Tracer DAO’s Service ProvidersJoin the Community of Service Providers Building Tracer’s Ecosystem
Decentralised autonomous organisations (DAOs) represent an exciting intersection between blockchain technology and corporate law. A number of innovations in organisational structure have emerged from the rapid rise in both DAO use and popularity. Via its novel approach to engage Service Providers, Tracer DAO is contributing to the swell of new-age innovation in corporate restructuring.
What is a Service Provider?
A similarity between DAOs and their traditional corporate ancestors is the ability to engage third-parties. Different DAOs use different labels, but in Tracer DAO’s context these third-parties are known as “Service Providers”. As the name suggests, these parties are engaged by DAOs to provide an agreed service. The consideration received for the provision of services is determined at the discretion of the proposing DAO member and will flow as tokens from the DAO’s treasury. It is also possible for a Service Provider to receive Tracer DAO's TCR governance tokens as consideration. Service Providers who receive TCR tokens as consideration for some, or all, of their services will automatically become members of the DAO, and have the ability to make Proposals, vote on future Proposals, and thereby manage Tracer’s governance mechanism, financial contracts and other protocols. A Service Provider holding governance tokens is consistent with the notion of stakeholder primacy, whereby that Service Provider will be held accountable by all stakeholders within the Tracer ecosystem, and is incentivised to perform services with the highest level of quality, become more active within the Tracer ecosystem, and use their knowledge and learnings to inform future decisions through acts of governance.
Tracer DAO Engages “Service Providers” to Contribute to the Ecosystem
The engagement of Service Providers is voted on by Tracer’s DAO members via its Proposal mechanism. Open forum discussion with the general public on Discord and Discourse determines the interest in, and the terms of, the Proposals. All DAO members have rights to propose and vote on governance decisions. Generally, records of DAO decisions are recorded on a public blockchain and governance interface. In the case of Tracer, decisions are recorded on the Ethereum blockchain and Tracer’s Governance App. The transparent manner in which governance is conducted is a hallmark of DAOs and one of their most exciting features.
Who are Tracer DAO’s current Service Providers?
Tracer DAO started with 100 distributed members who claimed TCR governance tokens from the DAO contract between 6 January 2021 and 27 January 2021.
Since then, Tracer DAO has engaged a variety of Service Providers. The first was Lion's Mane, engaged on 10 February 2021. Lion’s Mane is a pride of hackers, crypto economists and open-source ideologues. The team was engaged to (among other things) develop smart contracts and aid Tracer DAO’s marketing and communications efforts.
On 19 March 2021, Sigma Prime was engaged to conduct an initial audit of Tracer’s Perpetual Swap smart contract codebase. Importantly, the executed Service Agreement between Sigma Prime and Tracer DAO, dated 19 March 2021, includes a “digital signature” in the form of the Ethereum transaction hash from the successful Proposal. This was the first legal document to have a DAO as a signatory, supporting the precedent that DAOs can contract directly with Service Providers.
Most recently, RMIT Blockchain Innovation Hub proposed a research collaboration with Tracer DAO for the development of governance and cryptoeconomic design relating to Tracer and Tracer DAO. This was successfully approved by Tracer DAO on 30 March 2021, and RMIT’s work is now underway.
How do I become a Service Provider?
Service Providers who can add value to the Tracer ecosystem are encouraged to articulate that value to the Tracer DAO. Tracer’s community is already vibrant and increased talent and experience will continue to make it stronger. If you believe that you are well positioned to contribute to Tracer’s ecosystem, be sure to make it known and help Tracer realise its destiny as the future of financial infrastructure.
Step 1: Submit an EOI.
The first step for parties interested in working for Tracer DAO is to present their offering via an Expression of Interest (EOI), located under the EOI category in Tracer’s Discourse.
Previously appointed Service Providers have drafted EOIs with the following kinds of information, and we encourage you to do the same:
- Entity introduction;
- Team member introductions;
- Envisioned collaboration with Tracer DAO, detailing services to be performed; and
- Previous work experience.
An example EOI has recently been published by DeFi Pulse. In this case, DeFi Pulse seek to be engaged by Tracer DAO as a Service Provider to provide services including content delivery. Their content offering focusses on educating future users about technical updates, feature improvements, and statistical analysis of the Tracer protocol.
The success of the Tracer project is dependent on engaging talented Service Providers. If the Tracer project aligns with your skills and offering, Tracer DAO invites you to submit an EOI.
Step 2: Draft a Proposal, await DAO member submission.
If interest is gained on the EOI, a community member, including the potential Service Provider, may prepare a draft Proposal in Tracer’s Proposal Lobby where it will be open for discussion. The process for creating a Tracer DAO Proposal has been detailed in a previous Discourse Post.
Step 3: Formal Proposal submitted on Snapshot.
At any point in time, a DAO member may formally submit the Proposal on Tracer’s Snapshot instance to begin the voting process.
Step 4: Proposal submitted on-chain.
Once the result of the Snapshot proposal has become apparent, a DAO member can make a proposal on-chain using the Tracer Governance App.
If the Tracer Governance App does not support the functionality of the relevant Proposal, the DAO member making the Proposal will need to generate the data separately. This is most easily done using Web3.js with the
encodeFunctionCall function. An example of this being done can be found in the tracer-dao Github repository. Any roadblocks at this stage in the process should be brought to Tracer’s Discord or Discourse.
targetsset to the list of function execution targets (the addresses of the contracts whose functions will be called);
proposalDataset to the list of encoded function data;
allowMultisigset to true; and
proposalURIset to the IPFS hash of the proposal (this will usually be the IPFS hash of the Snapshot proposal).
Again, an example of how to call
propose can be found in the tracer-dao Github repository.
What's the relationship between Tracer DAO and its Service Providers?
The legal status of DAOs in most jurisdictions poses an obstacle to their wider adoption. Currently, most legal minds interpret DAOs as unregistered organisations, unincorporated associations, or general partnerships. One innovation intended to address this issue is a Participation Agreement.
The Tracer DAO Participation Agreement was explained in a previous Radar post. A Participation Agreement uses contract law to provide a framework for the formation and management of a DAO; specifically, the rights and obligations of each member of the DAO. This is precisely where the concept of a “Service Provider” comes from.
The Beginning of the Tracer DAO Participation Agreement
Tracer DAO’s Participation Agreement provides crucial clarity in respect to the relationship between Tracer DAO and its Service Providers. Notably, the Agreement releases Service Providers from claims made by other DAO members that arise in connection with the Tracer project. Furthermore, it guarantees that Service Providers will not be liable for losses arising under, or in relation to, the DAOs activities. The Agreement is embedded in Tracer’s smart contracts. It's included there to shed a welcome light on the rights and obligations of Service Providers in the Tracer DAO ecosystem.
Applications to join Tracer DAO as a Governor are open. Apply and refer your friends here.