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Flamingo, incubated by The LAO, strives to open up a new path with unlimited imagination in the NFT field through the integration of DAO.
Written by: Leo Young
The “NFT Treasury” dedicated to investing and managing NFT assets has become a popular concept as the Whale project has attracted more and more attention (see ” New Trends in NFT: Community Token WHALE Launches Liquidity Mining ” and ” Whale: Building NFT The “Nakamoto Consensus ” of the world). Flamingo DAO is a rising star in this field. DAO was introduced at the beginning of its establishment in an effort to open up a new path for the NFT track.
The initiator of Flamingo is The LAO, which uses the MolochDAO governance contract, which makes the project look similar to Whale, but has its own characteristics.
Tips: This article introduces Flamingo as the NFT field, and Flamingo, the DeFi protocol of NEO, is two different projects.
What is Flamingo
Flamingo is a decentralized autonomous organization (DAO) that came into being to serve the NFT community. Initiated by the Ethereum decentralized autonomous organization The LAO. Flamingo will act as an NFT think tank to provide support for the best individuals, projects and teams in this emerging “super virtual world”. Its main functions are as follows:
● Purchase NFT, split ownership, and access the existing DeFi platform. These NFT works are held and managed by people in the Ethereum ecosystem ● Pre-order works by well-known NFT artists, craftsmen, and creators ● Purchase digital artists’ respective communities or social tokens to invest in digital artists ● Manage purchased works and create ” Digital museums and galleries in the “super virtual world” ● Exploring and investing in supporting NFT core infrastructure and projects
The goal is to become the backbone of the crypto art field and create an “all-star” advisory group
Flamingo aims to become the backbone of the encryption art ecology and introduce DAO into the NFT field. Members are solely responsible for the development and deployment of NFT investment strategies. You can share the equity of the NFT held, rent it, organize a digital art exhibition, or use the artwork as collateral on other DeFi platforms.
As a service provider, Flamingo is responsible for the execution of investment strategies, various voting results, community organization and other activities, and does not participate in any acquisition decisions. The service party will charge a certain service fee and 2% of future investment income.
DAO not only needs financial support, but also the core technology to build the NFT ecosystem. Therefore, Flamingo also has an advisory group that gives insights on the development of Flamingo and provides advice on NFT trends and investments. The members of the advisory team are called “curators” and include more than 30 industry entrepreneurs, artists and experienced professionals, including Oepnsea co-founder and CTO Alex Atallah, SuperRare co-founder and chief Executive officer John Crain, AxieInfinity co-founder and COO Aleksander Leonard Larsen, artists Kevin McCoy and Nelly, etc. It can be said to have created an all-star lineup in the NFT field.
It should be pointed out that the supervisor is not a Flamingo member and has no investment decision-making power.
Open recruitment of members, voting rights are determined by currency holdings
On October 8, 2020, Flamingo launched an open recruitment of community members. If you want to become a community member, you need to fill in the form, pass KYC, AML identity verification, and get permission before you can join.
Members get 1% voting rights for every 60 ETH invested, and each person can get up to 9% voting rights, that is, up to 540 ETH can be invested. Flamingo will raise a total of 6000 ETH. As of press time, 3540 ETH has been raised, and the remaining 40% of the funds raised are not full, that is, 40 voting rights. There is a seven-day lock-up period for funding, during which you can opt out.
Each voting right is 100,000 Flamingo tokens, and the voting right is determined by the amount of currency held in the member address. Tokens are non-transferable, and a majority of members’ votes are required for transfer. The LAO, as an initiation and service organization, received 200,000 tokens.
