DFINITY Foundation

Internet Computer Association

Synapse.vote (original)

Arthur’s Neuron (used to be cycle_dao)

ICDevs.org

CryptoIsGood

Anvil

ICPL.app

Inactive (Request Removal) - The Fools' Court

ysyms

The Accumulators’ Neuron

RawTech Venture

Paul Young

ICPMANUAL

8yeargangDAO

John Wiegley

Isaac Valadez

Krzysztof Żelazko

Always Rejects

Nicolas.ic

Smaug’s Neuron for Retail Investors

ICLight.io

Synapse.vote (NEW)

Taggr Network

CodeGov.org

Sonic AMM


## Summary

This is the proposal for the NNS to create an SNS DAO to govern the Modclub dApp

## Purpose

Modclub is a decentralized crowdwork platform built on the Internet Computer blockchain that aims to support dApps by handling resource-intensive tasks such as moderation, user verification and data labelling.

By leveraging advanced technologies and a global workforce, Modclub ensures top-quality services. Modclub aims to alleviate the burden of moderation, enabling IC developers to focus on their products.

The Modclub DAO is being formed to operate and steer the direction of Modclub. Holders of MOD tokens can stake them as neurons which allow them to make and vote on proposals to change the Modclub DAO. 

The SNS DAO will hold the reserve of MOD tokens and ICP which can be used to fund the ongoing development of dApp and to algorithmically reward users to encourage positive usage and growth. By rewarding contributing users with MOD tokens and neurons they will benefit from the long-term success of Modclub. The expectation is this will create a large team of advocates who will promote Modclub.

MOD tokens can be used to reward moderators for their work on the platform. 

## Proposed Token Distribution 

Total token supply: 1 billion MOD tokens

Initially distributed:
- 42.65%: Reserved for the SNS reserve treasury & under the control of the Modclub DAO
- 22.5%: To be distributed by the NNS-run decentralization swap which includes the Neuron Fund
- 16%: Modclub Team
- 6.685%: Pre-seed
- 5.165%: Seed
- 5%: Advisors
- 2%: Airdrop, for early supporter Airdrop participants, active Modclub beta testers, and Funded NFT holders.

Ledger transaction fee: 0.0001 MOD tokens

For more information please refer to our [SNS Proposal Summary](https://github.com/modclub-app/modclub/blob/main/sns/sns_proposal_summary.md).

## Governance

- Each decentralization sale participant (including the Community Fund) will receive their tokens in a basket of 5 equal value MOD neurons with dissolve delays of 0, 3, 6, 9 and 12 months respectively
- For more information on governance and tokenomics please refer to our Tokenomics paper.

The governance parameters for Modclub are proposed to be initially set as:
- Min stake: 36 Mod tokens
- Min staking period for voting: 1 month
- Max staking period: 1 years

Voting Rewards: 1.5% of MOD token supply minted annually
- Max staking bonus (for 2 years): 2x
- Max age for age bonus: 2 years
- Max age bonus: 1.25x

These parameters can be verified by querying the governance canister's get_nervous_system_parameters method at [https://dashboard.internetcomputer.org/canister/wyhyp-aiaaa-aaaaq-aabcq-cai](https://dashboard.internetcomputer.org/canister/wyhyp-aiaaa-aaaaq-aabcq-cai)

## Decentralization Swap

22.5% of the total supply of tokens are proposed to be distributed via an SNS decentralization sale. If the proposal is adopted, the sale will start after the specified delay and is scheduled to conclude after 15 days.  If the maximum number of ICP configured below is raised before that date the sale will conclude earlier.

Sale participation parameters:
- Min participation: 1 ICP
- Max participation: 150,000 ICP
- Max to be raised: 1,250,000 ICP
- Min to be raised: 650,000 ICP
- From Community Fund: 372,793 ICP
- Min participants: 300


Disclaimer: This swap is open to any persons or entities other than those who are citizens of, or reside or are located, incorporated or have a registered office in the United States of America or (i) any country embargoed by the government of Canada, the United States, the United Kingdom or the European Union or are a foreign person or entity blocked or denied by the Canadian, United States, the United Kingdom or any European Union government or (ii) a country which has been sanctioned by the United Nations, including without limitation Iran, Cuba, North Korea, Syria, Myanmar (Burma) and the regions of Crimea, Donetsk and Luhansk.

## The dApp

The Modclub dApp consists of a set of canister smart contracts.
Top-level canisters controlled by the [Modclub SNS root canister](https://dashboard.internetcomputer.org/canister/w7g63-nqaaa-aaaaq-aabca-cai):

- Website asset canister (ddmi3-laaaa-aaaah-qdbqa-cai)
- Main Modclub canister (gwuzc-waaaa-aaaah-qdboa-cai)
- Authentication / Security canister (gdtip-xiaaa-aaaah-qdbnq-cai)
- Reputation management canister (grv7w-3yaaa-aaaah-qdboq-cai)
- Vesting canister (g7xs6-aiaaa-aaaah-qdbpq-cai)


All the details above can be verified, by examining the initialized Modclub SNS canisters. More detailed instructions [here](https://wiki.internetcomputer.org/wiki/How-to:_Verify_SNS_decentralization_swap_proposal).

Proposal to create an SNS-DAO for Modclub