The importance of decentralized governance and judges in IBY.
By now, you should probably know what is iBetYou and what do we stand for. You should know our ethos and why we want to turn people into champions, why do we use DeFi and what happens in the background when we do. You also probably know that our app is live and working on https://ibetyou.xyz
How things work now is pretty simple, you make a bet with someone, each side appoints a judge that will solve disputes when they arise. And trust me, they will occur, often than you think :) So, what happens if one judge backs his buddy and your judge backs you? Here comes the magic…
Incentives, incentives, incentives …
But first, let’s talk about incentives. What’s in it for the judge? Besides being your buddy, he also likes money. So what we do is share part of the yield to the judges. You see, while the bet is locked and your money is waiting for the winner, we put it to good use and generate yield using AAVE (aTokens and ma Tokens). Let’s say the bet is on for one year, and you have locked 1000$ worth of a token; the yield on that could be a nice pocket change for your friend, and all he needs to do is cast a vote when the bet is done.
Here comes the ticker, if your judge decides to back you by all means ignoring reality, the other side can invoke a dispute. In the first version of the app, the dispute is handled by us (and via Kleros court). If the dispute concludes that your judge was intentionally lying to have you win, he will lose any yield that he was entitled to, and the yield instead will be split between us (or Kleros Court) and the other judge. Simple as that.
Now let’s talk about DAO’s and community governance. First of all, we are HUGE fans of decentralized community governance. As individuals, we participated and participated in the governance of many notable DAO’s and DAO-like organizations. From AAVE to Yearn, even if we hold a tiny amount of governance tokens. We.Vote.Every.Single.Time. And It’s not because of the occasional airdrops (although they are very nice). It’s because we genuinely believe the DAO’s are the future of organizations. Ok, maybe we don’t vote every single time, but we try to.
Back to IBY! Ultimately (and very soon), we want this project to be run and governed by the community itself. If you ask yourself why? aren’t governance tokens just another passing fad? We say NEVER. There are tons of flourishing, thriving community-run initiatives and protocols out there right now, and in time, we want to become one.
So, how does that look like in practice? For the longer, more detailed, and technical implementation go check our whitepaper. The TLDR version is this :
1. IBY token is a governance token and will be used for all things governance.
2. The Main mechanic behind will be the Council of Judges (DAO)
3. All IBY token holders will have the possibility to lock their tokens for a specific time to signal their intent to become Judges and cast rulings on disputed bets.
4. Higher the stake of the bet, higher the lock amount minimum requirement and as a consequence, larger the payout from the yield.
5. For every dispute there would be a randomized selection of all eligible community members with locked IBY tokens
6. Once the verdict has been reached and the dispute concluded, the bet will go into payout. The winning party will receive the total amount of the bet and the NFT with the certified victory.
7. The yield generated by the lock bet amounts will be split between the IBY community judges who were selected to give the ruling (33%), everyone who staked their tokens to signal their willingness to become a judge (11%), the DAO treasury (23%) and the winning side appointed judge (33%).
8. The DAO Treasury payout could be lowered by the community passing a majority vote of all token holders. This will be true also for all other major decisions of the ecosystem like enforcing rules of the engagement, selecting default yield farming strategies etc (read further)
But this is just a start, we are serious when it comes to decentralized governance. We want to empower our token holders to take the reins of the project in time and start solving all major decisions. For example, we have been following prediction markets for a long time now and remember vividly the controversy of Augur “assassination” markets, and all other problems that come in that line of business. We believe the best solution for this is to empower the IBY DAO to enforce a set of rules that prevent these issues. Ultimately all the power will be in the hands of the DAO and the community alone will have the right to revoke any bet (just like they would vote on a bet dispute) if they don't fit the community ethos (like in the case of death markets of
Initially, the team will need to have that power but as we transition into full community governance that will be the council’s and DAO’s responsibility. We have seen our fair share of problems with them, like voters apathy, speed of decisions, and all other problems that came up in the last few years. we think we have what it takes to tackle all of them. More on that in our whitepaper
There are MANY moving parts but we are decided to make this a reality as soon as humanly possible. That is our ninja way ;)
Important links 👇
🌎 Website: https://ibetyou.xyz
📱 Twitter: https://twitter.com/ibetyouxyz
📢 Telegram group: https://t.me/IBYXYZ
🔔 Telegram announcements: https://t.me/IBYAnnouncements
✨ Telegram marketing: https://t.me/IBYBeyound
📚 Medium: https://medium.com/@ibetyouxyz
