Proponent: Decent Partners collective
Request: $125,000 + 10% volatility buffer any excess will be returned.
Total USD: $137,500
Total KSM: 4044 (EMA7 $34)
Beneficiary: Decent Partners organisation on krievo, sovereign account on relay chain.
Address: G2zmdwA3V1je5nrXdwDYGPC6hqvqaomoaHmNdMy1JPL7frh
Members: Four organisations with 1 vote each - decent, Brale, Virto, KSM collective.
Governance: optimistic approval - proposals pass by default unless majority organise to reject.
Contact: Decent Partners public matrix inc representatives from member organisations.
Summary
This proposal seeks retroactive funding of $125,000 in KSM to reimburse Brale for completing the integration with Kusama AssetHub, which establishes a significant public good.
By leveraging the Kusama-Polkadot bridge, Brale allows any organisation operating on either network to issue US regulated and yield generating stablecoins that can be exchanged at zero cost across 15 connected blockchains.
Ethereum, Base, Solana, Optimism, Polygon, Ethereum Classic, Celo, Hedera, Arbitrum, Avalanche, Cosmos, Coreum, Vechain.
Important information
- The beneficiary ID for the Decent Partners organisation on Krievo is now set
- This proposal is paired with a concurrent $300k liquidity incentive proposal with KSM Collective as the beneficiary to match an initial $300k of dUSD from Brale in a new KSM:dUSD Asset Hub pool.
- Although the integration is currently only for issuing on Kusama Asset Hub, adding Polkadot Asset Hub - (for example creating a Polkadot branded stablecoin) is a simple addition but is out of scope for this proposal.
Destination of funds
Brale are pledging their KSM fee to the Decent Partners member organisation on Virto.
Funds are paid to the Decent Partners organisation on Krievo.
These funds are governed by the members aka the Partners.
Launch Partners are decent, Brale, Virto and KSM Collective who each have 1 vote.
Each member organisation operates under their own independent governance structures facilitated by Krievo’s OpenGov based systems.
You can think of Decent Partners as a DAO of DAOs focused on driving adoption of Brale based stablecoins in Kusama/Polkadot.
Use of funds
This KSM will be swapped to decent/dUSD the first stablecoin to be issued.
The dUSD will be used to cover existing and ongoing development and as risk capital for issuing stablecoin loans to a first cohort of collectives.
Loans are automatically recouped from future revenues generated by the products, services and licensing of funded organisations.
Who are the core users of this integration?
The strategy is to use the infrastructure to kickstart on-chain collectives who develop innovative commercial models - products, services and talent.
These network native resources are only accessible to customers using the relevant stablecoin driving demand for the currency.
Brale business accounts + Virto organisational infrastructure = 
Brale’s rapidly evolving business platform offers businesses 0 fee stablecoin exchanges as well as on/off ramps to USD and accounting services for both US based companies and for international clients through Virto’s soon to launch offerings.
Moving fiat or crypto into Brale issued stablecoins to make purchases is being simplified by Brale via their businessp platform, Virto via their app including wallet-less onboarding and there are also e-commerce plugins coming from KwickBit a Decentralized Futures grant recipient.
How does the minting process work?
Currently supported Brale on/off ramps
Brale platform fees
Zero slippage swaps
Swap $1,000 in one stablecoin, get $1,000 in the other stablecoin.
Yield sharing revenue model
Brale stablecoin issuance returns yield to partners through a revenue sharing deal ensuring value remains where it was created rather than being extracted by Circle/Tether.
This model is similar to YouTube sharing ad revenues with creators through their partner programme, except Brale are democratising the creation, issuance and distribution of fiat currencies and rewarding real economic impact rather than harvesting attention.
| Stablecoin market cap | Partner revenue share |
|---|---|
| Under $5,000,000 | 10% |
| $5M - $20M | 50% |
| $20M or more | 90% |
Brale commitment
Brale are also committing to the ecosystem by establishing their fast growing business as an organisation on Virto/krievo.
They are pledging their fee as seed loans to a first wave of collectives using dUSD as their payment rails and recouping automatically from their future revenues.
First stablecoin - decent/dUSD
decent/dUSD is now live on Kusama Asset Hub with ID 50,000,002.
It is the first stablecoin in the Polkadot ecosystem where yield is recirculated into the native economy.
It serves as a model for other collectives to move beyond inflation based funding and towards meaningful economic impact.
It will be integrated into the Krievo blockchain and Virto App as a default payment option for collectives.
Yield generated is flows through to a treasury managed by member organisations of Decent Partners, funding ecosystem development and ultimately onboarding more collectives to krievo.
Liquidity Support
Brale is providing an initial $300,000 in dUSD to the new KSM:dUSD liquidity pool, ensuring robust liquidity to facilitate initial asset exchange.
A separate concurrent treasury proposal seeks $300k of matching KSM to add to the pool.
dUSD loans (advances)
Brale’s $125k integration fee will kickstart the first wave of dUSD loans.
Collectives receive loans in dUSD in return for:
- Using dUSD as their default currency.
- Being represented by Decent Partners - similar to signing with a talent agency.
- This representation is recorded on-chain by the collectives pledging the rights of their organisation as NFTs to the Decent Partners network reserve on kabocha.
Loans are automatically repaid from income generated from revenues generated by an organisations novel products, services or licensing agreements.
Network share
Collectives receive network share in the form of reward points - the native token of Kusama parachain Kabocha which is minted 1:1 on sales in dUSD.
These points are locked until loans are repaid and are recouped.
Customers (fans / sponsors) of collectives receive 2% ‘cashback points’ in KAB for spending in dUSD.
Organisations onboarding new collectives earn 10% the future reward points earned from their commercial impact creating a new and automated incentive model for driving network effects.
Hard money with a soft heart
Matching real economic impact to rewards ensures that kabocha’s issuance schedule remains predictable but inflationary, whilst memetic power comes from the cultural impact of the collectives pledging their futures to the network.
First collective onboarded with a dUSD loan
FourToTheFloor
FourToTheFloor (FTTF) one of the UK’s most influential youth music brands.
“Music TV that restores faith in the future” - The Guardian.
Five series of the cult TV series funded by public service broadcaster Channel 4.
Sample episodes:
Launched the careers of artists including Lil Simz, Sam Fender, Ed Sheeran and many more.
YouTube channel with 13k subscribers, creator partners with over 1m subscribers.
Previous commercial partners: Spotify, Apple Music, Nike, adidas, Red Bull, all major record labels.
Produced from community studio Portico in South East London.
Moving on-chain to create MTV for the Web3 generation.
How to understand the ecosystem
Summary
- Reimburse Costs: Recognise Brale’s completed public good integration with Kusama AssetHub.
- Kickstart collectives and dUSD economy: The KSM fee will be exchanged to dUSD via asset conversion pallet kickstarting that pool and will then be used by Decent to kickstart creator collectives on krievo.
- Reward economic impact: Successful ventures drive real economic impact and earn network share.
- Encourage Innovation: Inspire other collectives to launch branded stablecoins and benefit from adoption-based revenue models.
- Facilitate Expansion: Lay the foundation for broader adoption, including enabling Kusama and Polkadot to issue their own kUSD and dUSD via Foundation entities such as the Polkadot Foundation and generate native yield on treasury holdings and spending.