When you participate in the Venture DAOs of DAOSquare Incubator, you need to understand the fee setup of the DAO. When taking on different roles in different DAOs, there may be opportunities to earn fees, and there may be some fees to pay. This section describes the purpose and use of these fees. DAOSquare Incubator offers the following customizable fee settings for Venture DAOs:

Governor Fee
Governor Carry
Scout Fee
Scout Carry
Redemption Fee
Protocol Fee

Governor Fee

The Governor Fee is a fee that Governors as a group in Venture DAO requires from investors who participate in the investment funds in the DAO. Governor Fee receivers are DAO Governors. Governors are the managers and operators of fund assets and are mainly responsible for the governance of DAO (all 3 modes) and investment decisions (only Vintage), so they may charge fees for their labor and necessary expenses related to fund operations.

Introduction

DAO Type	Payer	Receiver	Payment Timing	Calculation	Escrow?
Vintage	All Investors	The address for collecting Fee & Carry on behalf of the Governors group.	The investment proposal was successfully executed.	% of total investment token.	No
Collective	n/a	n/a	n/a	n/a	No
Flex	All Investors	The address for collecting Fee & Carry on behalf of the Governors group.	The investment proposal was successfully executed.	% of total investment token.	No

The Governor Fee is the DAO's investment currency.

In both Vintage and Flex DAOs, the Governor Fee payer is the investor participating in the DAO investments. In the Collective DAOs, all Members are Governors as well as Investors. There is no need to pay fees to themselves, so there is no Governor Fee.

In the Vintage DAOs, the fund invests in a single project, and the Governor Fee of each investor will be deducted according to their Deposit proportion. Flex DAOs are independently invested by the investors according to the project, and the Governor Fee of each investor will be deducted according to the percentage of the Total Investment Amount of each investor.

In the Vintage and Flex DAOs, the receiver of the Governor Fee is the Governor group. When an investment is successfully executed, a percentage of the Total Investment Amount of that investment is paid to the Governor's group (the Governor Fee & Carry Receiver set up by the DAO).

The Governor Fee Rate (%) is a unified setting for the DAO and ranges from 0 to 100%. The Governor Fee is in addition to the investment amount paid to the Investee, so the charge of the Governor Fee will not affect the amount of financing required for the invested project.

Set Governor Fee

Mode	How To Set
Vintage	In Vintage DAOs, the Governor Fee can be set in the Fund Establishment Proposal.
Collective	There is no Governor Fee option in Collective DAOs.
Flex	In Flex DAOs, the Governor Fee setting applies to all investment proposals initiated in the DAO. The Governor Fee can be set at the deployment of the DAO contract (DAO Summoning), or it can be set through the Governor Fee & Carry Proposal after the DAO deployment is successful, and take effect on the investment proposals after the changes.

Modify Governor Fee

Mode	How To Modify
Vintage	In the Vintage DAOs, the Governor Fee cannot be modified, and its purpose is to ensure that the fee rate of a fund that has been agreed with the investors cannot be unilaterally modified. The Governor Fee applies only to the current fund and must reset when the next fund is established.
Collective	In Collective DAOs, if there is currently an investment proposal in progress ( which means the period from the proposal is successfully submitted until the Execution is completed), the Governor Fee cannot be modified, to avoid the rate change of the unfinished investment during the process. If no investment proposal is currently in progress, it may be modified by the Governor Fee & Carry proposal, which, if successful, will apply to the investment proposals after the modification takes effect.
Flex	In the Flex DAOs, the Governor Fee is only allowed to be modified if the DAO does not currently have any investment proposals in progress, to avoid the rate change of the unfinished investment during the process. If the change is successful, it will apply to investment proposals made after the change takes effect.

Governor Carry

Introduction

DAO Type	Payer	Receiver	Payment Timing	Calculation	Escrow?
Vintage	All investors	The address for collecting Fee & Carry on behalf of the Governors group.	The investment proposal was successfully executed.	% of Payback Token.	Yes
Collective	n/a	n/a	n/a	n/a	Yes
Flex	All investors	The address for collecting Fee & Carry on behalf of the Governors group.	The investment proposal was successfully executed.	% of Payback Token.	Yes

The Governor Carry currency is the Payback Token as agreed in the investment proposal, that is, the project token that the invested project shall delivers to the investors in the investment transaction. Governor Carry is deducted from the Total payback token returned by the Investee.

