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Teia token distribution fact sheet

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Everything you need to know about Teia's DAO Token distribution

This article aims to provide an overview, as well as detailed information, about Teia's upcoming DAO Token drop and answer the most common questions. If you have any further questions, don't hesitate to ask in the channel #dao-building on Teia's Discord or use the discussion thread on our Discourse forum.

Click here for the Chinese translation of this article

Table of Contents

Intro

teia.art is a community-powered art platform and a community-run non-profit DAO LLC.

Since November 2021, the Teia DAO Building Guild has been working on Teia's DAO setup.

During the current first phase of the DAO, Teia has been run by a multisig of 19 community members. For the next stage, the goal is to distribute the voting power and delegate decision-making to the Teia community via Teia DAO tokens that need to be distributed.

For the next phase, we want to move to our DAO setup that uses Teias DAO tokens for voting. For this, we need to start distributing the governance tokens.

Note that no token value above being a voting token is implied. The Teia DAO Token is solely intended as a governance token and should not be treated as a financial/investment asset. Due to its non-profit nature, Teia can't and won't distribute profits and can only use funds generated to maintain operations, fund exhibitions, and support education, art, and cultural exchange in general.

All eligible Tezos wallets will be invited to claim their Teia tokens and participate in the development and workings of the Teia DAO. The Teia team is working hard to make distribution as fair and effective as possible.

Whoever claims their tokens becomes a member of Teia DAO LLC by virtue of token ownership.

We got audio

In order to inform the community about the Token distribution and vote, we organised twitter spaces in early june in different languages, that are now available to be listened back on twitter as recordings. In these spaces we gave the community a general update on the DAO setup, the token distribution and the token supply vote.

Here you can find the recordings:

The Community Vote on Total Supply of Teia Tokens

The community has decided via an on-chain vote that there will be a total fixed supply of 8 Million Teia DAO Tokens.

For a rough estimation of the token distribution, you can check this distribution spreadsheet based on the data available before the community vote. Please note that the exact amounts in these tables might change for the final distribution. An additional 50k tokens will be distributed among participants of the vote. Furthermore, the data might get updated for the actual token distribution, but these tables should give a very good preview.

About the Distribution

The Teia DAO tokens will be distributed via a token claim page where eligible wallets will be able to claim their tokens based on the following main criteria:

  • Activity: Interaction with Teia’s and/or Hic et Nunc’s marketplace contracts. This is by far the biggest factor in the Token distribution.
  • Contribution: Contribution to Teia and Hic et Nunc defined by many different distribution parameters as laid out below.
  • hDAO conversion: A 1:1 hDAO for Teia DAO Token reward.
  • Additional voting reward: Reward for participating in the community vote about the overall token supply.

650k Tokens are allocated as hDAO rewards, 300k Tokens are reserved for the Teia treasury (for future distribution(s) along with all unclaimed tokens), and 50k will be distributed among all wallets that participated in the community vote on the total supply, adding up to 1 Million. The remaining supply is split up according to parameters laid out below in the Q&A section.

For the total supply of 8 million tokens, we get the following split between the reward parameters:

  • 6.44 million tokens (~80%) will be distributed based on activity.
  • 650k (~8%) Tokens will be distributed based on hDAO ownership.
  • 560k Tokens (~7%) will be distributed based on contribution.
  • 300k Tokens (~4%) will be locked in the treasury for future drops.
  • 50k Tokens (~1%) to be distributed among participants in the community vote about token supply.

After the claiming period of a few months, unclaimed tokens will also remain in the treasury for future drops.

hDAO Rewards

hDAO is a DAO token issued by hicetnuncLab2000 that was sold and distributed in the very early days of hicetnunc for trading activity on hicetnunc and sold via exchanges. The promised DAO that was supposed to be governed by hDAO was never realized, but hDAO was used for different things like curation or trading NFTs.

