“It began with the minting of the programmable equities.
$BUIDL were given to the DFOs, on-chain, anonymous and decentralized of all organizations. $ARTE were given to the Items, most interoperable and extendible of token standards. And $UniFi, $UniFi were gifted to the Covenants, which above all else can aggregate AMMs.
Within these tokens was bound the strength and will to govern each protocol. But all were of the same Operating System, so another token was made. Deep in the fires of EthOS, a master token was forged to dominate Ethereum governance, tokens and decentralized finance.
One Token to rule them all."
A Watershed Moment
The division of ethOS into the DFOhub, Covenants and Items DFOs has, until now, been necessary for our research & development. But with the release of v0.5, it will make more sense to merge the three. This will also make things easier for people to understand that they are in fact three interoperable parts of an ecosystem.
EthOS Organizations (DFO) 0.5 is currently slated for release during early Q3. Learn more about it
Token Switch to $OS
Holders of $BUIDL, $UNiFi and $ARTE will thus switch all their tokens to $OS, the all-powerful governance token of the all-encompassing ethOS DFO.
Before the token switch to $OS, all $BUIDL, $UniFi & $ARTE in the DFOhub, Covenants and Items DFO treasuries will be burned.
This will reduce the $BUIDL supply by ~3.5%, the $UniFi supply by ~3% and the $ARTE supply by ~3%, providing holders of each with an organic bonus when they switch to $OS.
The rest of the funds from these treasuries will be sent to the new ethOS DFO public treasury.
$BUIDL, $ARTE & $UniFi holders will be able to switch them for proportionate amounts of $OS. Details below. The swap period will last forever.
Step 0 will happen in ~6 days from today, at block 12777777.
This contract will use three Uniswap v3 pools (BUIDL-ETH, ARTE-ETH and UniFi-ETH) to establish the prices of BUIDL, ARTE & UniFi for use in the calculation of the swap. These prices will be fixed for the entire switch duration to prevent market manipulation.
Steps 1 through 5 will all take place at the actual switch initialization block (still TBA).
All BUIDL, ARTE & UniFi inflation will cease, and the switch contract will record their supplies and calculate their market caps on-chain using the prices established in Step 0:
"$BUIDL Price (in ETH)" * "$BUIDL Supply" = $BUIDL MC
"$UniFi Price (in ETH)" * "$UniFi Supply" = $UniFi MC
"$ARTE Price (in ETH)" * "$ARTE Supply" = $ARTE MC
The switch contract will calculate the collective market cap of $BUIDL, $UniFi & $ARTE:
"$BUIDL MC" + "$UNiFi MC" + "$ARTE MC" = $COLLECTIVE MC
The switch contract will calculate what % of the $OS supply will be reserved (RS) for the individual $BUIDL, $UniFi & $ARTE supplies:
"$BUIDL MC" / "COLLECTIVE MC" = RS $BUIDL
"$UniFi MC" / "COLLECTIVE MC" = RS $UniFi
"$ARTE MC" / "COLLECTIVE MC" = RS $ARTE
The switch contract will calculate the amount of $OS exchangeable for a single $BUIDL, $UniFi & $ARTE (1,000,000 is the initial supply of $OS, the "$OS Init Supply").
("$OS Init Supply" * "RS $BUIDL") / "$BUIDL supply" = $OS per $BUIDL
("$OS Init Supply" * "RS $UniFi") / "$UniFi supply" = $OS per $UniFi
("$OS Init Supply" * "RS $ARTE") / "$ARTE supply" = $OS per $Arte
Holders can begin switching their BUIDL, ARTE & UniFi to OS at the fixed calculated rate.
The inflation of $OS will begin at 8% (80,000) of the initial supply per year (219.2 per day). This is ~2% less than current $BUIDL inflation, ~12% less than current $UniFi inflation, ~50% less than current $ARTE inflation.
Once the EthOS DFO is deployed, $OS holders will govern $OS inflation via the Inflation surveyless subDAO. They will be able to vote for one of eight yearly inflation rates:
0.2% / 0.5% / 1% / 3% / 5% / 8% / 10% / 12%
This subDAO is designed to encourage long-term holders and people who share the EthOS vision to manage assets and farming in a responsible way in different market situations. Inflation earnings will be split as follows:
25% to Farmers
30% to the EthOS DFO’s Public Treasury
45% to the NERV Private Treasury
NERV Treasury & Public Treasury
Growth of the ecosystem will be funded via two treasuries with complementary approaches.
This is the team’s private treasury. It is dedicated to helping us research & develop the EthOS ecosystem. Its only revenue comes from $OS inflation earnings, of which it will receive 45%.
This will be the ethOS DFO’s treasury, owned and governed exclusively by $OS holders.
Revenue will come from $OS inflation earnings, of which it will receive 30%, as well as from all fees taken for use of the DFO’s various Organizational, Covenant and Item tools.
