CryptoFusion Funder

The Perpetual Funding Machine Powering DAO Net

Presenter: Dwayne Collard

Date: 2021-11-10

What is DAO Net?

DAO Net is a DAO composed of specialized DAOs that fulfill specific functions necessary for its mission.

Dao Net Mission: To facilitate the rapid incubation, growth, evolution and cooperation of DAOs.

Descriptive Analogies

DAO Net is to a multicellular organism as DAOs are to cellular organisms. DAO Net functions as a membrane structure that interfaces with legacy government systems for the DAOs contained within.

DAO Net is to a multinational corporation as DAOs are to self-organizing departments.

DAO Net is like a neural network of DAOs in which each DAO node specializes in a particular aspect of the network and is continually learning to improve that aspect thus improving the network as a whole.

What is CryptoFusion Funder?

The Perpetual Funding Machine Powering DAO Net

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CryptoFusion Funder is a DAO marketplace that fuses the collective components and energies of the funding process to unleash tokenized energy in the form of DAO tokens.

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Instead of airdropping tokens, initial coin offerings or mining to mint and distribute new tokens, tokens can only be created when users and funders come together to fund a proposal.

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Minted tokens are distributed equally between Users, Funders, DAO Net Treasury and a Tax Pool while funding goes to the proposal project.

High Level Fusion Process Overview

Proposal Budget

Moments Tokens

Total Ada from Bidders

Fusion DAO Smart Contract

Proposal Funding in Ada

Users DAO Rewards

DAO Net Treasury

DAO

Tax Pool DAO

Bidders

DAO

Submission

Votes

Bids

Payment

Payment

Payment

Payment

Payment

Process Overview Detail

Proposers submit projects for funding with a budget in a valid cryptocurrency (Ada only to start)

User’s time is tokenized into non-tradeable governance tokens called Moments

User’s are incentivized to participate in cumulative voting for projects as successful project funding converts their Moments governance tokens into the tradeable DAO tokens

The funding process fuses project budgets, Moments and cryptocurrency funding in a fusion like reaction that produces 4 DAO Tokens for each Moments token.

Created DAO tokens are divided equally among Users, Funders, DAO Net and a Tax Pool while the cryptocurrency funds go to fund the project.

A free market is used to determine the price point at which the successful project funding / Moments to DAO token conversion takes place.

The funding process is the only way that DAO tokens can be minted which caps the total number of DAO tokens while still being scalable as the user base grows.

How Users Earn Moments Tokens

New User Registers in Sybil Defense DAO

User Periodically Authenticates in Sybil Defense DAO

User Earns 1 Moments Token / Day since Registration or last Authentication*

Influence tokens cannot be traded but can be delegated and can only be used to support projects

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*If less than 10,000 users registered then users earn RoundUp (10,000 / # of users) Influence Tokens / Day. This status is not expected to last beyond a few days due to intended advertising efforts in a clearly defined market of highly engaged individuals (Project Catalyst members).

Proposers Submit Projects

Proposers pay a small daily submission fee in DAO tokens for posting their projects with a budget request in Ada (or other cryptocurrencies in the future)

Submission fee is divided as follows:

50% Stake Pool Operators or Hosting Site (depends upon final solution)

25% DAO Net Treasury

25% Tax Pool

Projects are placed in Marketplace for Users and DAO Token Buyers to review

Users Cumulative Voting of Influence

Users review projects in the Marketplace

Users assign their Moments Tokens to projects that they support

Users may assign as many Moments Tokens as they have to one project or spread the tokens over several projects

Users may add or remove Moments Tokens to any project at any time

There may be a small fee in DAO tokens for assigning or changing Moments Tokens (defined by DAO members but initially 0)

50% Stake Pool Operators or Hosting Site (depends upon final solution)

25% DAO Net Treasury

25% Tax Pool

If a project is not funded and removed from the Marketplace then Influence Tokens are returned to their users

Three Way Free Market Price Point Determination

Each Project has a real time ratio calculation of Budget : Moments Tokens in the Marketplace

DAO Token Buyers place time limited smart contract buy orders on specific projects, or market wide, at a maximum Ada price point at which they are committing to purchase a specific amount of DAO Tokens

When the Budget: Moments Tokens ratio reaches the point that the cumulative amount of Ada bid by DAO Token Buyers is sufficient to fulfill the Budget requirements then the transaction is executed

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DAO Token Buy Execution

When a DAO Token purchase point is reached then the following smart contract executes:

Ada from DAO Token buyers is transferred to the Project proposal account

Each User Influence Token is converted into 4 DAO tokens that are distributed as follows:

DAO Token Buyer receives # of DAO Tokens equal to Ada paid / (Budget : Moments Token ratio)

Users receive 1 DAO Token per Moments Token they assigned to the project

DAO Treasury receives 1 DAO Token per Moments Token assigned to the project

Tax Pool receives 1 DAO Token per Moments Token assigned to the project

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Tokenomics - Maximum DAO Token Pool Size

Maximum DAO Net and Tax Pool Budgets