There has been a lot of back and forth during our Token discussions on whether hDAO should be a factor in Teia's Token distribution. The agreement we have reached is that we see hDAO as an experiment around the early ideas of hicetnunc, which has laid the groundwork of Teia's code and inspired our core values and philosophy. Giving out Teia DAO tokens to hDAO holders is intended as a tribute to our roots in hicetnunc and as an acknowledgement of the support the spirit of hen has seen by people who still hold the tokens.

There will be a 1:1 reward of Teia Tokens for hDAO Tokens.

Next Steps

A few final steps and decisions need to be made within the team and the wider community, and then it's finally time to claim your tokens. Please stay updated by following Teia's Twitter account and this blog to not miss out on any updates and announcements!

  • Mid June: The team will adjust the contributors sheet based on community feedback, prepare data, and create a token claim page for the distribution. They will also agree on the length of the distribution period.
  • Mid to late July: The token distribution period will commence, allowing Teians to claim their Teia DAO tokens.
  • After the distribution: Teia will launch its DAO beta phase, utilizing the DAO contracts for voting on DAO proposals. During this phase, the legal ownership will remain with the core team multisig, as the contracts are not fully tested.
  • After the beta phase: Full ownership of Teia will be transferred to the DAO contracts.

Q&A section

Table of Contents

General

What Are Teia DAO Tokens for?

The Teia DAO tokens only purpose is voting on operational decisions for Teia as registered non-profit DAO LLC. The Tokens define who is a member of the DAO. Due to the nature of the RMI DAO LLC legal construct, membership of the LLC is defined by ledger addresses on the blockchain. This means, anyone who holds Teia DAO Tokens is considered a part of the DAO.

Due to the limited liability legal setup Teia has incorporated under, the LLC acts as a legal wrapper, so individual members wont be held legaly responsible for actions of the DAO (unless they are commiting a crime).

Why do I need to claim my tokens? Why are they not being airdopped?

The Teia DAO Token drop will happen via claim, no Tokens will be airdropped. Unclaimed Tokens will remain in the DAO treasury for future distribution(s).

We do this for several reasons: To make the DAO process work, we first need to make sure that members of the DAO (=Teia DAO Token holders) are actively participating; The fact that Teians need to actively claim their tokens ensures that “sleeping” wallets won’t claim their tokens.

Secondly, since Token ownership means becoming part of the DAO as a member, we don’t want to force anyone to become members, so by claiming your token, you give your consent to becoming part of the DAO.

Which wallets are elligible to a token claim?

Wallets that have interacted with the Hic et Nunc and/or Tezos smart contracts for longer than 14 days are eligible to claim activity rewards. Any wallet that had an hDAO balance during the snapshot block can claim an equal amount of Teia DAO Tokens.

Wallets that are excluded from the drop are:

  • Wallets on the restricted list for breaking the marketplace rules.
  • Wallets that have obviously engaged in wash trading to receive hDAO rewards during the hDAO distribution period won't receive Teias Token rewards for their hDAO and activity parameters 7 and 8.

When and how long will the claiming period for the tokens be and what are the next steps?

After this community vote has decided on a token distribution model, we will need a few more weeks to set up the claiming app, readjusting the contribution list based on community feedback, then we can start the token distribution based on the chosen model.

The exact claiming period is not yet decided at this point. but a soft consensus seems to form within the DAO working group that something around 1-3 months seem reasonable.

we will inform the community about the next steps towards the distribution via our blog, discord and twitter.

Will there be another distribution of tokens?

There will be Teia DAO Tokens remaining in the DAO treasury after the first drop. These tokens should be distributed at some point, but it will be for the DAO to decide when and how that should happen.

It is however pretty safe to say that potential future token distributions will be based on activity and contribution to Teia only. After the first distribution, hDAO, activity and contribution to hicetnunc will not be relevant to future Teia token distributions.

Do I need to do KYC when I am part of Teia DAO?

