What is the Membership Ratio?
The Membership Ratio is the amount of wxDAI (wrapped xDAI) each CSTK Token holder is able to send to the Hatch.
If the Membership Ratio is 2 wxDAI/CSTK
And Alice has 100 CSTK
Then Alice can send 200 wxDAI to the Hatch
What is the impact of the Membership Ratio?
It determines the Max we can raise. If the total supply of CSTK Tokens is 1,000,000 CSTK and we pick a Membership Ratio of 1 wxDAI/CSTK then everyone who has CSTK would have to contribute the maximum possible for us to raise 1,000,000 wxDAI in the Hatch.
What is wrapped xDAI?
DAI is pegged to the US dollar and is an ERC-20 token that lives on the Ethereum Network. It is overcollateralized using MakerDAO’s Vault system (formerly called CDPs).
xDAI is the native currency for the xDAI chain, which is a side chain bridged to Ethereum. The xDAI Bridge allows DAI to become xDAI at a 1:1 rate. xDAI on the xDAI chain acts like ETH does on the Ethereum network, so all transaction fees (gas) on the xDAI chain are paid in xDAI and smart contracts can respond when xDAI is directly sent to them.
wxDAI is the ERC-20 version of xDAI, just like wETH is the ERC-20 version of ETH. Often it is easier for DApps to work with only ERC-20 tokens, this is the case for Uniswap, Balancer and many other projects on Ethereum and this is also the case for the Gardens Template and the TE Commons.
DAI can be turned into xDAI here (1:1): https://dai-bridge.poa.network/
xDAI can be turned into wxDAI here (1:1): https://honeyswap.org/#/swap
What is CSTK?
CSTK is a non-transferable ERC-20 token that represents the holder’s membership score in the Trusted Seed.
The Trusted Seed and CSTK Token is explained in depth in this blog post: https://medium.com/commonsstack/cstk-the-token-of-the-commons-stack-trusted-seed-931978625c61
The TL;DR for here is
- CSTK Tokens are not normal tokens. They will never have monetary value.
- Holding CSTK tokens identify you as a member of the Trusted Seed and therefore part of the Commons Stack’s Swiss Association.
- Being a member of this Swiss Association offers certain legal protections and is a requirement to participate in the Hatch of the TE Commons in any way.
- To become a member you must apply and pay a membership fee (this will be possible soon).
- CSTK Tokens are accumulated via Praise (much like impact hours) and from financial contribution. They are a measure of both skin in the game and trust.
- The Commons Stack controls the issuance of the CSTK Token.
- After participating in the TEC Hatch, there is a hope that CSTK Token holders will be able to take these learnings and support the Hatch of other Public Goods focused economies.
Why does someone have to have CSTK to be part of the Hatch?
Being a member of the Commons Stack’s Swiss Association will help protect Hatchers from being individually liable for the launch of the Commons.
When Hatching the TE Commons we are initializing the governance that will control the value production of TE Public Goods. It is important that the people who take on this responsibility are trusted to care more about creating value for the field of Token Engineering than their own individual profit. The Commons Stack uses the CSTK token to curate a community that fits that description.
So what do we need to talk about in this post?
What other parameters are important to consider when picking the Membership Ratio?
What other information should we use to decide the Membership Ratio?