Wed, Jan 12, 2022
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We are pleased to announce a DAO has been created to maintain a donation treasury and facilitate token holder voting.
Earlier today we created the NFT 4 Cause DAO with founding council members. The DAO is essential in maintaining fair and transparent management of mint and royalty funds. As tokens are minted and traded across the Solana community the treasury will grow. Token holders can vote each quarter to release treasury funds to a selected non-profit organization.
How will it work?
The DAO will use a new N4C governance token that can be staked for voting on proposals. Our NFT holders will receive N4C tokens through regularly scheduled airdrops:
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Shortly after the mint concludes, initial participants receive 30 N4C tokens for each NFT purchase
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Secondary market sales
- Seller receives 3x N4C for SOL transaction price (e.g. sell for 2 SOL, receive 6 N4C)
- Buyer receives 1x N4C for SOL transaction price (e.g. buy for 2 SOL, receive 2 N4C)
This means we are rewarding mint participants with more governance power as early members of the DAO. Users who trade our NFTs on secondary markets also accumulate N4C, but will take longer to accumulate voting power.
Why not stake the NFT directly?
We chose this governance model because it enables freedom to trade our NFT’s and still maintain a voice in charity selection. Those who invest in our community at any time should have a choice in how treasury funds are allocated. We have seen DAO models where the NFT itself must be staked during voting, which we decided against since previous owners would not be able to vote on future proposals.
For our collections trading on the secondary market is encouraged, since royalties will directly grow the treasury and lead to more substantial giving.
Questions?
Reach out to us on Twitter!