MAK DAO White Paper v1

This is the first version of the MAK DAO White Paper describing the purpose, collaboration structure and engagement system of the DAO.

Mirella Bärnthaler Marius Barends Alexander Baldele Dawid Kubas Wiktor Kurek Łukasz Szymański Nikodem Szyszka Marlies Wirth

1. What is MAK?

MAK, short for the German "Museum für Angewandte Kunst," translates into English as the Museum of Applied Arts. Located in Vienna, Austria, Europe, the MAK boasts a vast collection of applied art and objects, as well as contemporary and digital art - consistently blurring the lines between art and design. It explores form, functionality, texture, color, innovation, and more. In its own words:

In a way that is virtually unparalleled by any other institution, the MAK – Museum of Applied Arts stands for the fruitful combination of the past with the future, something which can be clearly sensed and experienced when visiting its extensive collection, large exhibition halls, themed special exhibitions and discourse-centered program of events. Bringing together applied arts, design, architecture, and contemporary art is one of the museum’s core competencies.

As a museum, the MAK's role encompasses observing, researching, collecting, and curating. It delves into both the past and present, crafting presentations that reflect the world's current creative landscape in a timely and visionary manner.

2. A DAO for a Museum

Observing changes in the digital art world involves exploring the web and its transitions from web1 to web2, and currently to what is being defined as web3. This includes actively participating within the digital realm. Web3 is about commitment, engagement, and having a stake in the game. For these reasons, and to learn from its activities, the MAK has decided to experiment with extending its touchpoints with the audience into a completely digital space: a DAO.

This commitment to an entirely experimental project lends the MAK credibility as a visionary museum. As such, the MAK has a clearly defined mission, responsibilities towards its owners, key performance indicators, a diverse program, and a broad audience. Therefore, there isn't a stereotypical visitor to the MAK. Instead, there is a wide range of supporters and lovers of a diverse design and art program.

Typically, visitors do not actively contribute, but rather attend exhibitions. Statistics show that the relationship between the MAK and its visitors is ambivalent, a characteristic common to many art institutions and collections.

A DAO offers new ways to engage with an audience that is significantly digitized and open to new communication methods. It provides a forum for those who are already engaged with web3 and those who wish to delve further.

Moreover, the DAO's web activities can attract audiences who may not have heard of the Museum of Applied Art in Vienna, Austria. The audience encompasses artists, creators, art lovers, collectors, curators, and anyone interested in applied art. The MAK DAO will integrate the past, present, and future programs of the MAK in web based activities, while the museum will second with visitor activities on site.

The mission of MAK DAO is to discuss, gather, and create applied art in web3, while connecting with the Museum of Applied Arts in Vienna for inspiration and exchange.

3. Ways of Collaboration

MAK DAO is a space to discuss, create, and observe the evolution of applied art in web3. The DAO community can define and design various ways of collaboration. Here are some examples to consider:

• Share impressions of current MAK exhibitions with the online community.

• Invite artists from exhibitions to discuss their work in the MAK DAO.

• Discuss the core topics of the exhibitions and produce artwork inspired by them.

At an advanced level, an active and vibrant community can participate in MAK activities by suggesting contributions. A thriving MAK DAO with numerous users can be showcased and may even be present within exhibitions.

MAK DAO will use MAK's yearly program to create challenges, initiate discussions, form action groups, and if not based in Vienna, extend its actions to the cities and countries where DAO users live and work.

The program and activities of the MAK can be found on https://www.mak.at/

4. Community of MAK DAO

MAK DAO will ideally consist of artists, art enthusiasts, museum visitors, collectors, and curators who are passionate about elevating museums and art institutions into web3.

The consultants in the initiation phase of the community were a core group of artists, developers, and individuals affiliated with the MAK in Vienna. They formed the first set of recommendations, which now have become part of the White Paper:

• Artists within the DAO should be rewarded and reimbursed for their work, not work for free.

• The DAO's value clearly lies in its close partnership with the museum. However, the DAO is an independent entity that must sustain itself. The more lively the collaboration, the more fruitful the outcome will be.

• MAK can initiate projects within the DAO but is not obligated to. The MAK DAO should not depend on MAK for anything.

The interdependence between the DAO and the museum proved to be a hard challenge during the constituing project phase, which took place under the lead of MAK representatives. As a state institution, the museum administration found it problematic to allow the community of the DAO to operate independently within the museums’ context and exert influence on the museum’s daily work and program.

The consensus reached by the MAK DAO and the MAK provides for the following rules:

- The DAO will govern itself without relying financially on MAK.

- While using the title "MAK DAO", the community acknowledges its responsibility to undertake projects that reflect MAK's positioning and align with the concept of applied art as defined by the MAK.

