Pigeon DAOs business model and plan for self sustainability.

An article curated by Watson Lewis-Rodriguez, with revision by Noah Maskens and Spanish translation by Pedro Chacin, from Pigeon DAO.

Pigeon DAO is a Decentralized Courier Protocol that connects independent package couriers with customers and allows them to communicate and get paid in crypto through smart contracts to deliver packages.

This minimizes the complex nature of modern supply chains by creating an underlying framework and allows people who are unbanked to generate local domestic supply chain for businesses to utilize and access their local ecommerce market.

Business Plan

Pigeon DAO’s business model is value attracting, externally scalable passively and sustaining regardless of participants. Pigeon DAOs focus for creating value through parachains establishes a community relationship to encourage developers from around the world to utilize the DCP, APIs, and commerce marketplace to build entire logistic networks and commerce platforms through the use of VE Utility tokens as transaction fees. Pigeon DAO helps enable and guide developers into creating entire business entities, logistic solutions, delivery system networks. The participants and couriers of the network both are charged at the open node competitive validation rates, expectedly ranging from 1-5% of the overall delivery agreement price. Between two parties charged at the same rate, the smart contract automatically pays both the validator of the contract, and the DAO treasury to accumulate cash inflow and accumulating assets. The validators receive the % of the transaction in PGN token, which is given to create voting rights and governance over the ecosystem to help encourage overall development of the social movement. The validators can then utilize the open market to sell their token, or to hold and stake their tokens. Through the open market (and initial funding rounds), developers are able to buy the PGN token to utilize for Pigeons parachains. PGN tokens are used to access the API permissioned gateway to enter the dApp playground, and create specialized applications through the marketplace and courier network to create entire commerce sites, industrial automated material deliveries, autonomized producer to consumer supply chain solutions, as well as other related networks to help create value in local supply chain networks, and thus help grow and obtain value directly into the Pigeon DCP. While the development is anticipated to grow the ecosystem immensely, the treasury still receives the same % of the transaction in PGN token, which is used to invest throughout the entire protocol to encourage crypto asset growth, community and marketing campaigns, hackathons, and Web3 events.

Pigeon DAO plans to scale outside of the DAOs contributor tablist by investing through the treasury to find developers, government agencies (in developing economies), commerce store platforms, and enterprises to coexist in the parachain. By joining communities and groups under the related sectors Pigeon DAO is innovating in, we can have a much greater market capture through the competitive marketing for the much greater efficiencies only found on Web3 and native blockchains, compared to Web2 infrastructure. Because Pigeon DAO is able to be on the frontier of the blockchain revolution utilizing native crypto philosophy, developers in all corners of the world in all countries who access this dApp may be able to build local logistic networks and supply chain systems to help stimulate local trade and get accessible and fairer rates on essential food and products. Developers can also represent large enterprises throughout the world who can create automated smart contracts to fulfill industrial delivery loads and establish a public archive of quality transactions can help boost reputation and trust into those who create transparent supply chains.

Pigeon DAO is able to create a self-sustaining model without the existence of developers and participants on the network through the material arbitrage of Pigeon DAO. Because Pigeon DAO is able to facilitate a marketplace for both commerce and package delivery, we are able to utilize our own DCP to create large volume trade for cash inflow. Pigeon DAO is able to utilize both material delivery for payment, as well as utilize compensation for physical DAO assets. We’ll be able to access and stimulate national economies through the outsourcing and distributing of consumable goods and material goods through independent contractors who are responsible for their business growth, personal income, public community reputation, and value creation for locals.

Because couriers will also need to stake and put up accountability upfront, there is an obvious reduction in potential theft and avoidance of the bilateral smart contract, which may be legally binding both through Kleros and US civil and UK common law. Through seed funding at an uncapped initial phase, we will be able to potentially receive enough awareness and capital to have funded marketing campaigns and created small physical trade networks around the world, we can create fulfillment centers and contracts with local couriers to facilitate the industrial deliveries and scale considerably through funding delegations in the DAO. Through the distribution of freight and oversea deliveries, there can be built public bilateral smart contracts that offer participants to complete final mile deliveries and ANT exchanges (By connecting two or more couriers together to complete a delivery, an ANT touchpoint can be added to the smart contracts addresses and distribute the compensation rates fairly for the overall amount of couriers in the package delivery) throughout the delivery lifecycle, which can help stimulate overall market volume trade and distribute PGN token to those who have participated in the smart contract.

Additionally, because couriers are required to formalize their legal entity to complete deliveries beyond the $500USD threshold, or local minimum income tax required to file, Pigeon DAO naturally has entrepreneurs and career couriers onboard, in which they are naturally encouraged to initiate and grow their own courier platform - in which they have extensible rights and next to complete freedom in their business choices. They are naturally enticed to grow and scale participation activity in the dApp. Contractors on Pigeon DAO have the ability to individually scale and grow their businesses and onboard additional employees and pay for workers, through their Articles of Organization on the LLC, they can register and connect their personal information to a wallet and be able to represent their business actions onto a public ledger to create an entirely blockchain managed service LLC onto Web3, which can then carry immense benefits to communities and societies over the world who can then then access entire logistic archives and have an clearly authentic Web3 businesses that exchange crypto, to keep crypto in crypto.

Summary

There are 3 core components to the Pigeon DAO business plan which exchanges immense value between all parties of the platform. Firstly, Pigeon DAO receives value from participation in the network, through microprocessing, the treasury can accumulate assets. Secondly, Pigeon DAO receives value from couriers by registering and forming their independent blockchain business and service to naturally expand into small regional commerce and package trade. Finally, Pigeon DAO can utilize both its commerce marketplace, and courier fleet through material arbitrage for industrial goods and large volume trade, to create ANT deliveries and grow physical assets and fulfillment centers cost effectively. This can establish self sustainability and ecosystem for a thriving DAO of a DCP.