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LaraAS committed Jun 12, 2023
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6 changes: 3 additions & 3 deletions docs/developer-docs/integrations/sns/index.md
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Expand Up @@ -70,12 +70,12 @@ The **Wiki** contains more information about
* [Community Fund](https://wiki.internetcomputer.org/wiki/Community_Fund).
* [SNS Rewards](https://wiki.internetcomputer.org/wiki/SNS_Rewards).
* [SNS Tokenization Considerations](https://wiki.internetcomputer.org/wiki/SNS_Tokenization_Considerations).
* [SNS decentralization swap trust](https://wiki.internetcomputer.org/wiki/SNS_decentralization_sale_trust).
* [SNS decentralization swap trust](https://wiki.internetcomputer.org/wiki/SNS_decentralization_swap_trust).

The Wiki also contains guides for the following topics:
* [How to: get a DAO on the IC](https://wiki.internetcomputer.org/wiki/How_to_get_a_DAO_on_the_IC) providing a summary of how someone can get a DAO on the IC, but this is largely subsumed by the developer documentation here.
* [How to: SNS tokenomics configuration](https://wiki.internetcomputer.org/wiki/How-To:_SNS_tokenomics_configuration) providing material enabling teams to choose a tokenomics set-up for their SNS DAO.
* [How to: verify SNS decentralization swap proposal](https://wiki.internetcomputer.org/wiki/How-to:_Verify_SNS_decentralization_sale_proposal) which is a guide how to verify the NNS proposal that starts a SNS decentralization swap.
* [How to: verify SNS decentralization swap proposal](https://wiki.internetcomputer.org/wiki/How-to:_Verify_SNS_decentralization_swap_proposal) which is a guide how to verify the NNS proposal that starts a SNS decentralization swap.
* [How to: interact with SNS canisters](https://wiki.internetcomputer.org/wiki/How-to:_Interact_with_SNS_canisters) which is a guide on how to interact with SNS canisters.
* [How to: participate in the SNS decentralization swap via quill](https://wiki.internetcomputer.org/wiki/How-To:_Participate_in_the_SNS_decentralization_sale_via_quill), which is a command line tool for interacting with canisters.
* [How to: participate in the SNS decentralization swap via quill](https://wiki.internetcomputer.org/wiki/How-To:_Participate_in_the_SNS_decentralization_swap_via_quill), which is a command line tool for interacting with canisters.
* [How to: join the community fund via quill](https://wiki.internetcomputer.org/wiki/How-To:_Join_the_Community_fund_via_quill), which is a command line tool for interacting with canisters.
4 changes: 2 additions & 2 deletions docs/developer-docs/integrations/sns/launch-sns/launch-sns.md
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Expand Up @@ -11,8 +11,8 @@ mainnet more accesible, they are listed below.

## Submitting an NNS proposal to approve the SNS {#SNS-launch-command-NNSproposal1}
After preparations and choosing the parameters
([Step 1: Preparation](../lifecycle-sns/sns-launch.md/#SNS-launch-step-preparation),
an [NNS proposal approves the creation of the SNS](#SNS-launch-step-NNSapproval).
([Step 1: Preparation](../lifecycle-sns/sns-launch.md#SNS-launch-step-preparation),
an [NNS proposal approves the creation of the SNS](../lifecycle-sns/sns-launch.md#SNS-launch-step-NNSapproval).
Anyone who owns and NNS neuron with enough stake can submit such a proposal
that lists a principal wallet in SNS-W who can then deploy the SNS canisters.
For the larger context, you can consider how this command is used in the SNS
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Expand Up @@ -47,8 +47,7 @@ ledger canister such as the token name, token symbol, and the ledger transaction
- **The initial token distribution**: this allows specifying which portion
of tokens are allocated to whom. Tokens can be distributed to
the following four buckets:
- **Developer tokens** that are appointed to the original developers of the dapp and
seed investors.
- **Developer tokens** that are appointed to the original developers of the dapp.
- **Airdrop tokens** that can be given to any other predefined principals that
should have tokens at genesis, for example to existing users
of the dapp.
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2 changes: 1 addition & 1 deletion docs/developer-docs/integrations/sns/tokenomics/rewards.md
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Expand Up @@ -15,7 +15,7 @@ The full potential of tokenization can be unlocked by a tokenized open governanc
where tokens can be staked to participate in voting. Anyone with staked tokens
can submit and vote on governance proposals for the dapp.