In this initial version of the White Paper, the MAK has actively contributed to the future of the MAK DAO. Any changes to the positioning of the MAK DAO as a result of the community voting will be communicated to the MAK in future. However, representatives of the MAK have the same governance rights as any token holder of the MAK DAO.

The founding team firmly believes that the nature of the MAK DAO implies that both the DAO and the MAK recognize the potential benefits of working together. The MAK can exist without a DAO. The MAK DAO can exist without the MAK. The more actively they work together, the stronger their relationship will be and the more appreciative the outcome of their collaboration will be.

4.1. Coordination Tools for the Community

The MAK DAO operates independently on channels organized by its own administration. The main coordination tool is Discord: https://discord.gg/Q74cavJ8Jd

Activities are promoted through the following social media channels

Offchain channels:

• MAK DAO account on X: https://x.com/daomakdao?s=20
• MAK DAO account on Youtube for recorded talks and online events

Onchain:

• MAK DAO community blog on Ecency
• MAK DAO account on Three Speak for recorded talks and recorded online events.

The web3 community uses the Hive Blockchain for communication and project funding, the principle is described in Chapter 5.3. DAO Funding Source..

MAK's local and digitized audience is free to join anytime and become a member of the Hive community.

4.2. The founding period

While a Hive wallet is not necessary to become a MAK DAO member, it will eventually enable community members to post on Hive based, onchain social media channels and community blogs.

Initially, individuals will be invited to join the community and test the Token Model Design components by participating in the MAK DAO’s & MAK’s programs. These potential community members (users) will earn rewards for:

• Introducing themselves on the introduction channel
• Engaging in talks and discussions on the Discord channel
• Participating in and testing quests on Zealy
• Providing feedback on these activities

The community will engage in challenges that involve claiming POAPs. These will eventually be converted into MAK DAO Tokens.

MAK will create POAPs for its local visitors, obtainable only through museum quests. These POAPs symbolize entry into the DAO through the museum but will be treated like POAPs produced within the DAO.

There is no distinction between local, web2 or web3 based users of the MAK DAO, as the DAO solely exists on the web, making it a purely digital organizational entity.

4.3. Future Community

Ideally web3 based users and web2 based visitors related directly to the MAK in Vienna (local users) will start interacting and exchanging experiences in the MAK DAO.

Those include

• Benefiting from the on-site presence of visitors at MAK exhibitions;
• Leveraging the knowledge of Web3 users about the digital platforms used in the DAO.

The community aims to:

• support its members.
• create and carry out mutual projects.
• share information about applied art from the digital and analog worlds.

5. GOALS OF the MAK DAO

5.1. Substantive Goal of the MAK DAO

To avoid misinterpretation the community of the MAK DAO has to agree upon a common understanding of the term “applied arts”. The museum itself offers the following definitions which have also been featured in an exhibition exploring the terminology.

In the exhibition series “Applied Arts. Now” MAK curator Marlies Wirth offers the following definition:

APPLIED ARTS. NOW

A collaboration between MAK and University for Applied Arts

The term "applied art", unlike more concrete sector designations, is capable of not only capturing the tendencies of an increasingly conceptual and "artistic" design, but also those contemporary developments where the mere use value of the "applied" is critically questioned and permanently expanded by concrete action strategies and basic research for forward-looking approaches and scopes of action.

In doing so, it is less about questioning the autonomy claim of "free art" than about making a potential clear, with which the term field of "applied art" could be extended and redefined in a contemporary way.

In the field of applied art forms today (which can include industrial design and architecture, as well as intangible sectors such as communication design or software programming), it is not only Gottfried Semper's "original techniques" and material divisions that are relevant. New technologies and production conditions expand the field and applied art is thus able to open up a different perspective on ways of thinking and acting that are capable of changing, creating something new, and demanding and promoting a rethink of established terms and boundaries.

Marlies Wirth, Curator MAK

The second definition deals with the development of the terminology, as MAK curator and historian Sebastian Hackenschmidt states:

On the term "Applied Art"

The collections of the MAK are largely based on the material-specific classifications of textiles, glass, ceramics, metal, wood (furniture) etc. - classifications that seemed sensible for the arts and crafts of the 19th century and in principle can still be continued today. However, in the 20th century, it became necessary to expand the collections to include the areas of design and contemporary art in order to meet the changed conditions of artistic design and industrial production.

This also seems consistent: because in contrast to the terms arts and crafts, arts and crafts, art industry, decorative art and design, the term "applied art" is able to capture not only the tendencies of an increasingly conceptual and "artistic" design, but also those contemporary developments in which "free" art critically questions its use value and permanently expands it through concrete services, usage offers and basic research for forward-looking approaches and areas of impact. Without having to give up its claim to autonomy, this seems to change and expand what can be understood as "applied art".

