Potential Community DeFi Project
Today’s post is going to be a little different than what I normally put out. I am not looking at an existing project, discussing the inner workings some some part of blockchain technology, or any of my usual stuff. Instead, I’m going to see if there is any interest out there in an idea a friend of mine have been kicking around for a bit.
For the usual disclosure, I am not a financial advisor, I don’t even work in finance at all. My day job is as a telecommunications software engineer. Treat everything you read here as some educational resources and not financial advice.
We want to build a community DeFi project, involving the community from the ground up. A lot of the DeFi projects that end up being community driven, generally start with the developers creating the protocol, and then starting to find a community, but we want to flip that around and build the community, and let them help us decide exactly what we want the project to turn into.
We have some rough ideas worked out, which I’ll outline below, but what we really want to do is see if there is any interest out there to work on this. I think it would be a fun thing to do, and give people a way to see how these projects are built from inception up to what I’d like the end goal to be, which would be a full Decentralized Autonomous Organization that just runs itself.
The main ethos behind the project would be to build something for the community, with the community, and without all the hype, and screams of “take us to the moon” or “when lambo, need go zoom!”. Realistic expectations and plans would be the name of the game, and hopefully everyone can learn something about how all this works under the hood. And of course, let’s not kid ourselves, we DO want to make money, we want everyone to make money, we just want to do things right and at a reasonable rate.
All code from the smart contracts, to the react typescript files will of course all be open source and available through all stages of development through Github. We also plan to have security audits of everything to protect everyone, ourselves included. Everything out in the open and transparent.
Some Background On Us
A little bit about myself and my friend that will be basically spearheading the project through the first phases at least. For now, we’ll keep calling me Wingnut, and he goes by Midlife Trader out in the crypto space. As a note, if this project does get off the ground, I fully plan to dox at least myself, and quite probably MT as well. Not like it would be hard to track me down right now, I’m sure about 15 minutes on Google and you could have my name, I’m not really trying very hard to hide, I’d just prefer to have some additional security measures in place before I just drop my name out there.
We are both telecommunications engineers, working for a large unified communication vendor. I’ve personally been doing software engineering work primary for a large number of years in the field, and I’m quite proficient with code. I’ll be handling all the Solidity smart contract development, as well as creating the react front end for the Decentralized Application, and whatever other “primary” coding type work needs to happen.
Midlife Trader is going to be handling all the other stuff, such as creating the main website, marketing, logo creation, etc. Basically all the stuff that isn’t the main development stuff, so that I don’t have to worry about it.
The team would also likely grow over time, especially with helping moderate on Discord, and all those sorts of tasks, and eventually into needing additional developers if the project gets large scale enough, but that is putting the cart before the horse.
So we do have a basic plan in mind, but this would of course be all subjected to community agreement that it’s the right move. We’ll have to do it the old fashioned way with polls and whatnot, for the first bit anyways, but getting governance and the ability to vote will be one of the first goals. Here is a rough idea of what we have in mind.
Phase One: Create Token and Run Presale
The first phase is of course the most basic one. We would create a token, likely BEP-20 over on the Binance Smart Chain, simply because of gas prices, but potentially we could look at something like Polygon. I’d like to steer clear of using Ethereum, simply because gas prices put the bar a little high, and I don’t want gas prices to be a barrier to entry for anyone that wants to participate in the project.
We’d then have a presale, either through our own platform using a smart contract, or through some third party partnership, depending on how the community feels. The funds raised from presale would be used for two things. Funding development of the next part of the project and liquidity for the pool. Basically we would look at taking something like 2% off the presale and use that to fund development (pay ourselves, security audits, server costs, etc), and then the rest would be put into a liquidity pool.
Liquidity tokens would be put into a third party time locker and basically left there indefinitely. The only reason we would ever remove them, would be if we wanted to move the liquidity to some other protocol, such as if we decide to create our own DEX, or we want to spread the liquidity out between different ones. This would be subjected to community approval, and would only happen after we had governance up and running.
For the tokenomics, I am leaning towards a fixed supply, but have a little hesitancy as that may limit the protocols appeal in the future, if we don’t have a constant incoming supply to be able to be handed out as rewards, There will be some allocations, to a treasury wallet, and to myself and Midlife Trader.
The treasury wallet would be used for any marketing necessities, and eventually be under community control. I envision this eventually being used to help fund other projects as well, but that starts being far enough into the future that it won’t really be up to us, but the community itself to decide what we do with it.
We’ll likely impose some features onto the token, such as an anti-dump mechanic, time locking balances so that myself and MT can lock our balances so nobody will thing we are going to dump out our supply. And of course it will have governance built into it in order to facilitate phase two and beyond.
Phase Two: Initial DApp Creation
Once phase one is over, or more likely, while it’s going on, is where the real fun begins. This is where I’ll start building out the actual Decentralized Application and start building out our protocol. Priority #1 will be to get a governance system in place so that we can start getting proper community proposals and voting going on.
We’ll also implement staking contracts so people can start locking up funds on the protocol and earning rewards, either through the per block emission rate, or from some rewards pool allocation, depending on if we go with a fixed supply or not.
Phase Three-Whenever: Continued Development
From here, this is where things get a little more up in the air on where we go with it first. Do we start with building out a new DEX which rewards the providers more, do we look at building out a new lending platform, maybe a new NFT marketplace and auction house. I have some ideas for where I’d like to see it go, and I’ll be putting in my proposals and using my tokens to vote, but really, this is where I want things to be different than other projects.
Yes, there will be a development team, but I want this to be a community. We plan to be active in Discord, and wherever else we decide we want to congregate at to discuss, and in the governance side of things. I’d also enjoy if once the project gets up and going, we expand the development team. Make some partnerships with existing and new projects, expand the community even beyond just what we have.
And of course, the real eventual end goal would be to have a full DAO. We plan to operate as one, and heavily rely on community discussion and feedback, but eventually I’d like to see it be one that exists on the blockchain entirely.
What Do You Think
So in looking at ways to approach this, I figured it might be a good idea to first toss it out to the people the read my blog across all the different platforms and see what kind of feedback I can solicit from the people that read my work. Honestly, you guys are probably the exact perfect people, because if you’re reading what I post, I have to assume most of you are interested in how all of this works, and that some subset of you have to be interested in actually seeing how one of these projects gets built, and being involved from the ground floor.
If you don’t want to post publicly about it for whatever reason, feel free to hunt me down at one of my other points of contact you can find over on my website. I’m open to any and all feedback, including “this sounds dumb, don’t do it”, but I’m hoping people are into the idea.
Socials And Other Links
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Originally Posted On My Website: https://ninjawingnut.xyz/2021/08/24/potential-community-defi-project/