NFT and memecoin governance: Token staking for on-chain community collaboration

[GENERAL] Name and surname of main applicant

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

We will extend our DAO DApp to enable NFT and memecoin communities on Cardano to create and manage token-staking DAOs, unlocking token-driven on-chain decision-making and asset management

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

No dependencies.

[GENERAL] Will your project’s output/s be fully open source?

[GENERAL] Please provide here more information on the open source status of your project outputs

The functionality for token-staking governance will not be open source on mainnet launch, though we are committed to exploring open-source possibilities for future iterations.

[METADATA] Horizons

[SOLUTION] Please describe your proposed solution

Our solution extends our DAO DApp by integrating a governance model based on staking fungible and non-fungible tokens. This will empower Cardano-based NFT and memecoin communities, where membership is defined by holding specific assets, to create two types of token-staking DAO that allocate governance power based on staked tokens.

Users will be able to stake their tokens directly through our DAO DApp, with governance power distributed proportionate to their staking levels. All staking will remain non-custodial, ensuring users maintain control of their assets.

Key features:

1. Token staking DAOs: Enable the creation of DAOs governed by staked fungible and non-fungible tokens.
2. Upgraded DAO DApp dashboard: Extend the DAO DApp's user-friendly interface to include token-staking DAOs, displaying staked assets and corresponding governance power.
3. Customizable DAO design: Communities can define governance rules, such as assigning specific weights or requiring multiple asset types for governance participation.

Design principles:

1. Decentralized governance: As with our core DAO DApp, all staking and governance actions will be recorded on-chain for transparency and security.
2. Intuitive user experience: The staking mechanism will seamlessly integrate with our core DAO DApp, prioritizing ease of use.
3. Security and scalability: Smart contracts will ensure secure, scalable non-custodial staking mechanisms for governance.

Key beneficiaries:

1. Cardano NFT and memecoin communities: These communities will now be able to directly collaborate on-chain and manage pooled assets utilizing two types of token-staking DAO, leveraging tokenomics for enhanced governance.
2. Token holders: Stakers gain more governance power, fostering higher engagement and encouraging new ways to participate in community-driven decision-making.
3. Developers and projects: NFT and memecoin projects on Cardano can easily integrate decentralized governance, enhancing their ecosystems.

By enabling token-staking DAO governance, this extension will encourage more NFT and memecoin communities to launch DAOs on Cardano, amplifying decentralized decision-making and asset management, and reinforcing governance through tokenomic designs.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

Extending our DAO DApp to integrate token-staking DAOs will empower NFT and memecoin communities on Cardano to establish decentralized, community-driven governance. This will reinforce participatory, on-chain decision-making across the Cardano community.

Key goal:

• Enable the creation and management of DAOs governed by staked fungible and non-fungible tokens, driving distributed decision-making among token-holding communities.

Key metrics:

• Number of DAOs utilizing token staking for governance
• Total staked fungible tokens
• Total staked NFTs
• Total value of assets under management by token-staking DAOs

Key performance indicators:

• Launch 5 DAOs utilizing token staking within 12 months
• Engage over 500 active users in token-staking DAOs within 12 months
• Facilitate over 2,500 staked NFTs within the first 12 months

Community outreach:

We will leverage our established Cardano community channels - YouTube, X, blog posts, and forums - to promote our DAO DApp token-staking integration. Additionally, we will engage our 1,600+ Omen community members to raise awareness and drive adoption of token staking DAOs.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Our team has a proven track record in the Cardano NFT space. Since December 2021, we have pioneered several innovative on-chain solutions on Cardano - including multisig NFT minting, non-custodial NFT staking and a first-of-its-kind NFT portal - while remaining entirely community funded.

Between March 2022 and March 2024, we operated a prototype DAO, Nemonium DAO. Nemonium DAO members cast over 10,000 votes across 35 proposals, accounting for hundreds of thousands of ADA in transactions, using the off-chain Hazel Discord Bot.

Since January 2024, we have redistributed more than 500,000 ADA in royalties to Omen NFT stakers via version three of our non-custodial NFT staking platform, proving that we are able to manage significant sums of ADA on behalf of a large community.

