Introducing DCNT Vault Wrappers

  1. One framework for DCNT VWs is a “DAO-in-a-box”. We like Cooper Turley’s definition of a DAO, “an internet community with a shared bank account and cap table.” This is a clean definition for an otherwise messy structure. Among other questions, it can be difficult to identify who is in the DAO, what their role is, what their financial interest in the DAO is, and how to build for long-term sustainability (vs. cash grabs or ponzi games). DCNT VWs tie DAO membership and identity to ownership of NFTs and guard against short-term profiteering by locking financial upside for fixed periods of time. By way of comparison to legacy corporate structures, DCNT NFTs are DAO W-2’s, and our ERC-20 vaults are employee vesting schedules.
  2. The same NFT collection could be wrapped across several DAOs or shared treasuries. This expands the financial layer of NFT collections without jeopardizing the integrity of the art. For example, 100 different DCNT Vaults could wrap BAYC NFTs. BAYC would continue to trade as it currently does; however, a secondary financial layer would emerge where the minimum value of BAYC NFTs should not dip below the combined value of the 100 DCNT Vaults predicated on BAYC. This offers a novel layer of speculation, amplifying the value of BAYC without systemic risk to the NFT collection.
  3. Creating futures contracts encourage investors to take long-term views on protocols, while maintaining momentum-based short-term trading opportunities. This type of derivative product represents a healthy addition to the ecosystem.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store