2.1. Introduction
Nutbox Protocol is the solution for launching, building and diversifying modern DAOs.
DAO has been a popular concept in the Web 3.0 world from years ago, but it’s hard to reach mainstream adoption due to the challenge of being difficult to understand, launch and scale.
Nutbox Protocol resolves these problems by emerging and evolving as the Operaing System for Modern DAOs, with truly undestandble, usable, profitable and sustainable design for everyone.
2.1.1. Initial Staking Offering
Initial Staking Offering is a staking-based bootstrapping method.
Staking, as one way of earning rewards when staying control of your assets, has grown quickly in the past years. Based on the advantage of staking economy, Nutbox Protocol provides a built-in staking economy module that helps DAOs distribute community tokens (i.e. cToken) to its stakeholders and contributors.
2.1.1.1. What is Initial Staking Offering
Anyone who has staked the tokens (such as ATOM from Cosmos, or DOT from Polkadot, or STEEM POWER from Steem) to the PoS Chain by DAO account or specified target accounts (In the form of vote for validator or delegate to validator) , will receive rewards in the form of cToken.
For instance,
By delegating ATOM to any DAO project validator accounts in Cosmos community, the delegators will receive cToken rewards (cToken is the DAO project token) .
By delegating STEEM Power to any DAO project accounts in Steem community, the delegators will receive cToken rewards (cToken is the DAO project token) .
By voting the specified validator supported by the DAO in Polkadot community with DOT, the voters will receive cToken rewards (cToken is the DAO project token) .
With the received staked tokens, the DAO could earn revenues in the form of native token staking economy model. The revenues in native tokens can be used for cToken redemption for supporting its value in Decentralized Exchanges. Following the decision of the DAO, the redeemed cToken could be burnt or saved as DAO treasury fund for future usage.
2.1.1.2. Advantages of Initial Staking Offering
The advantages of the Initial Staking Offering（i.e. ISO） includes:
Minimal Risk for Stakeholders: Instead of sending funds into DAO directly, the staking economy approach is less risky for stakeholders. The delegators can revoke their staking any time they want.
Easy to Bootstrap: As long as the DAO and community could produce value with their efforts, the investor or community members could stake to the DAO, to help the DAO to launch with financial rewards from the staking economy.
2.1.1.3. More...
Nutbox DAOs can also potentially support a multi-chain staking model that stakeholders from different PoS chains will all be able to receive the cToken.
Multi-Chain Proof of Stake Networks (e.g. Polkadot, Steem, Hive, ) that make sure everyone could build the DAOs with high scalability, relatively low cost and great user experience. Staking Economy that help DAOs launch with feasible and sustainable business model, and low risks for stakeholders.
Besides, since the staked token is usually locked for a predefined period of time, to extend the value of the current staking economy, Nutbox Protocol also defines one corresponding tradable token (called tToken) for the staked token, such as tDOT for DOT as a extensible economy model.
2.1.2. DAO Extensions
The staking economy defines a pattern of bootstrapping a financially feasible DAO by staking. In order to create long-term values for the DAO and cToken, the DAO should provide more values to its community and the Web 3.0 ecosystem in terms of DAO services which could be easily set up with built-in or community-built DAO toolkits.
2.1.2.1. Out-of-the-box Toolkits
The Nutbox open source toolkits, provides high flexibility and extensibility to fit into different Web 3.0 scenarios. The Nutbox DAOs could build their own services, as easy as installing Wordpress plugins into their DAOs.
The toolkits, mostly built in the form of Smart Contracts, and Pallets in Substrate framework. People can be installed and configured by the DAOs to launch their own services easily.
The typical Toolkits include NFTs, Proof of Brain, Multi-round auction, Web 2.0 integration, and Public Goods.
2.1.2.2. Basic Toolkits module
The three pillars of Nutbox’s basic toolkits module are:
Staking Protocol (Walnut) allows any community to configure its DeFi module with one click.
NFT Module (Chestnut) that can help everyone realize the capitalization of data on chain, ensures that everyone has clear ownership of their data, and builds a fair digital labor market.
Social Layer (Donut) that enables decentralized social network that pay out the values to the content creators instead of the big platforms.
The underlying blockchain, economy and social infrastructure makes it possible to build a powerful modern DAO ecosystem on top of it.
2.1.3. Staking-based Power and Permissions
Staking is the basic economic principle of PoS chain and DeFi, and it is also the basis of DAO.
2.1.3.1. Staking has power
In PoS Chain, PoS Token Stakers have the right to vote validator. Further, in the public content network of Steem Blockchain, Stake STEEM has the right to upvote content to determine the proportion of the reward pool allocated to content creators.
Staking protocol participants and NFT Staker also need to have some special rights. These protocols will integrate Chestnut and Donut to provide for DAO.
2.1.3.2. Staking has permissions
DAO Token and NFT Staker can have permissions to enter Discord, subscribe community content and etc. They also have special permissions to participate in community governance.
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