In addition, we operate our own Cardano stake pool (ticker: OMEN). At the time of writing, 672 unique wallets, accounting for 1.2 million ADA in delegations, trust us to produce blocks for Cardano. Created in February 2021, OMEN stake pool has minted a total of 187 blocks.

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

Fungible and non-fungible token staking mechanism (months 1–4)

Output: Develop and integrate the staking mechanism for fungible and non-fungible tokens into our DAO DApp.

Acceptance criteria: Successful implementation of token staking and tracking of governance power based on staked tokens.

Evidence of completion: Screen recordings and demos showing the creation and management of a fungible and a non-fungible token-staking DAO.

DAO staking dashboard (months 3–5)

Output: Upgrade the DAO DApp user dashboard to display staked assets, governance power, and DAO participation.

Acceptance criteria: A functional dashboard displaying staking information and weighting based on staked tokens.

Evidence of completion: Screen recordings and demos showing the dashboard in action, with users able to see staked assets.

Testnet deployment and testing (months 5–6)

Output: Deploy token staking DAO DApp integration on testnet for performance and security testing.

Acceptance criteria: Successful testnet deployment, with stress tests validating the performance of token staking and DAO governance.

Evidence of completion: Testnet report, including benchmarks for performance and any bugs resolved during testing.

Mainnet launch, project close-out report and final video (month 6)

Output: Deploy token staking DAO DApp extension on Cardano mainnet, accompanied by a comprehensive project close-out report and a demonstration video.

Acceptance criteria: Mainnet launch of the token staking extension, with a final video demonstrating how to create and manage a fungible token-staking DAO and an NFT staking DAO.

Evidence of completion: Publication of a final project video and delivery of the project close-out report, including reflections on the development process, challenges faced, and lessons learned.

[RESOURCES] Who is in the project team and what are their roles?

Nemo, founder (@_AskNemo)

Vivalacoin, community member (@VivalaCoinBTC)

Zeru, community member (@ZeruKami)

JT, community member (@UnstoicT)

Border Reiver, community member (@BorderReiver_)

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

Total budget: 150,000 ADA

Budget overview:

• Development costs: 110,000 ADA
• Testing and QA: 25,000 ADA
• Project management: 15,000 ADA

Budget breakdown:

Development costs: 110,000 ADA

• Integration of the token-staking into DAO DApp: 110,000 ADA

Frontend implementation: Design and develop a seamless user interface for staking, including intuitive navigation and real-time feedback on governance power

Backend architecture: Establish robust infrastructure to support token staking, including smart contract integration and DAO dashboard enhancements

Token-weighting integration: Implement dynamic token-weighting, allowing communities to customize governance power based on staking parameters

Testing and quality assurance: 25,000 ADA

• Smart contract audit and stress testing: 15,000 ADA

Conduct thorough audits of smart contracts to identify vulnerabilities, ensuring compliance with industry standards

Perform rigorous stress testing to validate performance under load, ensuring the system can handle high transaction volumes during peak activity

• User testing and performance optimization: 10,000 ADA

Execute targeted user testing and gather qualitative feedback, refining user experience and interface design based on testing and feedback

Implement performance optimization techniques to enhance the efficiency and responsiveness of the DAO DApp

Project management: 15,000 ADA

• Coordination, milestone tracking, and oversight: 10,000 ADA

Oversee development phases, ensuring adherence to timelines and successful milestone completion

• Outreach, video tutorials, and community events: 5,000 ADA

Develop and distribute educational video content to onboard users to new token-staking features and governance processes

Host community engagement events to foster participation and gather feedback, ensuring the DAO DApp meets user needs

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

Our token-staking DAO DApp extension includes costs commensurate with the project's scope and ambition. Our budget aligns with the resources required to develop high quality, state-of-art on-chain infrastructure that offers an engaging, intuitive and streamlined UX/UI for users with little familiarity of blockchain technology.

This proposal is based on estimates solicited from leading service providers within the blockchain space, as well as our extensive experience in commissioning and operating blockchain and Web2 technology.

We are asking for Project Catalyst funding to accelerate the development of our DAO DApp and enable us take community building on Cardano to the next level. While we will persevere with or without Project Catalyst funding (our commitment to Cardano and our vision is steadfast), Project Catalyst funding will massively expedite our delivery process - at a critical stage of the current market cycle and Cardano's transition to the Voltaire era.