Sebastian Hackenschmidt, art historian and curator MAK

5.2. DAO Type

The MAK DAO operates upon fungible tokens, the MAK DAO Tokens (MDTs), which can be earned by participation and engagement. The token system is going be deployed on the blockchain Hive.

In addition the MAK DAO will produce within its digital boundaries contributions that may be collectibles as in NFT collectibles, but may also result in physical objects which will be accessible locally and presented digitally.

5.3. DAO Funding Source

Hive is a social media based blockchain with a rich community and a reward system based on engagement. The blockchain is predestined to host a DAO such as the MAK DAO, offering a gamified reward system to gain MAK DAO Tokens.

The funding of MAK DAO projects will happen through:

• Donations on Hive blockchain within the web3 community
• Voting upon community contributions of MAK DAO articles and blogs with Hive
• Investing in MAK DAO NFTs (if generated for funding)
• Voting on MAK DAO projects with the MAK DAO Token (MDT)

The number of MAK DAO Tokens is unlimited. For the initialtoken offering a yet to be defined amount of tokens will be fixed and distributed among the first members of the DAO to initialize votings.

5.4. Goals of MAK DAO

MAK DAO doesn’t have primary profit goals, it is an organization for the exchange and production of applied arts in web3. However, MAK DAO can be used as a platform to promote design if the community decides to create channels dedicated to sale and purchase.

If the MAK DAO community agrees upon it, the DAO can hold auctions, calls, issue prizes in HIVE upon contests and monetary rewards for contributions, it can hold fund raising events and organize crowd funding for DAO projects.

MAK DAO does not operate on the premise of selling the MAK DAO Token to members.

However the MAK DAO is aware of the fact that the MAK DAO Token may be sold on a secondary market.

6. System Overview

The MAK DAO system has been crafted to be user-friendly for both web2 and web3 participants. The mechanisms implemented are primarily aimed at positively influencing interest in the museum and its initiatives and attract a web3 community to reflect on the topic of applied art in web3.

The approach invites users – visitors and digital community members alike – to assume roles such as commentator, idea contributor, learner, educator within the DAO community.

As a reward for sufficient engagement, users receive MAK DAO Tokens, empowering holders to vote on the community’s proposals. Granting agency to formerly passive visitors of the museum is a unique aspect of the system. A desired goal is the role of the community as an integral part of the museum, creating projects in the digital space and exchanging knowledge, expertise and – in the long run – collectibles with the museum. This exchange of course depends very much on the quality of content produced within the DAO.

The MAK DAO is a place to inspire, elevate and educate, not only web3 literacy but also how to produce refined contributions of applied art.

6.1. Blockchain solution

The MAK DAO voting and engagement system is designed for any blockchain. At present the MAK DAO strongly consists of the web3 community of Hive blockchain. Therefore a set up of the voting and engagement system on Hive appears to be the most sensible way of growing a lasting and engaged community.

Anyhow, the starting period of MAK DAO will focus on the testing of the singular features of engagement which have been simulated in machinations.io and CatCAD offering POAPs for first participants.

6.2. Engagement Mechanisms

Engagement in a DAO is key. For a constant engagement by MAK DAO users several factors are considered:

• Engagement Levels within the engagement structure

• Engagement Tools to measure engagement

• Engagement Rewards to create traction

The engagement structure consist of the following elements:

• interaction in community

• voting processes within the MAK DAO

• interaction in the MAK DAO

These three elements form the backbone for the activities on which engagement levels are based. The engagement rewards represent the successful completion of engagement levels but can also be seen as an indicator for the user which structural engagement element they have entered.

In short the engagement system can be described as such:

The Zealy and Discord Level points earned, can be exchanged for POAP, which can later be exchanged for a MAK DAO Token (MDT) - the highest possible reward.

6.2.1. Interaction in the community

• Interaction in the community with Discord:

Users enter the MAK DAO Discord server upon invitation or by participating in a museum challenge. They pass the verification process in the #rules-and-verification channel. Next the new user moves to #introductions channel: this first introduction will result in gathering points ot level up. In the #general channel there is place for exchange. This channel is to connect with other members, post ideas, etc. Every post, every interaction is recognized by the MAK DAO Bot and leads to a higher engagment level. Reaching certain levels will entitle the user to claim their first POAP.

• Continuous engagement on Zealy.io:

Users join challenges on Zealy.io. Completing these challenges again results in gaining experience points which will be rewarded by POAPs. The outcomes are: Gain web3 skills, promote challenges, activities etc. within the community, promote DAO outside of the community.

• Proof of Attendance at events:

POAPs are distributed to attendees of exhibitions, talks, workshops and discussions. The POAPs are communicated during the live events only.

POAPs may thus be claimed upon reaching Discord levels, experience points on Zealy or during events.

