DAOs
DAOs can be defined as decentralized management models that will have significant functions on WEB 3.0, which is a new internet experience where individuals can act at high levels. DAOs (Decentralized Autonomous Organizations), decentralized in nature as the name implies, take the trust factor for DAO members from 3rd persons or organizations and carry it to previously coded smart agreements, to the blockchain. Thus, organizations, where decisions are made in a more democratic, more inclusive, and more transparent manner, are created. Such decentralized organizations where expenses and investments are made through a common and transparent decision have significant potential in different fields.
DAOs, a collaboration opportunity offered by blockchain, are created by uniting masses that have common interests. DAOs have a team authorized to manage the treasury collected for DAO. The treasury is used most efficiently via pieces of advice of the team based on DAO goals and majority votes of the community, and the earned amounts are distributed equally. To this end, DAOs can be referred as new generation cooperatives.
However, we faced 2 problems while reviewing the projects initiated as a DAO. The goals of most projects which are claimed to be DAO do not seem realistic. These projects simply give us the feeling that they are initiated to realize crazy fantasies. Hence, we observe that such groups taking a start with fantasies and dreams are falling apart eventually. On the other hand, DAOs with realistic goals do not have fair profit distribution methods and demonstrate a democratic attitude in terms of voting.
AvocaDAO established to be the first project that carries a real organization to the blockchain. We offer three income potentials to the community in the realization of our goals. Let’s talk about each of these potentials.
1)NFT
Having NFTs is the only way of inclusion into the AvocaDAO community and sharing the profits from businesses. You will need to have 1 or more AvocaDAO NFTs to be included in the AvocaDAO community. You will receive a profit share from businesses and other real generated incomes pro-rata number of NFTs you possess. Your voting right shall also be equal to the number of NFTs that you hold in your possession. Additionally, after the sale period, you will have the opportunity to buy and sell NFTs in the secondary market at the price to be determined on the supply-demand relationship under free market conditions. AvocaDAO NFT supply is limited to 10.000 pieces. Thus, we are limiting the number of people who can share AvocaDAO’s real incomes to a maximum of 10.000 people. This number is high enough to democratize DAO management and to enable domination of common sense, and small enough to satisfy everyone with their share in the profit. In labor–capital partnerships, everyone benefits from the profit pro-rata their capital and labor share. Therefore, if a person owns more than 1 NFT in the AvocaDAO partnership, she/he gets more profit from the generated income.
Here, another point we would like to highlight is our strong belief in DAOs becoming an alternative to all management organizations one day. We are adopting all the philosophies required to be a DAO as the first project on this path. In our opinion, one of the most important attributes of DAOs is that everyone in the community has the same effect on decision-making. Of course, a variety of marketing strategies will be used to promote DAO’s objective. However, no NFT sales will be made from prices less than mint price to anyone or under any condition whatsoever. The entire AvocaDAO community is equal, and community members have the same value.
2)Token
With the $AVO token, we want our community members and other cryptocurrency investors to make an income. Tokenomic will be planned and proposed to the votes of community members after sales of NFTs. This document will be shared with the community where details such as $AVO airdrop amount per NFT, budget for advertisement and marketing, team’s share, total supply, burn mechanism, and locked token amount will be discussed, and the fairest budget will be created based on pieces of advice of DAO. However, there is one other thing that we would like to draw your attention to; it is easy to create ERC20 based token and release to the market and collect a few million dollars with a little marketing activity but it is hard to build a token project that will add value to the entire cryptocurrency ecosystem where people can invest reliably. Therefore, the token topic is of secondary importance that will be on DAO’s agenda after carrying out a comprehensive study.
3)Business Income
AvocaDAO’s difference in value from all other cryptocurrency and DAO projects is a distribution of profits to be earned from real businesses to be founded together with the community members. It is possible to consider it as a labor-capital partnership. Members of the community will receive a share from the profit as much capital and labor they input. These incomes include those from the sales of gardening products (avocado, banana, dragon fruit, various tropical fruits..), income from sales to domestic market and chain markets, export incomes, income from sales, marketing and storage services offered to other producers once the logistic problems in the supply chain are solved, income from sales of a field when a purchased land does not deliver expected productivity or when the land value increases for any reason.
About Running an Avocado Orchard
Firstly, because AvocaDAO is the first project to carry a real organization to the blockchain, it is our mission to stand as an example for other projects to be announced to the public and to be responsible towards society. We will take each step transparently and with the awareness of our responsibilities. Hence, we are carefully working on our road map, and we are going to write text that is as realistic as possible in terms of the future and far from dreams and fantasies, and we will be publishing it soon.
AvocaDAO team and road map will be announced before the mint process. However, we would like to state clearly that a field will be purchased in Antalya immediately after collection of the treasury, and take our first steps to start production. A large avocado orchard will be established, and production and sales operations will rapidly take off. Our team has strong connections with local and global political, commercial, and agriculture actors. We also have personal connections with trade and industry associations in Turkey, which will be used for the benefit of DAO later. In case AvocaDAO Community Members wish to use their commercial and connections in their own countries or their positions for the benefit of DAO, they can share this with the community.
We have two alternatives in terms of establishing and running an avocado orchard, the first one is: to purchase an existing and running garden that is already making production. The advantage of purchasing and operating an established garden is that existing avocado trees would already be mature enough for production or it will take less time to reach maturity than a completely new garden. Such established gardens normally have irrigation systems and other agricultural mechanisms were installed, therefore their cost will be higher. On the other hand, they will be ready for production and sales stages, and will quickly start generating income.
