What is the mechanism of the "Nation3DAO" that aims to establish a cloud-based nation?

Author: Planet Daily, PA Study Society

Editor's Note: The "Nation3" project has recently gained popularity on Twitter. There was a retweet event where you could leave your Ethereum address, and the editor participated, leaving an address in the Twitter comments to receive 1 NATION (currently valued at around $3,000). Setting aside the 24-fold surge in coin price, let's take a look at what "Nation3" is, what it aims to do, and how its mechanism works.

This article is compiled from two articles. (Article 1 Author: Planet Daily, Article 2 Author (Translation and Commentary): easthash.eth)

Many people have likely seen the Nation3 project on Twitter today. Since being listed on CoinGecko on April 19, its token (NATION) price has skyrocketed from $510 to $12,749, with a maximum increase of 2399% (current price around $3,838).

This article will delve into what this emerging Nation3 is all about.

A New Narrative for DAOs - Building a Cloud Nation

Unlike most Web3 projects, Nation3 (also known as Nation3DAO) does not provide structured information about the project on its official website, only a project manifesto (full of emotion).

While other DAOs are still contemplating how to create new organizational forms to achieve specific goals, Nation3 is already thinking about reshaping nation-states—a truly Web3-driven nation (look at this ideal).

Its manifesto states: Traditional nation-states with centralized power possess greater strength; they can control the media, incite public sentiment, spread hatred, or provoke endless wars, plunging nations into dark ages and turning citizens into victims (yes, yes, we are all victims, orz). Such a national system needs to be dismantled; we need new tools to build communities, understand laws to protect citizens from violence, and we need new governance models to fund public goods. The emergence of Bitcoin, Ethereum, and DAOs can support the realization of this idea.

"With the arrival of Web3, the internet will determine the new forms of community. People will belong more to internet communities and DAOs rather than large nation-states. Web3 gives us the first opportunity to break free from the services provided by nation-states and create a new way to enhance them by 100 times, ensuring they are owned by the community."

Honestly, after reading this manifesto, my first reaction was "too idealistic": is this about overthrowing the existing national structure and establishing a digital nation based on Web3 values?

However, in light of the current realities reflected by the COVID-19 pandemic and the Russia-Ukraine war, this idea indeed offers hope and expectation to many.

Moreover, with the current cryptocurrency market stagnating, the newly launched NFT and DAO projects seem to have timed their entry well.

Endorsement from Aragon Co-Founder

Another eye-catching aspect of Nation3 is that it was established by Aragon co-founder Luis Cuende.

According to LinkedIn, Luis Cuende has worked for Yestilo, the European Commission, Mozilla, Stampery, and others, focusing on application development. He founded Aragon in 2016, which has since become the largest DAO infrastructure. Aragon provides easy-to-use DAO creation tools, requiring only 0.1 ETH and a few minutes of information input to create a DAO, with six built-in templates that focus on different aspects, allowing organizations to choose the template that best fits their needs. Currently, 1,892 DAO organizations have been created on Aragon, and as it continues to develop, it has gradually secured its position as a leader in DAO infrastructure.

On April 9, Luis Cuende tweeted about establishing Nation3. He aims to promote the construction of a cloud nation through values and crypto-economic incentives, while also stating that many DAO tools still need funding to make the cloud nation feasible, which will include a significant amount of legitimate hacking activities.

Lacking fundamentals, what supports the coin price?

Nation3's official Twitter was established in March of this year, and as of now, it has published over ten tweets, mainly reiterating the manifesto. Additionally, Nation3's official website and Discord are quite rudimentary, lacking specific implementation paths, development stage plans, and there is no Telegram group established.

In terms of the economic model, information regarding the issuance volume, distribution rules, and use cases of the NATION token remains unknown.

However, some users have discovered that there are only 168 NATION coins in the Balancer LBP pool, and currently, NATION is only traded on Balancer, severely lacking liquidity. Therefore, many believe that the project team is not yet ready to launch but was discovered prematurely.

The 24-Fold Surge of "Nation3": Aiming to Establish a Cloud Nation?

Moreover, Nation3's Twitter clearly states that there will be an airdrop, and buyers are likely entering due to FOMO. The official announcement mentioned that an airdrop snapshot would take place on April 18, and currently, 1,956 addresses have been collected for the airdrop, with the specific airdrop quantity yet to be disclosed. (1,956 addresses is quite a number; will the project team reduce the airdrop quantity to prevent a price crash?)

After observing its social media platforms for a while, it appears that Nation3 has gained significant traction in the Chinese community, with most discussions in Discord being in Chinese. Even the deployer of the Nation3 contract tweeted that the Chinese market has stolen their tokens.

Some users also inquired why Nation3 deployed a liquidity pool on Balancer, to which 0xGallego replied that it was to provide liquidity for the project launch.

Overall, in just over ten days since its inception, Nation3 has attracted a certain level of attention and trading volume due to its grand narrative and vision. The cloud nation may be a large social experiment, an adventure toward a new world. Whether Nation3 can truly realize its vision remains uncertain. After all, Web3 is never short of stories; we should wait and see how the product materializes.

Editor accompanies you to read: Let's take a look at how the mechanism of "Nation3" works.

The founder of Aragon initiated the Nation3DAO project, planning to use DAO to reshape sovereign nations.

Initial Supply: 42,069 $NATION

Contract Address: 0x333a4823466879eef910a04d473505da62142069

Initial Distribution: 80%: Community (via DAO treasury and tweetdrop)

20%: Founding members and contributors

Comment: Few coins.

$veNATION tokens are non-transferable and can only be accessed by staking $NATION for a period of 1 week to 4 years.

The $veNATION balance is calculated based on the following model:

1 $NATION locked for 4 years = 1 $NATION 1 $NATION locked for 3 years = 0.75 $veNATION 1 $NATION locked for 2 years = 0.5 $veNATION 1 $NATION locked for 1 year = 0.25 $veNATION

Comment: Long lock-up period.

The amount of $veNATION received for each staked $NATION is related to the duration of the lock-up and decreases over time.

For example:

Joe stakes 10 $NATION for 4 years, receiving 10 $NATION.

After 3 years, when there is only 1 year left in the lock-up, Joe's $veNATION balance will drop to 2.5. However, at the end of the lock-up, his $NATION balance will remain at the original 10.

Comment: There is a demand for continuous buying.

Rights of Holders:

If you want to become a citizen of Nation3, $veNATION holders have the right to apply for an NFT passport. A minimum of 2 $veNATION must be held to apply for the Genesis NFT passport.

NFT passports are non-transferable and can only be minted by those holding the required amount of $veNATION. If a $veNATION holder does not renew their lock and allows the required $veNATION balance to decrease, thus lacking any long-term commitment, the NFT passport will be burned.

Comment: Airdrop is one thing; if not multiple accounts, buying is necessary. NFTs will also be burned, creating a demand for continuous buying.

Rights of Holders:

Access to all services provided by Nation3 or to be provided in the future, including physical spaces.

Access to certain token-gated sections of public forums, such as Discord.

The ability to propose suggestions and make decisions within the Nation3 DAO (provided these are approved by $veNATION holders).

Comment: Physical space? Is it what I think it is?

Economic Incentives for Holders:

Holders may earn rewards through governance mining, meaning they will receive NATION rewards as long as they fulfill their governance duties. (Not yet implemented)

All financial rewards for $veNATION holders, as they are also holders of $veNATION.

Comment: Waiting for governance results.