The Diamond DAO aims to become the largest treasury warchest DAO within the Terra ecosystem, incentivizing a long-term culture of HODLing and fostering a community of Diamond Hands.
All 100% of Diamond DAO’s tokens $VVS, which represent shares of the DAO treasury, will be launched via a singular 48 month Pylon Pool on Pylon Gateway. The project will be entirely community funded and based without any private sales or hidden team allocations of any sort.
Simply put, Diamond DAO membership is open to anyone who deposits UST into the Pylon Pool for VVS and thus holds a stake in the collective treasury.
In total there will be 100,000 VVS tokens for Diamond DAO, representing future claimable shares of the Diamond DAO treasury. These tokens will be distributed only via Pylon Pools. 95% of the tokens are made available in the Gateway Pool while the remaining 5% will go to the core team. The team tokens will be subjected to the same 48 month lockup schedule.
Distributed pro rata to the amount of UST deposited at each blocktime of duration staked, this token distribution method largely aims to reward the earliest Pylon Pool depositors.
At the end of Pylon Pool expiry, users will be able to claim their share of VVS tokens, which they can burn in return for a pro rata share of the total assets accrued in the Diamond DAO. On top of the Diamond DAO treasury rewards, the underlying UST deposited into the Pylon Pools for VVS will be redeemable in full upon Pylon Pool vesting period expiry.
Unlike traditional Pylon Pools where the tokens are usually unlocked halfway into each vesting period, VVS tokens will only be claimable at the end of the Pylon Pool vesting period in order to reward long-term HODLers.
(After initial launch and traction, members of Diamond DAO may vote to pivot the pool into a Liquid Pylon Pool in order to allow VVS tokens to be traded at market prices pre-unlock.)
The UST yields generated from the Pylon Pools for VVS will go towards periodically buying tokens in the Terra native ecosystem, starting with LUNA, MINE, ASTRO, ANC to begin with; with potential other add-ons like RETRO, PRISM, etc. as the DAO votes.
Depositing into the Pylon Pools for VVS is akin to engaging in a yield-based dollar cost averaging of selected tokens without risking the principal deposit. The earlier you deposit into the Pylon Pools for VVS, the more shares of the Diamond DAO treasury you will receive.
Diamond DAO members will govern the treasury portfolio and engage in governance of other protocols on Terra with the treasury assets, receive membership NFT airdrops, share revenue from profitable DAO activities (i.e. bribe mechanisms or NFT sales), and eventually receive a share of the DAO treasury pro rata to VVS tokens vested from long-term holding.
With the initiation of governance, Diamond DAO members will be able to govern the Diamond DAO portfolio, overseeing decisions over which Terra native tokens the yields will gradually buy up over time. Protocols in return may submit bribes to the Diamond DAO for their tokens to be added as part of the Diamond DAO portfolio.
Provided that the tokens held by the Diamond DAO are functional governance tokens, the Diamond DAO may engage in governance over other Terra protocols by actively participating in voting for governance polls. For instance, MINE that is held by the Diamond DAO could be staked in the Pylon WebApp to actively vote for particular projects over others.
As for the yield-based portfolio itself, Diamond DAO members can vote to deposit assets into governance staking, yield farming pools, delegation to validators, and propose other DeFi engagement ideas to boost treasury returns.
That said, the core principle behind the DAO treasury would be to hold and engage in governance for protocols contributing to the health of the Terra ecosystem.
All Diamond DAO members staking above X amount of UST in the Pylon Pools for VVS (amount to be determined at a later date) will also receive tier-based membership NFTs as a symbol of appreciation and their engagement in the DAO. The more and the longer one stakes, the rarer tier of NFT one will receive.
In order to bootstrap initial deposits and engagement for Diamond DAO, there will be a governance proposal on the Pylon WebApp to apply for a community grant in MINE to form the first assets that constitute the Diamond DAO treasury.
Given potential concerns on the handling of funds, all grants and funds will be handled by a multi-sig wallet composed of core DAO members and advisors.
The rollout of the Diamond DAO is multi-phased in order to get started as quickly as possible with core features and required functionality, before rolling out the “add-ons”.
Please note that depending on developer capacity some phases can be worked on concurrently.
Diamond DAO multi-sig wallet, VVS token contracts, and Pylon Gateway Pool for VVS are launched. Grants are applied for. This will bootstrap the collection of yield and purchases of assets can be performed manually by the Diamond DAO development team.
Implementation of core treasury contract that will handle deposits of harvested yield, purchases of tokens and ultimately burn of VVS and claim of token shares
Development of UI for the DAO.
Visualizing the contained treasury, historical performance etc.
Development of a minimal backend for indexing on-chain transactions for fast reporting.
Governance will be added, by means of voting via accumulated VVS tokens in the Gateway. Voting can be used to change tokens to be purchased (add new tokens etc.) or changing the weight of tokens being bought.
Bribing mechanisms can be added, for other teams to bribe the DAO into voting for them on ASTRO or other Terra protocols for which voting tokens have been acquired.