New Economy

The economic system of the DAO is designed to ensure the self-sustainability of the organization, reasonable incentive mechanisms, and financial transparency. It determines the future value of the entire system.

Several key elements of the DAO economic system:

DAO Token

The DAO token is often the core of the DAO economic system and can be used as a medium for all transactions and incentives. Tokens can represent voting rights, ownership, or claims to DAO funds.

The governance is usually accomplished through voting, and the right to vote is often associated with the amount of tokens held.

In BytomDAO, there are two types of tokens, $BTM and $BID. $BTM provides a platform for members to participate, invest, vote, and receive financial returns, serving as an essential tool for achieving governance and incentives. It‘s primarily used for:

• Governance Rights: $BTM holders can vote on significant governance matters such as the funds allocationf, projects selection, and rule changes.

• Financial Stake: $BTM can also represent a stake in the earnings of the DAO. Holders are entitled to financial returns such as profit buybacks or airdrops.

• Incentives: $BTM will be used as rewards for those who contribute to the DAO, such as in operational design, application development, model training, data mining, etc.

• Fundraising: DAO can raise funds by selling $BTM to support project operations and development.

$BID is a verifiable natural entity identity ID, in the form of NFT on chain. $BID is non-tradable and unique. Members need to obtain $BID when they want to become executive members or participate in the election to the governance committee.

Treasury

The DAO treasury serves as the organization's financial reserve and capital account, used for project development and operational expenses. The treasury funds are locked in on-chain smart contracts and cannot be misappropriated by any individual at will.

The treasury funds of BytomDAO come from donations from the Bytom Foundation, membership fees, or service fees. According to the purpose of DAO, treasury funds will be divided into two parts:

• Governance Fund: It‘s used for expenses of DAO governance. In order to encourage community members to join the governance committee or the executive committee, we will design staking mechanisms. For example, It is necessary to stake $BTMs to qualify.

• AGI Fund: The fund's capital is to invest in ecological projects and to maintain the AI infrastructure platform, including model development and training costs, and inference service costs. This is the largest portion of the treasury's expenditures, so the risk involved needs to be considered.

As known, DAOs are global and decentralized, but they still must follow local laws and pay taxes. Meanwhile, the issues of AGI development , data privacy and protection are important, all of which need to be treated with great caution.