Game7 launch tool to minimize freeloading of token holders

While it might seem, given their futuristic name, that DAOs have overcome some of the fundamental problems that plague all organizations, this is not the case. As explained by Game7 core contributor – and self-proclaimed “head caretaker” – Jonathan Allen, DAOs have a free rider problem.

Many DAOs — groups of people who gather online to achieve a common goal — offer cryptocurrency at launch to raise capital and attract participants. But sometimes that attracts people who just want to make a quick buck, not necessarily those who want to stay with the DAO long-term, Allen said wealth.

This can later cause a problem for those DAOs. For many, a token is equal to a vote on all proposals, so those who acquire tokens first can have an outsized impact on its direction, despite being largely dormant. Because of this, newer DAO members may feel that their voices do not have much impact and are discouraged from participating in the organization.

Game7’s new product, Summon, aims to solve this problem by using a soulbound token – a non-transferrable type of NFT that can track a person’s reputation. The summoning protocol assigns each member of the DAO a soulbound token, which then tracks their participation and evolves based on how much they contribute.

The more a member contributes, the more XP they receive, increasing their rank and voting influence in the DAO, and allowing them to unlock additional rewards. These stats are all automatically tracked by the platform, which also frees up the core members to decide who is actually participating.

“We think if we implement this more nuanced system, you can fix a lot of those early balance issues, like: B. Hoping that the first 100 people on my discord who bought the tokens will be engaged for five years and will contribute,” Allen said.

Summon was developed by members of the Game7 DAO and they will first test the platform in a closed alpha in their own organization before letting others try it. But Allen said the goal is to open it up as an open-source program with a possible software-as-a-service model for specialized functionality.

Allen said that Summon is not intended to replace other tools that DAOs use for operations, such as Discord or the off-chain voting platform Snapshot, but instead to coexist with those platforms and help DAOs focus on their core tenets of collaboration and Focus on decentralization, Allen said.

“Summon really wants to meet your community where it is,” he said.

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