I. Introduction
The Middle Ages was a period of so-called feudalism, a system of classes that built up society. Nobles were rich landowners who were in charge of administration and growth. The poorer people (according to materialistic wealth), typically peasants, lived on the lands of the nobles. They were granted protection and safety but had to provide goods such as wheat to their lords. The handle of a scythe, which was a common tool to cut grass or agricultural products like wheat, was called âsnÇŁdâ or âsneedâ in Old English. Over time, in Germanic regions, the verb âto snedeâ was commonly associated with âto cutâ, and in a broader sense, detached pieces of objects were also called âsneedsâ.
Even today, the German âschneidenâ and the Dutch âsnijdenâ reminisce about these old times.
The centuries since have marked significant advancements in societies, transitioning away from systems dominated by single entities and gradually moving towards democracy and decentralization of powers. Today, decentralized autonomous organizations (DAOs) enable community members to collectively decide on common goals. Dfinity, a pioneer in decentralizing the internet itself (âweb3â), released in late 2022 a unique DAO concept â a blank canvas experiment. This DAO was to be purely community-driven, without any initial direction.
It was called SNS-1.
The ICP community indeed gathered, began organizing groups, and investigated potential use cases for SNS-1. However, the blank canvas was eventually filled, with the beautiful image of a Draggin. As SNS-1 found its concrete mission in the development of a web3 MMO called Dragginz, the community needed a new opportunity to dream and innovate without constraint, another blank canvas.
SNEED represents the return of this vision.
Drawing inspiration from the medieval concept of âsneedâ âsymbolizing division and renewalâ SNEED is a direct community response to its need for decentralized organization. Just as societies have moved towards greater democracy in decision-making throughout the years, SNEED is a âcutâ from the original vision of SNS-1, returning to the roots of decentralization.
The following pages will introduce the vision of SNEED, proposing advancements that build upon SNS-1 based on lessons learned and todayâs landscape in web3.
By the community, for the community.
II. Vision and Purpose of SNEED
SNEED was born in the mold of the âblank canvasâ vision set out by SNS-1. SNEED is envisioned as a DAO that truly belongs to the community. Itâs a place where anyone can come forward with proposals, collaborate on dApps, and contribute to a growing digital ecosystem. What sets SNEED apart is its innovative approach to tokenomics and a self-sustaining tokenomics model, both designed to thrive on the Internet Computer and to ensure that the SNEED DAO can operate independently. The essence of SNEEDâs vision is to create an independent, decentralized community where a common consensus shapes the way and where every member has an equal opportunity to contribute.
SNEED is conceived as a spiritual successor to SNS-1, embracing its vision of being a blank canvas for the community. Building on this foundation, SNEED introduces an enhanced tokenomics model designed to enable self-sustainability for the DAO. This strategic enhancement ensures that SNEED not only serves as a platform for user-driven innovation and creativity but also maintains its operational autonomy, with a deflationary reward model for governance. The goal is to provide a space where the community can freely realize its visions, backed by a robust and sustainable economic model. The SNEED treasury governed by the SNEED DAO will be a potential source for independent funding of community projects and active governance (e.g., proposals to spread liquidity across DeFi platforms for economic robustness, etc.).
Core Values of the SNEED DAO:
⢠Decentralization: community-driven governance and decision-making.
⢠Innovation: Introduction of the Recursive Liquidity Loop (RLL) model, a novel approach to DAO tokenomics
⢠Economic Self-Sustainability: A self-sustaining economic model through strategic token burns and buybacks.
⢠Community Empowerment: Provides a platform for members to propose and collaborate on dApps, embodying the âblank canvasâ vision introduced by SNS-1.
III. Tokenomics
At the core of the SNEED DAO lies the SNEED token, which serves for governance and payment. To achieve a self-sustainable tokenomics, a novel approach to liquidity pool management is herein proposed, the Recursive Liquidity Loop (RLL), which can be operated by the SNEED DAO.
Recursive Liquidity Loop (RLL) Model
Unlike in traditional automated liquidity pools, the RLL model is governed by a collective decision-making of the SNEED DAO, ensuring a dynamic and responsive approach to decentralized liquidity management:
⢠Self-Sustaining Mechanism: The RLL operates on a recursive mechanism where the trading fees generated within the pool are utilized to continually strengthen and sustain the liquidity pool itself. This model creates a self-reinforcing loop in three stages:
- ICP rewards from the RLL are staked in an 8-year NNS SNEED community neuron, committing to the ecosystemâs future and providing a stable financial base.
- SNEED token rewards from the RLL are sent to a burn address, gradually reducing the total supply.
- The maturity from ICP staking is used to purchase and burn SNEED tokens, converting short-term trade volume into permanent buyback and burn pressure for the token, closing the economic feedback loop
⢠Community-Governed Decisions: The utilization of the accumulated fees for token burns, buybacks, or reinvestment is democratically decided by the DAO members. This process ensures that the RLLâs operations align with the communityâs consensus.
⢠Flexible and Responsive: Community votes can effectively guide the RLLâs strategy, adapting to market conditions and DAO priorities.
