For this milestone, we are expecting you to:<ul><li>Review a number of relevant projects (you can suggest a list of projects to include in the review and run it by me to make sure we’re aligned), their goals/motivations, products, and cryptoeconomic models</li><li>Produce a written analysis/documentation of each of these projects, and how they compare to each other</li><li>Synthesize relevant learnings to incorporate into the cryptoeconomic design for DGM</li><li>Propose a cryptoeconomic protocol for DGM that creates incentive alignment for all participants — workers, funders, investors, DGM devs, broader community</li><li class="ql-indent-1">Consider incentive-aligning mechanisms like native tokens, airdrops, staking/locking up tokens, the role of transaction fees, etc.</li><li class="ql-indent-1">Think through how to ensure that the cryptoeconomic design would be defensible to numerous attacks on the network/cryptoeconomic model.</li></ul>We will fund up to 2 teams for this milestone. The only teams that are eligible to participate are those whose applications have been approved in the application stage.

Full cryptoeconomic research report for DGM

Today, DGM is a normal web application with a centralized backend and no business model. Over the next few months, we plan to fully decentralize the marketplace, from the perspectives of both the DGM tech stack and user ownership of the network.We have been thinking about the best ways to decentralize user ownership of the network and create user alignment with the overall success of the network, and want to build a strong cryptoeconomic foundation for the DGM economy. This is where you come in, potential grantee! We would love to find a team to work with closely as we investigate different cryptoeconomic mechanisms and models.The purpose of this grant is to identify 1-2 teams that can deeply understand DGM’s goals and principles (in collaboration with our team), synthesize relevant cryptoeconomic mechanisms as they relate to goals of DGM, and suggest mechanisms that DGM can consider when we’re building out our full cryptoeconomic model.To get you started, some of our core cryptoeconomic principles and goals include:<ul><li>Modularity and composability within existing ecosystems</li><li>We want to accrue value from growth/value creation with the DGM product to our protocol layer</li><li>We want to have heavily invested and aligned users who care about what is best for DGM and for themselves, i.e. the cryptoeconomic mechanisms should align interests between DGM and its users</li><li>It’s important for our cryptoeconomic model to be regulatorily acceptable</li><li>Simplicity wherever possible in our mechanism design</li><li>Massive growth and network effects within the DGM economy</li></ul>

Analyze cryptoeconomic mechanisms from projects relevant to DGM, and synthesize recommendations for DGM’s cryptoeconomic mechanisms based on your research.