Hatch Goals - Deep Dive

What are the Hatch Goals?

There are 2 Hatch Goals

  • Minimum Goal: The amount that needs to be raised during the Hatch to initialize the bonding curve
  • Maximum Goal: The maximum amount of funds that can be sent to the Hatch

The default setting for the Rinkeby Test was that both Goals were set to the same value, 300 tDAI.

This makes the math simple, and sets clear expectations for everyone. It removes all variables from the Hatch, most notably the Opening price and the Redeemable Pool Ratio.

Does this match the original Commons Stack Design?

No. The Commons Stack design had the desire of setting the Hatch Price and Open price as constants, but we only have a minimum raise (based on how much funding in the funding pool we think we need to make an impact) and did not have a cap on the Max that could be collected during the Hatch. To deal with the amount raised in the Hatch being variable we actually made the shape of the curve variable (in this case that would mean making the reserve ratio variable). You can see this in action on our website: https://commonsstack.org/abc

So what do we need to decide?

There are a few questions to discuss around the Hatch Goal…

  1. [Technical Blocker] Can we still have the Hatch Price and Open Price constant if we don’t have the Hatch goal represent the Min and Max goal? There is a lot of value in keeping those two constant for the Hatchers to have clear expectations when joining.

  2. Based off that answer, should it be a Min and a Max all in one as it is currently? Or should there be a Min and a Max? Or only a Min? Or a Min with a very very high Max?

  3. Based off that answer, if applicable, how do we deal with a variable amount raised during the Hatch?

  4. What information should we use to decide that actual value of the Min and Max goals?

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Reserve ratio can be modified using Dandelion Voting after the hatch is complete and before the bonding curve is open, so we can still have this pre-determined Open Price.

Maybe what we can begin determining is the hatch price and the open price. I think in the cadCAD models we have been testing with 0.10 DAI and 0.30 DAI respectively, and worked pretty well. Do them work well for us or we want something like 0.01 and 0.03 or even 0.001 and 0.003 to don’t have to deal with too much decimals in the future when the value of the token is higher? Is a 3x return on investment enough?

Depending on the min goal and the hatch tribute, we will have the min reserve ratio and the min funding pool funds to start our commons. They are important to be high, because we don’t want to token to be very much undercollateralized, and we’ll need initial funds to begin commoning.

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Yes! That is Huge!

We will need to decide what the minimum amount of funding we want to have in the Funding Pool at launch is… This will be a critical number…

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This goes well with the direction of starting with a Moloch style DAO with a guaranteed donation (the Hatch Tribute) and then upgrading after the Hatch.

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