By participating in governance, developers, users, and other investors can collectively
By participating in governance, developers, users, and other DAO participants can collectively
decide what new features should be implemented in the dapp that is governed by the SNS.
As their tokens are stacked, they will be incentivized to vote taking into consideration
the future value of the tokens and the dapp. This represents the first simple scheme for
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18 changes: 11 additions & 7 deletions docs/developer-docs/integrations/sns/tokenomics/sns-checklist.md
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Expand Up @@ -26,13 +26,15 @@ For the initial token allocation, i.e., defining which groups/accounts should re
### 1.1.3. Voting power
Provide information about how voting power is distributed at genesis, potential attack vectors and how the voting power might evolve over time.

It is considered to be best practice that sale participants have the majority of voting power at genesis. If the developers and seed investors have the majority together, then it should be clearly articulated why these two parties are independent.
It is considered to be best practice that swap participants have the majority of voting power at genesis. If the developers and initial token holders have the majority together,
then it should be clearly articulated why these two parties are independent.

### 1.1.4. Funding target
The minimum and maximum funding target must be defined for the decentralization sale. Add information about the planned usage of the funds, e.g. plans of ramping up the team.
The minimum and maximum funding target must be defined for the decentralization swap. Add information about the planned usage of the funds, e.g. plans of ramping up the team.

### 1.1.5. SNS tokenomics tool
Use the [SNS tokenomics tool](https://docs.google.com/spreadsheets/u/0/d/1eSxkJl94jPt63CdOXH6ROy-WSkacW6P4qcAKMLrfBPc/edit) to analyze and document the chosen amount of tokens, initial distribution of tokens, dissolve delays etc. Both the tool and a training deck can be found in [this wiki page](https://wiki.internetcomputer.org/wiki/How-To:_SNS_tokenomics_configuration).
Use the [SNS tokenomics tool](https://docs.google.com/spreadsheets/u/0/d/1eSxkJl94jPt63CdOXH6ROy-WSkacW6P4qcAKMLrfBPc/edit) to analyze and document the chosen amount of tokens,
initial distribution of tokens, dissolve delays etc. Both the tool and a training deck can be found in [this wiki page](https://wiki.internetcomputer.org/wiki/How-To:_SNS_tokenomics_configuration).

## 1.2. Technical architecture / whitepaper / project roadmap

Expand Down Expand Up @@ -68,7 +70,8 @@ This proposal is not going in-depth with the tokenomics, governance etc. but lin
### 1.5.2. Decentralization proposal
The second proposal is asking the NNS neurons for acceptance to start the decentralization process. If the proposal is adopted, the decentralization of the dapp and the decentralization swap will begin.

Include relevant information like tokenomics (token distribution, governance, decentralization sale), details about the dapp (link to the open sourced code), whitepaper and anything else relevant to the community. See OpenChat’s [decentralization proposal](https://dashboard.internetcomputer.org/proposal/109811) for inspiration.
Include relevant information like tokenomics (token distribution, governance, decentralization swap),
details about the dapp (link to the open sourced code), whitepaper and anything else relevant to the community. See OpenChat’s [decentralization proposal](https://dashboard.internetcomputer.org/proposal/109811) for inspiration.