Another method is to establish an avocado garden from scratch. Field, seedling, equipment purchase, and planning of the field for avocado production will be required. However, the cost of these works will be much less than the cost of an already established garden. Moreover, larger and empty lands that are suitable for agriculture can be purchased with the same amount of money to be spent on the established garden. The downside of this method is that we will have to wait a few more years for avocado trees to reach their full potential and provide maximum yield.
We as AvocaDAO community do not have to pick one of these two methods. Insofar, the exchange rates in which the ETHs collected in treasury will be converted to cash, price to be paid for fields, etc. shall be determined via DAO votes.
For example, let’s assume that some of the community members wish to use 100% of the treasury to purchase already established gardens and start making a profit from production right away while other members wish AvocaDAO to make investments towards future and establish new gardens in the rate of 40%, thus while established gardens start production right away, new gardens can be established on large fields so the sales and the profit will potentially increase in future. All these matters, pros, and cons will be discussed with AvocaDAO Community, and the action will be taken based on a common resolution. A list of all established gardens and empty fields planned for production will be shared with DAO and put for vote.
There are various classes of avocado fruit, and these classes are named according to the way trees grow tall and the type of the fruits. Additionally, ripening and harvest times of these fruit classes also vary. Therefore, we will be working with specialized engineers as well as experienced farmers. We can also grow high-value tropical plants such as bananas, dragon fruit in our gardens to generate income during months in which avocado fruits are not harvested, and all these topics along with their cons and pros will be shared with DAO for their vote.
Our first goal for AvocaDAO is to become the largest avocado and tropical fruit producers in the area and to be the biggest supplier of the European market. Being a large-scale producer will reduce the input ratio for AvocaDAO compared to small-scale producers. Let’s take look at the advantages of being a large-scale producer:
- The capability of establishing our own production facilities completely independently: Avocado is a nutrient-rich fruit and a high-value product. Independent agricultural industry plants belonging to DAO can be established to produce avocado oil, cosmetic, and hygiene products and marketed under the AvocaDAO brand for high-profit sales.
- Agricultural production equipment such as tractors, excavators, cutting and hoeing machines, trucks, etc. are too expensive for small-scale producers to invest in. Small-scale producers generally opt for renting these types of equipment only during the term they need since their production volumes and lands are small. AvocaDAO will be able to run its operations much more easily with these types of equipment to be procured while establishing a large-scale production plant. If this equipment is purchased, the long-term input ratio will be much less than that of small-scale facilities. Additionally, this equipment can be rented out for extra income, and the equipment can pay off its ownership cost.
- We discussed small-scale producer problems in the ‘’Why?’’ section. In addition, all small-scale producers cannot directly contact chain markets due to their low production volumes and end up dealing with brokers. Most of the time, a product harvested from the field goes through four to five different brokers before reaching store shelves at high prices. If you are running a large production facility, you can eliminate all the brokers and supply directly to stores and produce markets. Thus, you have the advantage of setting the price. Furthermore, you can also procure products from small-scale producers and directly sell them to chain markets.
In addition, AvocaDAO has another potential that can’t be calculated by data and experience. We believe that an agricultural business operated based on democratic resolutions taken by a board of directors body constituted of 10.000 people has a great brand value potential to be revealed on a domestic and global scale. The market value of AvocaDAO, if operated successfully, may reach exciting levels since it is the first project around the globe where blockchain is integrated into real life, and we anticipate that AvocaDAO’s potential of collaborating with various actors in terms of blockchain and agriculture will increase.
The most valuable principle of us as AvocaDAO is transparency. All wallets used before and after starting production will be informed to DAO as soon as possible. All the expenses to be made shall be subject to the approval of DAO, and decisions will be made by consensus. The team will not receive a share from the collected treasury after the NFT mint process. Only less than 1% of treasury will be spent on the procedures required for activation of DAO.
Processes that are went through in field procurement and staff expenses, fertilizer, pesticide, water, etc. expenses will be shared with the DAO right away. All money of DAO will be spent according to DAO decisions, and all financial transaction proofs will be presented to DAO. At the end of official processes, balance sheets to be audited by independent auditors will be announced to DAO quarterly (every 3 months). An equal distribution will be ensured by the presence of fair management, and 25% of the profit will be distributed to the team, and the remaining 75% of the profit will be distributed to the AvocaDAO community pro-rata number of NFTs they possess, all in stable coins.
We must clearly emphasize something here once more; the team will be entitled to a maximum of 1% of the collected treasury and a maximum of 25% of the profit to be obtained from production activities after the NFT mint process. Information about the $AVO Token shares of the team shall be shared with the AvocaDAO Community after the main objectives of AvocaDAO such as the purchase of avocado orchards and starting of production are realized and token development, tokenomic activities are completed.
Here at AvocaDAO, we care so much that business operations are sustainable. Therefore, we are planning to hire agricultural and energy engineers who are specialized in the field. We hereby declare that we will do our best to follow the latest scientific methods to obtain maximum yields from our gardens, take advantage of current incentives to reduce input costs and tax amounts, use green energy, utilize nature efficiently and save water resources, considering next generations to live on our planet at all times.
