VitaDAO Tokenomics & Treasury

Rationale

VitaDAO is a global collective on a mission to fund novel longevity research and democratize IP - making it accessible to patients across the globe. Vita will acquire early-stage IP assets and finance data creation to potentially advance these assets to the clinic. Our core goal is to bridge the valley of death in early-stage research by creating a global longevity research community that can distribute risk and perform better asset evaluation through crowd intelligence.

  1. The VITA token is the lifeblood and DNA of the VitaDAO ecosystem. VITA is obtained by contributing work, data, IP, or funds to VitaDAO. The core function of VITA is to curate the best longevity IP and fund novel open science data creation around it.

  2. VITA tokens grant the rights to participate in a) which IP is funded; b) how it is funded; c) how it is governed; d) how the VitaDAO treasury is governed. As such, VITA grants no ownership of the IP or expectations of profits surrounding it. VITA holders have no rights to any of the IP held by VitaDAO, but decide how it is commercialised and brought to patients.

  3. VITA is designed following a sustainability loop principle. As R&D projects are funded and begin producing data, their respective value grows, increasing the overall value of VitaDAO. As the VITA ecosystem grows, more funds become available, attracting higher quality IP and enabling the funding of further projects and growing the VitaDAO ecosystem.

Treasury Strategy

The goal of our treasury strategy should be to sustainably grow our assets and ensure funding for research projects and operations. VitaDAO minted an additional 10% new vested VITA tokens for new strategic contributors, bringing the total circulating supply to 40%.

1. Stablecoins vs tokens reallocation over ~12 months

Over time it would rebalance some Ethereum towards USDC in anticipation of needed funding for longevity projects, or into more specific more productive assets like stakedETH, vaults etc. once they see fit

The allocation model:
~20-30% stable coins
~70-80% ETH and Defi tokens.

2. Stablecoin allocation

Longer term stablecoins are be placed into yearn vaults that earn us APY on top of our stables (eg Yearn)

3. ETH + DeFi token allocation

  • move ~20-40% of our ETH to liquid ETH2 tokens such as Lido stETH2 to generate 6-10% yield in ETH
  • consider moving 10-25% to DeFi index like defi pulse index or https://www.piedao.org/
    which also earns yield on top
  • 20-40% crv stEth with Curve and Lido | ~9.5%+ interest
  • 10-20% ETH <> sETH liquidity pool with StakeWise and similar | ~20% yield
  • 25-45% kept in ETH

4. Liquidity Pools

VitaDAO set up a Balancer LP Pool with ~$1m of Vita<>ETH Liquidity.

$250k worth of $VITA and $250k worth of ETH was budgeted to have one https://balancer.exchange/ pool on Polygon with $300k in total liquidity, and one https://sushi.com/ pool on Gnosis Chain with $200k in liquidity.

Price stability of $VITA is similar on Polygon and Gnosis Chain compared to Ethereum by adding an additional $50k worth of VITA+ETH on Polygon and Gnosis Chain each, controlled by the VitaDAO multi-sig with a bot buying or selling to ensure the prices are synchronized.

Transferred a total of 600k worth VITA/ETH ($300k in Vita, $300k in ETH) to Polygon/GnosisChain

  • Transferred 350k worth of VITA/ETH (50-50) to VitaDAOs polygon multisig
  • Transferred 250k worth of VITA/ETH (50-50) to VitaDAOs gnosis chain multisig

VitaDAO allocated $100k worth of VITA in rewards for providing liquidity on Balancer/Polygon (~$60k), and Sushi/GnosisChain (~40k) for the first year, which is fairly low considering the DAO would earn back a majority of these rewards by being the main liquidity provider.

Tokenomic Strategy

The approval of these allocations to working groups, contributors, and service providers was at the full discretion of genesis members and their approval. They form the core of VitaDAOs decision-making body.

VitaDAO operates via a public auction system thus, the token price is dictated by the community.

Working Groups

VitaCore

VitaCore allocations draw from their respective working groups. VitaCore allocations vest 40% upon launch to grant core governance. Consecutively, 60% vest linearly over 12 months.

Contributors and Advisors

Contributors and advisors are compensated on a per-hour basis. Similarly, allocations vest 40% upon launch and 60% linearly over 12 months.

