Nervos DAO provides a mechanism that depositors can have automatic “recurring income” with new block generation. Fundamentally, the design is to help offset the inflationary effect of secondary issuance, but we could also leverage this mechanism for other purposes.
Consider the possibility of a community DAO - supporters of community effort can use their “interest income” from the Nervos DAO to support a particular effort, for as long as they believe the beneficiary is doing a satisfactory job, and can pull support at any time (by directing the beneficiary of the Nervos DAO income back to themselves).
Compared to DAOs we have seen in other ecosystems, the biggest advantages of this model are:
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Money arrives over time instead of all at once. This gives incentive for its beneficiaries to be diligent and transparent about what they have done and the results. Support can be pulled at any time, which gives flexibility to the funders.
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The principle of funder’s money is absolutely safe (remain deposited in the Nervos DAO). This eliminates an entire class of issues, such as what happened to TheDAO on Ethereum years ago.
Technically, this can be done with a combination of lock / type scripts such that:
- Either the funder and the beneficiary can withdraw deposited CKBs from the DAO;
- If the beneficiary withdraws CKBs from the DAO, they can only withdraw the accrued interests, and need to put the principle back to the Nervos DAO.
Anyone interested to give it a shot? I’ll be the first to fund such a Community DAO.