Grind DAO Tokenomy Whitepaper

Grind Wallet NFT Tokenomy / DAO / Equity Whitepaper

DAO: A New Path Forward

Many people worry that AI will take away our jobs. However, a DAO (Decentralized Autonomous Organization) can serve as a social experiment, showing what the future might look like.
On-chain companies could soon rival today's Big Tech giants. We are at a similar point to where they were in their early days. Like record labels that failed to embrace the MP3 revolution, these firms risk obsolescence if they do not adapt.
The paradigm must shift: instead of letting them profit from our data, we should share in the profits. Most people could earn a living from DAO shares in giants like that, with their votes shaping project outcomes. Some may even entrust voting decisions to an AI agent, trained to uphold their values, who votes and trades on their behalf.
The mission of the DAO is to create a toolkit that enables the practical adoption of Web3 principles while no single solution yet guarantees all of those principles. The Grind Wallet is our primary product and core platform for this effort, evolving with the ecosystem to help realize true Web3 functionality.
In many ways the current Web3 wave repeats mistakes from earlier revolutions. In Web1 people tried to copy books, calendars and newspapers by simply putting them on monitors without understanding that a new medium requires different formats and interactions. Today many Web3 projects are just re-creations of Web2 — "a new Facebook" or "a new Twitter" — and add little that is genuinely new. To unlock Web3's real potential we need products that embrace decentralization, composability and native on-chain experiences rather than merely rebuilding old patterns on a different stack.

About the Funding Campaign

This project is currently in the early stages of development and is seeking funding to help grow faster and expand its reach.
A limited number of NFTs are being offered to early investors. These NFTs will grant access to exclusive features and benefits within the Grind Wallet ecosystem like DAO voting and revenue sharing.

What Makes Grind Wallet Good

• Web3
  This is an important principle of this project, aligning with the movement supporting the inevitable transformation of the network to a new stage. Web3 represents a fundamental shift in how we interact with the internet and manage our digital assets. Unlike traditional web models where third parties control and manage your data and assets, Web3 empowers individuals to truly own their assets.
• Classic
  Cloud wallets are great and I really like them; they are certainly understood by most people outside of crypto. They represent ICP-specific capabilities that other blockchains do not offer.
  However, newcomers from other blockchains might have trouble understanding them, which is why I wanted to create something more classic, something they would understand immediately.
  Moreover, in this case the web3 rules apply: only you are responsible for your funds, not the company offering the cloud service (which may go bankrupt).
• Simple
  There is no confusing language or complicated interface. Users are not overwhelmed with strange L2 networks or additional options and settings; it remains clean.
  
• Slick
  Grind Wallet is designed to be slick, meaning it operates smoothly and quickly.
  It is optimized to remove unnecessary elements, ensuring a streamlined user experience.
• Open source
  Grind Wallet is an open-source project, which means its source code is freely available for anyone to inspect.
  Please note that the name "Grind Wallet" and its logo are not open-source. This is to protect against scam builds and ensure the integrity of the project.
• Community-driven
  This project is governed by a DAO, allowing the community to participate in revenue sharing and product development.
  

Future Plans

• Mobile app
  A mobile app is planned for iOS and Android allowing users to access their wallets on the go.
• Dumbphone app
  I am also considering a version for KaiOS, but this will be subject to a DAO vote.
• Auto-appearing tokens/NFTs
  Providing the canister address or toggling switches in the configuration and waiting for the token to be added to the list is inconvenient.
• Transfer Notifications
  Notifications for incoming transfers and their automatic appearance are also being considered. However, this might be more challenging to implement and it is uncertain whether it can be standardized.
• Web3 trading
  Direct purchasing of self-selling NFTs will be available, allowing users to buy and sell NFTs directly within the Grind Wallet app.
• In-app investing
  Various well-known instruments such as staking will also be available through the interface, allowing users to earn rewards by participating in the network.

Acquisition of DAO shares

When designing a Decentralized Autonomous Organization (DAO), one critical aspect is the mechanism used to represent and distribute ownership or voting power. Many DAOs use fungible tokens with liquidity pools to manage governance, but this model has significant vulnerabilities that undermine the stability and vision of serious projects, especially startups.

Tokens with liquidity pools are highly susceptible to price manipulation. A single entity with sufficient resources can artificially inflate or deflate the token's value by performing coordinated buy/sell actions. This creates an unstable foundation for governance, as voting power or the perceived value of the DAO becomes tied to market speculation rather than the organization's intrinsic worth or contributions to the project.

Moreover, this structure often leads to the DAO being viewed as a “meme token” rather than a legitimate, innovation-driven startup. When token value is the primary focus, it shifts attention away from the project's mission and toward speculative trading—a direction that may erode credibility and deter serious contributors or investors.

Our Solution: Governance Through NFTs

Membership and voting power within the DAO are represented by NFTs, which act as unique and immutable shares of the organization. While fungible tokens ($PML) will play a role within the ecosystem, they are not directly tied to governance. Instead, $PML tokens can be used to purchase NFTs through controlled pools managed by the DAO itself. This ensures that the distribution process remains fair and immune to external manipulation, while also providing a clear and stable utility for the tokens.

