API3 🔄 PRIME Token Swap
An Execution of DAO to DAO Relations
No DAO is an island, entire of itself;
every DAO is a piece of the ecosystem,
a part of the main
DAO to DAO relations (D2D) was first introduced in this blog post as a strategy guiding Prime’s evolution from a singular decentralized autonomous organization (DAO) to a heterogeneous cryptonetwork. In summary, D2D aims to:
- Reduce the costs of interacting with the network by aligning incentives across all participants. This is accomplished by having mutual skin in the game. For DAOs, this is easy to imagine: if they have the same token in their treasury, then they both benefit from value accruing to that token, and will both take actions to see each other succeed.
- Improve collaboration between entities. D2D aims to facilitate joint initiatives, like interfaces for mutual shareholding and governance, combined ventures for common product and protocol development, and shared community resources and insurance pools. Extensive progress has been made by members of Prime towards researching mechanisms that can accomplish all of the above on-chain, using libraries or frameworks like Gnosis Conditional Tokens.
- Establish a robust network moat on co-beneficial ground, reducing the likelihood of the network being forked. The software can always be copied, but decentralized ecosystems — cryptonetworks — are resilient to attack.
Prime aims to pioneer D2D as a business, social, and political strategy to achieve super scalable growth. This first token swap will set a precedent for future D2D, as well as establish the collaborative need to build effective D2D schemes, interfaces, and other infrastructure as required that streamline the processes of mutual co-governance.
Oracles are a type of bridging mechanism that allow users to move data from off-chain to on-chain. The API3DAO is a decentralized oracle provider providing decentralized data feeds — alternatively called dAPIs. With the API3DAO, Prime will have access to a decentralized, secure and reliable mechanism for accessing off-chain data — a must-have to accomplish its mission of DeFi mass adoption!
From the API3 Whitepaper:
“With decentralized applications beginning to provide meaningful services in areas such as decentralized finance, there is an increasing need for these applications to receive data or trigger events using traditional Web APIs…
At the core of the governance, security, and value capture mechanics of this initiative will be the API3 token. Staking the token will grant its holders full governing rights over the API3 DAO along with all the associated rewards… As a result, the API3 Project will allow smart contract platforms to leverage APIs for the building of meaningful applications in a truly decentralized and trust-minimized way.”
This token and Reputation swap is contingent upon successful initial decentralized offerings of both DAOs. Each DAO is expected to, on their own, muster the necessary resources to adequately fund their respective development roadmaps. Furthermore, the token swap must be ratified by both DAOs, of which Prime has completed through passing this proposal. This swap offer from the PrimeDAO to the API3DAO will expire if, within two weeks of its mainnet launch, the API3DAO fails to pass a corresponding proposal within its governance body.
From API3DAO to Prime:
2% of API3’s tokens — or 2 million tokens of an initial total supply of 100 million — will be issued from the API3DAO to PrimeDAO’s Ethereum mainnet deployment. These 2 million API3 tokens will be locked in the API3 insurance staking contract, and will be unlocked and withdrawable to the PrimeDAO treasury or a designated delegate in a block-by-block fashion according to a 2-year linear vesting timeline, which includes a 6-month cliff. These API3 tokens, by being locked, will generate Reputation (REP) in API3DAO, but until the locking scheme is completed, or if it is not completed, PrimeDAO will receive 2% of the voting rights available at API3DAO’s instantiation.
From Prime to the API3DAO:
2% of PRIME — or 1.8m PRIME tokens of a maximum of 90m PRIME tokens — to the API3DAO. These tokens will be transferred to the API3DAO’s mainnet DAO treasury or a designated delegate. Additionally, 2% of PrimeDAO’s Reputation on its mainnet initiation will be assigned to the API3DAO on its launch.
Refrain: Call for Contributors
Prime is a coordination engine for systemic DeFi advancement. While its first iteration revolves around its first product — its smart router, also known as a DEX or liquidity aggregator — its product horizon is near-endless. To this end, Prime is actively looking for individuals, builder squads, and DAOs who want to collaborate to move open finance forward in a safe and inclusive fashion.
👷🏻♀️ Technical and ecosystem builders who want to create proposals to Prime should join Discord and introduce themselves in #contribute. Perspective builders are invited to check out the product and squad channels as well.
🌳 Community supporters can support Prime by amplifying its online presence and sharing their respective skillsets in the #contribute channel — there’s lots to get done, and everyone can help!