Every derivative needs to branch out and have it’s own roadmap and build upon itself. Each derivative should be building and integrating previous blocks while also integrating cross-Lootverse derivatives as well.
- AGLD is a derivative project of Loot and should have it’s own governance process and it’s own roadmap. AGLD can form it’s own DAO to govern tokenomics and eventually it’s treasury to form partnerships across the Loot metaverse and be integrated as Loot’s in-game Gold Currency. It will also help fund different projects and work with Loot’s DAO to do so.
- Loot is the center of the metaverse spiderweb, and will have it’s own DAO to govern the royalty fees derived from OpenSea. The DAO’s main responsibility will be using that royalty revenue to fund development of different promising projects across the Loot metaverse, including helping AGLD if necessary.
Two separate DAOs, managing their own treasury (and tokenomics in AGLD’s case), working together to benefit all of the Loot ecosystem. This is the best path forward. AGLD is nothing more than a derivative project of Loot, and should not be given special treatment or governance power over Loot’s treasury. Every derivative project needs to fend for itself (with help and funding from both Loot’s Treasury and AGLD’s Treasury), and try to form partnerships and integrate different derivative projects in Loot’s ecosystem.
The reason for two separate DAOs instead of one combined DAO is simple:
- If someone holds 300 Loot but no AGLD, they can vote to increase AGLD supply by 2x and airdrop it to Loot holders, which is in their best interest.
- if someone holds 3M AGLD but no Loot, they can vote to use all of Loot’s royalties to buyback and burn AGLD, which is in their best interest.
- The financial incentives are way too strong at this point to try to combine them, and the incentives are misaligned. We are talking about a $700M combined entity here. There is a lot of money at stake now.
It is extremely important to align incentives correctly here.