6.2.2. Voting in the DAO

Voting in DAO is based on two activities which are rewarded differently.

• Challenges and quests can be proposed in the MAK DAO Discord Server and will be discussed there, which will lead to a level-up of the users participating in these discussions. Anyone can propose a challenge and if the discussion proves fruitful, admins will create a voting poll for a challenge or quest.
• MAK DAO Token holders will vote on the challenge/quest and get a POAP as a reward.

6.2.3. Interaction in the DAO

Interaction in the DAO is the highest engagement level: It goes far beyond participating in challenges and quests, or engaging on the MAK DAO discord server.

Interaction in the DAO means being a DAO user AND possessing MAK DAO Tokens. Fields of interaction are:

• propose projects
• run projects
• participate in exhibitions (exhibit)

6.3. Token types

Two different token types, POAPs and MAK DAO Tokens create a token economic system for the engagement process and lead to the ultimate reward within the MAK DAO: the voting rights attached to the MAK DAO Token.

The structure is based on the following logic:

6.3.1. POAPs

POAPs are commonly known as NFTs of the Proof of Attendance Protocol (Polygon). However the usage of NFTs as proof of attendance is not limited to a certain blockchain. Thus a POAP within the MAK DAO is an NFT on Hive Blockchain.

POAPs within the MAK DAO are dropped for specific occasions. Only POAPs of different kind can be combined to trigger or claim a MAK DAO Token.

List of conditions upon which a POAP can be obtained:

• Event in the museum IRL for physical visitors of MAK
• Event online on the discord server for MAK DAO users
• Paricipate in call for NFTs that will be used as graphic layout for POAPs
• Defined lvl on Discord which entitles the MAK DAO user to claim a POAP (preferably automatized at some point)
• Defined amount of experience points on Zealy for completing quests
• Carrying out time consuming community tasks - such as creating a Zealy.io quest
• Vote on a DAO poll

6.3.2. MAK DAO Token

The highest reward in the system is the MAK DAO Token (MDT). The utilization of the MAK DAO Token within this ecosystem offers a range of functionalities and ecnourages community involvement and governance.

It serves two primary functions: as a reward for the most engaged community members and as an indicator of strength in the DAO voting mechanism.

MAK DAO Token holders

• have the opportunity to vote in DAO,
• propose new challenges or quests,
• become a Digital Creator,
• or exchange it on a secondary market.

The value of the MAK DAO Token reflects the involvement and interest of users in the MAK DAO system.

Users can obtain the MAK DAO Token by

• exchanging POAPs for it,
• being awarded for running an online project.
• being awarded for running an online event

At present a purchase on an external market is not planned. However the DAO may decide in future to offer MAK DAO Tokens on external markets.

6.4. Tokenomics

The main purpose of the MAK DAO Token is to create an asset that will give users the opportunity to vote in DAO and decide the future of the community. In this regard, MAK DAO Token Tokenomics follows rather simple rules, as the system does not assume multiple investor rounds and divisions into multiple pools.

The number of MAK DAO Tokens allocated to users of the system is unlimited, but it is determined by user demand through the generation of MAK DAO Tokens by converting POAPs.

This means that the value of the MAK DAO Token will never be diluted, as it will be made up of tokens created and claimed by users. The value of the MAK DAO Token will be a representation of the involvement and interest of users in the MAK DAO system.

6.5. Asset Conversion Mechanism

6.5.1. Zealy and Discord Level conversion to POAP

This mechanism is designed to reward users who have earned the appropriate level on Discord and/or the number of points on Zealy in the form of a POAP. In some cases only reaching a certain level on Discord may be enough to get POAP, in others it will be created based on Zealy experience points only. Some POAPs may require the conditions of both Discord Level and Zealy points. POAPs can also be distributed at online or offline events.

Conditions for obtaining a POAP will initially be defined by the DAO in the future.

First a list of conditions will be set up by the founding team after which users will get POAPs. Clearly defining the reward is very important in building an incentive system.

Examples of conditions:

5 discord’s lvl + 50 Zealy points = 1 POAP

50 discord’s lvl = 1 POAP

6.5.2. Conversion of POAPs to MAK DAO Token

This conversion, is one of the key mechanisms in the system through which users can possess a MAK DAO Token which

• gives them voting power in DAO

• they can transfer to another community member

• is used to generate new projects within the DAO

The mechanism checks whether the POAP from which the user is trying to create a MAK DAO Token has not already been used to create a MAK DAO Token previously. This information will be stored in the database. Creating a MAK DAO Token is only possible once from a given POAP. If the user repeatedly tries to create a MAK DAO Token from the same POAP, the transaction will be rejected. If all POAPs in the user’s wallet are eligible, new MAK DAO Tokens will be minted for the user. Each POAP should be from a different collection as described in 6.3.1. POAPs

Once the MAK DAO Token is created, the POAPS take a memorial form.