Service Providers

Service providers will individually submit a scope of services for allocations and fiat values, and pending approval will continue to support VitaDAO for a minimum period of 3 - 12 months. Final service provider commitments will be further finalised. Allocations above 0.5% in tokens will support VitaDAO for a minimum of 12 months.

Compensation

VitaDAO is an open and participatory vehicle that aims to reward its members equally for their contributions in VITA tokens or stable coins. It is designed as a first token economic system to ensure VitaDAO’s longevity.

  • VitaCore and Vita Advisors can opt for being paid in stable coins or in tokens, and either a fixed amount or effectively in options
  • Working group members (except for longevity-wg) are not paid, unless decided by a vote.
  • Service providers are compensated via a mechanism designed by a compensation committee, and then formulated as a DAO proposal which needs to be approved by the DAO.

Incentives

  • Main goal is to advance the purpose of the DAO of funding high quality early stage longevity research and collecting valuable intellectual property
  • Incentives should help to advance these goals by incentivising top contributors and stakeholders to contribute effectively and advance the overall mission

1. For Contributors

  • ~$50-80 VITA per hour as benchmark: range should based on common pay specific to task: eg. moderating discord would be ~40, longevity, legal or web development ~120, and later modified upon knowing VITA price post-launch)
  • Tasks/Hours should be agreed upon with working group stewards and tracked by the contributors

2. For Researchers

  • ~$150 VITA (Airdrop) for Researchers and people working in longevity who join and potentially contribute through a survey or something similar with feedback/input or apply as longevity delegate voters (vetted, limited to maybe 350-500 Researchers)
  • ~$100 VITA for Selected Researchers voting on Longevity Funding Proposals
  • ~$400-550 VITA for proposing the funding of specific research that passes the longevity board to be voted upon by DAO (in 2yr vested VITA)
  • ~$500-800 VITA if the proposal for funding goes through by being accepted for funding by the DAO (in 2yr vested VITA)
  • ~$500-1000 VITA for (~2-5) select longevity IP evaluation board members to do a write-up for a decision
  • ~0.5% of proposed IP sale/licensing amount for the one proposing it and making it happen (in 2yr vested VITA or USDC/ETH)
  • ~1%+ of IP sale/licensing for referring a buyer/licensee (in 2yr vested VITA)
  • ~1%+ of IP sale/licensing for the initiator of proposal (in 2yr vested VITA)

3. For Developers

Proof-reading the smart contracts for an incentive and another incentive if they find flaws as bounties.

High threat: up to $50,000

  • Changing the owner address of the authentication contract as well as adding a solver without authorization.
  • Forgery of a user’s signature that would allow to execute a funded trade without the consent of the user.
  • Execute arbitrary settlements without being a solver.
  • Executing a user’s trade that is expired or at a price worse than the limit price (also as a solver).
  • Transferring in tokens more than once for the same fill-or-kill order in the same settlement (also as a solver).
  • Access to user funds outside of a trade.

Medium threat: up to $10,000

  • Changing the order of a legitimate interaction, as well as skipping one, in a settlement.
  • Removing a solver without authorization (also as a solver).
  • Making the contract unable to be operated by any solver, e.g., through self-destruction (also as a solver).

Low threat: up to $1,000

  • Freeing storage without being a solver.
  • Invalidate an order without the permission of the user who created it.

4. For All

Small scale rewards for active and long-term contributors. This includes giving them “kudos” that can be converted into a small payment (through something like Coordinape), or providing a decentralized task bounty board (such as https://dework.xyz/ ) where active contributors can suggest tasks and anyone in the community can apply to do them.

  • 5-10k VITA per month budgeted for all experimental tasks lead by Vincent Weisser#9975
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This thread currently includes:

  • VDP-1 VitaDAO Governance Framework
  • VDP-2 VitaDAO Incentive Proposal
  • VDP-3 VitaDAO Tokenomics Proposal
  • VDP-4 VitaDAO Treasury + LP Proposal
  • VDP-11 VDP-11 New 10% VITA Mint for Treasury & Strategic Contributors
  • VDP-20 VitaDAO Liquidity Pools on Layer2s (Polygon, Gnosis Chain etc.)
  • VDP-50 Running small scale experiments for incentivizing contributors (coordinape, dework etc.)

All other tokenomics & treasury-related proposals in Proposals - VitaDAO have not yet passed the three-phase governance process.

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Took the liberty to not add the funding proposals as they are not relevant to the makeup of a constitution

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Awesome work @consigli3re!

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