One of the main goals of the HubCityDAO is to raise funds to support projects that benefit HubCity. To raise funds while at the same time distributing governance tokens (HUB) to the DAO community members, a project will be set up on Juicebox.
Juicebox is a decentralized application (dapp) on Ethereum that allows anyone to fund a project by sending ETH and getting in return a proportional number of HUB (ERC20) governance tokens. Juicebox mints and distributes 1,000,000 HUB tokens for each 1 ETH received. The more ETH the project gets from future DAO members, the higher the maximum supply of the HUB token will be.
In exchange for providing the platform, Juicebox retains 5% of all the ETH sent to the project. This is important to keep in mind as the distribution shown below is after Juicebox takes its cut.
Crypto crowdfunding distribution before hitting $40k target for platform development
At the beginning of the crypto crowdfunding campaign the ETH received from DAO members will be distributed to 3 different wallets. 89.4% of all the ETH received will be sent to the DAO’s treasury. This treasury will be controlled by DAO members in support of selected HubCity projects.
8.5% of the ETH will be sent directly to a wallet controlled by HubCity with the only purpose to support the evolution of the DAO from phase 1 to phase 3 as described in the architecture section. The amount of ETH required for developing the platform has been calculated at $40k so as soon as this milestone is hit, the wallet will be removed from the crowdfunding campaign and the 8.5% dedicated for this purpose will be added to the amount of ETH going to the DAO’s treasury. This means that the percentage of ETH going to the treasury will increase from 89.4% to 97.9% once the funds to develop the DAO are secured.
Crypto crowdfunding distribution after hitting the $40k target for DAO development
Finally, 2.1% is reserved as a payment fee for the team who developed the web3 strategy and architecture of the HubCityDAO.