The Hatching Process
Process, process, process. We are going to learn how to Hatch a Commons!
How will governance work between the Hatch and the Commons upgrade?
The governance of the Hatching process starting from the Token Engineering communities initialization of the Hatch DAO to the Commons Upgrade will involve 3 major voting events.
The Hatch DAO Parameters Vote.
IHT Tokens and CSTK Tokens with 50/50 weight will use the quadratic voting method to choose the best proposed set of hatch parameters. These parameters will be used to deploy the Token Engineering Hatch DAO.
2. The Commons Parameters Vote
TECH Tokens will use the quadratic voting method to choose the best proposed set of commons parameters. These parameters will be used to deploy the Commons that the TEC Hatch DAO will migrate into.
3. The Commons Upgrade via the TEC Hatch DAO.
TECH Tokens will use Dandelion Voting to migrate the funds in the TEC Hatch DAO into the Token Engineering Commons (parameters for were decided in (1) the Hatch DAO Parameters vote) upgrade.
Understanding the Hatching Process
What is the Pre-Hatch phase?
The Pre-Hatch phase includes all the processes and decisions that need to be decided upon in order to deploy the Hatch DAO. The Pre-Hatch phase is centered around a single voting event that will initialize the Hatch DAO parameters and attempt to fund the Hatch Raise.
There are three major requirements for the Pre-Hatch phase:
1.) The Token Engineering Community must deliberate on proposing the best set of Hatch DAO Parameters.
2.) The community must initialize and execute the Pre-Hatch Vote.
3.) The community must be successful in meeting the minimum Hatch Raise requirement.
How long does the Pre-Hatch phase last?
In order to understand how long the Pre-Hatch phase will last, we need to first understand when the Pre-Hatch phase officially begins. The Pre-Hatch phase begins when Hatchers are able to vote on the proposed parameters through the TokenLog Application.
The duration of this vote is pre-determined by community members along with a set of Hatch DAO parameter options. Once the vote is over, the Token Engineering community will also establish an amount of time for the community to co-vest funds that satisfy the Minimum Hatch Raise requirement. Once this is accomplished, the Hatching process can transition into the next phase.
What parameters will be decided on?
The following parameters will be voted on during the Hatching process:
Support Required ++ Minimum Quorum ++ Vote Duration ++ Vote Buffer ++ Vote Execution Delay ++ TollGate Fee ++ Hatch Minimum Goal ++ Hatch Maximum Goal ++ Hatch Period ++ Hatch Exchange Rate ++ Hatch Tribute ++ Hatch Oracle Ratio ++ Maximum IH Raise ++ Expected Raise/IH
How will we vote on these parameters?
During parameters voting, Hatchers will utilize IHT, TECH, and CSTK tokens to vote on the parameters through the TokenLog application.
What is the TokenLog application?
TokenLog is a new governance tool that democratizes open-source software projects by creating token-weighted backlogs. It allows projects to continuously gather feedback from their token holders in order to help plan and prioritize their work. It allows token holders to actively signal which items matter to them rather than just vote on single proposals.
Can I delegate my vote?
No. At the moment, there is no process being implemented that will allow you to delegate your vote during the Hatching process.
What happens after the community has voted on all parameters?
After the vote has ended, there will be a pre-determined amount of time for Hatchers to co-vest funds into the Hatch Raise. The Hatchers will send wxDAI in exchange for TECH tokens. The wxDAI will serve as the Hatch DAO's temporary Reserve, and TECH tokens will represent voting power within the Hatch DAO.
What happens if we don't meet the Minimum Hatch Raise?
This is highly unlikely but if the Minimum Hatch Raise is not met, we will need to restart the Hatching process. 100% of the funds will be returned.
What is the Post-Hatch DAO?
The Post-Hatch DAO is the second phase of the Hatching process. During this phase, we will use the Hatch DAO to vote on the parameters of the Commons and to implement the Augmented Bonding Curve, Conviction Voting, and Disputable Voting modules within the Token Engineering Commons.
What is the Hatch Tribute?
The Hatch Tribute specifies what % of the funds raised by the Hatch are not redeemable. All other funds raised will be able to be redeemed by TECH token holders.
