Healthcare DeFi AMA with Pradeep Goel (Oct 7 & 8)

CEO Pradeep Goel recently held two separate AMA sessions to answer questions from the Solve.Care Community about the Real DeFi for Healthcare Solution. The level of anticipation could be felt from the community as there were many questions surrounding this exciting opportunity. The following is the transcript for the two sessions that were held over two days.

Q1: SOLVE currently has a market cap of about $32m. Where does management think the millions of dollars will come from to adequately fill a pool?

A1: Asset pool size is not related to SOLVE market cap. Asset pools will accept multiple asset types including stable coins and SOLVE. The millions of dollars needed to finance asset pools will be contributed by the larger crypto and traditional financial community who are drawn by the value proposition of the asset pool. Example, when we discussed the device asset pool with a traditional finance expert, they found it very compelling and would be interested in contributing assets via stable coins purchased with funds from their fiat accounts. Bottom line, the goal of asset pools is to

1) give the crypto holders opportunity to investment in real projects with merit in terms of risk, reward and governance

2) non-crypto world to contribute using digital asset class they are more comfortable with.

Q2: How will Solve.Care attract non-crypto funds into pool investments?

A2: Our goal is to create a new model that is more effective in terms of no middlemen, merit-based, and with real-time visibility into performance of the asset (transparency). Traditional finance struggles with all of these, or simply assumes that asset contributors don’t need to or shouldn’t have this level of transparency. We designed the DAO to address these key issues:

1) Fixed Interest Rates that are competitive.

2) Significant income sharing such that it aligns everyone’s interests.

3) Governance that replaces the need to put money in the hands of a “star” money manager.

4) Unprecedented transparency that simply does not exist in traditional finance (Oracles, PITx and blockchain).

Our view is, once proven this project financing model will be far more attractive to retail investors around the world and more equitable; certainly, as compared to the opacity and lack of oversight you experience in hedge funds, mutual funds, and stocks funds.

Remember, this is not just a DAO for the crypto community, it is a DAO for everyone who can benefit from contributing or utilizing asset pools. Everything that is being done is to make merit-based financing a reality in a decentralized autonomous manner but usable in the physical world and physical economy

Q3: What are the criteria for a “merit-based proposal”? Who defines “merit-based”?

A3: The DAO is designed to parametrize decentralized finance via parameterized asset pools. If the merit cannot be reviewed and scored with a smart contract, then it is not a suitable project for the DAO. The parameters will certainly evolve but a robust set of core parameters have been designed from the start. Examples of some parameters are:

· Annual Percent Yield

· Asset types

· Pool type

· Income Sharing

· Payment Schedule

· Collateral

· Contribution Period

· Pool utilization measures

· Pool risk measures

· Pool oracle

· PITx value scheme

· # of distributors

Each of these parameters is designed to be scored and evaluated automatically. Then there is a committee and expert review leading to a DAO citizen vote for approval.

The critical element to understand is this; the community needs to be able to score, compare, and measure asset pools before, during, and after contributions. This is a key reason to create pool oracles and pool index tokens.

Merit is defined not just as metrics but also as risk and actual performance. We are not designing a hope-based model of asset management but rather a transparent model of evaluation, approval, contribution, withdrawal, risk measurement, net performance, and redeemable value.

This DAO is very innovative in that a smart contract does initial checks and scores before the proposal can be forwarded for committee/expert review and voting. Oracle measures the risk adjusted performance and value is adjusted daily, which is incredible transparency for any investment.

Q3.a: Asset Pools Proposals and Evaluations — to clarify, all “pool parameters” will be quantifiably measurable and the smart contract(s) will perform according to these values?

A3.a: In short yes. The Founding Committee’s vision is; no middlemen, merit evaluation based on parameters, total transparency, daily risk adjustment, and performance tracking via a single number (PITx value).

Q4: The first asset pool (consumer medical devices) size is capped at 100M, unless we are going to have multiple consumer device assets pools, I’m not sure that is high enough? Is this something the governance committee can vote to change or increase?

A4: I don’t think 100M will be enough, if successful. It is always a community decision to act upon if improvements are needed to:

· Increase pool size

· Extend redemption duration

· Create another pool

· Offer different terms

The community must determine the pool performance to determine a trigger to pool liquidation or to extend.

Q5: How did the founders come up with the 3,500,000 governance tokens? Why not 4,000,000 or 2,000,000?

