DigixDAO User Guide: Setup
This is part (3/6) of the DigixDAO User Guide that will be released over the next few days, making it easier for users to digest the entirety of the guide.
We will be releasing the full guide in a downloadable PDF at the end of the series for those who prefer an offline version of our guide.
Another guide, focusing on interacting with the DigixDAO governance platform will be provided as well in the coming days.
This section describes everything you need to participate in DigixDAO. To properly prepare yourself, some important information to note from this section will be:
- The optimal time to lock your DGDs; and
- How to become a Moderator
DigixDAO works in Quarters, with each Quarter lasting exactly 90 days — from the start of Day 1 to the end of Day 90. Each Quarter consists of 2 phases, a Locking Phase (start of Day 1 to the end of Day 10) and the Main Phase (start of Day 11 to the end of Day 90). Locking Phases are meant to provide you sufficient time to decide on the amount of DGDs to lock in a given Quarter and Main Phases are when all governance activities take place.
If you decide not to participate for any reason, you may unlock DGDs at any time during the Locking Phase (start of Day 1 to Day 10). Please note that failure to do so after Day 10 would mean that whatever DGDs that are locked stays within DigixDAO until the end of the Quarter.
We, as Founders, are responsible for initiating the start of each Quarter. As far as possible, we intend to automate the process of initiating the start of each Quarter to minimize any delays.
Locking DGDs for Stake
Stake is the amount of voting power a Participant gets from locking his or her DGDs. Stake is used for voting on Projects and is also the primary factor determining the portion of DGX rewards the Participant can claim. In exchange for locking DGDs, you will receive Stake which will be used to vote on Projects during the Main Phase of a Quarter. The more DGDs you lock, the more Stake you receive.
To participate in DigixDAO, you have to lock at least 10 DGDs to be considered a Participant. Although locking less than 10 DGDs is possible on the smart contracts, you will not be considered a Participant if you lock less than 10 DGDs. If you lock any DGDs during a Main Phase, please note that you are required to lock more than 10 DGDs or 842 DGDs to be considered a Participant or Moderator, respectively. Although it is possible to lock DGDs at any time during a Quarter, the general rule is that for the same number of DGDs, the later they are locked, the less Stake you receive. This general rule is created to recognise the loss of liquidity of other Participants who locked DGDs earlier in a Quarter.
We encourage you to lock your DGDs during a Locking Phase (when there are no penalties on Stake) and lock DGDs during a Main Phase (when comparatively less Stake will be allocated) only when absolutely necessary. Once your DGDs are locked and the Locking Phase is over, you can only unlock your DGDs during the Locking Phase of the next Quarter.
During a Locking Phase, you will receive 1 Stake for every DGD you lock. DGDs can be locked at any time during a Quarter, but can only be unlocked during a Locking Phase.
During a Main Phase, your Stake for the Quarter will be determined according to the formula below:
- Total Stake is your total Stake after adding the Stake you receive from locking DGDs during the Main Phase
- Current Stake is your Stake before locking DGDs during the Main Phase
- Additional Locked DGDs is the number of DGDs you locked during the Main Phase
- Days Passed in a Quarter is the number of days that have passed in the current Quarter
Applying the formula and assuming:
- You want a total Stake of 200 for the Quarter;
- Your Current Stake is 100 for locking 100 DGDs during the Locking Phase; and
- It is currently Day 50 of a Quarter
You will need to lock an additional 200 DGDs by the end of Day 50 to achieve a total Stake of 200 for the Quarter.
Whether as a Moderator or Participant, you will use your Stake to vote on Projects. When you decide to vote on a Project, the vote’s weight is equal to all of your Stake. As a Moderator, you can use your Stake to vote on Projects during the Draft stage. As a Participant, you can use your Stake during all other stages of a Project, which includes both the Proposal and Review stages. You can vote on as many Projects as possible at any one time. Voting on a Project does not affect your votes on other Projects in any way.
Redeeming DGD Badges
DGD Badges were given out to our biggest supporters as a token of appreciation during our Token Generation Event in 2016. If you have a DGD Badge and redeem it, you will receive 412.5 Reputation Points, which would be more than enough Reputation Points to qualify as a Moderator at the launch of DigixDAO.
Remember that Reputation Points are different from Stake — Reputation Points are used to measure your participation in DigixDAO over time and Stake is used to vote on Projects in a particular Quarter. Reputation Points can be gained or lost depending on your participation in DigixDAO but Stake will never decrease and is dependant on the amount and time at which you lock DGDs during a Quarter.
Although it is possible for one address to hold multiple DGD Badges, we allow only 1 DGD Badge to be redeemed for each address participating in DigixDAO. This prevents a single address from collecting a large amount of Reputation Points such that it will remain a Moderator for an extended period of time without active participation in DigixDAO. If you have more than 1 DGD Badge, you are free to transfer your extra DGD Badges to other addresses.
Reputation Points exist to move DigixDAO away from a form of moneycracy to an epistocracy, where users who are most vested, knowledgeable, and working for the best intentions for DigixDAO are given a stronger voice in the direction of DigixDAO.
Gas Requirements for Participation
The launch version of DigixDAO is built on the Ethereum blockchain. Some of the actions in DigixDAO that require Gas to complete are:
- Locking DGDs for Stake;
- Voting on Projects;
- Creating a Project;
- Claiming DGX rewards; and
- Unlocking DGDs.
Participation Over Multiple Quarters
After the end of a Quarter, you are able to withdraw your locked DGDs during the Locking Phase of the subsequent Quarter. If you do not want to withdraw your DGDs, you can keep them locked in DigixDAO to continue your participation in the subsequent Quarter. However, you are still required to confirm your participation in the new Quarter before any Stake is allocated to you.
Keep in mind that due to the penalty in Stake when locking DGDs during a Main Phase, you should confirm your participation in the new Quarter during a Locking Phase to receive the maximum possible Stake for your DGDs.
Setting Profile Details
After locking enough DGDs to participate in DigixDAO, you are able to set your username and email, which will be linked to your address in DigixDAO. Your username will be displayed to other Participants if you create a Project or comment on one. Please choose your username carefully as they can only be provided once. We do not allow multiple changes to usernames as Quarter Points and Reputation Points are tagged to your identity, whether it is your address or username. Allowing multiple changes would enable an individual to amend their identity after acting inappropriately. Of course, you can always choose to use the default username assigned to you while you decide on your username. Providing an email is only compulsory if you want to submit KYC to be a Proposer. As we will primarily communicate with you through email, we highly encourage you to provide an email address.
We always appreciate feedback from the community on any angles, so do drop us a note or join our channels below:
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· Reddit: http://reddit.com/r/digix
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· Github: https://github.com/digixglobal
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· Discord: https://discord.gg/CCDBJJC
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· YouTube: http://www.youtube.com/c/DigixGlobal