Below I have crafted a proposal in the shape of an outline to help Warcamp determine how and whether we want to use Yeeter as a tool to obtain additional funding for DAOhaus.
Through this analysis, I will identify the goals of raising funds through the Yeeter, and consider any possible trade-offs, providing warcamp with a relative cost-benefit showcasing why utilizing the Yeeter over other fundraising or donation mechanisms might serve us well, ensuring DAOhaus achieve the greatest degree of success with the lowest amount of resources needing to be dedicated toward the effort of communicating, raising, and administering raised capital.
Overview & Campaign Objectives
The goal of this campaign is to setup a general purpose yeet (first on Mainnet then propogating to Gnosis Chain and Optimism) to fund initiatives that DAOhaus deems valuable for the platform and community.
Note: By setting up the Yeet to take donations on Mainnet, we cast the widest net and thus increase odds of participation as well as the possiblility that funds get donated to DAOhaus.
The objectives Warcamp is seeking to fund this Quarter are listed below:
| DAOhaus Objectives | Priority (1-5) | Purpose |
|---|---|---|
| Ship DAOhaus V3 | 5 | Build |
| Ensure DAOhaus v2 runs smoothly | 5 | Build |
| Expand our current funding | 3 | Funding & ecosystem growth |
| Determine high level DAOhaus strategy | 2 | Meta |
| Build partnerships with external organizations | 2 | Funding & ecosystem growth |
| Ensure DAO operations run smoothly | 2 | Ops |
| Strengthen our developer ecosystem | 3 | Funding & ecosystem growth |
| Set up DAOhaus governance for success | 2 | Meta |
| Contribute to DAO public goods | 1 | Non-DAOhaus public goods |
| Incubate new DAOs | 2 | Seed future Camps |
| Strengthen DAOhaus brand and awareness | 2 | Comms & Community |
| Strengthen our user community | 2 | Comms & Community |
| Maintain our current funds | 1 | Funding & ecosystem growth |
Initiatives will be funded on a quarterly basis, where at the end of each Quarter core team members will have the ability to make proposals moving the capital from the Yeeter to the DAOhaus core team compensation minion or the UberHaus Safe Minion to manage and allocate toward successful initiatives that forward development of the DAOhaus platform or community.
Note: We may consider changing the cadence for when Yeeters open/close based on our evaluation of projected needs, for now it is set to run on a Quarterly basis to reduce overhead for communications and administration of raised capital, as well as reduce admin overhead for setting up the yeeters!
Reasons not to use Yeeter: Addressing the Concerns
There are several strong arguments that have been made against the case of using Yeeter for the sole purpose of taking donations from members and supporters of the DAOhaus platform. I will highlight and address each of the arguments laying out the pros & cons of each below:
- Instead of burdening ourselves with the additional overhead of having to setup Yeeters and manage donated tokens, why don’t we provide an ETH address and solicit donations from supporters across the ecosystem that way?
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Posting an ETH Address & soliciting donations
Pros:
- Reduces admin overhead for both setting up yeeters and allocating raised capital.
- Easy to share out and no need to explain what a “yeet” is to those who participate
- People are familiar with sending funds to an ETH address
- Requires less communication overhead
Cons:
- More overhead in tracking and rewarding supporters on a level playing field
- No way for those who donate to ragequit if they see deliverables and milestones are not being met
- Less DAO exerimentation and fun, grouping supporters who participate in “quartely patron cohorts”
- Yeeter gains no exposure
- Why don’t we use Giveth, Gitcoin, clr.fund, or other funding methods to boost exposure and our odds of receiving funds?
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Alternative funding methods
Pros:
- Gain exposure across ecosystems and reach different audiences participating through other platforms
- Reap the benefits of Quadratic Funding
- Choosing one does not preclude us from using the other
Cons:
- Less dog-fooding of Yeeter
- No ability to set the cadence for when we setup and raise funds
- Little or no insight into those who contribute funds through the campaign (may take more legwork)
- No seamless method of distributing rewards retroactively to addresses that support
- Using Yeeter for this initiative could dilute the branding and ethos behind Yeeter.
