On behalf of the Virto team, I’m excited to share how we’ve used Kusama treasury funds to build something we are very proud of: the Kreivo parachain. With our latest runtime upgrade It’s now possible for everyone on the Kusama community to set up their own DAO with just 1 KSM. Our goal is to make it super easy for people in the ecosystem to create and mange an on-chain organization that is native to the network(e.g. can do staking or participate in OpenGov).
What we built
Kreivo
The Kreivo parachain was conceived to be the first implementation of the Local Incentives Protocol, a long term bet to empower local communities with their own micro economies. In the short term though, it is a hub for Kusama native DAOs that have several tools at their disposal to integrate seamlessly in the ecosystem and even conduct businesses in the real world.
Communities
In Kreivo, communities—how we call DAOs—extend the existing pallet-referenda infrastructure used in OpenGov, thanks to a proposed change via the Fellowship, we allow dynamic collectives to form and manage their own governance tracks that communities can use with diverse governance options like membership-based, ranked, or token-based voting with KSM or external assets(including DOT). Each community manages its own treasury, including sub-treasuries for any sub-groups, and sets up multiple governance tracks to oversee different organizational functions. Additionally, through XCM, communities can execute actions on the relay chain, such as setting an identity, staking, or participating in OpenGov, seamlessly integrating with the broader Kusama ecosystem.
Do DAOs! not multisigs+proxies
Proxies controlled by multisigs are a powerful primitive but can be difficult to manage and scale for growing organizations. Oftentimes you have to compromise on security and decentralization delegating critical functions to off-chain agents like bots.
Example of a proxy-based collective i helped set-up last year(not easy to maintain):
Payments
Our powerful payments primitive enables secure refundable payments very well suited for real world businesses.
e.g. Let’s say you have a DAO that curates listings of products or services published by its members in form of nfts, the payments system allows customers confirm their goods have been received to release the funds that were frozen in the seller’s account, it allows the community to set up custom fees for each item and even assign a sub-DAO in your organization(e.g. decentralized customer care) to resolve disputes. We keep adding features like payment subscriptions or “fluid payments”(similar to a vesting system) to cover all kinds of use cases like the simple payment of salaries within the organization.
Pass and Memberships
A new use case for KSM 
to give end-users free access to blockchain services!
With our memberships interface implemented for the pallet-nfts, it’s possible to not only give communities a way to keep track of their users who can transfer any attached benefits easily but also to provide means of using said memberships via our “pallet-pass”(not released yet) which allows free wallet-less access to any service offered by the blockchain.
The process is the following:
- Via governance the protocol mints any number of memberships with different prices and benefits(e.g. expiration date, weight allowance) into a protocol controlled collection.
- Communities use KSM to buy memberships in bulk from the protocol.
- Communities are given their own nft memberships collection to manage their memberships and assign them to their members.
- Any interaction with the blockchain can go through the membership-aware Pass system that can use biometrics on your device or security key(passkeys) to authenticate and control a key-less on-chain account for you to execute fee-less transactions.
Fair Governance
In our last update we also removed the usage of Sudo, now the network’s fate is in the hands of our token holders communities. The experiment and main idea is to bet on the organizations building products on Kreivo, we believe they will have the best interest of the system at heart as they constantly need features and to interact closely with the protocol, it’s expected that DAOs will know better than end users with large bags what’s better for the network.
Communities use the ranked collective pallet to form a super collective with root privileges. Ranks will initially be given manually via public referendum based on the amount of infrastructure and the amount of memberships each community holds.
Numbers are not yet fully defined but we can start with a set-up like following:
- +1 rank for each full archive node
- +2 ranks for each collator
- +3 ranks for a matrix server
- +1 rank for each 100 memberships
Nothing is set in stone, the priority is to maximize fairness and balance power reflecting as best as possible the commitment of the communities with the ecosystem.
Call for DAOs!
It’s been a great and rewarding experience to develop tools for the public, we hope KSM(and DOT) token holders who made this possible will find these new DAO primitives useful to create great flourishing decentralized communities with global reach.
A simple interface to create and govern communities is on the way, in the meantime we want you 
Apply and tell us about your ideas for a collective/community/business.
For the adventurous Polkadot.js users @pandres95 has created a guide for you to already come and setup your own DAO with 1 KSM, your feedback and feature requests will be very valuable, come talk to us on Matrix and we will be there to resolve any problems or questions.