If the Commons upgrade occurs, the funds from the Hatch Tribute will go to the funding pool to create public goods for the field of token engineering and to fund DAO operations via Conviction Voting.
Why are you minting new TECH tokens?
As a reward for contributions to the Token Engineering community, all IHT token holders will receive newly minted TECH tokens after the Hatch Tribute is established and the Hatch DAO is operational. The amount of TECH tokens provided is determined by the community during the Pre-Hatch phase.
What decisions are being made within the Post-Hatch DAO?
TECH token holders can vote on any proposals that appear in the Post-Hatch DAO.
Do you have to be a Hatcher to submit a proposal within the Hatch DAO?
You do not have to be a Hatcher to submit a proposal but you do need to have TECH Tokens to vote on them.
What is Dandelion Voting?
Dandelion voting is a voting framework similar to Moloch-style DAOs, where users funds are only utilized with their permission. It basically means that by voting yes on a proposal you are committing to a decision in the organization.
What if I disagree with a vote within the Hatch DAO?
Since the funds you have committed are managed through a Dandelion DAO, any disagreements can be responded with your ability to “rage-quit” and pull your funds from the Hatching process. Any TECH tokens you have will be redeemed for your wxDAI contributions minus an Exit Tribute that is decided by the community during the Pre-Hatch phase.
What does upgrading to a Commons mean for the Token Engineering Community?
As part of the Hatching process, upgrading to a Commons means that members of the Token Engineering Hatch DAO have decided to establish their own DAO, the Token Engineering Commons.
This procedure of members consciously dissolving the Hatch DAO behind them in order to create an unincorporated entity is a big feature of the Commons Stack legal strategy to satisfy the regulatory requirement of establishing "sufficient decentralization".
How many TEC Tokens will I receive?
TEC tokens are distributed after the Hatch DAO agrees to the implementation of the Augmented Bonding Curve. Once this happens, funds will be migrated and all TECH token holders will receive TEC tokens at a 1:1 ratio.
How long do I have to 'vest' my TEC tokens?
It is likely that the Hatch DAO will decide within its parameters that the TEC tokens will require a vesting period in which you are unable to sell TEC tokens back into the Augmented Bonding Curve. The vesting period is a measure that ensures the stability of the Bonding Curve through the early period of the Commons when token "dumping" can have adverse impacts on the Commons ability to fund early proposals.
Can I purchase more TEC tokens?
Yes. Whether you decide to become a hatcher or not, you will be able to purchase TEC tokens directly from the Augmented Bonding Curve within the Token Engineering Commons after the upgrade is complete.
What is Conviction Voting?
Conviction Voting is a method of voting that offers a novel decision making process that funds proposals based on the aggregated preference of community members, expressed continuously.
If you are interested in taking a deeper look into Conviction Voting please reference our blog post.
What is Disputable Voting?
Disputable Voting is a new voting framework that adds new mechanics to our voting modules which include delegating votes, protections against last-minute vote result flipping, and new methods for disputing proposals.
Now that the Hatch is over, what can I do?
Now that the Hatch is over you can help grow the Token Engineering Commons into a Social Impact powerhouse by helping the TEC in its day-to-day operations or help funding exciting new projects that will advance the field of Token Engineering!
When the TEC is upgraded to a Commons, will it be able to fund projects that have the goal of advancing Token Engineering?
Yes. The core engine of the TEC is that interested parties can buy TEC tokens that will be used to fund TEC projects. The Commons will become a community that collaborates with each other around the future of token engineering. The TEC community will become a schelling place for projects that advance the state of token engineering and serve as a networking hub for token engineering researchers to build next generation token economies.
How does the Augmented Bonding Curve work?
Detailed information on the ABC can be found here.
What are some early initiatives that the TEC will be funding?
At the TEC, we collect funding proposals within our Forum. Have a look at some of the potential projects getting involved with the TEC.
What kind of projects make good candidates?
One of the TEC missions is to gather and steward the efficient distribution of funds to projects in the emerging field of token engineering, and to encourage the robust and ethical design of tokenized infrastructures. What kind of projects does the TEC want to fund?
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