The DAO
Decentralized Autonomous Organization
As mentioned earlier, the DAO participants are considered owners and managers of the Exitializ network. Through ownership of Exitial token, decision-making can be prorated. The ownership of the tokens represents votation rights in the platform.
Issuance
Exitializ will mint in aggregate approximately 1,000,000,000 tokens. The distribution will transpire in numerous phases that are scheduled at different dates. The governance of the tokens will be allocated as follows:
13% will go to the Exitializ treasury
2% will go to the advisors
45% will be reserved for the community.
25% will go to the investors.
15% will be allocated to the founders.
The seed investors will receive 20% of their monthly share released at the initial network launch. The remaining percentage will be locked for 12 months. Their Exitializ tokens will also be vested linearly after the lock-up period.
Series A Tranche A and Tranche B investors differ in venting and lock-up periods. Tranche A investors will experience a 2-year lock-up of 80% of their tokens. Those belonging to Tranche B will have a year lesser to wait than Tranche B members, but their vesting period is 12 months longer.
The treasury will hold 13% of the total Exitializ token allocation with no vesting condition or lock-up period. The founders will receive 15% and have a 2-year lock-up period. Their tokens will vest linearly for 36 months.
Furthermore, the advisors will also experience a 12-month lock-up period of their tokens and vesting period of 12 months. Excess tokens will be given as rewards during guild events.
Network Token Rewards
The Exitializ community will have to vote, in order to execute the distribution feature. This is when staking vaults will be introduced. These vaults will enable users to receive the reward tokens in their accounts. This is made possible by the integration of smart contracts.
The mechanics is still underdeveloped and is subject to proposal submissions. The staking vaults will serve as an APY.
Eventually, the DAO will release a variety of staking vaults, allowing token holders to reap rewards from network activities and platform events. The vaults can also be developed to combine token rewards and extra VIP membership privileges, which include merchandise and discounts. This is further detailed in the last section of this white paper.
The official website of Exitializ and its blog channels will feature the mechanics behind the staking vaults.
Early Structure
The core team will be comprised of the founders. They will also be the very first participants of the decentralized autonomous organization. Gradually, players, asset owners, and early seed investors will fill up the remaining space.
As the community expands, big investors, those who hold the most number of Exitializ tokens, will replace the first team in the DAO. They will also serve as the administrators of the protocol.
Voting and Governance Proposals
Voting and proposals includes the following activities:
Projects and proposals
Governance structure
Token distribution
Guild members who are part of the network can send governance proposals through the DAO’s website. Hence, users can vote and contribute to decision-making. The results will depend on the choice of the majority. This can be implemented through an efficient distribution system.
As mentioned earlier, tokens can serve as rewards for guild events and individual achievements. Furthermore, members of the community who submit winning proposals will receive token rewards. This will be implemented by the DAO. In the coming weeks, more information about reward and events will be available on Exitializ’s website.
The SubDAO
The SubDAO is designed for hosting guild events, game activities, and digital assets. The digital assets in this integrated platform are owned and controlled by the organization’s treasury through a multi-sig wallet, similar to the Gnossis wallet mentioned earlier in this paper. Through protocol layers and smart contracts, the members will be able to use and benefit from the assets in the SubDAO.
Hence, a portion of the tokens in the second platform will be available for the members of the community. Token holders in the SubDAO can vote and send proposals, for the improvement of the whole organization. For example, they can request and present the benefits of a proposed feature to the DAO and its members.
The main purpose of the existence of the SubDAO is to incentivize the community so that the assets can be put under the Exitializ treasury. With this, the SubDAO token holders can benefit from the yields of the assets and the tokens generated from their productive gaming.
There is no ownership breakdown available in this paper. A separate report and white paper will be published after the establishment of the subDAO. That report will include the details of the token distribution, as well as the financial value of the subDAO assets.
A possible scenario is the allocation of a percentage of the total Exitializ tokens, in the main DAO. With this setup, the main DAO can prosper as the incentives from subDAOs are aligned. In decentralized finance, the more profitable the subDAOs are, the more successful the organization’s tokens will be.
Community Programs
Community programs can include scholarships for new players, or those who do not have enough funds to start a team in blockchain-based games. Scholarships for Axie Infinity players can be considered an example.
Such programs aim to grow the community by inviting and enticing prospects. These include the players who got what it takes to thrive in decentralized finance and blockchain-based virtual realities.
Moreover, community programs enable players to test games with potential, without betting their own money, until they are ready to play and invest time. Community programs also allow dedicated players who lack funds to begin earning tokens and cryptocurrencies. These can be traded for real-world money.
The undistributed excess tokens will be utilized for community programs.
When no more Exitializ tokens can be distributed, the treasury will buy back tokens in the future.
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