In order to create MAK DAO Tokens based on engagement a dynamic change of values of POAPs is required. As a consequence the number of POAPs required to receive a MAK DAO Token is not a fixed value. It is a dynamic value designed to control the supply of MAK DAO Tokens.

The number of POAPs required changes with the growth of the system. The number of POAPs generated, the number of MAK DAO Tokens generated, and the number of holders are considered as indicators of the system. As the system grows, the number of required POAPs increases, making them more unique and valuable.

6.6. Governance Structure

The Governance Structure is based on token ownership and on how easy / difficult it is to gain MAK DAO Tokens. DAO Voting mechanisms, which use MAK DAO Token have an active role in determining the direction in which the community evolves.

Users (MAK DAO Token holders = engaged people) can propose new challenges or quests to the community, adding variety and new opportunities for engagement. Members of the DAO can vote on these proposals, determining which challenges or quests will be accepted and pursued within the community. After the challenges are completed, there is a process for validating the outcomes, ensuring that they meet the community standards and objectives.

The role of administrators in the system is to define the terms and conditions for getting POAPs.

6.7. First Token Drop and Token Lifetime

For the first token drop an initial number of tokens has to be calculated for the pool. The first drop depends on the time between start of distribution and creating a MAKDAO Token. The project assumes a step-by-step evolution. Example: If users earn POAPS starting today and the token is created in 3 months, the first drop will be x Tokens, but if the Token is created in 6 months the first drop will be 2x.

The number of tokens (x) depends on the number of ways of gaining tokens provided by DAO admins. The maximum number of tokens is strongly related to the possibilities of gaining Discord levels (to be defined), Zealy points (to be defined) and events, which then result in POAPs.

The MAK DAO Token will not expire. The key assumption of decentralization is the right to property. If the MAK DAO Token is not needed by one user it can be sold to another user in need of tokens.

6.8. Voting Mechanism

The DAO's voting mechanism is one of the key mechanisms, as it should allow all token holders to vote in a respectful and fair manner, but at the same time it should be a voting that is safe from various irregularities and attacks. Voting is held on a Hive service platform.

The voting mechanism consists of three key aspects:

• the type of voting
• the distribution of voting power
• rewards for (early) voting

6.8.1. Type of Voting

The type of voting or the voting method follows the needs of the community to reach consensus on a certain topic or filling a certain position within the community.

The voting method will be discussed and decided within the community.

For the first year two types of voting will be used:

1. Plurality voting for candidates to certain positions within the community: Each voter selects one candidate and the candidate with the most votes wins.

2. Approval voting for resolutions and changes to the white paper, community rules, projects etc.: Each voter may approve a selection of suggestions, and distribute a fixed number of votes. The suggestions with the highest rank is then dealt with first within the community. Denied proposals (with less votes) can be suggested in the following round.

Both types are first-past-the-post models, with the winner taking it all.

These types are efficient ways of defining a first set of rules by a smaller community before entering a more complex, token based system.

As the community itself will be able to decide upon how to implement the MAK DAO Token on Hive blockchain.

For more voting types please see: https://www.eballot.com/resources/voting-methods

6.8.2. The Distribution of Voting power

In order to maintain a balance between the voting power of many users with a small number of tokens and a few with a large number of tokens, an algorithm has been prepared to allocate voting power based on the number of tokens on a wallet in a manner that is not directly proportional.

This means that 100 tokens at one address have more voting power than a wallet with 1 token, but less than 100 wallets with one token.

Voting power (voting_power) is calculated by the following formula, based on the number of MAK DAO Tokens on the wallet (MAK_tokens_on_wallet).

Formula: Voting Power in DAO

This formula means that you must have a minimum of 1 MAK DAO Token in order to vote. The table below shows the voting power depending on the number of MAK DAO Tokens on the wallet.

Number of MAK DAO Tokens on wallet	Voting power
Less than 1	0
[1, 3)	1
[3, 6)	2
[6, 10)	3
[10, 15)	4
[15, 21)	5
…	…

This voting strategy assumes that every next point of voting requires one more token to gain this point, than the previous one. In order to have 1 point of voting power a user needs 1 token, to gain the next voting power point the user needs 2 tokens (cumulatively 3). The third voting power point requires 3 more tokens (cumulatively 6) and so on. This is similar to a triangular numbers sequence.

6.8.3. Reward for early voting

In addition to the mechanisms for conducting the vote and calculating voting power, a voting incentive mechanism has been developed. The first 10% of users who participate in the voting will get an additional POAP as a reward. This mechanism encourages voting in two ways. The first is to motivate people to vote sooner, and the second is to encourage users who vote later to promote voting, so that the influx of new voters moves their vote to the top 10%.

