A Community-Owned Wallet
The Tally Ho DAO is intended to be a coordination mechanism for the community, and will have a multi-level structure as laid out in the DAO Structure Proposal on the governance forum. However, social coordination and governance structure is just one element of the Tally Ho DAO.
The flow of funds is a unique aspect that distinguishes the Tally Ho wallet from other wallets. It’s also an important component to ensure the project is funding essential work, as well as explaining where incoming funds are generated and the purpose of treasury allocations moving out of the treasury.
Some examples of what this could mean for the web3 ecosystem are the Gitcoin Aqueduct proposal and the ethers.js sponsorship. More on this later in this post.
But how does a community-owned project ensure it has the funds to support long term sustainable development?
This is a question we have asked ourselves as we designed and built the Tally Ho wallet and laid out the DAO structure. It is a question the DAO and community will continue to ask itself as it adapts and grows as a community-owned project. In any project, and especially one that claims to be building alongside the web3 ethos, the flow of funds tells a story about who is benefiting from the activity and utility of the product.
Basically this boils down to below three principles:
- The product should generate an income stream
- This income stream should flow to the DAO in its entirety
- The DAO should decide on the use of these funds
These basic principles are important pillars of the Tally Ho DAO, and haven’t changed since day one.
Doing this well will have a snowball effect for the DAO.
The more income generated for the DAO, the more activities and development it can fund.
The more activities and development, the more features the product will have and the more users it will attract.
The more the product is used, the more income the DAO will have.
Tally Ho DAO - Flow of Funds
There are several ways for a wallet to generate income and incentivize users. The Tally Ho wallet will do this initially through its Swap and Earn features. All of the fees that are generated through these features will flow to the DAOs treasury. All of the incentives for these will come from the treasury.
At launch, the DAOs treasury will primarily consist of $DOGGO tokens. Through income and incentives, the DAO is diversifying it’s treasury and is distributing it’s governance tokens in the hands of it’s Community.
What are these fees and incentives going to look like after the launch? That’s up to the DAO. Anyone can propose and participate in discussions around these on our governance forum, and eventually voice their opinion by participating in governance as explained in this forum post.
Tally Ho Swaps
If you look at our inspiration, the fees from the MetaMask in-wallet swaps are flowing to a corporate structure which is supported by many institutions of traditional finance - not exactly who the permissionless and decentralized structure was supposed to benefit.
In fact, traditional finance stands to gain a lot by co-opting and redesigning systems on blockchains on their terms. We think this is a recipe for misaligned incentives at best, and truly a wolf in fox’s clothing or a trojan horse for traditional finance into web3 at worst. If you have interest in preserving the decentralization ethos (and we do), we need sustainable wallet alternatives that align incentives with users and the community - which we believe the Tally Ho wallet and DAO will do.
Metamask’s in-wallet swap charges an additional 0.875% of all trades in fees that flow to Consensys. In contrast, the Tally Ho in-wallet swaps currently run using 0x protocol, and charges a more modest 0.5% of all trades in fees. More importantly, those fees flow to the DAO.
Giving the community the ownership and control over the treasury management to support feature development, grants, and ultimately, whatever the community decides is worthy of supporting - the way web3 should be. Additionally, the 0.5% fee on Tally Ho is governable by DAO vote - the fee can be changed as needed through a proposal and vote.
Tally Ho Earn → Explore the Hunting Grounds
There are several allocations in the initial distribution to earn through your assets. For the Community this is an excellent opportunity to acquire a larger token position in the DAO, and by doing so help grow the DAO treasury as well.
How does using the Earn feature support the DAO? Users that deposit into Earn features are agreeing to share a percentage of profits through an ‘administration fee’ to the DAO. Do not worry, this fee will be by far offset through the additional $DOGGO rewards. It will also be one of the earliest yield farming opportunities for $DOGGO, and one of the only ways to capture some of the early supply. There will be both Pool 1 and Pool 2 mechanics, but more details on these pools will be shared at a later date.
How long will these Pools be incentivized? You guessed right, that’s up to the DAO. There will be set allocations from the initial $DOGGO supply to fund the initial Pools, but eventually these rewards will be fully distributed.
Once the initial distribution of rewards is exhausted, the Tally Ho DAO may choose to top up and continue rewards for Pool 1, Pool 2, both, or simply discontinue the rewards.
It’s also expected that different additional strategies will be developed over time. These could include things like yield farming strategies, services provided by the DAO, partnership agreements with other projects or DAOs, and more. We expect that the Tally Ho DAO and community will find new ways to innovate over time through collaboration, and responsible treasury management.
If you have an idea, please propose it!
Usage of the Tally Ho Treasury
Besides user incentives, the DAO treasury can be used to fund a variety of activities and projects, including the web3-ecosystem, other dev teams and products.
Major disbursements will be voted on by all $DOGGO holders, then carried out on-chain. For most purposes in line with the proposed DAO structure, funds will be requested via DAO proposal by each operational Pack (Growth, Build, Ops) for their own operation as well as the Dens that fall under their domain. Each proposal should be supported with a budget request for approval.
Grants and Bounties
In addition to operational funding for the Packs and Dens, the DAO can also sponsor grants and bounties.
What is a grant?
A grant is an amount offered to a person or team to work toward a long term goal, or to maintain a codebase for an extended period of time. Grants may also require milestone-based vesting, to ensure that incentives are aligned in the long term, or to retain the option to revoke a portion of the grant if the team is unable to complete the work at a production-ready standard. Grants are paid out as milestones are achieved, to support development while ensuring accountability.
What is a bounty?
A bounty is an amount offered to complete a task that is a priority for the community, but outside the development team and Build Pack’s short term roadmap. This could include specific feature additions, video production, blog posts, graphic design, and more. The specifics of the bounties can be handled at the Den level, with funding managed by the Pack multisig. The bounty is paid when work is completed, submitted, and accepted.
Both grants and bounties may be managed internally or posted on platforms that could include Gitcoin, Radicle, DeWork, Layer3, and others.
Other Opportunities
The treasury could also be used to stimulate various project needs such as securing and driving token liquidity, paid marketing campaigns but also for funding public goods.
We are excited to be building the future of web3, wallets, and DAOs together with our community - all of you. Ensuring that there is sustainable funding and revenue flows directly to the DAO treasury is just the beginning.
Tally Ho!
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nice work tally team 
