We believe that community governance and a robust process will benefit Factor's ecosystem. The DAO will enhance decentralization by having members participate in the protocol's governance and guiding it to new heights.
The community will also be incentivized to grow the protocol's value by expanding its ecosystem with new products, partnerships, as well as research to help the DAO make informed decisions. We want to create a vibrant, research-driven community that benefits anyone interacting with the platform.
DAO members may lock their $FCTR tokens to accumulate $veFCTR - the native, non-transferable governance token, and take part in the DAO’s governance mechanism by voting and submitting proposals.
Longer lock-up periods result in greater $veFCTR emissions to incentivize long-term involvement within the community. Members who actively participate in the governance process will receive $FCTR as a reward for supporting the decentralization of the DAO.
Here is a high-level execution plan for how Factor can become a DAO with multiple arms working together to build a comprehensive DeFi ecosystem:
This is the backbone of the Factor DeFi ecosystem and will be composed of several operational subDAOs. The mainDAO will oversee the operations of these subDAOs, and make sure that all efforts are aligned with the overall mission and vision of Factor.
This subDAO will manage the funds and assets held in the Factor treasury, ensuring optimal returns and risk management.
This subDAO will manage the governance and decision-making processes of the Factor DAO, ensuring that the community has a say in the direction and future of the protocol, as well as synergizing between the different subDAOs
This subDAO will fund and manage the development of new features and improvements to the Factor protocol, ensuring its continued growth and evolution.