RE: Diversification of DAO Treasury through Real-World Assets (RWAs) and Real-World Projects (RWPs)

Conversation
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Have made some headway connecting with other DAOs in my area, identifying locations for the project, and gathering some of the initial pre-construction requirements for this innovative use of blockchain technology.

Initial discussion for review, and brevity purposes…
Diversification of DAO Treasury through Real-World Assets (RWAs) and Real-World Projects (RWPs) - Conversation - Cosmos Hub Forum

Funding Request:

  • $1,000,000 allocated for property amenity owner.
  • $350,000 discretionary spending for ISO-20022 contributions that will partly go towards pre-construction expenses, legal, ect…
  • It’s likely additional funding will be requested as all the pre-construction estimates become available. There can be traditional financing methods in conjunction with Cosmos for exploratory purposes to do these type of projects.

TOTAL INITIAL FUNDING REQUEST: $1,350,000 USDC or equivelant ATOM at the time of voting.

Goals:

  1. Establish a DAO, and Real Estate Pilot Project using blockchain gated entrance technology.

  1. Establish a PPP - Public Private Partnership - with the city(s) of opperation and define responsibilites and liabilities of different parties.

  2. Develop a revenue sharing model or establish management fee for different parties responsibilities and liabilities.

  3. Identify additonal ISO definiaiitons to include in the PPP, or operations

    • It’s worthy to note that every project can be unique in the way these projects are structured, BUT all those agreements can be enshrined in smart contracts.

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Proposal made in Good Faith.

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I looked at the code of your “demo app”. You’re just a troll who wants to rip off the community pool for a million+ dollars.

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This kind of proposal is the result of years of no oversight over community pool funds.

→ people shamelessly trying to drain the CP.

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There is a reference to the ISO solution that I’m opening a discussion about drawing some value from.

There’s several opportunities to explore from. Good Faith Paradigm is a 501(c)3 registered entity operating in the State of Texas. The million dollar draw is for a master licensing agreetment for two unique development concepts Good Faith Paradigm signed a non-disclousure with, the ammenity innovator. The licenscing agreement is for 5 locations in and around the North Texas geographical region.

There is a hardware competent there, but that can be simulated. It’s a MVP. It’s by no way a complete product.

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Another option is a private REIT with 5 NFTs valued at $1,000,000 each. There is experimental autonomous, or minimum human oversight, construction equipment and techniques all the way from grade to finished product. Every builder might use this innovative building material and processes differently. I do BIM modeling for any size job. The Aminity innovator has experience modeling for their amenity, they indicated they do renderings for the job as well.

Corporate Enterprise use of blockchain technology has been my primary interest from the outset of blockchain development. There is a protocol called Eris - Monax that used tendermint consensus, and then came the Cosmos White Paper - and every protocol release and update since that time. I’m not shamelessly seeking to experiment with experimental technology, in fact, we seek to add value and work to replicate any success we have with a DAO oriented Public Private Partnership with a munciplality.

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I have yet to come back on the dao treasury stuff myself. But in general, I do not like real estate as it is leveraged bets on illiquid assets.

Establish a PPP - Public Private Partnership : this won’t happen. Sorry, been through the process myself as a banker, takes years.

What is your background, I’m assuming computer science ?

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Why don’t the DAO just buy a public reit and put it in a SPV as opposed to your solution?

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I have computer science training, but I started with multi-media. Several years in construction and construction management incuding real estate development.

No one can know that. I’m actually optimistically working on a concept that stays in the constraints of local jurdistictions but replicats internationally. With 300-350 ms transaction finialization in some Cosmos tech stack I’m of the opion that it’s viable to scale for this use
case and it would be very akin to a Public Private Partnership. Public Private Partnership’s are the legal framework to model into a smart contract, There is alot of flexibility.

Part of “the project” proposal is for urban regions, and the other part in rural regions. The objective is to get people to use public infrastructure for health and wellness purposes. With the maturation of AI and robotics - this poses an oppertunity for ciities to re-think land utilization and what a work-week will be for it’s citizens.