As of today, no member needs to undergo KYC (Know Your Customer) just because they hold Teia DAO Tokens. According to the jurisdiction Teia falls under (Marshall Islands), anyone who holds 10% or more voting power in a DAO LLC must provide KYC. However, the smart contracts have a limit of tokens a wallet can hold implemented, which means no wallet can hold more than, for example, 5% (exact amount not decided yet) of overall Tokens. There will be exceptions to those rules for addresses like the treasury that need to hold more tokens but can’t be used to vote. So if someone for whatever reason gets hold of 10% or more voting power, they will have to provide KYC information to Teia. But as laid out above, we dont expect this to happen.

Are there Tax implications if I claim my tokens?

We ask all users who want to claim their tokens to check their local tax regulations for possible tax liabilities related to token claims. Teia does not issue these tokens as monetary or investment assets, nor does Teia assume any kind of monetary value with these tokens.

However, due to the fact that these tokens are tradeable on the market, it is very likely that the tokens will have a value on the market. This is beyond Teia's control. Please do your due diligence and research the tax implications in your jurisdiction before claiming your tokens. Teia will not be liable for any personal taxes.

When will I be able to vote in the DAO? Is there a roadmap?

After the distribution period, we will start using the DAO contracts for voting on DAO proposals. There will be a beta phase for the DAO contracts in which the legal ownership of Teia, and therefore the final say, will remain with the current core team multisig while the DAO contracts are new and might need to be adjusted. In this phase, the DAO will still use the contracts and tokens for voting, but the core team will oversee the beta phase and fine-tune the contracts.

After that, the legal ownership and decision-making will be fully transferred to the full DAO setup, at which point the DAO will be run by all its members (=Token holders).

Will I be able to buy/sell Teia Tokens?

Teia DAO Tokens are transferable and tradeable. This Token will have a fixed supply (the amount of which will be determined by a community vote). However, they are not intended to be traded for money per se, and in the future, the DAO might even decide to move to a new Token and/or implement technical disincentives for trading as the Tokens are intended for governance, not for speculation.

Additionally, there will be a fixed maximum amount of tokens one wallet can hold (most probably around 5% of total supply), this includes Liquidity pools. Teia won't set up liquidity pools or such. If people want to trade the Tokens, they will need to set up an LP themselves. If a transaction would give a wallet tokens above that threshold, the transaction will not be processed.

How do you prevent single entities from accumulating tokens and taking over the DAO?

We have implemented a few things to make sure Teia stays horizontal

  • 30% of overall voting power is dedicated to a representatives committee multisig that is intended to be controlled by representatives of different communities, collectives and regions (for more details, see the reps working doc). This is supposed to give the votes from individuals a more communitative counterbalance.
  • We implemented the option to switch from a linear to a quadratic voting mode, which is one solution to curb “Token whales” from taking over if needed.
  • the contracts enforce a max % of the total supply that each wallet can hold. this rule was implemented for legal reasons but also helps with this issue. It also applies to liquidity pools which will make it harder for huge amounts of tokens getting sold quickly.

If there is a 1:1 Token reward for hDAO, what keeps people from buying hDAO on the market before the drop to gain more Teia Tokens?

The amount of hDAO counted per wallet for the token claim has already been determined and locked in via the hDAO snapshot we took in April. This means that any trading or transfers of hDAO after the snapshot (Tezos block #3400856) are not relevant to the Teia Token drop.

Does it make a difference if I have multiple wallets or just one?

You will need to claim your Teia DAO Tokens with each wallet that was actibve on hic et nunc and/or Teia to Tokens in order to receive all the Tokens you are eligible to.

If your minting and collecting activity is distributed between multiple wallets, you could get a little more or less tokens than if you had the same activity on one wallet depending of the case, but the difference should be minimal compared to one wallet with all your activity.