Public Treasury Features (Beta)
$OS holders will be able to use the treasury on the following things:
40% on delegation grants
20% on ETH dividends for top $OS holders
15% on long-term investment funds
25% will be reserved for 0.6 features.
Details on how each feature works are below.
Delegations & Delegation Grants (Beta)
One month after 0.5 releases, the beta version of DFO Delegations & Grants will go live.
Anyone can create an ethOS DFO delegation. They are like collective investment vehicles that will compete for $OS token holder support to win the grant money set aside for them in the public treasury.
On a more technical level, they are subDAOs directed by one or more Ethereum wallets (‘Delegation Representatives’) and act like classic multi-sigs, but in a more efficient and decentralized way.
$OS holders can stake their tokens in a delegation as ‘electors’ and receive a proportionate amount of the delegation’s tokens, which can be used to vote on some delegation proposals.
A delegation can stage two types of proposals:
A delegation can use its Electors’ Supply to vote in the governance of its parent DFO (at the macro-level or in a subDAO). If successful, the vote will be cast automatically; it doesn’t need to be first validated by the delegation representatives.
A delegation can propose general internal governance decisions for itself, such as on how to spend won grant funds. If a proposal is successful, delegation representatives are responsible for taking the steps necessary to see it through.
EthOS delegations get funding from monthly grant rounds (40% of the Public Treasury earnings). Each round, all delegations that receive the staked support of at least a TBA % of the $OS supply will split the grant money on a pro rata basis (the more $OS staked, the more grant money won).
The other way delegations get funding is from donations, which can be given at any time.
To prevent exploitation of delegations, they will be frozen if 50% of their Electors’ Supply is unstaked within a weekly period (calculated on an ongoing basis), and can only be unfrozen if 25% are recovered within a month. Otherwise, they will be sent back to the public treasury.
Long-Term Investment Management
Each month, using the ETH allocated to long-term investments, the public treasury accumulates four tokens selected by $OS holders, with 20% of that ETH allocated to each. The remaining 20% buys and burns $OS tokens.
Initially, the four tokens are $UNI, $GTC, $TORN, $GNO. At any time, $OS holders can vote to change these via a dedicated subDAO. At the end of each accumulation period, the chosen tokens will be purchased and deposited into another subDAO, the treasury’s ‘Inflation subDAO’.
Then, once a week, the Inflation subDAO will sell 1% of the supply of each of the tokens it holds for ETH. 3% of that ETH is earned by the trade executor, while the rest can be used by $OS holders for making and managing long-term investments.
Initially, the tokens the subDAO can sell will be limited to the four mentioned above plus USDC.
The more funds the Inflation subDAO earns, the more that are available to spend on delegation grants, long-term investments and dividends (aside from long-term investment, the public treasury also earns from the fixed inflation of $OS and from fees taken via the business model).
Each month, 20% of the public treasury’s ETH earnings are sent to a special farming contract. Holders with at least 5000 $OS (0.5% of the total supply) can farm that ETH by staking their 5000 $OS as liquidity in the $OS-$ETH Uniswap v3 pool via the Covenants dApp.
Dividends are a very important part of EthOS governance. They add an entirely new layer of incentives for the long-term health of the EthOS OCO rather than for short-term speculation.
For more info about the DFO 0.5 update and the architecture of the EthOS Organization: Organizations Section
The ethOS DFO’s business model will earn from all of the current DFOhub, Covenant and Item fees, plus other new fees. Earnings will be stored in the public treasury.
Most fees taken by the ethOS DFO will be payable in one of two ways, As a regular fee or By burning a fixed amount of $OS, a function also ruled by a surveyless subDAO.
By giving users options for how they can pay fees, they can make more cost-effective decisions.
$OS holders can govern most fees anytime via surveyless subDAOs, allowing them to rapidly and dynamically adapt to fluctuating market conditions (and in fact influence those conditions).
Covenant Farming Generation 1
Regular Fee Option: 0.03% of LP tokens staked in a farm
Burn Fee Option: 2 $OS
Covenant Farming Uniswap v3
Regular Fee Option: 0.03% of trading fees
Burn Fee Option: 2 $OS
Covenant Fixed Inflation
Regular Fee Option: 0.03% of operation execution
Burn Fee Option: 2 $OS
Regular Fee Only: 8% of $WUSD Credit Rebalancing
DFO Governance Token Initial Supply Generation
Regular Fee Option: 0.3% of total supply
Burn Fee Option: 150 $OS
DFO add external Governance Token
Burn Fee Only: 150 $OS
DFO Factory* Fee (if not free)
Regular Fee Only: 0.1% of Factory fee
*Factories will drive the DFO ecosystem economy. Any DFO can set one up as the repository of a model contract that others can clone and customize for their own various purposes.
Additional fees and other business model features will be introduced in the future.