Here is an attempt at a proposal; let me know if there’s anything that needs clarification/elaboration! I’ve actually never written DAO proposals before…
About the project
Mel is an L1 blockchain built around the principle of off-chain composability — decentralized, censorship-resistant protocols composing off-chain, rather than through on-chain smart contract interfaces. Thus, it focuses on providing the minimum blockchain that has:
- Trustless, performant light clients that can be deployed to every endpoint
- Enough on-chain scripting to achieve “functionality escape velocity” (see Vitalik’s blogpost on this subject)
- Maximal economic security (e.g. very harsh slashing penalties)
A minimal blockchain is also important for Mel to be governance-free — no consensus rule changes after the stable mainnet launches. This is very important for credible neutrality, but usual L1 blockchains cannot commit to governance-freedom. But an L1 blockchain that aims to have very easy-to-implement light clients sitting in software stacks all around the internet can do so, since coordinating governance is basically impossible (e.g. IPv4 is here to stay!).
Form of the investment
Right now, the project does not have publicly tradable tokens. We also aim to launch the SYM (PoS investment token) token in a compliant, locked-up fashion, probably on a platform like Coinlist, though they will eventually unlock as our network becomes a fully ossified and decentralized system.
Thus, the easiest way is probably the SAFT token proposal previous mentioned.
We can also print a “dummy”/placeholder ERC-20 token on Ethereum ($PPwSYM, “pinky promise wSYM”), that will act as tokens eventually redeemable for wSYM — once lockup period for the SYM token launch is over — through a trustless cross-chain bridge to Mel. That will essentially be a “SAFT” as well.
Right now, we are seeking to raise $3-5M in total for our seed round. Ideally, as much of this is raised in a decentralized way from aligned communities like LunarDAO.
However, to not fragment things too much, we are looking at a minimum investment of something on the order of $100,000.
Valuation is negotiable, but note that our preseed in 2020 was at a $15M FDV.
Given that we share a similar lunarpunk/agorist vision, there are many ways that Mel and LunarDAO can work together with lots of mutual upside:
Betanet $MEL and $SYM grants for LunarDAO members
This will on one hand incentivize lunarpunk-adjacent developers to start building in Mel’s off-chain composable ecosystem — either new protocols or integrations with existing “alt-web” network protocols like Nostr, Matrix, and the like.
On the other hand, it’ll also be a great monetary incentive to join LunarDAO to gain access to Mel grants.
DAO infrastructure collaboration
An important usecase for Mel is as a credibly neutral settlement layer for off-chain DAOs built with state channels, off-chain signature aggregation and the like. LunarDAO, as a DAO highly committed to privacy, censorship resistance, and decentralization, would be a great partner to work with to understand the needs of DAOs and beta-test/dogfood off-chain DAO infrastructure.
Mel can provide research support, token grants, and such in a collaborative project to build out a truly blockchain-community-neutral, self-sovereign DAO protocol.