December 11th, 2024 DAO Call

Effect DAO Call Summary December 11th, 2024

Author: @djstrikanova (DJ)

• This is a DAO call discussing tokenomics proposals, the Team call with updates is scheduled for December 27th, 2024.

• Migration has been announced. Snapshot will happen Jan 1st, 2025 12 PM UTC. Claiming portal will be available Jan 5th.

• The DAO has approved having the Solana token named EFFECT.

• An Exchange rate of 8 EFFECT per NFX has won the most DAO votes. This will be paired with a 10% APY Staking contract for those who stake their EFFECT.

  • The 10% APY Staking contract will have 50 million EFFECT allocated for 3 years of staking rewards.

• Jesse and DJ discuss the 30 million EFFECT DAO Developer fund and possible ways of raising revenue to fund software development.

• Jesse, Jeffrey and DJ discuss unstaking periods.

  • The DAO has passed proposals approving both a 7 day lock + 30 day linear unstaking period (P205) and a 80 day linear unstaking period (P185).

  • P206 proposes that all claimed EFFECT during migration should be automatically staked. This means that if someone would like EFFECT liquid in their wallet, they must then initiate the unstaking process.

  • DJ discusses the security benefits of having the unstaking period as a grace period to react to any issue that may come about, as well as the simplicity of having everyone staked after they claim.

  • A potentially longer unstaking period between 30 and 60 days was discussed as possible.

• Jesse and DJ discuss the DAO passing P176 which was about allowing non-EFFECT as payment for microtask services in exchange for higher Network Fees. DJ discusses that to increase network usage, it would be beneficial to allow other projects to use their token as a viable payment mechanism. For example, if Hivemapper was able to use HONEY perhaps they would be more inclined to work with Effect AI to pay workers for mapping data. Or if Nosana wanted to improve transcription services with human workers, the service could all be settled in NOS.

  • Jesse discusses the tokenomic benefits of this, as non-EFFECT tokens can be used to build up liquidity pools or used to buy back and burn EFFECT. This demonstrates the benefit of allowing task transactions to be settled in non-EFFECT tokens.

  • Jesse continues to discuss how Solana has a very good onramp system for Credit Cards to purchase tokens such as USDC. So this could be much more preferable to corporate clients who would prefer using a stablecoin such as USDC to pay workers over the EFFECT token.

• DJ discusses if Kucoin and BitBns should be offered a grace period to return their EFFECT to the users they prevent from withdrawing (or should they be treated like everyone else).