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Diluting the Yeeter Brand & Ethos
Pros:
- Yeeter brand benefits from DAOhaus’s use of app to raise donation funds
- Supports the narrative of DAOhaus as a public good that can continue to be funded, whether through donations or by other means of fundraising
Cons:
- The perception of what DAOhaus is may change, where asking for donations to fund development may be frowned upon
- Yeeter brand could get muddled and confused with other Public Goods fundraising tools when in reality it is really just a novel fundraising tool that has many extensible use cases
- Ethos may also take a hit as it crosses the wires with our previous efforts to raise capital and return value to contributors
- The real value that Yeeter provides is not to the project team that uses it, but instead to the individual supporters that allocate capital to a given project or cause and who can be the beneficieries of future rewards if the project is a success, this does not fit the purpose or premise of asking for donations with no retroactive rewards.
-
The purpose does not fit the value that Yeeter provides
Pros:
- Reinforces the idea that Yeeter can be used for many different types of fundraising
- Would reduce the expectation of future rewards when a contributor yeets funds
Cons:
- Might have a negative impact on participation as there is no clear incentive for contributing capital to a Yeeter project
- Narrative of Yeeter is lost
- Power of the tool to distribute rewards to capital contributors who choose and raise value for succesful projects is forgotten or reduced
- Yeeter isn’t ready, if we strike pre-emptively we may shoot our shot and never have the opportunity to showcase the true power behind the tool that we know to be superior to many crowdfunding mechanisms that are familiar to us today.
-
Yeeter is too young & the market must mature before pushing it, as it could go south if the powerful crowdfunding app is poorly received
Pros:
- Continue to discover & solidify product market fit with the Yeeter
- Remain competitive with apps like Juicebox that are failing & learning fast, iterating toward building a superior tool
- Introduce more users, contributors, and devs to both Yeeter and DAOhaus
- Interface with more DAOhaus users/contributors/supporters through a broader initiative that brings the community together in a way the core DAOhaus app hasn’t been able to alone
- Introduce more scruitiny to the Yeeter app that could have the result of bringing more attention and dev interest to the Yeeter
Cons:
- Introduce regulatory scruitiny to Yeeter & DAOhaus
- May be too soon, could be poor timing and we might only have one shot to get this right, which means if we don’t get it right this time, could be game over for yeeter
- May takeaway from Core Dev & DAOhaus v3 focus
- May be inappropriate for DAOhaus to take donations through a Yeet and not provide rewards beyond NFTs
- Raising funds in this way may circumvent our previous raise efforts and create a strange dynamic between different types of supporters who have contributed materially to DAOhaus in the past.
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Usurping our previous efforts to return value to material contributors that support DAOhaus
Pros:
- Diversify how & when we raise funds for DAOhaus
- Showcases that Yeeter can be used for a variety of use cases
- Brings capital in on an on-going basis and secures the DAOhaus roadmap beyond alternative fundraising efforts
- No need to provide contributors expectations of rewards, ergo cannot be considered investment
Cons:
- May dilute Yeeters purpose
- Could have low uptake
- Perception may be negative such that donors do not feel appreciated for their support without proper messaging and articulation of purpose as well as benefits to supporting DAOhaus
- Possibly confuses incentives between donors and contributors, making it hard to differentiate between the two
CTA - Missing Elements & Considerations from DAOhaus
I am sure that in sketching out the Pros & Cons as well as articulating the problem space, I missed a number of considerations that should be brought in before moving forward with executing on the plan to setup a Yeeter on mainnet to take in donations.
Further, there is an optimal Strategy & Plan of Action that we may consider as a first attempt at garnering interest in line with the goals that I have highlighted within the or underneath the campaign objectives.
I will provide a preliminary plan of action in the comments section of this post for @warcamp to consider, but first i’d like to put out a call for response & feedback from the community to determine whether this is something that DAOhaus would like to pursue.
In that vein, I will be putting up a signal proposal for Warcamp to vote on to see if we would like to support the simple concept of creating a general purpose yeeter that gives DAOhaus the autonomy to fund initiatives that it deems valuable and are in line with furthering the platform or improving our community.
Thank you for your time!
The Yeeter - # Initiative to continue building out the Yeeter Framework