In both the Vintage and Flex modes of Venture DAOs, the Governor Carry payers are the investors who invested in the DAO. In the Collective mode of Venture DAO, all Members are both Governors and Investors, and there is no need to pay fees to themselves, so there is no Governor Carry setting.

In the Vintage and Flex mode Venture DAO, the receiver of the Governor Carry is the Governor group. When an Investment is successfully executed, the Payback Tokens will be transferred from Escrow to Vesting contract based on a percentage of the Total Investment Amount of that investment, and vesting rights will be allocated to the Governor group (the Governor Fee & Carry Receiver set up by the DAO). The vesting time and rules depend on the Vesting Schedule set out in the investment proposal. Governor Carry Rate (%) is a unified setting for the DAO and ranges from 0 to 100%.

The Governor Carry is charged from the returns of all investors who participate in the investment, so the fee collection for this category does not increase the number of payback tokens payable by the invested project.

Set Governor Carry

Mode	How To Set
Vintage	In the Vintage DAOs, the Governor Carry can be set when a Fund is initiated through the Fund Establishment Proposal.
Collective	There is no Governor Carry option in the Collective DAOs.
Flex	In the Flex DAOs, the Governor Carry setting applies to all Investment proposals initiated in the DAO. The Governor Fee can be set at the deployment of the DAO contract (DAO Summoning), or it can be set through the Governor Fee & Carry proposal after the DAO deployment is successful and and take effect on the investment proposals after the changes.

Modify Governor Carry

Mode	How To Modify
Vintage	In the Vintage DAOs, the Governor Carry cannot be modified to ensure that the fee rate within the fund that has been agreed with the investor cannot be unilaterally modified. The Governor Fee applies only to the current fund and must reset when the next fund is established.
Collective	In the Collective DAOs, if there is currently an investment proposal in progress, the Governor Carry cannot modify it, in order to avoid rate changes on initiated investments while they are in progress. If no investment proposal is currently in progress, it may be modified by the Governor Fee & Carry proposal, which, if successful, will apply to the investment proposal after the modification takes effect.
Flex	In the Flex DAOs, Governor Carry allows modifications only if the DAO does not currently have any investment proposals in progress, to avoid rate changes for initiated investments while they are in progress. If the change is successful, it will apply to investment proposals made after the change takes effect.

Scout Fee

Scout Fee is a fee requested by the proposer of an investment proposal to the investors participating in the DAO investment, that is, the required reward for providing the investment opportunity.

Introduction

DAO Type	Payer	Receiver	Payment Timing	Calculation	Escrow?
Vintage	All investors	Proposer of the investment proposal (One of the Governors).	The investment proposal was successfully executed.	% of total investment token.	No
Collective	All investors	Proposer of the investment proposal (One of the Members).	The investment proposal was successfully executed.	% of total investment token.	No
Flex	All investors	Proposer of the investment proposal.	The investment proposal was successfully executed.	% of total investment token.	No

Scout Fee is the investment currency of DAO.

In the Vintage, Collective, and Flex DAOs, Scout Fee payers are all investors participating in the DAO. In the Vintage DAOs, the fund invests in a single project, and the Scout Fee of each investor will be deducted according to their deposit proportion. Flex DAOs are independently invested by investors according to the project, and the Scout Fee of each investor will be deducted according to the percentage of the Total Investment Amount of each investor.

The receiver of the Scout Fee for an investment proposal is the submitter of the investment proposal (Scout). When an investment is successfully executed, the Scout fee is paid as a percentage of the Total Investment Amount for that investment. In Vintage and Collective DAOs, the Scout Fee Rate(%) is a unified setting for DAOs, ranging from 0 to 100%. In the Flex DAOs, the Scout Fee Rate(%) is set only for a specific investment proposal, and the setting range is 0-100%. The Scout Fee is in addition to the investment payment paid to the Investee, so the charge of the Scout Fee will not affect the amount of financing required by the invested project.

Set Scout Fee

Mode	How To Set
Vintage	In the Vintage DAOs, Scout Fee can be set when a Fund is initiated through the Fund Establishment Proposal.
Collective	In Collective DAOs, Scout Fee can be set during the deployment of the DAO contract (DAO Summoning), or after successful DAO deployment via Scout Fee & Carry proposal.
Flex	Compared with Vintage and Collective DAOs, Flex DAOs allow Scout with a higher openness. Therefore, the setting of Scout Fee in Flex DAOs is set by Scout in a specific investment proposal. This means Scout has the pricing power for his contribution reward.

