🔹DAOJO
What is DojoDAO?
DojoDAO (or DAOJO) is a Decentralised Autonomous Organisation entity that is absent of a central governing body, where individuals share a common objective to act in favour of the entity. In short, we are giving power to the community through the voting power of our governance token $DAOJO.
The DAOJO operates for the benefit of the entire ecosystem, acquiring critical protocol-owned-liquidity (POL) as well as assets that will ensure that DojoSwap can continue indefinitely and sustainably forever. DOJO emissions will be reduced to near 0 when we hit full sustainability. POL also enables us to put in motion our next phase of our plan to fully dominate Cosmos.
We originally communicated the formation of Dojo Labs to invest and provide upside to Dojo ecosystem users. The Dojo DAO (DAOJO) formalises our efforts into creating a DAO with investment operations. All capital gains are distributed back to Dojo ecosystem users under this vehicle (the DAO).
The Dojo DAO operates a rebasing mechanism as a means to reward governance token holders. Locking up your governance tokens represents your conviction in participating in the Dojo governance process. For that, you will earn a supply expansion of the governance tokens limited by the amount of revenue generated by the DAO. The higher the DAO revenue, the greater your staking rewards.
How will DAOJO function?
Let us give an introduction to the 5 important avenues of DAOJO and how it will help us to acquire DOJO ecosystem tokens, removing them from circulating supply.
Selling bonds to procure protocol-owned-liquidity — Users surrender assets (which represents revenue generated) to the DAO and gain DAOJO which they can stake to capture the rebasing supply expansion as elaborated earlier. Bonds are issued in return for different assets including LPs such as DOJO/INJ which essentially means DOJO are acquired and locked in the DAO, removing it from circulating supply!
Investment operations — The DAO will invest into good external projects (and internal projects). As an example, some of the assets the team is potentially looking to acquire include $BLACK (team will be participating in seed round), $HDRO (one of the key LSD players in Injective), $NONJA (a really funny meme coin that has potential to go the distance), $babyDOJO (to earn reflection rewards which represents revenue), $DOJO (to earn staking rewards), $SUSHI (provenance play as the first CW404), $SPUUN (first memecoin run by DOJO community). More to come as we plod towards a proper bull cycle with more good tokens being launched on Injective.
Staking operations — Team will aim to acquire assets through which staking revenue can be made in order to continuously amass a growing treasury. This could include $DOJO, $babyDOJO, $SUSHI or other assets like $dINJ, $hINJ and $HDRO etc.
Trading fees — All the trading fees of the DEX are immediately passed into our DAO as revenue. The DAO can then perform investment decisions as per above. The fees will be used to buyback DOJO ecosystem assets like DOJO, SUSHI and babyDOJO and because its locked in the DAO, its essentially ‘burnt’
LSD & Validator fees — As we operate both LSD & Validator, the fees that are earned also goes towards DAOJO’s treasury which will be utilized to buyback and lock DOJO, babyDOJO and SUSHI.
What are the benefits of DAOJO?
DAOJO is a new Cosmos token standard; CW20-Rebase standard. This token standard will be likely kick-start an entire new wave of DeFi fever on Injective
DAOJO focuses on acquiring all DOJO ecosystem assets which has a net effect of price appreciation across all DOJO assets
DAOJO will gain access to some of the top deals in the space with its whopping huge treasury, which in turn results into larger profits for DAOJO holders (and by extension, Dojo ecosystem holders)
Provides a simple way for users to gain exposure to all underlying DOJO ecosystem assets by holding only one token (which reduces confusion and friction overall). The good thing about this approach is in how the DAO will proactively rebalance underlying ecosystem assets to ensure a healthy rate of acquisition for each one. DOJO token has a lack of buyers? The DAO will step in. babyDOJO has a lack of buyers? The DAO steps in. So on and so forth.
Ultimately, as we build towards a full blown bull run, building a war chest in the form of a DAO treasury is going to be hugely rewarding. The vision of Dojo Labs can be realised in a decentralised manner (A decentralised VC & DEX & LSD) where all benefits goes back to token holders.
With the launch of DAOJO, our team will gain access to one more tool in our toolkit (a decentralised treasury), that allows us to realise the next 2 steps of our vision that is outlined in our roadmap. Each of these steps are going to be bigger than the next. We anticipate Dojo to blow up into a full-blown ecosystem real soon.
The launch model of DAOJO will be a combination of a launchpad and airdrop, where 95% of DAOJO initial supply is issued in launchpad, and 5% to be airdropped.
How do you derive the value of DAOJO?
The DAOJO token represents an individual’s voting power within the Dojo ecosystem. Not only so, it also represents a percentage underlying claims to the treasury’s assets. Should one day the DAO be potentially dissolved one day, your overall percentage ownership of the token supply will represent your underlying claim to the assets within the DAO’s treasury.
DAOJO's unique stability mechanism via protocol owned liquidity
DAOJO introduces the concept of "protocol owned liquidity," representing the value of protocol equity that remains if all circulating DAOJO tokens were exchanged for collateral. This equity is derived from the ETF's yield and appreciation, which acts as a buffer to absorb volatility and generate yield over time.
As DAOJO gains in value, it provides stakers with a longer runway. This enables the team to sustain the APY that is given out from the fund, as well as providing stakers with sustained yields to draw down from the fund's AUM.
What is the aim of DAOJO?
As mentioned earlier on, the goal of DAOJO is to be able to lock-in 17% of the Dojoswap TVL for the Dojo ecosystem. As we progress towards building Dojoswap into Dojo Labs, we will need a way to govern the use of funds, and a vehicle through which we are able to accrue and distribute value. For that, we will have a DAO model. The way to gain access to affect policy decisions through the DAO would be through the DAOJO token. We have ever made mention of veDOJO before where the aim is to lock DOJO holders in return for voting rights. We’ve since revised the idea into something that promotes hyperliquidity instead of token-lock tokenomics which exacerbates liquidity issues that Cosmos chains constantly face.
Also, it is important to understand that the DAO focuses on DOJO price appreciation through the liquidity token mechanics. Even more details will be shared in due time. Meanwhile, we hope that this update serves you well in understanding all of the ecosystem assets in Dojoswap, and how DOJO is at the core of everything that we do.
With all the above said and done, we hope you can appreciate how all of it aims to transit Dojoswap into more than a swap, and more of an ecosystem where all the value is captured into a liquidity blackhole where inflows are more bountiful than outflows — for that is the Dojo way.
Starting the Dojo DAO
In order to kick-start the Dojo DAO (DAOJO), the team will be operating a launchpad to raise $1.5m worth of DOJO tokens to create protocol-owned-liquidity for DAOJO-DOJO. The remaining DOJO tokens will remain in treasury as backing for the DAOJO token.
To further cement the Dojo team’s commitment to our community and DAO, the DOJO team will also seed $1.5m worth of DOJO tokens (to match launchpad raise) from our dev allocation into the DAO to further increase DAOJO backing. At the same time, all fees that the DOJO ecosystem (DEX/LSD etc) has collected so far will also be sent into the DAO as backing (~1m USD). Lastly, the initial 700 $SUSHI supply that was set aside for DAO usage will also be transferred to the Dojo DAO.
With all of the above done, DAOJO will be launched to the tune of $1.5m USD market cap with more than $6m backing. More assets will be included into the treasury over time to further increase backing as more revenue is earned throughout the ecosystem.
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