Starting in early 2018, the Parachute community was launched to be a place where people could meet crypto enthusiasts and explore new ideas. On our path towards progressive decentralization, we enter a new and powerful phase in that journey.
DAOS (Decentralized Autonomous Organizations) are member owned communities, where token holders have the ability to collaborate, coordinate, and shape the direction of the organization they belong to. It’s a big idea. One that projects like DxDAO, 1Hive, Uniswap, and others have pioneered to bring the ultimate power of decentralized protocols to foster organizing and operating by the involved communities.
DAOs unlock access that traditional structures do not. They create a sovereign collective, where all are equal and heard. They let token holders propose and vote on new products, partnerships, funding, governance of a company. DAOs require active participation rather than passive participation. DAOs allow new ideas and developers to enter the ecosystem, while allowing organizations to move forward in ways beyond the bottleneck of traditional company structures.
DAOs have less hierarchy than companies, participation in governance is defined by your stake of governance tokens, as well as concepts like reputation and time in governance. For the founders, our participation will be dictated only by our own holdings and and active participation in new proposals. To drive Parachute forward, all holders, including its founders, will use PAR as a key tool in governance.
For Parachute, our journey has always been to here. Since inception, we’ve fostered open discussion, exploration, and supported endless branches of idea with anyone who was willing to show interest. In this final phase of progressive decentralization, we unlock the power of 6,500 PAR holders to participate actively in the future of Parachute.
To begin, we’ve formed a template and initial proposals for the DAO on Parachutes new snapshot.org profile. This initial group of proposals is only that. As a holder of PAR, every member is able to vote on every proposal they choose to.
Example of initial proposals:
- Creating ELK/PAR on Avalanche farm to generate ELK for the Parachute DAO
- Heat check: Transition PAR to on-chain via Polygon (or other EVM) and reduce restrictions
- Add PAR to BC.GAME with over 3m unique visitors per month
- Heat Check: Create PAR paired liquidity farm for generating NFTs
- Create PAR treasury and subcommittees
- Create PAR multi-sig wallets for subcommittees
Additionally, new proposals can be created by and voted on by any PAR holder.
The long term organizational structure of the Parachute DAO will be open to proposals. It has been mentioned in early discussions that a token-only voting system has limitations. Proposals by the DAO with experience from our initial proposals will hopefully address this issue and guide the Parachute DAO to shape long term org structure and tools, such as utilizing Gnosis safes and votes, the Gardens structure from 1hive, or DxDAOs reputation hybrid approach.
PAR as a token
The PAR token at DAO inception exists for governing the Parachute DAO with no economic rights. There can exist additional utility of PAR beyond governance, with future votes on utility and applications of PAR coming through DAO proposals.
With over 6,500 token holders, PAR will initially be used as the governance token for the DAO. However, as our understanding and collective DAOism grows, we may want to shift to an NFT or reputation based governance system, allowing PAR to have utility beyond just voting rights, obviously all to be thought through and discussed and decided by the token holders and DAO that has the most positive impact for our DAO.
Additionally, 250m PAR will be reserved for future subcommittees to fund PAR proposals going forward. Formation of a PAR treasury will be proposed that will focus on managing PAR, creating stable treasury, and contributing to the generation of revenue for the Parachute DAO. Furthermore, all PAR holders are now DAO members, this means that you are able to participate and vote in the Parachute DAO with all ideas and encouraged to do so.
Products in the Parachute DAO and under governance
- While ParJar wallet will be in the Parachute DAO, its current state needs to evolve for DAO proposals around its functionality, implementation, feature sets, and application. The current proposal to implement a modification to on-chain, non custodial functionality is the first step in transitioning the product.
- Current proposals around PAR farms and PAR product partnerships are subject to governance under the Parachute DAO. These approaches are targeting extended utilization and new revenue for Parachute DAO treasury. The DAO may collectively decide to propose further revenue streams to fund the DAO.
- New products such as PAR/Token farms to generate NFTs and any future DAO created products fall under the DAO governance along with any proposed utility of PAR in those products after sufficient decentralization through the DAO. While these are exploratory concepts and will only move forward with DAO approval, any product idea that the Parachute DAO explores will also have subsequent funding proposals.
- While not a product, the PAR governance token may be used by eventually elected committees to fund and operate events, prizes, hire developers, or create stable coin treasuries, as decided by the DAO collective.
Products not in the Parachute DAO
While most products are able to become part of the Parachute DAO, Hedgey cannot. New regulations emerging in DeFi, as well as consultation from outside council, show that restrictions around tokenization of derivative products and fee collection mechanisms are due to face heavy scrutiny. As Hedgey exists in that space and requires centralized effort of a few to be successful, Hedgey has been separated as an entity and will continue to be developed in a centralized manner without a token or economic rights and will not be a part of the DAO now or in the future.
While ParJar in its current state needs transition to be under the DAO, with sufficient on-chain integrations, it will be able to be a full DAO product.
As Parachute has explored several concepts over the last four years, they often do not fit for various reasons. As Parachute moves forward, the integrations of PAR and products must be able to be created, maintained, and managed by the DAO while also avoiding heavily regulated spaces that create roadblocks.
Closing thoughts + Why a DAO?
As we are at the beginning of a new frontier for Parachute, the possibilities for how we grow are endless. With 6,500 PAR holders, our ecosystem has an incredible resource of skilled DAO members that now have the power to participate in shaping the products, funding, and direction of Parachute going forward. Every voice can be heard, every idea can be discussed, every skilled member can participate and be rewarded for their contributions. DAOs exist to move away from a small few who control , towards a group of many who work together.
Instead of holding PAR and waiting for things to happen, now we can use our PAR to make things happen. The initial proposals focus on creating day-one DAO revenue streams and expanded utility and exposure of PAR through product partnerships.
The vision for the DAO is to create sustainable organization and revenue with products and partnerships that create clear revenue and utility of PAR immediately rather than
The goal of a DAO is to move from a small group of Our founders and leaders continue to use PAR as an equal member of governance, while allowing unheard voice to come forward and contribute in a way they have previously been unable to.
The next steps will be to create an initial board for delineating growth and pushing the Parachute ecosystem forward, as well as voting on current proposals and creating the next and most important proposals for shaping Parachute. All feedback is welcome.