Question 1

What is a DAO?

Accepted Answer

A DAO is a Decentralized Autonomous Organization, see here for an overview. Below is an excerpt from the link:

A DAO is an organization that operates completely through the utilization of decentralized technologies. The basic idea behind this type of structure is to be able to create a fully autonomous organization, which would operate without any outside interference. These organizations have begun sprouting up and attempting to solve various and quite interesting use-cases. There are investing DAOs, socializing DAOs, and almost anything you can think of in between. Users in this space are still so inexplicably early, the future is looking quite bright, and it is here to stay.

Question 2

Why does DRSGME need a DAO?

Accepted Answer

The primary objective for DRSGME is to advocate for the direct registration system, and to educate retail investors about their choices, in order to enable them  to have sovereignty over their investments.
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Forfeiting individual sovereignty in favor of a third-party custodian can be ripe for abuse by said custodian, which has been shown through the turbulent activity within the centralized crypto exchanges. Throughout recent history and up to 2022., third-party custodians have had no fiduciary or regulatory requirements to act in the best interests of the individual investor. Therefore, investors are subject to the direction those custodians take with their assets.

In the web3 world, a DAO provides individual ownership of assets, as the membership to the DAO is owned independently by the individual.. The entity providing stewardship over the DAO cannot dictate what is done with the rights of membership. Through increased community participation in the DAO, DRSGME hopes to achieve the greater objective of spreading DRS awareness.
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DRSGME also hopes this will lead to a more transparent way of running the project itself. As a result of continuous learning from the team, and the community feedback from the previous performance of the site, the volunteers behind DRSGME want community participation, visibility, and endorsement of the direction the project takes. Accountability and ongoing community engagement is integral to the success of DRSGME, and the team sees the DAO as a fantastic mechanism to put those principles into action.

Question 3

How did the DAO form?

Accepted Answer

The DAO was initially formed with funds provided by u/karamorf. u/karamorf worked with u/nielzz to commission the art used for the genesis NFT. Karamorf minted the art, then airdropped it to the original donors of the GoFundMe campaign.

None of the donations from the GoFundMe were spent on the formation of the DAO.

The genesis NFT dropped to the original donors

Question 4

Why does the DAO need a treasury?

Accepted Answer

The DAO's treasury is here: 0x46987df3fed9fb48089b01839bb9c473b12d262d.

It was initially funded with a donation from u/karamorf of 150 LRC, to pay for the gas fees of airdropping the genesis NFTs. Karamorf retains sole ownership of the keys to this wallet. It is expected that eventually this ownership can be fully transferred to the DAO, which will require new features on snapshot.org to work with wallets in Loopring's Layer 2.
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The DAO will fund efforts undertaken by DRSGME, when approved by proposals submitted to dao.drsgme.org. Funds will never be removed from this wallet without a vote of approval from the community. The funds will always remain visible and on chain for anyone to see. If additional funds are raised for the treasury and no proposal passes, then a proposal to distribute funds back to the NFT holders can always be made.

Question 5

Is it safe for one user to have the keys to the treasury?

Accepted Answer

This is purely a layer zero (L0) factor of trust - people are L0, Ethereum is L1, and Loopring is L2. Currently, this L0 trust is a requirement around the DAO's treasury. Hopefully the elements below can instill the trust required to see a successful progression of the DAO, and move the keys to the treasury entirely to the DAO.

The 1,000 LRC commission cost of the genesis NFTs, as well as the gas fees to airdrop the NFT's, were paid for out of pocket by Karamorf.
The time spent to make it possible to vote with Loopring L2 on snapshot.org, as well as the time spent fixing the GameStop wallet connecting to snapshot.org, was volunteered exclusively by Karamorf.

Snapshot supports the features for a treasury. However, it does not support a Loopring L2 wallet to act as a treasury. If that functionality is ever implemented, then this trust could be moved from L0 to L2 and let the DAO take full ownership of the wallet. The future looks bright.

Question 6

What happens when a vote is cast?

Accepted Answer

When you vote on a proposal, snapshot.org is counting the number of NFTs you hold that are eligible for voting within the DAO. Nothing is added or subtracted from your wallet when you vote on a proposal. To reiterate- your NFTs never leave your wallet, they are only counted and validated as authentic.

When you are connecting a GameStop wallet via "Injected", you are injecting your wallet into the snapshot.org. Snapshot.org is not injecting itself into your wallet.

Question 7

If I don't have the time to vote can some one else vote for me?

Accepted Answer

The service behind dao.drsgme.org is snapshot.org and that service supports the concept of delegation. Delegation lets you designate someone else to vote on your behalf.  It is not expected that every member of the DAO will want to participate, and it is highly encouraged that this group to delegate their vote to a trusted community member. The higher the participation rate  in the proposals, the more successful this new DAO can be. For full details on how to do this see Snapshots guide.
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While all members might not be involved in the DAO itself, it is hoped that an encouraging a delegation of votes will lead to vocal leaders within the community. These leaders can then help figure out the proposal direction and success. This kind of engagement, from every potential vote in the early stages of this effort, will dictate the success of this endeavor.

Any attempts to delegate votes to an official DRSGME volunteer will be met with those votes being abstained. The purpose of the DAO is to give the community more of a voice, 
instead of the volunteer team.

Question 8

Why list tokens before an ad campaign?

Accepted Answer

Creating a media plan to run an ad campaign involves knowing how much the budget will be for a campaign. It's sort of a chicken and egg problem: how can it be planned for if the amount of funds isn't known? How can the DAO be trusted with funds if there is no plan?

This was a lesson that was learned with the GoFundMe donations. While there was an objective (run ads to spread awareness of DRS & GME), there wasn't a full plan to execute it. The DAO could fit right in the middle of this problem and possibly solve it. Funds can be raised, a media plan can be designed, and the DAO members can vote on the allocation of funds for running an ad campaign. The DAO can always decide to allocate funds back to those who hold NFTs, if nothing can be decided on.

Question 9

Why sell membership?

Accepted Answer

Can the listing of NFTs be separated to raise funds and voting power within the DAO?

This is still being decided on by the DAO, but nothing has been listed as a proposal at this point in time. It's an interesting question to think about: should voting power within the DAO really be "sold"? This question may correlate to owning stock in a company. If the company never had questions to the share holders, would that be fair?

While every decision by DRSGME won't be put up for votes by the DAO, the spending of any funds raised always will be.  Another consideration to take into account, does every decision/direction a company makes get decided on by shareholders? Typically, there is a more high level of direction.

It is also possible that future NFTs might not hold the same voting power as the genesis NFTs, depending on how the DAO votes. For example, if NFTs were airdropped to people who submitted purple circles to DRSBOT then perhaps there would be a 90% voting power with genesis tokens, and 10% with purple circle NFTs. Voting power could be split up in any number of ways, but the genesis holders would need to be on board with relinquishing any of it.

DAO's are new and are still an experiment, DRSGME is excited, and hopefully the community agrees to explore that together.

How to Terminate enrollment in DirectStock

DAO FAQ Loading...

What is a DAO?

Why does DRSGME need a DAO?

How did the DAO form?

Why does the DAO need a treasury?

Is it safe for one user to have the keys to the treasury?

What happens when a vote is cast?

If I don't have the time to vote can some one else vote for me?

Why list tokens before an ad campaign?

Why sell membership?

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