7. Roles in the DAO

Roles in a DAO are often not clearly communicated, when a new user enters the spot. There are several aspects how to define roles within a DAO. 1. The role depends on the external origin of the user

2. The role depends on what assets and qualifications a user will bring to a DAO.

The following table analyzes the different types of users who join the DAO. Subsequently, the roles that the users will assume within the DAO are examined. The term, in which a user has a specific role is defined as “agent”.

7.1. User entering the DAO: Web2 meets Web3

Agent's name	Joining from Web2 User
Agent Description	Web2 User who wants to join Web3 system involves transitioning from a traditional, centralized internet framework to a decentralized, blockchain-based ecosystem. There are few key differences between that: Moving from centralized servers and control (Web2) to a distributed, decentralized network (Web3), Shifting from corporate-controlled data to individual data sovereignty, where users have control over their own data, Transitioning from trust in centralized institutions to trust in decentralized protocols and consensus mechanisms.
Desired Behaviors	Willingness to adapt to new technologies and paradigms inherent in Web3, like blockchain and smart contracts, Staying abreast of rapidly evolving Web3 technologies, standards, and practices, Actively participating in decentralized communities, understanding their norms and contributing to their growth, Adhering to the ethical implications of decentralization, like privacy and security, Engaging with other entities in a collaborative rather than competitive manner, which is more in line with the ethos of Web3.
Undesired Behaviors	Trying to impose centralized control mechanisms or hierarchies not suited for decentralized environments, Ignoring the security practices essential in the decentralized space, like private key management, Failing to respect the heightened emphasis on data privacy in Web3, Being resistant to adopting new technological standards or practices that are foundational to Web3.
Motivation for being in the system	Access to new markets and opportunities, Staying ahead in technology and innovation by embracing new paradigms, Aligning with the growing demand for greater user control over their data and privacy, Being part of a more collaborative and open ecosystem.
Tangible and intangible assets	Tangible: Leveraging existing digital infrastructure while transitioning to decentralized technologies, Investing in new technologies and blockchain initiatives, Intangible: Existing brand value and customer trust that can be transitioned into the new ecosystem, Established relationships that can be valuable in building new alliances in the Web3 space.

Agent's name	Joining from Web3 User
Agent Description	A Web3 user represents a new wave of internet users who are not just consumers of content and services but active participants in a decentralized online ecosystem. Their engagement is driven by a combination of technological interest, financial incentives, belief in decentralization, and the desire to be part of a global community that is reshaping how the internet works and how online interactions and transactions take place.
Desired Behaviors	Regularly engaging in the ecosystem, whether through trading, investing, or contributing to discussions and development, Actively contributing to the community, such as participating in governance, providing feedback, or helping with development, Making decisions based on thorough research and understanding of the tokenomics and market dynamics, Prioritizing security in all transactions and interactions within the system.
Undesired Behaviors	Making investment or participation decisions without proper research or understanding of the risks, Ignoring the broader impacts of actions on the community and ecosystem, Focusing solely on short-term profits at the expense of long-term sustainability and growth of the system.
Motivation for being in the system	Interest in DAOs and value based web, Desire to be part of a community that is at the forefront of technological innovation, Motivation to support and contribute to innovative projects and decentralized applications, Motivation to contribute in the DAO Voting process Motivation to develop a gamified reward system in the DAO.
Tangible and intangible assets	Tangible: Digital assets and tokens held by the agent, Technological tools, Physical and digital solutions for securely storing private keys and digital assets. Intangible: Market knowledge and insight, Extended Knowledge of blockchain technology, smart contracts, and how various platforms operate, Connections within the Web3 community that can provide insights, support, and collaboration opportunities.

7.2. Roles defined by engagement levels within the community

7.2.1. Basic engagement level

Agent's name	Discord Level Owner
Agent Description	A Discord Level Owner is an enthusiastic and committed member of a Discord community. He should be recognized for his active participation, contribution to discussions, and adherence to community guidelines. His engagement is not just frequent, but also meaningful, playing a key role in fostering a vibrant and interactive server environment.
Desired Behaviors	Participate in various channels, contributing to different topics and discussions, Consistent engagement, Becoming an integral part of the community by being helpful, informative, and collaborative, Following the server's rules and guidelines, including content restrictions and engagement etiquette, Assisting other members, answering questions, and being an active part of community activities and events,
Undesired Behaviors	Spamming, Negative or toxic interactions, Breaking the server's rules, such as posting prohibited content or misusing channels, Dominating conversations or channels to the detriment of other members’ participation, Off-Topic posts.
Motivation for being in the system	Contributing to the development and enrichment of the Discord community, Gathering information or feedback through interactions that can be used to improve the agent's performance or user experience, Collecting data on community engagement and interaction patterns for analysis, Rewards for activity.
Tangible and intangible assets	Tangible: Permissions to access, Intangible: Market and community knowledge and insight, Connections within the Web3 community that can provide insights, support, and collaboration opportunities,