Modify Scout Fee

Mode	How To Modify
Vintage	In the Vintage DAOs, the Scout Fee cannot be modified to ensure that the fee rate within the fund that has been agreed with the investor cannot be unilaterally modified. The Scout Fee applies only to the current fund and must reset when the next fund is established.
Collective	In Collective DAOs, if there is currently an investment proposal in progress ( which means the period from the proposal is successfully submitted until the Execution is completed), the Scout Fee cannot be modified, to avoid the rate change of the unfinished investment during the process. If no investment proposal is currently in progress, it may be modified by the Scout Fee & Carry proposal, which, if successful, will apply to the investment proposals after the modification takes effect.
Flex	In the Flex DAOs, the Scout Fee is set at the time each investment proposal is filled out, so the Scout Fee can be different for each investment proposal. Once an investment proposal is successfully submitted, the Scout Fee for that investment proposal cannot be modified.

Scout Carry

Like Scout Fee, Scout Carry is also compensation requested by the proposer of an investment proposal to the investors participating in the DAO investment, that is, the required reward for providing the investment opportunity.

Introduction

DAO Type	Payer	Receiver	Payment Timing	Calculation	Escrow?
Vintage	All investors	Proposer of the investment proposal (One of the Governors).	The investment proposal was successfully executed.	% of Payback Token	Yes
Collective	All investors	Proposer of the investment proposal (One of the Members).	The investment proposal was successfully executed.	% of Payback Token	Yes
Flex	All investors	Proposer of the investment proposal.	The investment proposal was successfully executed.	% of Payback Token	Yes

The Scout Carry currency is the Payback Token currency agreed in the investment proposal, that is, the project token that the invested project should delivers to the investors in the investment transaction.

The Scout Carry is deducted from the total payback token returned by Investee.

In the Vintage, Collective and Flex DAOs, Scout Carry payers are all investors participating in the DAO.

The receiver of a Scout Carry for an investment proposal is the proposer of the investment proposal (Scout). When an Investment is successfully executed, the Payback Tokens will be transferred from Escrow to Vesting contract based on a percentage of the Total Investment Amount of that investment, and vesting rights will be allocated to Scout. The vesting time and rules depend on the Vesting Schedule set out in the investment proposal. In the Vintage and Collective DAOs, Scout Carry % is a unified setting for DAOs, ranging from 0 to 100%. In the Flex DAOs, Scout Carry % is set only for a specific investment proposal and ranges from 0 to 100%.

Scout Carry is collected from the returns of all investors who participate in the investment, so the fee collection for this category does not increase the number of payback tokens payable by the invested project.

Set Scout Carry

Mode	How To Set
Vintage	In the Vintage DAOs, Scout Fee can be set when a Fund is initiated through the Fund Establishment Proposal.
Collective	In Collective DAOs, Scout Carry can be set during the deployment of the DAO contract (DAO Summoning), or after successful DAO deployment via Scout Fee & Carry proposal.
Flex	Compared with Vintage and Collective DAOs, Flex DAOs allow Scout with a higher openness. Therefore, the setting of Scout Carry in DAO in Flex mode is set by Scout in a specific investment proposal. This means Scout has the pricing power for his contribution reward.

Modify Scout Carry

Mode	How To Modify
Vintage	In the Vintage DAOs, the Scout Carry cannot be modified to ensure that the fee rate within the fund that has been agreed with the investor cannot be unilaterally modified. The Scout Carry applies only to the current fund and must reset when the next fund is established.
Collective	In the Collective DAOs, if there is currently an investment proposal in progress ( which means the period from the proposal is successfully submitted until the Execution is completed), the Scout Carry cannot be modified, to avoid the rate change of the unfinished investment during the process. If no investment proposal is currently in progress, it may be amended by the Scout Fee & Carry proposal, which, if successful, will apply to the investment proposals after the amendment takes effect.
Flex	In the Flex DAOs, the Scout Carry is set at the time each investment proposal is filled out, so the Scout Carry can be different for each investment proposal. Once an investment proposal is successfully submitted, the Scout Carry for that investment proposal cannot be modified.