Member voting rights include:
● Determine the investment target and investment method ● Issuing new governance tokens to replace the existing Flamingo tokens ● Future DAO asset types (ETH, DAI, BTC or any interest-earning assets)
● Decide on the flow, usage, and distribution of all funds and assets ● Flamingo organizational structure ● Members stay and retain, and recruit new members ● A majority vote to dissolve Flamingo or transfer Flamingo investment assets to another entity or institution
In order to protect privacy and prevent preemptive transactions, members can regularly vote to allocate a certain percentage of assets to the “custodial address” for joint custody of the service party and members. If approved, any member can initiate the purchase of the NFT proposal. If approved by a majority of votes, the service party will purchase the designated assets. After the acquisition, the NFT assets will be managed by Flamingo or in the form of tokens that will be divided equally among all members (Fractionalization). If you want to acquire companies or platforms other than NFT, you can also pass a voting resolution.
There is no definite expiration date for Flamingo assets. As long as the funding is not used up, members can continue to decide to purchase assets. The proceeds from the purchased assets will be shared proportionally among all members. The distribution amount, form and time shall be voted by members. Members can withdraw at any time and get back unallocated funds. Enjoyable investment income that has been used for investment. After withdrawing, the Flamingo tokens held by the member will be destroyed.
Flamingo’s smart contract is used for fundraising. It will determine voting rights based on the number of coins held by members, process investment appropriations, and distribute proceeds. Members can vote on proposals through Flamingo DApp or other web services. Members can appoint a proxy to vote, and the designation will not affect the client’s currency holdings and future earnings.
Flamingo community governance uses the MolochDAO governance contract. The contract has been audited by ConsenSys Diligence, MolochDAO and MetaCartel, and will be made public on Etherscan and GitHub.
Flamingo initially took community governance DAO as its core design. Members make collective decisions, advisory groups provide advice and guidance, and The LAO is responsible for operation and execution. The organizational structure is clear. The token distribution is stable and the transfer is relatively restricted. Its transaction attributes are low, fully reflecting the rights of members and used for community governance.
Whale, another popular project in the NFT sector, was founded by WhaleShark. In the early days, WhaleShark had a greater influence on the project and its acquisition decision-making efficiency was high. The community is diverse and the tokens are scattered. As a transaction and stored-value currency, $WHALE needs a more sophisticated design mechanism for effective community governance. Whether it will succeed in the future is the key to fulfilling the promise of decentralized community governance. In this regard, Flamingo may be useful for reference.
Take the first step in the “evolutionary experiment” of NFT and DAO integration
The difference in the field of crypto assets is that the success of the project no longer depends on the leader or founder, and the community is the key to success. Flamingo knows this very well. As the project initiator, DAO was introduced from the beginning, and all powers were handed over to the collective decision-making management of the community (or members). And registered in Delaware, which is the most friendly to cryptocurrency and blockchain entrepreneurship in the United States, to clear regulatory obstacles.
As the gatekeeper of the project, The LAO conducts compliance audits on members to ensure that it attracts the most suitable people to participate. The collective decision-making of commercial affairs by members can meet the interests of most investors and the collective to the greatest extent. Different from traditional commercial institutions, the unique feature of using MelochDAO is that you can withdraw freely. If a member is not satisfied with any business decision or use of funds, he can opt out at any time.
The imagination of the combination of NFT and DAO is unlimited, but Flamingo is far from perfect. NFT investment is still highly speculative and may cause full losses. In addition, individuals may make use of collective decision-making for their own profit or take a ride, such as preemptive purchases or increased prices. There is no clear solution to these problems.
Whether it is more efficient to rely on a centralized organizational form of a few decision-makers, or an open collective decision-making is better, and choices will be made in the future. In any case, Flamingo has lit a light for this evolutionary experiment.
About The LAO
The LAO, the initiator of Flamingo, is a new for-profit decentralized autonomous organization built by OpenLaw based on MolochDAO. LAO stands for “Limited Liability Autonomous Organization” (Limited Liability Autonomous Organization), registered in Delaware, USA. The aim is to establish a new funding and management model for Ethereum to reduce organizational management costs and transaction costs.
The LAO has rich experience in Ethereum ecological construction and investment. Early invested in SuperRare, the NFT trading market, acquired a number of digital art works, and recently supported Aavegotchi. It has also invested in multiple DeFi projects.