SNEEDâs Novelty
SNEEDâs approach to integrating staking, token burning, and buybacks is an innovative method of ensuring financial self-sustainability within a DAO. While these elements are not new to the crypto space individually, their integration, governed by community consensus and aimed at long-term stability, provides a novel twist on traditional tokenomics. It sets SNEED apart from other projects by emphasizing a sustainable, community-led economic model rooted in the principles of decentralization.
IV. SNS Sale
The SNS Sale is critical for the formation of the SNEED DAO, establishing a Service Nervous System (SNS) for SNEED and laying the groundwork for the DAOâs operational framework.
Pre-Sale Setup
⢠Creating the SNEED dApp Canister: The SNEED Team initiates the SNS Sale by developing the âSNEED dAppâ canister, forming the core infrastructure for DAO operations.
⢠Securing Liquidity: Approximately 1,000 SNEED (LP-SNEED) and 20,000 ICP (LP-ICP) are withdrawn from the main liquidity pool (LP) on ICPSwap to provide foundational liquidity for the dApp.
⢠Transferring the Community Neuron: An additional 600 ICP, mirroring the stake in the current 8-year SNEED community neuron, is transferred to the SNEED dApp.
⢠Allocating Treasury Tokens: A total of 2,000 SNEED (TREASURY-SNEED) from the DAO treasury and another 1,000 SNEED (SALE-SNEED) are designated for the saleâs execution.
⢠Developer Tokens: Additionally, 900 SNEED (DEV-SNEED) from developer wallets are set aside to be exchanged for 900 SNEED as part of the post-sale governance plan.
Conducting the Sale
⢠Handover to NNS: After preparation, control of the SNEED dApp is transferred to the NNS to initiate the SNS Sale.
⢠Token Distribution Management: The NNS oversees the SNEED token distribution, offering 1,000 tokens for public purchase, designating 8,100 tokens for the DAO treasury, and allocating 900 tokens to the developers.
⢠Launchpad Sale: a total of 1000 SNEED tokens will be offered to the launchpad with a minimum of 10k ICP and a maximum of 20k ICP to be raised.
Contingencies and Proceeds
⢠Sale Failure Scenario: Should the SNS Sale not meet its objectives, control of the SNEED dApp reverts to the SNEED Team.
⢠Successful Sale Outcomes: In case of a successful sale, the NNS will formalize the SNEED SNS, transitioning control and resources to the new treasury and recognizing the contributions of both the development team and buyers.
V. Post-Sale Governance and Token Management
⢠Reinforcing DAO Principles:
Post-sale, the SNEED Team will propose a series of actions:
- Burning surplus SNEED (old) tokens, including 2,000 TREASURY-SNEED, 1,000 SALE-SNEED, 900 DEV-SNEED, and approximately 1,000 LP-SNEED.
- Creating a 1:1 conversion pool for SNEED (old) to SNEED (new, SNS) for current holders, with a significant portion of SNEED (new) from the SNS Treasury allocated to it.
- Initiation of RLL proposals by the development team.
⢠Long-term Ecosystem Health:
Proposals to establish new liquidity positions on decentralized exchanges, and to create a new 8-year neuron, will be introduced to secure the DAOâs enduring financial stability.
⢠Reward Distribution:
In a non-inflationary approach, the SNEED development team will propose that the SNEED or ICP collected from the RLL will be distributed to SNS stakers as a reward for their governance participation.
SNEED SNS Parameters
The DAO will operate under the following parameters to encourage participation and ensure a fair, decentralized governance process:
⢠Token Minting: An initial mint of 10,000 SNS SNEED tokens will mark the beginning of the SNEED DAO.
⢠Reward Policy: Zero additional SNEED tokens will be minted as rewards for stakers or voters, aligning with the non-inflationary tokenomics.
⢠Staking Durations: A voting power bonus will be set depending on the staking duration, with the option for stakeholders to commit for up to 100 years for the maximum bonus of 100%. The minimum staking duration to be able to cast votes will be 1 months initially.
VI. Roadmap and Development Phases
The SNEED DAO roadmap is structured to transition from launch to a secure, self-sustaining DAO:
Short-Term Goals
⢠Complete the SNS Sale and establish governance protocols.
⢠Initiate token burn and buyback mechanisms to be governed by the DAO.
Mid- to Long-Term Goals
⢠Maintain smooth DAO operations and active community governance.
⢠Achieve the âblank canvas for the communityâ where independent developers from the ICP ecosystem can apply for funding from the SNEED DAO.
⢠Establish financial self-sufficiency for the SNEED DAO.
VII. Resources and Links
⢠Website: https://icsneed.com
⢠Vision letter: https://xb24g-dyaaa-aaaag-qcrmq-cai.icp0.io
⢠Whitepaper: Internet Computer Loading
⢠GitHub: icsneed ¡ GitHub
⢠Blockchain explorer: https://xjwoo-pqaaa-aaaak-afc3a-cai.icp0.io
⢠Catalyze : Internet Computer Loading
⢠OpenChat: Internet Computer Loading