I’m approaching my discussion with a “disruption is immeninent” mindset. A similiar method can be done on a smaller scale with HOAs - Home Owners Assosiations. HOAs can be turned into monitizabe entities.

An example of what a relatively low income community could do:
Good Faith Paradigm

I honestly don’t know how real-esate will be impacted in the near or long term with the scale of disruption that is possible. What I can do is guess what the future will look like - evaluate the oppertunites to work in that direction, and navigate bringing them to fruition. I think DAOs will contine to gain traction as a vechile for home and munciple cooperatives.

1 Like
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I appreciate the direction you’re taking, and I do believe there is a strong need to diversify and establish a sound capital allocation policy.

That said, as a former investment banker at GS with extensive experience negotiating PPPs, I can confidently say that these processes can span over a decade. I’ve been involved in multiple project financings, and they are invariably long, slow, and painstaking.

So, is it sensible to go through all these steps and processes? The answer is nuanced IMO. Yes, it is worth pursuing if the ROI/IRR is sufficiently high. The plan you’ve outlined is, in my opinion (uneducated on this real estate topic but going from experience in finance ), directionally correct.

However, I could name five REITs or other tradable securities with liquidity that offer yields comparable to your project’s potential returns, without exposing us to the significant risks associated with illiquidity, regulatory and policy changes, credit, construction, market, or direct demand.

What makes your approach directionally correct, in my view, is that beyond the general crypto market risks, you’re linking the yield to credit risk and real USD yield. Currently, most crypto projects tie their yields to trading activity (e.g., LPs), which carries significant second-order risks—case in point, LUNA.

I’d be happy to develop this further and share a template that outlines the service-level expectations institutional pools of capital, such as endowments, have when partnering on such initiatives. It could serve as a comparable framework for structuring the DAO’s capital allocation policy. While my approach might not be perfect, it could provide insights into how public good endowments structure their capital allocation policies to manage risks (bad anctors, reg risk, KYC, compl, credit, tax etc) and creating long term value for their end cause.

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I’m sure there’s plenty of people pleased with information relating to several topics disccused through participation in community forums.

I’m happy to take a look at any template.

I don’t discredit your sentiment or opinions related to PPPs, I do however posses a perspective that “disruption is immeninent,” and being on the right side of the curve for any “immpending disruption” reflects strong leadership who embrace innovaton and innovators. Most regions are assessing some form of “Smart City” technology in some capacity, my track record includes understanding where my interests converage and diverge.

Before cities reach “fully autnomous” operation, there is a window where more human management of autnomous equipment creates an oppertunity for DAO investment and profit share oppertunities.

Here is a prior dissusion in the direction of revenue models outside of blockchain based apps:

The utilization of community funds to purchase autnomous equipment and perform service jobs, in my opinon, is a more efficent use of funds with less risk.The DAO can maintain ownership of the equipment, profit sharing the revenue between the DAO proposer and the DAO. There is a need for legal entities to propose and perform those taks under a DAO umbrella.

Example with the LAWN CARE - investment.
Scenario 1: 50% Revenue Share

  • Autonomous lawn mowing equipment purchased for $50,000.
  • Tesla Truck and trailer purshased for $100,000
  • Generates $10,000 in monthly revenue.
  • $5,000 goes to the DAO, $5,000 goes to operator - taxes
  • Equipment purchase option triggers once the DAO receives $300,000 in revenue.
  • Includes bonus when profit performance outpaces revenue targets after 6 month baseline revenue is in - can be voted out of operator status for missing performance targets

My revenue model is built on the development and operation of a unique amemity and I’ve shared a small portion of what the revenue model would look like. The million dollar exclueive licenses provides positive leverage in exploring the full scope of captial formation for the scale and type of amenties we aim to develop. It’s a small ask for the value contributed - IMO.