Wallets with less than 14 active days are not counted, so if one of your wallets had little activity, you might not get any token from it. Some parameters use a weight that is proportional to the square root, so having several wallets helps to get more tokens.

This could be unfair in some cases, but the total number of wallets we have to take into consideration for the distribution is so large that we can’t find perfect solutions for every case.

Activity Parameters

How are the Token rewards for the different activity and contribution weighted?

  1. Active days using Teia and/or H=N - 15%
  2. Active days using Teia - 15%
  3. Participation in the Teia online voting tool, vote.teia.art - 10%
  4. Number of minted OBJKTs on Teia/The hicetnunc contracts- 7%
  5. Number of collected OBJKTs on Teia/The hicetnunc contracts- - 8%
  6. Number of connections to other users within the OBJKT ecosystem (hicetnunc/Teia) - 7%
  7. Earned tez by selling on Teias or hicetnuncs marketplace contracts 15%
  8. Spent tez on Teias or hicetnuncs marketplace contracts 15%
  9. Contribution to Teia 8%.

You can find a more detailed explanation of the activity/contribution parameters in the list below.

With the exception of parameters 1, 2 and 9, we decided to weight the parameter values by their square root. This solves the problem of assigning most of the tokens to users that are clear outliers in the distribution.

For example, in the case of parameter 4, a user that minted 5000 OBJKTs will receive 10 times more tokens than a user that minted 50 OBJKTs. If we would have used linear scaling, the factor would be 100.

What do the Parameters on the distribution tables mean exactly?

