Overview
At launch, BuilderDAO was seeded 1000 ETH via a Nouns proposal. With the DAO's burn significantly outpacing its auction revenue, it has become increasingly critical for the DAO to find a sustainable revenue model. Enter Builder Protocol Rewards.
We are seeking DAO consensus on the development of this revenue model as part of Nouns Builder Protocol v2 "Bali" upgrades.
Impact
Builder Protocol Rewards is a rendition of the Zora Protocol Rewards model. Auction revenues will be taxed a %percentage fee that is split three potential ways (see next section for more info).
Ultimately, this expansive fee model should give BuilderDAO a clear and sustainable path towards revenue generation.
- Potential high revenue impact
- Interest alignment with DAOs
- DAO members and bidders do not have to pay extra as the fee is taxed to DAOs
How it works
%percentage split 3 ways:
- BuilderDAO Rewards
- Third-party client rewards (if not set, this will go to BuilderDAO)
- DAO founders' rewards (optionally set by DAOs, otherwise it goes to DAO treasury)
Logistics:
- Controlled by BuilderDAO - can be switched on or off via a DAO proposal
- The %fee is not applicable to auctions from v1 DAOs.
- v1 DAOs can benefit from rewards by upgrading to v2 via a proposal
- New DAOs created after v2 is deployed will by default opt-in to this rewards model
Risks
- Some (low) regulatory risk (where Builder is reliant on DAOs to determine fees, making the fee potentially look more like an investment)
- Takes funds from DAOs (reduces what does to Treasury)
- More complex accounting
- If DAO auction values are low, income could be negligible
Off-Chain Vote
Yes, pursue this opportunity
11 BUILDER25%
No, find another strategy
0 BUILDER0%
Neither, don't focus on revgen
33 BUILDER75%
Quorum:147%
Timeline
Sep 11, 2023Proposal created
Sep 11, 2023Proposal vote started
Sep 14, 2023Proposal vote ended
Oct 26, 2023Proposal updated