Particle has chosen BrightNode as their strategic partner to reinvent its organizational structure, colloquially referred to as the "Particle DAO game." We were tasked with scrutinizing their business model and augmenting their value propositions by redefining the concept of a Decentralized Autonomous Organization (DAO) from various viewpoints: ownership and governance, incentive mechanisms, reputation, and compensation techniques.

The client | Particle

Particle operates as a web3 fine art collector DAO, granting participants access to artists and artworks that have traditionally been out of reach. Their inaugural collection piece was "Love Is In The Air" (LIITA) by Bansky, and it was made public through a process known as "Particalization." This involves converting a painting's title deed into a series of unique Non-Fungible Tokens (NFTs) or "Particles". While the physical artworks are stored by the Particle Foundation, a non-profit public trust and physical museum tasked with maintaining, preserving, and exhibiting the collection for the Particle community, the thousands of owners retain decision-making rights concerning the assets.

Moreover, the Particle Foundation plans to establish a presence in the metaverse, where the collection will be permanently accessible. This makes the Particle collection the first of its kind—a community-built collection.

Particle aims to democratize the art world by providing everyday art enthusiasts with access historically reserved for an elite few. It also creates a level playing field for creators and emerging artists, allowing their work to be recognized, appreciated, and owned by anyone, anywhere.

BrightNode’s contribution 

BrightNode has undertaken a comprehensive examination and assessment of Particle's tokenomics, applying a critical perspective to the need for a new token. To ensure the client's complete comprehension of the implications of developing a token, we conducted a meticulous analysis of the advantages and disadvantages.

Through the use of Machinations, we demonstrated to the client how their game economy (the Particle DAO flywheel) could be transformed into a more sustainable, value-aligned system. We concentrated our efforts on constructing a new DAO structure that would function as an efficient coordination mechanism, providing benefits for both the organization and its contributors. The structure aimed at creating a positive and gratifying user engagement experience. The objective was to improve user engagement and suggest a variety of reputation-based community activities, thereby strengthening the DAO's mission and further decentralizing the network.

Furthermore, we provided guidance on various incentive strategies, underpinned by comprehensive benchmark research. By carefully analyzing the goals and motivations of all participants, we succeeded in mapping these behaviors and designing a tailor-made incentive economy. This would serve to better align stakeholders and reward those activities that add value.

Learn more about Tokenomics consulting.