Redemption Fee

The Redemption Fee applies only to Vintage and Collective DAOs (not to Flex DAOs). It is a fee that DAO requires from investors who choose to redeem their deposits, and its purpose is to compensate for the management cost of the instability of DAO funds caused by the withdrawal of investors.

Introduction

DAO Type	Payer	Receiver	Payment Timing	Calculation	Escrow?
Vintage	Investors who redeem.	The address for collecting Fee & Carry on behalf of the Governors group.	When redemption happens.	% of the total redemption amount.	No
Collective	Investors who redeem.	Every DAO member.	When redemption happens.	% of the total redemption amount.	No
Flex	n/a	n/a	n/a	n/a	n/a

The redemption fee is in the currency of the investor's deposit with the DAO.

The redemption fee is received by the DAO's management team (the Governors group for the Vintage DAOs and all the members for the Collective DAOs). The payer of the redemption fee is the investor who redeem the deposit.

The redemption fee is charged when the investor successfully redeemed.

The redemption fee amount is a percentage of the requested redemption amount (the percentage is set by the DAO and ranges from 0 to 100%. The net redemption amount, the final redemption amount received by the investor, is equal to the requested redemption amount less the redemption fee.

Set Redemption Fee

Mode	How To Set
Vintage	In the Vintage DAOs, the Governor Carry can be set when a Fund is initiated through the Fund Establishment Proposal.
Collective	In the Collective DAOs, the Redemption Fee can be set at the deployment of the DAO contract (DAO Summoning), or through the Redemption Fee proposal after the successful deployment of the DAO.

Modify Redemption Fee

Mode	How To Modify
Vintage	In the Vintage DAOs, the Redemption Fee cannot be modified, and its purpose is to ensure that the fee rate of a fund that has been agreed with the investor cannot be unilaterally modified. Redemption Fee only applies to the current fund and needs to be reset when the next fund is set up.
Collective	In the Collective DAOs, if there is an investment proposal in progress , the Redemption Fee cannot be modified, to avoid the rate change of the initiated investment during the process. If there is no investment proposal currently in progress (the proposal is successfully submitted before the Execution is completed), it can be modified through the Redemption Fee proposal. If the modification is successful, it will affect the investment proposal after the modification takes effect.

For a detailed introduction to the redemption function, please refer to the redemption introduction page.

Protocol Fee

The Protocol Fee is a fee required by the DAOSquare Incubator Protocol to investors who participate in the DAO investment to reward technical services provided by the DAOSquare Incubator Protocol to all investors.

Introduction

DAO Type	Payer	Receiver	Payment Timing	Calculation	Escrow?
Vintage	All investors	DAOSquare Incubator Protocol	The investment proposal was successfully executed.	% of total investment token	No
Collective	All investors	DAOSquare Incubator Protocol	The investment proposal was successfully executed.	% of total investment token	No
Flex	All investors	DAOSquare Incubator Protocol	The investment proposal was successfully executed.	% of total investment token	No

The currency of the Protocol Fee is the investment currency of Venture DAOs.

The fee receiver is the contract address specified by the DAOSquare Incubator protocol, which is owned and governed by the DAOSquare Economic & Governance Module (Governomy).

Protocol fee payers are investors participating in Venture DAO investment. Protocol fees are charged to participating investors when an investment is successful. Protocol fees are charged only for successful investments.

The protocol fee amount is a percentage of the total investment amount in an investment and ranges from 0 to 100%. The protocol fee is in addition to the investment fee, so the protocol fee charge does not affect the amount of financing required for the invested project.

Set & Modify The Protocol Fee

The protocol fee rate is controlled by Governomy, the DAOSquare economy & governance module, and its fee rate is set by the development team when the DAOSquare Incubator mainnet goes live, starting at 0.3%.

Changes to the protocol fee would need to be made through the Protocol fee proposal in Governomy. Check out Governomy for more details.

The protocol fee changes apply to all DAOs in the DAOSquare Incubator. DAOs cannot change the fee rate on its own, but DAOs can participate in the fee change by participating in the Governomy.

Since there is no guarantee that there will be no ongoing investments in DAOSquare Incubator during the fee modification period, the fee modification may cause initiated investments to have their rates modified while in progress, but the DAO may:

Avoid initiating an investment proposal during the fee modification period.
Participate in Governomy to decide when to change the fee.