  • address: The user tz wallet.
  • username: The user alias. We obtained this information from different sources (H=N, Teia, fx(hash), tzkt, tezos profiles, tezos domains).
  • type: The type of user.
    • artist: a user that has minted at least one OBJKT.
    • patron: a user that never minted, but collected some OBJKTs.
    • swapper: a user that never minted or collected, but swapped OBJKTs. They probably received those OBJKTs from another wallet or used other marketplace contracts to collect it.
    • hdao_owner: a user that never interacted with the H=N or Teia marketplaces, but owns hDAO tokens.
    • contributor: a user that contributed to H=N or Teia, but didn’t interact with the marketplace contracts.
  • contributor: TRUE if the user has contributed as per the contributor parameters
  • contribution_level: the user contribution level. It can be 0 (no contribution), 1 or 2 (as per the contributor parameters)
  • contribution_type: the user contribution type (as per the contributor parameters)
  • twitter: The user twitter profile. We obtained this information from different sources (tezos domains, tzprofiles, tzkt).
  • verified: TRUE if the user has verified their twitter/github/website with tzprofiles.
  • has_profile: TRUE if we could get some user information in addition to their tz wallet address. It could be a H=N / Teia / fx(hash) / tzkt username, a tzprofile or a tezos domain.
  • hdao: The amount of hDAO tokens owned by the user at the hDAO snapshot block # 3400856. (see also hDAO snapshot announcement for more details)
  • first_activity: The timestamp of the first recorded user activity in the H=N / Teia marketplaces.
  • last_activity: The timestamp of the last recorded user activity in the H=N / Teia marketplaces.
  • active_days: The number of different days that the user has minted, swapped or collected OBJKTs using the H=N or Teia smart contracts. This counts the same for big or small collectors and artists. OBJKT swaps or collects in the objkt.com smart contracts do not count.
  • teia_active_days: The number of different days that the user has swapped or collected OBJKTs using the Teia smart contracts. This counts the same for big or small collectors and artists. OBJKT swaps or collects in the H=N or objkt.com smart contracts do not count.
  • minted_objkts: The total number of OBJKTs minted by the user.
  • collected_objkts: The total number of OBJKTs collected by the user using the H=N or Teia marketplace contracts.
  • swapped_objkts: The total number of OBJKTs swapped by the user using the H=N or Teia marketplace contracts.
  • money_earned_own_objkts: The total amount of tez earned by the user (on the H=N or Teia marketplace contracts) selling their minted OBJKTs.
  • money_earned_other_objkts: The total amount of tez earned by the user (on the H=N or Teia marketplace contracts) selling OBJKTs minted by other artists.
  • money_earned: The addition of money_earned_own_objkts and money_earned_other_objkts.
  • money_spent: The total amount of tez spent by the user (on the H=N or Teia marketplace contracts) collecting OBJKTs.
  • collaborations: The number of Teia artists collaborations in which the user has participated.
  • connections_to_artists: The number of different artists from which the artist has collected an OBJKT.
  • connections_to_users: The number of different collectors that have collected one of the OBJKTs minted by the user.
  • teia_votes: The number of times that the user has participated in the Teia community votes on Teias on-chain voting tool. There have been 4 Teia votes so far (2 rounds for the naming, 2 votings for collaborations with other marketplaces), so the maximum number of Teia votes is 4.
  • scaling_factor: The scaling or multiplicative factor to be applied for the Teia activity token calculation in the next columns. Users with only a tez wallet known have a multiplicative factor of 1. Users for which some extra information was found have a multiplicative factor of 2. Users that have a twitter/github/website verified with tzprofiles have a multiplicative factor of 3. Teia and H=N contributors also have a multiplicative factor of 3. Users with (active_days < 14) AND (teia_votes = 0) AND (money_spent < 1000 tez) AND (are not contributors) have a multiplication of 0 (that removes a lot of low activity users and possible bot wallets).
  • activity_amount: The number of Teia DAO tokens that the user will receive based on their active_days column and their scaling_factor. tokens = scaling_factor * active_days
  • teia_activity_amount: The number of Teia DAO tokens that the user will receive based on their teia_active_days column and their scaling_factor. tokens = scaling_factor * teia_active_days
  • voting_amount: The number of Teia DAO tokens that the user will receive based on their teia_votes column and their scaling_factor. tokens = scaling_factor * square_root(teia_votes)
  • minting_amount: The number of Teia DAO tokens that the user will receive based on their minted_objks column and their scaling_factor. tokens = scaling_factor * square_root(minted_objks)
  • collecting_amount: The number of Teia DAO tokens that the user will receive based on their collected_objks column and their scaling_factor. tokens = scaling_factor * square_root(collected_objks)
  • connections_amount: The number of Teia DAO tokens that the user will receive based on their connections to artists or collectors columns and their scaling_factor. tokens = scaling_factor * square_root(user_connections)
  • earnings_amount: The number of Teia DAO tokens that the user will receive based on their money_earned_own_objkts column and their scaling_factor. tokens = scaling_factor * square_root(money_earned_own_objkts)
  • spending_amount: The number of Teia DAO tokens that the user will receive based on their money_spent column and their scaling_factor. tokens = scaling_factor * square_root(money_spent)
  • contribution_amount: The number of Teia DAO tokens that the user will receive based on their contribution_level column and their scaling_factor. tokens = scaling_factor * contribution_level
  • hdao_amount: The number of Teia DAO tokens that the user will receive based on their hdao column. tokens = hdao
  • Total_amount: The total number of Teia DAO tokens that the user will receive. This column is the addition of the previous Teia DAO token columns.

Why are there so many parameters? This is hard to grasp!

There are indeed a lot of parameters on the model sheets, these are all data points needed to calculate our distribution along the 9 main parameters described above. When modelling the distribution, we tried to take all kinds of users into account: artists, collectors and contributors, all with different types of activity: some might have less tez volume turnover but are still very active, others have brought a lot of tez volume into the ecosystem, supporting others.

If we would only take a few parameters into account, like for example “tez spent” or “tez volume earned” smaller artists/collectors with less tez volume but a lot of activity wont get much voting power.