Agent's name	Keeper of Zealy points
Agent Description	User aiming to earn Zealy experience points would be actively engaged in the Zealy platform, participating in various quests and activities.
Desired Behaviors	Regularly engaging in quests and activities to earn points, Effectively strategizing to maximize point earnings from available activities.
Undesired Behaviors	Effectively strategizing to maximize point earnings from available activities, Lacking regular participation or engagement in activities.
Motivation for being in the system	Exchange experience points for POAP Desire to climb the leaderboard and achieve recognition within the community, Engaging in activities for enjoyment and entertainment.
Tangible and intangible assets	Tangible: Allocating time to participate in activities and quests, Having the necessary devices and internet connection to access the Zealy platform. Intangible: Ability to plan and strategize for maximizing point earnings, Ability to adapt strategies based on changing activities or platform updates, Knowledge of the platform.

7.2.2. Advanced engagement level

Agent's name	POAP Holder
Agent Description	A POAP holder in a tokenomic system has a unique role, distinct from typical token holders or speculators, because POAPs are gained typically by attending the events or by achieving specific Discord level or Zealy points.
Desired Behaviors	Engaging in events and activities that issue POAPs, demonstrating active involvement in the community or ecosystem, Collecting POAPs as digital memorabilia and maintaining them as tokens of personal or communal history, Participating in the broader community activities and events beyond just collecting POAPs, Sharing experiences and knowledge related to events or activities associated with POAPs, Acting as ambassadors for events or activities.
Undesired Behaviors	Merely collecting POAPs without engaging in the community or understanding the event's significance, Collecting POAPs with the intent to speculate or profit from them, rather than valuing their commemorative nature, False attendance or participation to acquire POAPs, Focusing solely on obtaining POAPs without genuine participation in or contribution to the event or activity,
Motivation for being in the system	Collecting digital memorabilia, Being part of a community or group, with POAPs serving as a symbol of membership or involvement, Connecting with others who have shared similar experiences, fostering a sense of camaraderie and belonging, Networking opportunities, Exploring new interests & discovering trends, Technological interest, Supporting organizers or causes.
Tangible and intangible assets	Tangible: POAP or cryptocurrency holdings, Physical or digital tickets to events that issue POAPs. Intangible: Knowledge of events and activities, Community Engagement Skills.

7.2.3. Top engagement level

Agent's name	Token Holder
Agent Description	Token Holders are investors or individuals who have gained tokens for interactions in the community, often with different motivations and impacts on the token ecosystem than speculators.
Desired Behaviors	Actively participating in governance mechanisms, voting on proposals that affect the token's future, Promoting token utility, Contributing to the community around the token, fostering a sense of shared purpose and collaboration, Sharing accurate information about the token and its ecosystem, helping to educate others and promote informed decision-making.
Undesired Behaviors	Lack of participation in governance decisions, leading to a less democratic or efficient decision-making process, Short-Term selling strategy,
Motivation for being in the system	Governance bonuses as digital creator or team agent Voting power
Tangible and intangible assets	Tangible: Cryptocurrency holdings, Computing resources. Intangible: Market knowledge, Information access, Risk management capability, Technologically savvy.

7.2.4. Administrative Level

Agent's name	Team
Agent Description	Team Agent is crucial for the successful planning, execution, and delivery of the project. This role entails a mix of leadership, coordination, expertise, and interpersonal skills, all geared towards guiding the project to its objectives.
Desired Behaviors	Innovative and forward-thinking, Adaptability to market changes, Community engagement.
Undesired Behaviors	Short-Term focus, Poor communication, Ignoring or undervaluing the input and feedback of the token holder community, Inefficient or unethical use of project resources, including token supply mismanagement.
Motivation for being in the system	Project success, Opportunities for personal and professional development through challenging project work
Tangible and intangible assets	Tangible: Money, Project management tools, Knowledge. Intangible: Professional network.

7.3. Activities of the top engagement level

Token Holder is the role of the highest engagement level within the DAO. Token Holders can create projects, propose votings and vote on proposals. Typically Token Holders will not necessarily take an active - creative - role, they might remain in a supportive position, collecting tokens and voting. However Token Holders may change their role from passive to active whenever they choose to do so.