A5: The goal was to turn over the DAO to the community ASAP. One of the key milestones to reach in making this happen is the percentage of governance tokens issued needed to be meaningful. The Founding Committee looked at a lot of variables and ultimately decided that engaging in the DAO should be simple and easy for the SOLVE community. The reasonable threshold of participation was agreed at 100 SOLVE tokens, which would allow a low wage worker to participate. There are 350M SOLVE in existence, so the maximum number of governance tokens was set at 3.5M. The Founding Committee (FC) understood the key is DAO participation, engagement, reward, and ability to exert meaningful influence by the whole SOLVE community. Which is what drove the math and ultimate decision

Q6: Are there any safeguards if the people elected to important roles in the governance of asset pools later prove to be corrupt?

A6: Yes. This has been a topic of considerable debate and lots of late-night walks to mull things over. There are several intersecting safeguards.

· Asset Pool Collateral.

· Payment schedule.

· Oracle — PITx.

· Emergency Stop.

· Liquidation.

· Reputation Decay.

· Governance Committee Member Remove.

· FC emergency stop.

Asset pools can be collaterized by:

· Distributor assets.

· Committed Payment Schedule .

· Treasury assets.

Payment schedule serves as a contract for asset utilization and as a feed into the pool oracle to continuously measure risk.

PITx value is risk adjusted daily to account for withdrawals, committed payment, schedule compliance, and anticipated versus actual withdrawals (expenses). The community can invoke pool emergency stop via specific type of accelerated vote.

All pool actors have reputations that are adjusted based on action/inaction and delayed payments will negatively impact distributor reputation. These reputations are public and monitored. If a community expert or governor committee member reputation falls below threshold set by the committee, an automatic removal of contract is triggered. If legal, regulatory, or geo-political reasons require a removal (not lack of reputation), FC can instigate a removal vote. Worst case scenario, if the entire DAO is under attack, FC can invoke an emergency stop but doesn’t have power to liquidate, which requires community vote. While never comprehensive, this addresses most scenarios that are plausible.

Q7: Is there a set length of time for distributors and experts where they would have to apply to be renewed, or is that negotiated during the approval process?

A7: Governance committee appointments are 18 months. Consecutive terms are not allowed. Experts are selected for life unless reputation decays, in which case they are automatically removed. If removed, they must earn reputation back and be approved through a community vote again. Distributors are linked to pools and therefore are accountable for pool distribution and collections till the pool is liquidated. Each pool can set its own distribution terms. Founding committee members are permanent but can only vote on narrow set of issues. FC members can resign. In which case, FC reputations will be adjusted to create a new quorum.

Q8: How and when and how many governance tokens are you anticipating people might want if there is a pool proposal ready to go when this starts?

A8: The total number of governance tokens is 1% of SOLVE token supply which equals 3.5M. Every 100 SOLVE tokens staked for 1 year will mine 1 governance token. In order to call the constitutional assembly where first vote for adoption and governance shall take place, Founding Committee (FC) is thinking 10–20% of governance tokens should be in circulation. The premise is to get the community to take over governance before any asset pools are created, distributors are approved, and assets are contributed.

These are the phases you should understand.

1. Initiation Phase — FC is doing all the heavy lift plus the development teams working are on governance schemas.

2. Launch — Mining Phase: Staking of SOLVE tokens to mine governance tokens. This phase is next and will be announced as soon the governance scheme is implemented.

3. All will be then able to mine Gov Tokens by staking SOLVE.

4. Constitutional Adoption Phase: Once 15% (10–20% TBD) of Gov tokens mined, first constitutional assembly and first governance vote taken. This is start of Community Governance phase. FC goes into support mode and loses most of its powers.

5. Governance phase:

5.1 Elect governance committee

5.2 Appoint experts

5.3 Review and vote on proposals

5.4 Asset Pools

a. Pool contributions

b. Distributions

5.5 Ongoing governance

6. Refinement Phase

6.1 Meetups and discussions

6.2 Amendments

6.3 Term Elections

As you can see, the DAO is designed to be community governed from the very beginning. There are a few considerations that the community must vote on in first such as the governance vote during the constitutional assembly.

1. Set Gov Committee election date

2. Set Asset Pool vote

3. Accept proposals from community experts (e.g. smart contract auditor)

FC will set the precise nature of the first governance vote. Future governance votes will be set by the Governance Committee.

Q9: Underwriting pool assets — who, what ,and how will be the process be for determining an “approved ERC20” token other than SOLVE?

