Introducing the AlgoDAO Governance Framework (AGF)

Introduction

The AlgoDAO Governance Framework (AGF) is a complex and comprehensive framework purpose-built for AlgoDAO. At this time the framework is specific to the AlgoDAO platform however the long term vision is an agnostic use of the framework that is deployable across other projects within the ecosystem. Rather than relying on a set of standalone ad-hoc proposals, this governance framework creates a unifying base for decision-making and for activating increased DAO member participation which will launch AlgoDAO and its pilots into a full blown community centered mega beast driven by interaction from its members.

Summary: Overview

Deep in space, our Fleet Elite pilots have innovated a unique layered DAO governance system. When implemented, this innovative model will create an equitable governance system that is based on the concept of Guilds within the DAO.

The following properties are key indicators of the success of the AGF:

1. Incentivize widespread participation in the governance process.
2. Stimulate ecosystem-benefiting behavior from DAO members. For example, incentivizing discussions and proposals on how to further improve AGF alongside other contributions.
3. Democratize the voting process and make every vote count.
4. Stimulate DAO members to organize into Guilds, each expressing its own distinct personality across like-minded interests for artists, NFT projects, degens, common language, and geography-based Guilds. Each Guild will have its own distinct identity, leaders and followers, rights and obligations, unique challenges and be awarded benefits when challenges are solved. Each Guild will have its own unique political will within the ecosystem like a crazy hybrid between ancient guild and political party.
5. Gamify the DAO-governance process to make governance effective and also highly engaging. Engagement is the key struggle and biggest factor affecting DAO systems. We believe that participation is vital and therefore should be a fun and rewarding experience.
6. Create a unique interface using discord to facilitate on chain governance processes including incubation governance, grouping of Guild members and ranking systems via mutable NFTs to reflect tiers/Guilds and reputation points in order to democratize AlgoDAO into a truly community driven DAO.

High-Level Implementation Details

1. The size of your $ADAO stake defines your membership tier in the DAO (as before).
2. Members receive NFTs when they stake $ADAO.
3. AlgoDAO governance will be hosted on Discord where the NFTs will integrated to determine the members tier.
4. The NFT received is unique, it has a generative mutable art piece attached to it, and it represents your current tier of membership in the DAO. The key difference is that NFTs received from staking $ADAO are arc19 NFTs with mutable features that enable transitions between tiers.
5. The voting process happens with the NFTs. The voting power of an NFT is tied to the midpoint of the tier that the NFT represents (with the exception of the Vanguard, High council and Fleet commander where the median will be used instead). To enable a more equitable distribution of voting power within the DAO, the votes of AlgoDAO members within a membership tier carry the same weight within that tier, irrespective of the actual number of $ADAO staked by the individual. If you want to increase your voting power, you will need to increase your $ADAO stake to qualify for the next membership tier, acquire the appropriate NFT for that membership tier, and then, your vote will carry greater weight attributed to that higher membership tier.
6. Voting power is reflected through the tier represented on the AlgoDAO platform and by the Mutable NFT received upon staking. Voting units can be reflected as either individual stakers or they can be collectively represented by Guilds — a collection of individual DAO members that unite behind the same vision. Uniting in a Guild is technically done via delegating one’s NFT voting power.
7. The within-Guild proposals that are successfully voted for are then passed to the inter-Guild voting procedure and, if voted for, will be deemed as accepted by the DAO.
8. Guilds can create proposals, and can vote; but cannot delegate votes to other Guilds.
9. Individual DAO members can do all the same things as Guilds, but cannot create proposals.
10. The Vanguard can only delegate their votes, but at the same time, have the unique power to veto proposals.

AlgoDAO tier | Governance participation rights

• Vanguard: V, D, Vt
• Guilds (all Guilds = High Council): P, tD, Vt
• Fleet Commander ($ADAO 25000): D, Vt
• Flagship Commander ($ADAO 12000–24999): D, Vt
• Vice Admiral ($ADAO 4000–11999): D, Vt
• Lieutenant ($ADAO 1000–3999): D, Vt
• Ensign ($ADAO 60–999): D, Vt
• Staker ($ADAO 59 and below): D, Vt

Legend:

1. Delegate their voting power (D)
2. To be delegated to (tD)
3. Veto rights (V)
4. Creating a proposal (P)
5. Voting rights (Vt)

This system of delegation, combined with moving the definition of voting power, will solve many voting issues by democratizing and redistributing voting power more evenly between tiers.

By utilizing Discord, as well as a bespoke bot, voters will be able to delegate their voting power to a participant that might have a greater chance of tipping the scales in their favor. This will be uniquely the first time a voting system of this structure will exist on Algorand while integrated seamlessly within the Discord ecosystem.

