DAOSquare earns revenue from successful investments by Venture DAOs within the DAOSquare Incubator. Each Distribution Cycle, this revenue is collected in different tokens and converted for a single token (Distribution Token) which is then distributed to goRICE holders through the Compensation Pool following the mechanism of Governomy.
Protocol Fee
The Protocol fee is the fee that users of DAOSquare Incubator pay to use the DAOSquare Incubator Protocol.
See the Protocol Fee section in Fee & Carry for more details about the protocol fee.
Fee Collection
The collection action occurs at each successful investments of Venture DAOs. All fees in any currency will be collected and converted into a single currency (Distribution Token).
Fee Conversion & Distribution
The conversion action occurs at each protocol fee collection. All fees in the token list will be converted to Distribution Tokens and distributed to the Compensation Pool, Treasury, and Buyback & Burn Pool according to the Protocol Fee Distribution setting. Any fee not in the Token List will be transferred to the Treasury directly.
Token List is controlled and managed by goRICE holder using Governomy.
Any goRICE holder can claim compensation from the Compensation Pool. The Buyback & Burn Pool is used to buy back RCIE for burning, and also acts as a gate controller for RICE rewards. The Treasury is the community fund of DAOSquare, supporting its development. See Understanding Governomy for details.
Distribution Cycle
The purpose of designing the distribution cycle is to simplify the calculation and allocation of RICE rewards to DAOSquare Incubator. Simply put, RICE rewards generated in one Distribution Cycle need to be processed and distributed in the next cycle.
See Distribution Cycle in Understanding Governomy for details.
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