The Merit Circle mainDAO, or ecosystem DAO, is the overarching DAO that has tentacles reaching every single subDAO under the mainDAO's umbrella. Owning a stake in the ecosystem DAO allows you to vote on the future of each individual subDAO, something that is not possible the other way around.
The mechanics behind the Merit Circle DAO can be divided into certain categories. These different objectives and activities are formalized by the early contributors of the Merit Circle DAO and are always open for discussion and adaptation by the governance forum.
Merit Circle takes pride in being decentralized and aims to become autonomous in the initial period of its inception. With every single $MC token holder holding voting rights to the DAO's decision-making process, we ensured a widespread distribution of the token and, thereby, the voting rights of the DAO.
Our governance model is one of the main activities of the mainDAO and can best be understood by reading the governance section below:
The mainDAO governs all the subDAOs that are used in daily operations. Therefore, one of the main objectives of the mainDAO is to maintain a structured and well-organized, profit-generating subDAO. This is mainly achieved through governance proposals.
In the initial set-up of the Merit Circle DAO, the mainDAO can perform several actions to maintain its subDAOs' longevity. The actions consist of, but aren't limited to:
- constant scaling of subDAOs
- ensure continuity of subDAOs
- backstop shortfalls with additional capital within subDAOs
- direct claim on subDAO
For a more detailed understanding of the subDAO model, please read the subDAO page.
The MainDAO will be the overarching ecosystem DAO that holds a large treasury of precious assets. The goal of the DAO is to ensure the management of this treasury, its longevity and the scaling of its entirety. The current set-up for the MainDAO's treasury will be:
- Direct claim on all subDAO treasuries (77.5%) - this means that the MainDAO holds the authority to pull assets from any subDAO immediately
- Crypto assets (15%) - this capital will be used in yield-farming strategies and utilized in external protocol governance
- Cash (ETH + Stablecoins) (5%) - this capital will be used in flexible (unlocked) yield-farms but also function as liquid capital reserve for reinvestment in subDAOs or as a reserve to backstop losses in subDAOs
- Note: subDAO treasuries all hold 10% cash, making the effective cash position of the MainDAO approximately 12.5%
- NFTs without a DAO (2.5%) - NFTs that are not subject to a specific subDAO yet or belong to subDAOs (games) that have been phased out will become part of the MainDAO