Guild Discord Mechanics Summary

1. Guilds will have access to it’s own private Discord channel inside the AlgoDAO server;

2. Guilds can create internal proposals within the private channel, and once the proposal passes voting internally, it moves to the main governance channel;

3. Guilds can aggregate voting power;

4. Guilds have access to the incubation channel (Guild leader + two assistants) to:

• Create tasks,
• Assist with project due diligence,
• Host AMAs,
• Gain access to incubated project teams.

5. Guilds will have their own AlgoDAO Fleet Elite NFT with the Special Guild trait activated;

6. Guilds will have access to exclusive community campaigns with token and NFT rewards;

7. Guild leaders will receive AlgoDAO exclusive merch;

8. Guilds will be able to propose projects for incubation within the AlgoDAO governance layer.

Non-governance Guild rights

AlgoDAO long term will ultimately be made up of Guilds formed from different aspects of the community. This means Guilds will require dedicated members who are rewarded through strong KPI-based incentive packages in the form of access to perks from incubated projects as well as access to the governance system with influence on the direction of the DAO itself.

Let us break this down:

1. The founder of a Guild receives a unique NFT, representing their status within their Guild. They and their DAO members will have many opportunities within the governance structure of the AlgoDAO, as well as involvement with new projects as they onboard with the AlgoDAO platform.
2. Guilds have their own closed channels in Discord. The accessibility criteria is delegation of one’s NFT vote to the Guild founder’s address. In other words, one staking account can only access one Guild channel at a time.
3. Guild founders along with a maximum of two assisting Guild members are allowed into the special discord High Council group. The members of that channel are Guild founders, their assisting Guild members, members of the Vanguard and, most importantly, the founders of the incubated projects.
4. The founders of each of the AlgoDAO incubated projects must be constantly open to any questions from other members of the High Council. They are also obliged to create a number of challenges that will enable the Guilds to participate for allocation of project tokens at pre-IDO price as well as and other incentivized rewards. These challenges can be social, graphic/artistic, developer/degen or specialized mission from the projects to fulfill certain tasks pertaining to their launches and community growth.
5. To highlight it from the different perspective:

• Governance-wise, Guilds are different from the Vanguard in that: (i) the latter cannot vote and cannot create proposals, while the former cannot veto and cannot delegate;
• Allocation-wise, Vanguard and Guilds are at par access-wise, but Guilds need to earn every pre-money allocation and there’s only one such allocation that can be won by one Guild and one Guild alone, while Vanguard has access to such allocations at all times, but require a lot of capital to be tied in one’s ADAO stake.

Fundamentally AGF will require incentivisation to ensure maximum participation from Guilds and their members. Receiving access to the governance layer of AlgoDAO, Guild leaders can expect constant communication with AlgoDAO Liaisons and project teams through exclusive channels. This will allow each Guild to receive KPI-based tasks from both the AlgoDAO and incubated project teams, with associated rewards — in addition to the obvious incredible networking opportunities for both Guilds and project teams.

This is a massive step forward in the DAO space for algorand as we strive to build one of the first truly community-driven incubators. At the same time, this setup only strengthens the bonds between the members of a Guild enabling them to evolve into a strong, cohesive, and productive member of AlgoDAO.

KPIs could be as simple as social interaction within channels or graphic planning from an artistic guild to create merchandise for AlgoDAO or incubated projects. They may also range into less standard interactions e.g. organize a meetup in a specific area or gamified team challenges — the possibilities are endless here, and we are truly excited to utilize the vast skills locked in the community Guilds for the benefit of AlgoDAO.

The Guilds that can generate tangible value for the incubated projects will thrive, others will fall out of relevance and either restructure themselves or dissolve. Members will move between Guilds to find the best fit for their personalities and preferences. In this way, the AGF is self-evolving and by design stimulates clustering of talent and self growth to strive for perfection among our communities.

Equitable Governance System

AlgoDAO is striving to create something unique and special; a true DAO, incubator, and tokenized pad, that not only follows a strong set of principles but with special attention to detail that allows us to surpass and excel in the competitive landscape.

Our ultimate goal has always been to offer an inclusive governance model for our DAO members, one that is equitable and allows a meaningful level of participation for all DAO members, at any level of stake or tier.

Whilst 100% equality between the stakers is not possible (if you happen to find the world’s first perfect governance system, please let us know!), we believe our proposed AlgoDAO Governance Framework (AGF) will allow for the greatest possible participation in the governance of AlgoDAO by all its pilots — a fleet of liquid democracy.

All-in-all, we believe we have taken a balanced approach that will allow for a much fairer distribution of voting power between/within the tiers, and we hope after consideration and review — you might agree that this system will provide an essential key to governance on AlgoDAO!

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