Introducing Community Treasury & Proposal System

The Capsule House community treasury will be used to fund community-led projects with the goal of growing the Capsule House brand and world. 1.25% of all Capsule House secondary sales will go to the community treasury starting from January 12th, 2022.

Our Vision for Capsule House and the Community

We want Capsule House to be known as the premier Web3 brand focused on exceptional art, storytelling, and community. We believe what differentiates Web3 brands from traditional brands is our focus on community. The community should have a say in how we build our brand and share in our successes.

The Capsule House community treasury will be used to support and empower our community. We want to fund and hire Capsule House holders, as directed by the community, to build projects and create works of art that grow the Capsule House brand.

The community treasury is here to help turn your boldest ideas into reality, be it a Capsule House derivative project, a comic book that will be airdropped to all holders, or a community wiki housing all the CapsuleVerse lore and stories.

Each idea must be created and spearheaded by a Capsule House holder then turned into a proposal and then voted on by the community.

Proposals follow 3 basic steps

  1. Temperature check: Get feedback on your idea before creating a formal proposal.
  2. Draft proposal: Ideas that you think are ready to be presented as a formal draft proposal. Follow required template.
  3. Active Proposal: Ask a moderator to move your mature draft to the Active Proposals category and start a vote.

Temperature Check

The purpose of the Temperature Check is to start the initial discussion, determine if there is enough backing within the community, discuss feedback, and gather support for your idea.

To create a Temperature Check, post your idea on https://forum.capsulehouse.io/ by clicking “+New Topic” button. Make sure to use the “Temperature Check” subcategory. Title your post with your idea (ex: “I want to create a Capsule House derivative project called ‘Super Yeti Capsules’”).

Temperature checks are informal and have no template to follow. Use the feedback gathered to decide if you want to proceed further and draft a formal proposal.

Draft Proposal

The purpose of the Draft Proposal is to establish formal discussion and present your idea in the required template.

To create a Draft Proposal, create a new topic in the Draft Proposals subcategory using the template shown below. Link to your Temperature Check thread in the proposal draft; draft proposals that were not preceded by a temperature check may be removed by moderators.

Reach out to the community to build support for the proposal. Discuss the proposal and ask the community to provide feedback. Be willing to respond to questions.

Draft Proposal Template

  • Main concept: What will you do or create?
  • Temperature check: Link your Temperature Check Thread
  • Current status: Is this an idea, proof of concept, MVP, or established project?
  • Budget: How much total ETH are you requesting? How will the ETH be used? Rough budget breakdown.
  • Schedule: Estimated timeline of deliverables. Include funding milestones so we can monitor your project progress. For example, you could have a design stage milestone, a prototype milestone, and final project milestone.
  • Risk: Plan for project risks and include risk mitigation strategies
  • Value: What value will this project provide to the growth of the Capsule House brand? How will it benefit the community?
  • Team: Who is working on it and what are their roles? What are their qualifications? Show us their previous work. Provide references. All members of team must be doxxed to the Capsule House team for all proposals seeking >10 ETH of funding.

Failing to follow the template or gather enough feedback/support will result in your proposal being removed by moderators.

Once you are confident with the proposal, you ask Moderators to move your Draft Proposal to Active Proposal.

Active Proposal

Draft Proposals that have been reviewed and approved by the Capsule House team will be moved here. Active Proposals will be voted on by the community using Snapshot voting.

Request a moderator to advance your Draft Proposal to the Active Proposal category by tagging @moderators in a reply under your Draft Proposal. The Capsule House team will do a review whether the proposal meets minimum standards. Once approved, the moderators will:

  1. Move your proposal from Draft Proposals to Active Proposals adding necessary detail or context. We will try our best to stick to the original vision of the proposal but there are business, legal, and financial implications that need to be considered and can potentially lead to restructuring.
  2. Assign your proposal a proposal number in the form AP###.
  3. Create a Snapshot vote for your proposal with a duration of 5 days, and link to it from your proposal post.

Snapshot Voting

Voting will be done through the Snapshot platform at Snapshot .

Proposals range in level of effort and cost so we have set 3 tiers of quorum thresholds depending on the level of funding requested.

  • Tier 1 -
    • 5% quorum
    • <10 ETH
  • Tier 2
    • 10% quorum
    • 10-25 ETH
  • Tier 3
    • 15% quorum
    • 25 ETH

[Quorum: In order for a vote to pass, a certain percentage of votes in the affirmative. 1 Capsule House NFT = 1 vote. 10% quorum means there must be at least 1000 votes to pass the proposal.]

If the snapshot vote passes, the proposal is passed. The Capsule House team will reach out to you to discuss the next steps.

15 Likes

Love this system, so excited to be a part of the community and participate

4 Likes

Let’s build great things together!

4 Likes

Sweet! Excited for this.

Sounds awesome! Great ideas

Kudos on doing this!!

So excited about this. Thought question: does it make sense to stake a part of the treasury in things like Lido? Given most of the treasury won’t be used most of the time, might be worth thinking about lower risk ways to growth it.

1 Like

A community member/friend also brought this up to me. I told him to submit a temp check, to see what the community thought. :partying_face:

Hi all, I come from defi background and would like to propose a strategy for generating yield with the community treasury while still maintaining liquidity when the need arises for newly approved funding proposals.

I’m a early investor and user of JonesDAO, an options strategy protocol that entails depositing assets into options vaults each month. Options strategists use a risk-managed strategy using various derivative options platforms to generate yield, which can be collected at the end of each month or rolled over to compound profits. Because deposited assets mint “J-assets”, JonesDAO also has asset/J-asset LPs that allow swapping back to the underlying token at any time.

I am happy answer any questions either in the discord (jerryc#9510) or act as a Capsule House representative to work with JonesDAO.

2 Likes

Hi Jerry, please make a separate topic under the Temperature Check category! This is an interesting idea.

Are there any downsides to this? How actively managed would it need to be? You should make a temperature check topic!

Sure I can do that! I will also answer your question below in the new thread.

@jshoe The issue with Lido is it requires you to stake ETH and return the same amount of stETH in order to claim the APR rewards after ETH switches to Proof of Stake, so you’re not compounding yield. It also doesn’t enable an actively managed position and cannot protect downside risk if ETH decides to go to $1800.

The benefit to JonesDAO is these risk-managed strategies are all possible, and we can also work with the JonesDAO team to generate a bespoke strategy for Capsule House, depending on the size that we decide to deposit.

1 Like

Approved👊🏽

Much love team :purple_heart:

Great initiative, looking forward to everyone’s proposals :heart_eyes:

Let’s build great things together!

2 Likes

Supported for this. :slight_smile:

1 Like