Governance & Voting Rules - v2.0
Last updated
Last updated
Jul. 8, 2022 Draft
Jul. 8~18, 2022 Community Review
Jul. 22, 2022
Many Web3 project failures are a direct result of poor decision-making from Decentralized Autonomous Organizations (DAO). DAO is community-owned organizations backed by blockchain transparency and void of centralized leadership. For many Web3 projects, the community is the driving force behind the project's success. Numbers Protocol is no exception. For that reason, this community review will focus heavily on establishing sound DAO rules. In these times of uncertainty, it is especially important to get this right to ensure the success and longevity of Numbers Protocol.
We will be enlisting help from the community to share feedback and suggestions regarding DAO rules. The hope is that by leveraging community input, we can increase the likelihood of creating a solid community body that advocates for the health of Numbers DAO as opposed to personal interest. It is expected that the implementation of the rules will happen gradually, and it is possible that not all rules can be implemented in the first few voting sessions. The Dev team promised to do our best to find tools that fit the conclusion of the DAO rules and continuously improve the tools. After the rules are decided, we will generate a roadmap for the DAO implementations.
Every active CAPTCH-A holder is considered as a member of Numbers DAO; however, you have to burn $NUM to vote or make proposals.
You must acquire Snow or higher levels of CAPTCH-A to vote. Voting requires burning of $NUM tokens and it will proceed with quadratic voting rules (i.e. 1 $NUM = 1 vote power, 9 $NUM = 3 vote power).
Only Rose, Sky, and Night are eligible to make proposals for NumbersDAO. The proposal should be related to their expertise area. The proposer needs to stake 5000 $NUM to propose. If the proposal passes, the 5000 NUM will be refunded to the proposer; on the contrary, the 5000 NUM will be burnt.
Burnt $NUM will be sent to a collection wallet and be burnt together during the quarterly token burnt process.
40% of the minted CAPTCH-A will be set as team preserved.
How often will the Numbers DAO voting be held? Regular Numbers DAO voting will be held quarterly. The schedule might change depending on the project roadmap and will be announced 30 calendar days before the voting day.
How will the Numbers DAO conduct? The DAO voting will be held in 5 phase :
[Phase 1 : Proposal] Rose, Sky and Night CAPTCH-A holders will make proposals for topics related to community governance, creator activity, network development and pose them to the proposal channel.
[Phase 2 : Community Feedback] Collected proposals will be sent to Community Review. The community can provide feedback, raise questions or pose potential solutions to the topics.
[Phase 3 : Governance Discussion] Important or popular suggestions posed by the community in Phase 2 will be selected and discussed in the Governance Discussion. In this phase only “active” CAPTCH-A holders will be invited to join. SoulBound CAPTCH-A holders can discuss the topics and decide on which solutions will undergo governance vote. The discussion is read-only for Pebble holders as they are expected to provide feedback and suggestions during Phase 2.
[Phase 4 : Vote] Voting will be held after the discussion is closed. All “active” CAPTCH-A holders are invited to read the on-line voting process, however, only CAPTCH-A holders of Snow and above will be able to vote.
[Phase 5 : Public Announcement] After the voting is completed, the results will be announced publicly.
What’s the difference between GitHub’s proposal and the DAO proposal? Github is more for “feature requests” or “issues” (user-driven). DAO proposal focuses more on the direction of Numbers Protocol and governance-related topics.
For governance-related topics, the process will be
Rose, Sky, and Night CAPTCH-A holders make the draft proposal related to their expertise area
Proposal is sent to community review and collects feedback
Host governance discussion and vote
All you need to know about Soulbound NFT We learned about this concept from Vitalik Buterin. Utilizing NFTs as proof of participation in DAO meetings is common practice. If the governance qualification could be traded and acquired easily through the secondary market, it might raise concerns or bring a bad impact on the projects. We consider Soulbound NFT a qualification you earned by contributing to the project. No one should be able to throw a fortune to inherit this qualification. We also discussed this topic in February. See article here. Also, if you are interested in Vitaliks’s thoughts on Soulbound, please see here