A liquidity pool for $PML probably will be created at some point if the project grows. Actually anyone can create one organically already, that's what web3 freedom is all about, but it won't have a major impact on the price of NFTs.

There will be a buyback mechanism for investor NFTs once their value has increased appropriately.

DAO NFTs Details - The Star Of The Show

• Total supply: 1 million NFTs / one vote for each.
  Million votes representing 100% of the startup's value.
  NFTs will be blackholed when the project becomes sufficiently mature.
  NFT denominations will vary. Imagine someone holding and managing 10,000 NFTs; they could consolidate them into larger denominations for easier management.
• NFT holders will have the right to create votes on feature proposals and strategic decisions (DAO).
  The creation of new features will require holding a significant amount of NFTs, not just one or few.
  Participation in the DAO will only occur if the NFT is staked.
  This will be a soft stake which means that the NFT will not be transferend to DAO, but smart contract tracks history of it (should not be transferred anywhere during the stake peroid).
  
• But if you are a holder of just 1 vote, it's not that bad - the system will support the creation of larger NFT pools with friends.
  You will be able to name your group ('guild') and logically allocate these NFTs together, acquiring the rights to create votes and more interesting things.
• NFT holders will be able to vote in DAO, with just 1 NFT being sufficient.
  Naturally, the voting power is proportional to the percentage of NFTs held from the total supply.
  Participation in the DAO will only occur if the NFT is soft staked.
• NFT holders will receive a share of the project's profits proportional to their percentage ownership.
  Profits are derived from commissions and are calculated as revenues minus expenses.
  Revenue sources will be itemized; not all revenue streams will be included. For example, FIAT-based revenues would require a formal securities exchange and therefore may be excluded from the on-chain profit sharing calculations.
  100% of the revenue share will be distributed to 100% of the NFTs that are soft-staked during the relevant period, not to all NFTs in existence; this prevents dilution in favor of holders who have lost or misplaced their NFTs.
• The sale will be conducted in rounds, with the price likely increasing with each round.
• This sale will likely last for a long period, possibly even the next few years.

DAO Guilds

• Any number of individuals will be able to form their own sub-group within the DAO, so-called 'guild' complete with a name, logo, and token to enhance their influence and position.
• Establishing a guild will require soft staking a significant amount of NFTs: 10 000 votes.
• In addition to voting rights, guild members will be able to create their own pools dedicated to investing in various instruments and invite any number of people from their community to join.
• Wallet users will be able to subscribe/unsubscribe from any guild.
• The dissolution of a guild can be subjected to a DAO vote.
• The mere suspicion of a scam entitles the moderator to indefinitely suspend the guild's activities without a DAO voting procedure.
• So owning an NFT is not just an opportunity to earn from it, resell it, but maybe a big company in the future will want to buy the entire guild.

Paml token ($PML)

• Additionally, a companion meme token called Paml ($PML) has been created.
  There will be limited events where DAO NFTs can be purchased not only with ICP but also with $PML.
  Beside of acquiring NFTs it is intended for community engagement: airdrops, puzzles, and games.
  
• Meaning of "Paml":
  BUIDL ➡️ HODL ➡️ PAML
  It symbolizes the best aspects of the crypto world: building dapps and communities, holding tokens, and ultimately, achieving passive income in the tropics under the palm trees. 🍹🌴
• Total supply: 108M
  10% for developer 90% for community
  Blackholed: yes
  Canister id: qjnuk-siaaa-aaaam-ad5fa-cai
  Standard: ICRC-2+

Uncertainties

If you find any gaps or ambiguities, or if you disagree with any assumptions, please let me know on Discord.
Better yet, become a member of the DAO and vote to make changes. The principles presented here will be subject to re-voting in the DAO.

So, wen Lambo? 🌴 🏎️ 🌴

If you hodl, who knows... 😀
But I'm not a financial advisor. 😂

Contact

For any questions, please use Discord.

Changelog

Changelog v0.5:
Removing the exact plan regarding the percentage of sales - it's unknown; the more sold, the more sold.
Removed links due to scammers.
Changelog v0.4:
Better explained the DAO mission (more about web3).
Removed excessive product-level details about the Grind Wallet to concentrate this document on DAO description and governance.
Expanded and clarified the revenue sharing section with more precise mechanics.
Removed section about airdrops; will be distributed in very large quantities anyway; there is no point in specifying exact numbers.
Removed section about SNS it doesn't matter for DAO.
This is important: removed the part about guilds will be promoted inside the wallet. There is no mechanism to police or guarantee the honesty of guilds; in the spirit of Web3, people must take responsibility for their own decisions.
Changelog v0.3:
Explaining the reason why the acquisition of DAO shares is divided into 2 steps: token and NFT.
Changelog v0.2:
Added details about staking: it will be soft staking.
NFTs can be grouped into larger denominations for convenience.
10k votes to create a Guild. NFTs will be blackholed after the sale.