A9: Initially pools can only be underwritten in SOLVE. Eventually the community can vote on adding other collateral asset classes. However, SOLVE cannot be removed as collateral unless the constitution is amended. In general, every asset pool can be collateralized using SOLVE + any other community approved asset.

Q10: In the event that a citizen of the DAO decides they do not want to be a citizen anymore can the governance committee vote to allow for the transfer of said person’s governance tokens to another citizen? Thereby increasing another citizen’s voting power. Much like a shareholder in a corporation.

A10: Great question. Community votes using governance tokens and their reputations. Governance tokens are ERC20 and can be transferred between DAO citizens or with anyone else. Reputation is not relative for an ERC20 token or any kind of token. It is non-transferable and is earned or decays but cannot be transferred.

If someone does not wish to vote anymore, they can hold, burn, or transfer their governance tokens freely.

Q11: Although you want to start mining governance token right away, isn’t it better to spread out the risk across asset pools? If you jump in with all your solve tokens of the consumer device asset pool, then all your eggs are in one basket and your tokens are locked up for a year. Any advice from experts in this area?

A11: Another great question. Since governance tokens are mined via staking SOLVE, there is no direct association between governance tokens and asset pools. Governance tokens are for voting plus income share from all asset pools, asset pools are for contributions to earn interest, and income share is for just this asset pool.

So, the risk is already spread out by

1. Governance tokens are mined immediately upon staking,

2. Governance tokens earn a piece of income from every asset pool. Consider it as governance fee/reward earned through your time and efforts to govern the DAO)

3. Asset pool contributions are specific to pool merits and risk-reward parameters.

Q12: Can you explain governance tokens more?

A12: All that is needed is to stake SOLVE token to the mining contract which will issue governance tokens and lock SOLVE for 1 year.

1. Gov Tokens are citizenship tokens and are:

· Not of monetary value or issuance price

· Bound to the DAO Constitution

· A right to vote

· A right to receive income from ALL asset pool

· A maximum of 3,500,000 (to be mined and issue quantity can be decreased by proper governance vote.)

· A voice to approve all asset pools, appoint committee members, approve community experts and ongoing governance tasks.

· A right to set the income distribution from the asset pools to contributors and distributors.

Q13: With Solve.Care clients there is expertise and assurance given that fiat can be moved in and out of tokens to make the system work. Would this would be true of the DAO for companies or organizations that wanted to fund pools with large sums also?

A13: All distributors (Solve.Care included) must propose proper and compelling use of pool assets, distribution model and collections, and reporting to oracle. Any DAO that wants to interact and interface with the physical world must be a reliable distribution and collection function. That function is the essence of a distributor in this DAO and is of course subject to constant monitoring by the oracle.

Distributors must have the ability to publish utilization metrics to the oracle in real time.

In the case of Solve.Care, it proposes to automate all distribution and payments via Care Networks and Care.Wallets.

Q14: Is it possible to build in a risk factor for hacks and possible maximum citizen compensation should one occur. Much like we see in the (RAV) of the PITx for broken devices or defaulted payments. This might help alleviate concerns of staking all solve in the first asset pool to mine GOV tokens.

A14: This is an excellent suggestion. The answer depends on the DAO phase. Initially, the DAO treasury does not have much assets, so the only available asset other that contributions is distributor collateral. But it should not be used for events that are not attributable to distributor performance. For the first few asset pools, insurance is a better option but offers limited protection. However, as treasury assets grow, the community could vote on a proposal to underwrite DAO risks opposed to pool risk which are protected by distributor collateral, with treasury assets.

Q15: How many governance committee members will there be once the Founding Committee separates; parameters for applying to said committee for the first round (18 months).

A15: Great question. The maximum Governance Committee members is 25.

7 FC members (until one or more resigns but can not be replaced).

· Quorum is half + 1.

· Majority is 50% vote + 1 (accounting for reputation).

· Super majority is 75% (accounting for reputation).

Founding Committee members, if part of the governance committee is like everyone else.

Governance Committee members are appointed by a community vote only. FC can put forth a candidate (anyone can) but only the community vote can elect them.

The community can also eliminate or shrink or expand the Governance Committee via constitutional amendment.

Q16: How will the performance of all the asset pools within the DAO make the price of SOLVE fluctuate or if it even will have any effect?

A16: SOLVE is the underlying mechanism to get SOLVE community engaged, empowered, and take control of the DAO. This DAO belongs to the SOLVE community and thus is meant to be governed by you all for the forseeable future. SOLVE is needed to mine governance token, to put forth proposals, to apply and nominate for positions, and to collateralize asset pools.