### 1.5.3. More information
See the [documentation](./preparation.md) for details about the process. The documentation page [SNS predeployment considerations](./predeployment-considerations.md) has a list of topics that should be covered in the whitepaper/proposal. See this [forum post](https://forum.dfinity.org/t/dfinitys-voting-on-upcoming-sns-launch-proposals/19543) for information about DFINITY’s voting.
Expand Down Expand Up @@ -114,11 +117,12 @@ In addition to performing comprehensive testing of all dApp operations using the
The documentation prepared in section 1.1 and 1.2 should be made publicly available ahead of the SNS launch. This provides transparency about the dapp, future plans with the dapp, the technical architecture and the tokenomics. This information can be shared on the dapp’s website, GitHub or where it would make sense.

## 3.2. Community discussion
It’s strongly recommended that developers have a discussion in the forum with the community about the decentralization plans. It’s suggested to start a thread at least a couple of weeks before the NNS proposal is created. This will allow the community to learn about your plans, ask questions and build trust in the SNS launch. The SNS initialization and decentralization sale will not start unless enough NNS neurons vote in favor of the proposal.
It’s strongly recommended that developers have a discussion in the forum with the community about the decentralization plans. It’s suggested to start a thread at least a couple of weeks before the NNS proposal is created. This will allow the community to learn about your plans, ask questions and build trust in the SNS launch.
The SNS initialization and decentralization swap will not start unless enough NNS neurons vote in favor of the proposal.

It is recommended to share:

- [x] The init file and sale file (example: [OpenChat](https://github.com/open-ic/open-chat/tree/master/sns/config)).
- [x] The init file and swap file (example: [OpenChat](https://github.com/open-ic/open-chat/tree/master/sns/config)).
- [x] Provide whitepaper with a full description of the decentralization and tokenomics.
- [x] Provide a technical decomposition of the dapp architecture in terms of canisters, source code and documentation so that the community can validate that the dapp will actually be a decentralized application after the swap.
- [x] Explain to which extent security reviews were considered relevant for the dapp and what kind of security reviews have been conducted for the dapp.
Expand All @@ -143,7 +147,7 @@ the SNS launch. The SNS canisters are installed with the
[here](../launch-sns/launch-sns.md#SNS-launch-command-SNSW)

## 4.3. Dapp control handover
Before the decentralization sale, the SNS root canister must be set as the controller of the dapp and
Before the decentralization swap, the SNS root canister must be set as the controller of the dapp and
other developers are removed from the list of controllers. This entails “registering” the dapp with the
SNS so that SNS root is aware that it controls these canisters, and this registration is done by SNS proposal.

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Expand Up @@ -20,7 +20,10 @@ Tokenomics covers a wide range of topics, such as
* Incentive mechanisms, e.g., providing tokens to early adopters.

### Supply and demand
We define the supply of a token as the amount which token holders are willing to sell at a given price. Likewise, token demand is the amount of tokens, token buyers are willing to buy for a given price. The following graph depicts the typical relationship between the supply & demand and price for an example good, which in our case could be a token priced in USD.
We define the supply of a token as the amount which token holders are willing to sell at a given price.
Likewise, token demand is the amount of tokens, token buyers are willing to buy for a given price.
The following graph depicts the typical relationship between the supply & demand and price for an
example good, which in our case could be a token priced in USD.

![](./_attachments/graph_supply_demand.png)
(Image source: epthinktank.eu)
Expand Down Expand Up @@ -64,7 +67,8 @@ For the initial token allocation, i.e., defining which groups/accounts should re

* **DAO treasury**: these are tokens which are at the disposition of the DAO. They can be used according to predefined rules defined in the protocol of the DAO or distributed ad-hoc subject to voting. For example, they might be used for community bounties & user rewards.
* **Decentralization swap**: distribution to the community via an initial or subsequent decentralization swap.
* **Seed funders**: distribution to funders (if you choose to have them) who invested in the project prior to the launch of the DAO.
* **Seed funders**: distribution to funders (if you choose to have them)
who invested in the project prior to the launch of the DAO.
* **Funding development team**: developers who created the initial version of the DAO.

To emphasize the decentralization of the DAO from the start, developers can send a strong signal by:
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