Example: Investment Allocation and Fee Calculation

We take an investment by Vintage DAO as an example to introduce the investment amount, the flow of the Payback Token, and how to charge various fees.

Deso Ventures is a Vintage DAO on DAOSquare Incubator. Suppose a project called Juice asks Deso Ventures for $1000. The current Deso Ventures fee setup is as follows:

Fees	Rate(%)
Protocol Fee	0.50%
Governor Fee	2%
Governor Carry	2%
Scout Fee	2%
Scout Carry	3%

The current Protocol Fee Settings of DAOSquare Incubator are as follows:

Fees	Rate(%)
Protocol Fee	0.50%

We know that Juice applied for an investment amount of 1,000 USD from Deso Ventures, meaning Juice's Funding Goal = 1,000 USD. First, let's calculate the Total Investment Amount for this investment. According to the following formula, we can calculate the Total Investment Amount to be 1047.12 USD.

We can calculate the Amount of each fees according to the Total Investment Amount and each fee rate, as follows:

Protocol Fee = Total Investment Amount x 0.5% = 5.24 USD
Governor Fee = Total Investment Amount x 2% =20.94 USD
Scout Fee = Total Investment Amount x 2% = 20.94 USD

When the investment is voted through and the transaction is successfully executed, a total of USD 1047.12 out of the DAO pool will be disbursed to the following parties.

Fund/Fee Receiver	Items	Amount
Juice	Investment Fund	1,000 USD
Governomy	Protocol Fee	5.24 USD
Governors of Deso Ventures	Governor Fee	20.94 USD
Scout	Scout Fee	20.94 USD

Meanwhile, the Investment uses the Escrow function, and the price of the Payback Token (the project token of Juice, $JUICE) agreed in the Investment Proposal is 2 USD per $JUICE. For this investment, Juice will pay back Deso Ventures a total of 500 $JUICE. Based on the known fees (Governor Carry 2%, Scout Carry 3%), a total of 500 $JUICE will be paid through the Vesting module of DAOSquare Incubator to the following parties:

Payback Receiver	Items	Amount
Investors of Deso Ventures	Investment Payback	475 $JUICE
Governors of Deso Ventures	Governor Carry	10 $JUICE
Scout	Scout Carry	15 $JUCE

Governor Carry = Total Payback Token X 2% =10$JUICE
Scout Carry = Total Payback Token X 3% =15$JUICE
Investment Payback = Total Payback Token - Governor Carry - Scout Carry = 475 $JUICE

The following table shows the investment allocation and fee calculation details of the investment:

	Definition		Fee Settings	Min	Money Flow Explanation
Funding Goal	The amount asked by the Investee			1,000.00 USD	An Input in Investment Proposal

Total Investment amount		a		1,047.12 USD	Transfer out from DAO pool
Protocol Fee	as % of Total Inv	b = 0.50% * a	0.50%	5.24 USD	Transfer into DAOSquare Incubator Address (Default)
Governor Fee	as % of Total Inv	c = 2.00% * a	2.00%	20.94 USD	Transfer to the Governor fee’s receiver address
Scout Fee	as % of Total Inv	d = 2.00% * a	2.00%	20.94 USD	Transfer to Scout's address
Net Investment Amount	The amount paid to Investee	e=a-b-c-d		1,000.00 USD	Transfer into Investment Receiver address as stated in an investment proposal

Payback token / Investment Token		f	2.00	2.00 USD	An Input in Investment Proposal
Total Payback token for this DAO		g = e/f		500 $JUICE	Total Payback Token will be distributed to all DAO investors, scout and Governors.

Payback Token Allocation to DAO as a whole
Scout Carry	as % of Total Payback Token	h = 3% * g	3.0%	15 $JUICE	Scout can claim his or her Scout Carry in vesting module
Governor Carry	as % of Total Payback Token	i = 2% * g	2.0%	10 $JUICE	Governors as whole can claim their Governor Carry in the vesting module
Remaining Payback Token to All Investors		j = g - h- i		475 $JUICE	Each Investor can claim his or her payback token in the vesting module

More Info

If you want to know specifically how to set up fees, check out the operating instructions section for each mode of DAO.
If you want to learn more about how investors pay fees in an investment, check out the For Investor section on how to participate in each mode of DAO.

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