Voting is instantaneous. A whale could set his allocation to 100% in one token and then 0% a minute later. In this scenario, only frontrunners get dumped on.
Trading is gradual. If the DAO has an target allocation that implies significant trading will happen, nobody knows if those trades will ever happen. Someone might try to guess that they will but they are speculating on the activity of the DAO and might end up losing.
The bottom line is that markets go up and down over time unpredictably. Anyone is free to buy or sell at anytime but nothing about the DAOâs trading behavior will be predicable or exploitable.
I do not see how you come to the conclusion âThis mean it can be manipulated and can harm other DAO tokens.â given how our system works in real time. Please convince me otherwise so we can fix the DAO!
You are making this so confusing. You said Taco manages 1 portfolio, now say: A whale could set his allocation to 100% in one token and then 0% a minute later. So does this mean everyone have personal portfolio too?
If DAO controlled portfolio is changed to 100% in 1 token and same people who voted for it pump that token 2x, than all other tokens are sold slowly. Than the same people dump token back to normal price, they make lot of money that way.
I think TacoDAO need a little better info on how this all works.
Everyone has their own voting power attributed to their allocation %s. Votes and voting power are aggregated across all users into the DAOâs target portfolio
No one person can change an allocation. If people are using their voting power to move the DAOs treasury one way and then another in an attempt to profit outside of the DAO, they will be doing so at the cost of the value of their own tokens. Additionally, other DAO members can vote to lower their allocations of these same tokens. There is no sure thing unless someone has 100% of the voting power. If this was even close to true then that person would be better off manipulating markets using his own wallets rather than diluting his ICP into voting power in TACO in the first place.
I still donât get whether you are concerned about TACO taking advantage of markets or bad actors draining TACO. Maybe if you type out specific scenarios and timing (maybe even real prices and token) you can point on the flaw in our plan in a way I understand.
I think a bigger concern should be that one person can accumulate a majority of the voting power, and simply determine what the composition of the portfolio is going to be until they lose that majority voting power. Even without any concerns of corruption, youâre removing yourself from any decision making about your own assets.
As for otherwise pumping the token, The old âBitboyâ uploaded many videos on Youtube on how to do that. My suggestion is check out the one on Frontier coin, that might have been his best one.
Never underestimate the power of social engineering.
However, that is the reason people buy index funds in the first place. Because they believe the manager (or in this case the DAO collective) may outperform their individual decision making.
If someone gains a controlling share to become the decision maker of the DAO it will be their own funds anyway.
If people donât like the decisions the DAO is making they can sell their allocation.
Just like any other index fund⊠I think this is an interesting social experiment.
i like the idea of a taco ecosystem fund.
it would make it so much easier to see ckearly for everyone that the ICP ecosystem in average will lose in value relative to ICP and that it a mistake to invest in any ecosystem token and it is better to stay in ICP straight.
taco will proof that and will protect instvestors. love it.
you govern a dapp with the project token. this unlocks new structures such as taco daoâs model for managing assets. itâs why web3 is described as owning the internet. if you canât see the value of this i donât think youâve thought it through.
so those project tokens are only for voting. you do not participate from earnings/the success of that project at all? (except a majority votes for sharing profits?) not like shares and dividens then, no?
there is no logical connection e.g.gold price and the gold dao token or âstill only 1 house advertisedâ in the estate project and the value of the estate token?
then for me those ecosystem tokens are not interesting at all, because i fear they will lose to ICP, which has the use case of being needed to use the dapps.
A DAO has rewards to tokens holders if said DAO wills it so.
I canât speak for the EstateDAO and GoldGov projects as I ainât looked into them that deep, but there is a logical connection between TACO tokens and TACOâs portfolio because TACO token holders govern the TACO portfolio, your bit of governance over something is you owning a bit of it, no?
ânoâ, is correct, i think. until you own 51% it is just another governance token with no value.
thank you. so glad i understood that. i will not invest in any DAO tokens anymore. there was a time i put over thoussnds of ICP in any launch pad project there was, because i was wrong in thinking, a good idea, or a used dapp will drive value to its project tokens.
my whole ecosystem investment is now 1/5 of the put-in ICP value, if i just held onto them.
One important point here. We have a âredemptionâ feature planned as part of our road map. Redemption will work something like rage quit; you can surrender your TACO for your fair share of the portfolio. In this way, your governance token will be directly tied to the value of the portfolio, pending the DAO approving the feature and the rules.
ICP only recently enabled DAOs to do really cool stuff. Before ICP, gas too high etc. I think weâre far from seeing the full actualisation of this tech. One of the end goals should probably be to make the DAO the team itself, provide ways for everyone to make contributions and get rewarded for it.
With TACO DAO we intend to do this with competitive voting rewards. Essentially this framework would rank how well the allocation votes of members performed and reward more to the better allocation voters - more rewards to people better at predicting markets. Similar systems can be thought up and built and bit by bit I think weâll see whole DAOs become teams and the full potential of liquid democracy secured via smart contracts.