Proposal to create an SNS DAO for SNEED

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 ‘snǣd‘ or ‘sneed‘ in Old English. Over time, in Germanic regions, the verb ‘to snede’ was commonly associated with ‘to cut’, and in a broader sense, detached pieces of objects were also called ‘sneeds’.
Even today, the German ‘schneiden’ and the Dutch ‘snijden’ 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 (‘web3’), released in late 2022 a unique DAO concept — 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 ‘sneed’ —symbolizing division and renewal— 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 ‘cut’ 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 today’s landscape in web3.

By the community, for the community.

II. Vision and Purpose of SNEED

SNEED was born in the mold of the ‘blank canvas’ vision set out by SNS-1. SNEED is envisioned as a DAO that truly belongs to the community. It’s 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 SNEED’s 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 ‘blank canvas’ 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:

  1. ICP rewards from the RLL are staked in an 8-year NNS SNEED community neuron, committing to the ecosystem’s future and providing a stable financial base.
  2. SNEED token rewards from the RLL are sent to a burn address, gradually reducing the total supply.
  3. 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 RLL’s operations align with the community’s consensus.
    Flexible and Responsive: Community votes can effectively guide the RLL’s strategy, adapting to market conditions and DAO priorities.

SNEED’s Novelty

SNEED’s 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 DAO’s operational framework.

Pre-Sale Setup

Creating the SNEED dApp Canister: The SNEED Team initiates the SNS Sale by developing the “SNEED dApp” 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 sale’s 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 DAO’s 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 ‘blank canvas for the community’ 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

13 Likes

niceeeeeeeeeeeeeeee , Support you

5 Likes

Come on SNS is for serious projects with an actual value stream creation.
SNS is NOT for meme tokens. Completely agains this initiative and I hope the community reconsiders this, as we are playing with the whole ecosystem credibility.

Are we going to permit more obvious RUGS? seriously?
Wake up guys.

8 Likes

This is great! I’m fully supportive of this. The developers have done fantastic work on this so far, and there seems to be a strong, vibrant community around SNEED. While fully supportive of Dragginz, I also believe that the absence of the original SNS-1 has left a gap in the ecosystem that many community members are anxious to see filled. Can’t wait for SNEED to go SNS!

9 Likes

The Sneed token launch appears questionable, with a notable red flag: 50% of the supply acquired by the wallet address responsible for creating the Liquidity Pool. Something seems off.

4 Likes

Sneed innovatively used the black hole code module, and Sneed has always honestly staked the LP profit into 8-year NNS governance. Both aspects are very positive. It is worth encouraging such teams to continue to innovate and explore in the governance of SNS and the black hole mechanism.

6 Likes

@Sneed Sir, Is the burning of sneed and the increase in staking of 8-year neurons fully automated now?

1 Like

Opposite of a rug. Liquidity pool will be the property of the DAO. Not going to ask for anything from community fund. Why is this not => GHOST?

7 Likes

This was always the plan.

4 Likes

Sneed is what sns -1 was supposed to be and backed by the same community that’s still is involved in the DKP game amazing community

6 Likes

This is FUD. Founders have have 9%. DAO controls the treasury, Neuron and LP if this proposal passes. Explain where you get the 60% from

5 Likes

@Caesar Please stop your rumors. This is total FUD, if you have solid evidence please show it instead of FUD here

4 Likes

@Sneed Sir, I would like to ask, the two anonymous founders have a total of 1000 sneed. If SNS is successful, as founders, how much of the sneed are you willing to stake for governance?

1 Like

If I’m not mistaken, it’s actually in the proposal have a look👍🏼

1 Like

Caesar is Scott Summers… a known troll / scammer in the ICP Community.

5 Likes

The ICP Community will Welcome Sneed with open arms / We as a community all ways like to see one of own make it / weather it be soft ware or hard ware icp makes it we help each other build our community/ The Sneed Team is one of our own ICP They came to. this community to build just like everyone of the soft ware members or hard ware members/ The team can build hard ware and soft ware themself it can take sneed so many more places in this community and outside this community faster than most other teams Sneed is under priceing itself it should 100000 icp to 250000 icp they are asking for from the ICP Community /Sneed Dao WE BE ONE OF OUR Greatest SNS DAO IN OUR COMMUNITY The team has been here from the early start of icp they have always cared about the way they worked in the community Sneed will be forever in our ICP Community / Sneed is a mover in and for our community ( Dr Deeds ) I VOTE YES FOR SNS DAO FOR SNEED

5 Likes

This you? The guy who rugged a bunch of ICP investors? Please, get lost.

1 Like

This is a scam … don’t be stupid!

2 Likes

Have you been hanging out with King Tut? You sound similar… Congrats on finding love and stealing everyone’s ICP btw

2 Likes

This is my main concern. There should be clear value in a project requesting SNS. I like SNEED but I don’t know that I want to see a bunch of memes as SNS.