👀Initial Vision
by @k0rean_rand0m
Introduction
“Outer Circle” protocol should become an extendable DAO-ecosystem
There’s a lot of different multisigs/”DAO constructors” out there, but none of them allows to implement every usecase which the exact DAO might need. That all holds DAOs back and we see only simple implementations of them.
Let’s take a look at an example of current difficulties
Now we’ve developed Crowd App V1 which allows users collectively purchase an NFT, make a decision on resale price and resale the item. This is a specific subtype of investment DAO, so let’s take a look on how we can achieve the same functionality with Gnosis Safe or Aragon?
Create a Vault That’s an easy and simple step which is possible with any DAO constructor.
Collect funds to buyout the NFT That’s more tricky: users should get voting power in proportion of their deposits. So that’s impossible with a classic multisig where all users got equal “signs”. With a DAO constructor it will be possible with minting a DAO token and distributing it between those who participate. Who will distribute these DAO tokens? What if a person will decide to leave DAO before the buyout? What if…
Well, the funds are collected and it’s time to buy the item Here someone should create a custom TX for the buyout and DAO should vote for it. Every voter should understand the TX and participate. Again, too much extra-communication is needed.
NFT is bought by DAO and members decide to resale it. What should be the price? The only possible way here with current technologies - a member creates a resale proposal with some listing price and others vote FOR or AGAINST. No way to collectively decide the resale price by change the proposed one.
Time to resale And that’s the most difficult part. The issue is - NFT protocols asks to create listings with their APIs. So a DAO member should somehow make a listing with API request, signing the message with theirs private key and DAO’s Vault should somehow with ERC-1271 verify that that was a valid Order (with the price DAO decided) passed by a member.
It’s all so difficult and requires so much actions and communication between DAO members so no one should be surprised with the fact that we don’t see DAOs of this kind.
Summarising the problem
DAOs need integrations. A lot of them and every kind of them.
DAOs need custom mechanics to operate.
The solution with OuterCircle protocol
The solution is simple but powerful. We need an extendable DAO-ecosystem.
What does it mean? It means that we need to implement the system, the protocol, where it’ll be possible to provide every DAO with customisable and reach extensions. And these extensions should be created not only by Crowd team, but by every developer who sees a potential in participating in this ecosystem.
Let’s imagine a new Metaverse or GamiFi project launched and they needs some basic DAO mechanics for their guilds, but also something custom - an integration with their project. With Outer Circle protocol it’s not a problem at all. It will require to create a DAO for the guild with full reach set of existing extensions and implement a smart-contract with some custom mechanics - the integration. Then just plug this integration to the ecosystem and turn it on in guild’s DAO. Since the extension is a smart-contract it might implement any possible logic inside of it - custom Vault, custom proposals, interacting with other contracts and etc. And the extension even might has its own interface or use Crowd V2 Protocol’s generative UI. Yep, generative UI!
Users of such DAOs won’t deal with custom transactions and won’t need to interact in Discord or messengers - everything related to extension’s functionality will be on one screen. Even offchain APIs integrations.
Security of the solution
You might think that that’ll be a mess with the huge amount of scam extensions. Well, it might be. But the thing is the DAO decides which extension it should connect, and this part of user pipeline is what Outer Circle protocol provides out of the box.
The ecosystem
That might look promising, but what about the extensions, who will create them and why someone should?
Again, an extension is a smart-contract. So a developer who builds that extension is free to add fees into it. Why someone should build extensions? Because each of them will be automatically available for the whole ecosystem and the developer of an extension will target the huge amount of DAOs. If the extension will be reviewed and secure it might be whitelisted (”approved”) by Crowd team and reach more and more DAOs.
Let’s dream a little:
What about an AMM-extension which will become default for DAOs to earn by provide liquidity or swap tokens easily?
An extension-launchpad for startup-DAOs?
An extension with reach and native lending protocols support for investment DAOs?
An extension, which will allow funds-DAOs to review applications from startup-DAOs and invest in them?
etc.
Potentially there’s an infinite solutions for infinite types of DAOs. And the core is the same - “Extension Manager” and, let’s call it “Extensions Marketplace” with products and solutions aimed for DAOs.
The state of Outer Circle protocol
Good news, we already got a prototype of that solution and Light Paper on it’s way!
The next steps - bring the core to the final state, review contracts and launch the protocol with some basic extensions. Also, since extensions and their developers is an important part of the ecosystem we need to provide really good documentation, guidelines and pre-made Solidity libraries for extensions development. In the field of community interaction, we’re discussing different projects integrations already and planning to host hackathons to bring fresh mechanics and good-quality extensions.
We found several project which showed interest in Outer Circle. One of them is MatchMaker DAO - an onchain accelerator which suffers from the lack of flexibility of existing solutions.
Also Crowd App V2 will be implemented on top of Outer Circle protocol which will give all DAOs in the ecosystem an ability to be a “Crowd” - collectively invest and manage NFTs.
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