7.3.1. The Active Role

Agent's name	Creative Role: Digital creator
Agent Description	A Digital Creator is a project creator who launches and runs a project or event
Desired Behaviors	Demonstrating a clear and innovative artistic vision following the purpose of the DAO Efficiently planning, organizing, and managing the various aspects of events, Actively promoting the event to attract the right audience and gain media attention, Creating an event that is engaging and accessible to the intended audience.
Undesired Behaviors	Failing to plan the event details adequately, leading to organizational challenges, Ineffective communication with collaborators, sponsors, or the audience, Ignoring feedback,
Motivation for being in the system	Desire to showcase artistic work and express creative ideas, Opportunity to grow professionally, gain recognition, and build a reputation, Intention to engage with the art community, audiences, and potential collaborators, Potential to sell artwork, secure future commissions, or receive sponsorships
Tangible and intangible assets	Tangible: The actual pieces of art to be displayed, Necessary materials for displaying the artwork Cryptocurrency holdings, Track record of artistic works Intangible: Possesses a unique artistic perspective and the ability to conceptualize ideas that are both original and engaging, Artistic skills

7.3.2. The Passive Role

Agent's name	Supporting Role: Voting User
Agent Description	A user who votes in a DAO covers a fundamental part of the decision-making process in decentralized systems. As DAOs continue to evolve, these users will likely play a pivotal role in shaping the future of decentralized organizations and the broader digital ecosystem.
Desired Behaviors	Taking the time to thoroughly understand proposals and the potential impact of decisions, Regularly engaging in voting and discussions, contributing to the DAO’s governance, Positively contributing to discussions, offering constructive criticism, and supporting collaborative problem-solving.
Undesired Behaviors	Failing to actively participate in voting or discussions, Engaging in or supporting actions that manipulate votes or unfairly influence the decision-making process, Making decisions based solely on short-term benefits without considering long-term implications for the DAO, Contributing to or escalating conflicts within the community, rather than seeking constructive resolution.
Motivation for being in the system	Desire to actively participate in the governance and decision-making processes of the DAO, Seeking a sense of community and shared purpose within the DAO, Opportunities for learning, networking, and personal development through active participation.
Tangible and intangible assets	Tangible: Token holdings, Devices and software for accessing DAO platforms and participating in governance, Capital that can be invested in the DAO or its initiatives. Intangible: Understanding of the DAO’s focus area, blockchain technology, and governance, Ability to analyze proposals for projects, and their potential impacts. Information access

7.4. The Digital Creator

The highest role within the MAK DAO is that of the Digital Creator.

The role is pegged to a certain number of tokens owned. With this token power the user can:

• Actively participate in Discord, challenges on Zealy.io and earn POAPs that turn into tokens
• claim MAK DAO Tokens
• team up with another user to use the tokens mutually (in this case only one user can carry out the “Digital Creator” role)

7.4.1. Suggestions upon the performance & rights

Most active users in the system are meant to be involved in the creation of projects in the DAO (run projects and events). Being a Digital Creator requires the accumulation of a sufficient number of MAK DAO Tokens, as proof that this user is involved in the community and cares about the community’s growth. The user has proven their engagement by claiming tokens by a high number of POAPs.

In the initial phase of the system, the value of the required tokens will be a fixed and a low threshold of tokens will encourage people to create projects. In the long term the number of tokens needed should be determined dynamically, growing as the community grows, ensuring the prestige of the Digital Creator title and reflecting the increase of value (output) produced within the community.

The number of projects running within a certain period should be limited to a maximum 1 per week. The limitation should be related to the frequency in which one user can run a project. We recommend that a user should not be allowed to run a project more often than once every 8 weeks.

7.4.2. Initial number of tokens required to become Digital Creator

Setting the initial number of tokens required to maintain balance in the system, understood as the appropriate ratio of Digital Creator to active users of the system, will be determined based on the results of the simulation.

7.4.3. Proposal for awarding successful projects and events

Running projects or events is a very engaging activity, which deserves the highest possible reward, which is a MAK DAO Token compensation = award. Rewards for creators should depend on the popularity of a particular exhibition or project. The size of the reward can be determined by the number of views, comments or user satisfaction and admiration. The second form of reward for Digital Creators will be the opportunity to give them donations from other DAO users.

The number of MAK DAO Tokens that the digital creator will receive for the exhibition (mak_tokens_for_digital_creator) depends on the number of users who will visit the exhibition (users_visited_exhibition). Additionally, the system can control the number of users who must visit the exhibition in order for the author to receive one MAK DAO Token (tokens_per_user_at_exhibition).

Example: If 100 people participate, the creator will receive 5 MAK DAO Tokens under the initial parameter assumptions.

A Digital Creator can sell the tokens to any other user or keep the tokens received.

8. Roadmap

Q1/2024

Presentation and discussion of White Paper V1

Q2/2024

First events and meetings

Creation of first POAPs

Q4/2024

First Token Drop

Contribution/Collaboration with MAK Exhibition:

“Blockchain Unchained. DAO & The Museum.”