At the same time, we don't want to give the same number of tokens to the 100k wallets on this list, because then bots or wallet networks controlled by few users will have a lot of voting power. Also, we want to give the most active users more voting power because the whole DAO will rely on user participation both in terms of using teia.art, voting on DAO proposals with enough votes so a proposal can pass its quorum and of course in volunteer contribution.

Contribution rewards

How are the contribution levels defined?

In order to reward contributions to the Teia project with voting tokens, we have decided to allocate 8% of the overall token supply to "contributors" to Teia, who are assigned as level 1 or 2.

8% of the activity/contribution reward supply (see above) will be distributed according to the contribution levels of each wallet: level 0 won't receive tokens for contribution, level 1 will receive half as many tokens from these 8% as level 2.

Level 1 is for basic contributions: either contributions to hicetnunc only, collaborative work, or contributors who contributed until Q1 of 2022.

Level 2 is for active and/or essential contributors to Teia in particular, aiming to reward contributors who have volunteered for more than one day of work over a long period of time or have played a vital role in Teia's existence to this day.

Contribution types

Teia contributors

  • TA: Teia multisig members (lvl 2)
  • TB: Teia regular contributors that continued or joined after 1st quarter of 2022 (lvl 2)
  • TC: GitHub contributors to Teias repository with over 5 commits (lvl 2)
  • TD: Hicathon collab contract working group as implemented on Teia (lvl 2)
  • TE: Teia sponsors/donators above 1k tez (lvl 2)
  • TF: Individuals who have contributed to Teia with roughly 1 day of work or less/or contributed in the first 4-months (lvl 1)
  • TG: special cases: people that have done essential outreach or advisory work for Teia (lvl 2)
  • TH: GitHub contributors to Teia with less than 5 commits (lvl 1)
  • TI: smaller donations to teia between 100 and 1k tezos (lvl 1)

Hic et nunc & external contributions

  • HA: GitHub contribution to the Hic et nunc codebase (lvl 1)
  • HB: Hicathon participants that were present in both hicathon rounds and received a bounty for completing their hiacthon project. (lvl 1)
  • HC: Special cases: individuals who did essential outreach or promotion work for Hic et nunc (lvl 1)
  • EA: External teams from the wider ecosystem that have integrated/collaborated with Teia (lvl 1)
  • EB: External help that was essential to the development or operations of Teia (lvl 2)
  • EC: External teams that have supported Teia since inception (lvl 1)
  • ED: Built a tool for the OBJKT ecosystem or set up a mirror during hen discontinuation (lvl 1)
  • EF: individuals that set up a mirror/fork for hen during hen discontinuation (lvl 1)

I have contributed to Teia/Hic et nunc in a substantial way but i didn't get a contribution level in the distribution sheet.

If you feel that you satisfy the above-mentioned contribution parameters and have been overlooked, please write an email to [email protected] with your main Tezos address and a brief description of your contribution to Teia and/or Hic et nunc for the DAO core team's consideration. The Teia Core team will do their best to add people who have made significant contributions to the project and apologize if we missed any contributors. The list has been compiled over the last month by a group of volunteers, and errors and oversights can never be ruled out.

Why is contribution to hicetnunc being rewarded?

Since Teia is a fork of the former Tezos marketplace "Hic et nunc," we have also included contributions to Hic et nunc and the wider Tezos NFT ecosystem, as well as individuals and organizations that have helped Teia get to this phase. These contributions have been assigned a level 1. The details are outlined above.

Is my activity on Objktcom/Versum/Hicaf being counted for the activity rewards?

All the parameters for the token drop only consider interactions with Teias and/or Hicetnunc smart contracts. This means activity from objktcoms listings won't be counted, but if you interacted with Teia/Hen contracts via objktcoms, Versums, Hicafs or any other UI (i.e. by collecting something swapped on Teia or Hicetnunc on objktcom), then this activity will count for your activity rewards. The UI on which you interacted doesn't matter; the only thing that matters is if your wallet has used Teia's and/or Hicetnunc's smart contracts.

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