There are different types of participants in any mode of DAOSquare Incubator DAOs, such as Governor, Investor, Scout, TempCheck Voter, and Member. Eligibility aims to provide an on-chain verification mechanism for DAOs to agree on the prerequisites (thresholds) for becoming these participants. For example, Governor Eligibility stipulates who is eligible to be nominated as Governor, and Investor Eligibility stipulates who can invest in the DAO. The following table lists Eligibility in the different modes of DAOs.
Eligibilities | DAO Mode | Description |
Governor Eligibility | • Vintage
• Flex | Set the prerequisite that the Governor candidate, the subject of the vote (wallet address), must meet when applying for someone to become the DAO Governor. |
Investor Eligibility | • Vintage
• Flex | Set the prerequisite for who can deposit when DAO raises money for a fund (Vintage) or a specific investment (Flex). |
TempCheck Voter Eligibility | • Flex | The Flex DAO can set up a temperature check for investment proposals to determine whether to allow an investment to be proposed and fundraised. TempCheck Voter Eligibility helps the DAO set who can vote on temperature check, which is the prerequisite that TempCheck Voter (wallet address) needs to meet. |
Scout Eligibility | • Flex | Scout Eligibility can help the Flex mode DAO set who can initiate an investment proposal in the DAO, which is the prerequisite that Scout (wallet address) needs to meet. |
Member Eligibility | • Collective | Set the prerequisite that the DAO member candidate, the subject of the vote (wallet address), must to meet when applying for someone to become the DAO Member. |
Priority Depositors | • Vintage
• Collective
• Flex | Priority Depositors sets who is eligible for priority allocation of the share of the fundraising/investment. |
Please refer to the Roles sections in the three modes of DAO for the specific definitions and introduction of these roles in different modes of DAOs. Regardless of the type of role, the Eligibility serves as a prerequisite that needs to be met to become that role.
Parameters
The Eligibility component includes the following parameters: Name, Type, Contract Address, Token ID, and Minimum Holding. The following picture shows a UI for the Governor Eligibility.
Name
In general, most DAOs have their unique role naming. Eligibility allows DAOs to customize the role names with the Name parameter. When this name is in effect, it is applied to subsequent runs of the DAO. You can see it in the Name Eligibility box (for example, Governor you see in the image above). If you have no better idea, it is a good idea to use the default character name. When you wish to change it, you can do so through the Eligibility proposal.
Type
Type defines which type of on-chain verification method the DAO uses to verify the prerequisites that the invited object needs to meet. DAOSquare Incubator currently supports the following five on-chain verification methods:
Type | Description |
ERC20 | Verify if a wallet address is eligible for a certain role in the DAO by checking if it holds a certain amount of a specific ECR20 Token. This verification category needs to be completed with the two parameters: Contract Address and Minimum Holding. |
ERC721 | Verify if a wallet address is eligible for a certain role in the DAO by checking if it holds a certain amount of a specific ECR721 Token. This verification category needs to be completed with the two parameters: Contract Address and Minimum Holding. |
ERC1155 | Verify if a wallet address is eligible for a certain role in the DAO by checking if it holds a certain amount of a specific ECR1155 Token. This verification category needs to be completed with the three parameters: Contract Address, Token ID, and Minimum Holding. |
Deposit | Verify if a wallet address is eligible for a certain role in the DAO by checking if it has a specific amount deposited in the DAO. This verification needs to be completed with the parameter: Minimum Holding. |
Whitelist | Verify if a wallet address is eligible for a certain role in the DAO by checking if it is on the whitelist. This verification needs to be completed with the parameter: Wallet Address. |
Contract Address
When Type is set to ERC20, ERC721, or ERC1155, the Contract Address is required and is used to specify the contract address of tokens.
Token ID
When Type is set to ERC1155, Token ID is required. It is used to specify the Token ID of the ERC1155 Token. Check out the introduction to ERC1155 token for the details about token id.
Minimum Holding
When Type is set to ERC20, ERC721, or ERC1155, Minimum Holding is required. It sets the minimum number of tokens a role must hold.
Examples
Let's quickly understand how Eligibility works with a few examples.
ERC20/721/1155
Suppose a Flex DAO named Juice Community Fund wants to limit access to DAO investment. Only holders who hold at least 10,000 Juice Community Fund tokens ($JUICE) have the opportunity to invest. The DAO named the Investor role as Berry. Then the Settings can be as follows:
If this setting is in effect, when the Juice Community Fund initiates an investment project, people with 10,000 or more $JUICE tokens will be able to deposit money in the fundraising period.
ERC721 and ERC1155 take effect in a similar way to ERC20, the only difference is that ERC1155 requires a Token ID.
Deposit
Suppose a Vintage DAO named Deso Ventures requires that only fund investors who have a deposit balance of at least 100,000 USDT in their fund are eligible to apply for the role of Governor of the DAO . The DAO's Governor role is named Master. Then the Settings can be as follows:
If this setting is in effect, only people with 100,000 USDT or more In Deso Ventures' current fund will be able to be nominated as Governor through the Governor-in proposal. The final result of becoming Governor of Deso Ventures depends on whether the proposal passes the vote.
Whitelist
Suppose a Vintage DAO called Deso Ventures plans to start a new fund, which is only open to a group of prospective investors who have already agreed to a deal. This can be easily achieved with a Whitelist.
If this setting is in effect, when Deso Ventures launches a new fund, only the person on the white list (wallet address) will be able to deposit money into the fund during the fundraising phase of the fund and thus become an investor in the fund.
Please note that the Eligibility constraint is checked at the moment of advance deposit, not at execution after the fundraising period ends.
Example 1: A DAO's Investor Eligibility requires a potential investor to have at least 10,000 USDT in their wallet. At the time of advance deposit, a person has 20,000 USDT in their wallet, meeting the investor eligibility criteria. They can then make an Advance Deposit. After depositing 1,000 USDT, they transfer the remaining 19,000 USDT to another person. Even though there's no USDT left in the wallet, this person can still participate in the investment share allocation.
Example 2: A DAO requires that a Priority Depositor hold at least one DAOSquare NFT in their wallet. At the time of advance deposit, a person has one DAOSquare NFT, qualifying them as a Priority Depositor. After this person makes an Advance Deposit of 1,000 USDT, they transfer the DAOSquare NFT to another person. However, at the time of fundraising execution, they are still considered a Priority Depositor with priority allocation privileges.
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