Nation for Founders — a game-changing model to scale up our mission: To accelerate the builders and pioneers of Web3 by providing them with the resources, knowledge, and support they need to succeed.

Orange DAO’s Digital Nation will organize the most ambitious and talented founders in the world into borderless, inclusive, and mutually beneficial communities. Our Digital Nation will be formally recognized by nation-states, regional governments, and its agencies so that we can co-create laws, programs, and regulations that support the growth of entrepreneurship — while deregulating the rules that create structural hurdles.

In order to become a Digital Nation, Orange DAO requires a clear commitment, additional resources, and a long-term track record of success to earn the trust of elected and career officials and analog communities. And like Orange DAO, a Digital Nation will continue to use tokens to govern itself and align the incentives of its citizens.

This OIP is the first step of many to fulfill our mission. It authorizes the DAO to: Diversify its treasury by swapping not more than 10% of the $ORANGE supply or its successor token. Perform a 100x split of $ORANGE.

This proposal is also a celebration of our remarkable co-creation to date — recognizing the fact that we have reached a significant milestone in the growth and maturation of who we are as a community and our collective earned experiences in pioneering community DAOs.

The 100x split of $ORANGE paves our way forward, allowing us to support a network orders of magnitude larger and greater than our dreams just 30 months ago.

To the future of Orange DAO’s Digital Nation!

Details: Treasury Diversification: To be capped at a maximum of 10% of $ORANGE tokens. Authorizes specific non-member wallets to hold and vote using DAO tokens. 100x split of $ORANGE: All $ORANGE token holders in good standing are eligible for the split. This split increases the circulating token cap (maximum permissible number of tokens) to 10 billion from the current 100 million. Increase the one-time initial token grant for founders who have successfully completed the Fellowship program to a pre-split amount of 5,000 $ORANGE (or its post-split equivalent). A retroactive grant to all previous Fellows who are also DAO members in good standing at the time of this proposal’s passing. This split will require a change in the token used for DAO governance. This does NOT change the method or model of the DAO’s governance. The cost of executing this OIP (legal, regulatory, development, etc.) will be paid for by the Orange DAO Foundation or other DAO-supporting organizations. 100% of tokens received from treasury diversification will go to DAO-related entities, such as Orange DAO Foundation in the Cayman Islands or multi-sig wallets controlled by the DAO. Value to the DAO: A diversified treasury: Provides immediate resources to continue the DAO’s mission. Gives the DAO a source of endowment-like resources. Unlike startup capital, we plan to make these resources perform and last until the DAO can become a self-sufficient community. Is more resilient. Brings $ORANGE up-to-date with other DAOs and large token networks: The most successful networks in web3 today are denominating their network in 1 billion to 10 billion in total circulating supply. This proposal calibrates Orange DAO to be on par with similar DAO networks. Orange DAO has ambitions to grow in size by 10x, 100x, or more by becoming a Digital Nation of Founders. Having a 10 billion supply of tokens allows us to grow our network to support these ambitions. The post-split token will bring the $ORANGE token fully under the DAO’s control, rather than using a contract that is controlled by a third-party, as $ORANGE is today. Increased size and diversified membership of the network. Non-member holders of $ORANGE (pre-/post-split) are respected and trusted members of the founder ecosystem. Enlarging our network to include them makes us stronger and more influential. Success Factors: Commitment from partners to complete the Treasury Diversification at terms acceptable to the DAO. To successfully transition to a new post-split token, the DAO must execute a series of detailed operations in the correct sequence in a short period of time — like a challenging quest. At the time of split, Orange DAO’s governance will transition to the new post-split token, while sunsetting the existing $ORANGE token to ensure proper governance.

Tokens Requested (Treasury Guidance) Unused tokens will be returned to the DAO. No tokens are being used to pay sponsors or members (unless they are writing code). USDC: Approximately $250,000 to pay for legal, transactional, and development costs. Legal estimate: $200,000 (US legal firm, plus any non-US foundation legal counsel) The cost of documenting this round is not like a typical SAFE-like investment round. It requires custom services and documentation across multiple countries. Developers and auditing costs: $50,000 At least two smart contracts required: 1) New token, 2) Token Swap Auditing firm likely to be Quantstamp. Developers may be members of the DAO. To be decided later. ETH: 0.5 $ORANGE: None

RISKS (Open to All Members) Depending on the failure mode, poor execution of either Treasury Diversification or split may make the existing tokens unusable or delay governance. Increases token spend and lowers the DAO’s token balance before Treasury Diversification is successful. COUNTERPOINTS (Open to All Members) Token split is not necessary to continue to operate the DAO. Many $ORANGE holders won’t redeem for new $ORANGE and they will be stuck with zero value tokens There are 783 total $ORANGE holders. Without very careful management, the vast majority of these members won't redeem old for new. Over 200 members have done work for the DAO and been compensated with $ORANGE. For example, 197 members have over 10,373 tokens, which means at least part of their tokens came from work done for the DAO. I’m afraid many of them will lose their value because they’re unreachable or not paying attention.