Fund Inflation

Customisable inflation parameters to suite all DAOs

Three (3) inflation parameters must be set during the creation of a DAO. These inflation parameters help reward members who make valuable contributions to their DAOs. The total inflation (summation of all 3) is calculated when the DAO sign-ups close and appended in arrears linearly over the life of the DAO.

Base Inflation: Inflation awarded linear over the lifetime of the DAO to the council members. Inflation is updated via a function that is called when a new council is chosen. Can also be called at any time to update shares.

Bonus Inflation: A pool of redeemable inflation shares that can be awarded to an array of individual members via a proposal. The pool increases linearly over the life of the DAO using the same function that is used for base inflation shares. If a proposal to end the DAO early is enacted, any future bonus inflation shares are burnt.

Operation Inflation: Any time funds are added back to the returns vault from funding opportunities or during member commits, a percentage is split into the operations vault based on the operations inflation. A proposal made by council members can be enacted to pay for operational costs from the operations vault.

Example Scenario:

Setup

All parameters are set at 5%, totalling 15% inflation ~ 10% to members, 5% to operations

DAO commitments: $100,000

• Capital Vault: $95,000

• Operations Vault: $5,000

Initial Member Shares: 100,000

At DAO End

Total DAO return: $1,000,000

• Total Returns Vault Inflow: $950,000

• Total Operations Vault Inflow: $55,000

• Capital Vault: $0 (Theoretically all used up on opportunities)

Final Member Shares: 110,000 (Bonus and Base split across different members)