Navigation

1. Executive Summary: Eight Test DAO
2. Introduction: A Novel Use Case of Non Fungible Tokens (NFTs)
3. Meeting the Needs of Our Stakeholders
4. Defining the Stakeholders
5. Giving Stakeholders What They Want
6. How Funds Are Allocated
7. Links, References, and Personal Notes
8. Next Steps

Executive Summary: Eight Test DAO

NB: Eight Test DAO is a placeholder name for yet to be named DAO that would spun off from Code Sport Labs

Eight Test uses NFTs as primitives to provide cashflow entitlements, blockchain-based credentialing, proof of provenance, proof of work (completed labor), and proof of attendance (of events) for individuals in real life scenarios.

The contract’s address on Polygon’s Mumbai testnet is: 0x001fd467d74cc8c3c2e4884a1810d06f082aefe3

The first phase of this project is this NFT minter. The minter issues programmable investor NFTs which convey membership and ownership interest in the DAO.

This minter was built using a React frontend with Node and Express.js on the backend. Automated and programmatic image editing was done using jimp-compact on the backend.

Introduction: A Novel Use Case of Non Fungible Tokens (NFTs)

Eight Test is an investment vehicle and guild for blockchain end users, investors, and builders. it shall offer several novel use cases for NFTs through a mechanism called “Programmable NFTs”. Eight Test binds NFTs to permanent capital reserves, organizational governance, claims to future cashflows, proof of work, and verifiable chains of provenance.

These novel use-cases provide tangible utility and a quantifiable floor to an NFT’s intrinsic monetary value. The below summarizes the first phase of our business and product development roadmap.

Meeting the Needs of Our Stakeholders

The goals of the DAO is to meet the needs of key stakeholders within the blockchain ecosystem: end users, investors, and blockchain developers.

1. End users: some would like to expand beyond DeFi and apply blockchain to use cases in other parts of their lives
2. Investors: want to fund great teams that work well together. Teams of skilled and productive developers.
3. Developers: would like to be fairly compensated for their work. They also want to work on challenging projects they are passionate about and have upside in a project’s success

This phase deliverable is a proof of concept for the Investor NFT. It can be minted on-demand by anyone wants to invest in a group of blockchain devs working together as a team.

Defining the Stakeholders

These roles are simplified for discussion purposes. It’s understood that each stakeholder may have multiple roles.

1. End users: anyone who wants a blockchain application for their particular use case or business need.
2. Investors are obvious. Professional investors also want to invest in proven teams who are honest and ethical! They expect an eventual profit and return on capital risked
3. Developers: are people like me who can build apps but are often burdened by end users who think apps get built for free

Giving Stakeholders What They Want

1. End users are able to directly commission, crowdfund, or simply support the applications they want built
2. Investors with patient capital gain access to profitable investment vehicle and have a claim on all assets and profits generated by the DAO. This includes access to any future dividends and returns of capital
3. Independent, open source, and freelance developers are be fairly compensated and rewarded for their work.

Hypothetical Allocation of Funds

End users: 80 to 90% of the funding provided by end users goes into developer salaries to fund product development. The remaining 10% to 20% is kept in the treasury’s rainy-day reserve fund. All code and intellectual property are transferred to end user upon successful product completion.

Investors: are purchasing equity ownership in the DAO. They have a direct claim on all the assets based on their ownership percent. They pay a 5%-10% haircut which goes into the Treasury’s rainy-day reserve fund.

Developers: receive salaries and milestone bonuses based on building applications that end-users want and within schedule. Developers are also eligible for ownership awards based team member and end user feedback.

Treasury funds: The rainy-day fund will be used to fund core-team developer salaries when business is slow. Funds may also be invested in conservative fixed income strategies from Element Finance, Notional, and Yield. As well as Ethereum Staking.

Links, References, and Personal Notes

• Governance Dashboard: WithTally
• Polygon Mumbai: The minting contract’s address on Polygon’s Mumbai testnet is: 0x001fd467d74cc8c3c2e4884a1810d06f082aefe3
• IPFS: A user-minted NFT and the associated JSON metadata are pinned to IPFS. Here’s a browser friendly URLs are provided by Pinata

Mumbai Testnet Contract Addresses

Minter:

 npx hardhat run scripts/deploy-eight.js --network mumbai
pinFileToIPFS Output:
{
  IpfsHash: 'QmQT9ixtB9rDSZgrkCza6onTzNULsz3XAftCbGhu1JfAsg',
  PinSize: 38241,
  Timestamp: '2022-03-27T12:49:09.027Z'
}
File URL: https://gateway.pinata.cloud/ipfs/QmQT9ixtB9rDSZgrkCza6onTzNULsz3XAftCbGhu1JfAsg
Contract deployed TO: 0x001fd467D74CC8c3c2e4884a1810D06F082aeFe3

Governor:

$ npx hardhat run scripts/deploy-eightGovernor.js --network mumbai
Contract deployed TO:  0x336827b17909B59439C4291B05929b42f271635B

Timelock:

$ npx hardhat run scripts/deploy-eightTimelock.js --network mumbai
Compiling 47 files with 0.8.12
Solidity compilation finished successfully
Contract deployed TO: 0xdd4447373BB1B868004348fF15FbbEBdE90b5461

Business Model References

• Andreesen Howoritz: Building and Running a DAO: Why Governance Matters
• AtoZ: The Missing Link Between Web2 and Web3: Custody
• AtoZ: Building for the 99% Developers
• Tweet Storm: Why Do DAOs Struggle to Onboard Contributors

Excerpt: Brainstorm and Old Product Roadmap Notes from February 2022

Builders’ DAO offers several novel use cases for NFTs through a mechanism called “Programmable NFTs”

We allow NFTs to represent and entitle holders to either (a) perpetual, (b) limited with expiry, (c) continuous, or (d) discrete claims on future cashflows based on:

Amount of ETH staked by a member (Founder NFTs)

Satisfactory completion of time based labour services performed by a member (Builder NFTs)

Additionally, we exploit NFTs as primitives to provide blockchain-based credentialing, proof of provenance, proof of work (completed labor), proof of attendance (of events), for individuals in real life scenarios

Proof of Work/Contribution: Verifies satisfactory completion of time-based labour services performed by a member

Proof of Ownership: Attestation of ownership and therefore a claim on cashflows from a revenue generating product or business

Proof of Attendance/Completion: Confirms attendance and/or completion of classes/courses/homework from an educational institutions

Proof of Provenance/Origin: Attests that NFT was issued by a smart contract owned and deployed by a specific entity (e.g., a school/educational institution, individual, or any organizational entity)

These NFTs may not be resold and are permanently tied to a members ETH Address

Technical Resources on Payment Splitters

• OpenZeppelin’s Payments API
• Northwest NFTs

Next Steps

• Wrap this product scaffold into a marketable product
• Test Governance token functionality with Tally. Deploy minter to a live website via our own VPS or on Netlify or Vercel
• Continue to build out a core-team of blockchain developers
• In the near future, money splitting will be added to this NFT so as to payout dividends or any excess earnings to owners