🗳️Governance
TL;DR
A trust-based on-chain voting system uses blockchain technology to make voting easier and keep track of results on a public ledger, which guarantees trust and immutability.
This system lets the ToON ecosystem's token holders participate in decision-making, including the following:
Token Weighted Voting Power: Token holders’ voting power is proportional to the number of tokens they own, with larger holdings having more power.
Proposal Validation: We added a way for DAO members to review and confirm proposals submitted by Maintainer. For example, when upgrading a smart contract or giving money to charity, proposal validations are essential.
Impeachment Process: Token holders have the power to choose a new leader and remove the current one. If the Maintainer is voted out by a majority vote, a new appointment will be made.
Now, we delve into the specifics of our governance principles.
Trust-Based On-Chain Voting Mechanism
In DAOs, decisions are typically entrusted to the project's community, consisting of individuals who hold governance tokens. This classical approach, however, presents several challenges:
Influence of Non-Experts: Decisions can be influenced by people who don't have the necessary expertise in certain areas. With the need to revise all areas of knowledge, this is an expected outcome. Still, results may not be up to standard when non-experts are involved.
High Financial Costs: Implementing decisions on the blockchain costs a lot of money. Each vote in favor of a specific option necessitates a blockchain transaction, increasing costs, therefore fewer people participate in the voting processes.
Continuous Involvement: Participants in a traditional DAO are expected to actively participate at all times by reviewing proposals, voting on them, and keeping themselves updated on developments. Maintaining this level of dedication can be challenging.
Therefore, we suggest a different strategy: in this model, the DAO chooses a leader with decision-making authority over the project's progress. By doing so, the DAO members validate the Maintainer's ideas, which the Maintainer then puts into action (crucial decisions like smart contract alterations or charity funds distribution still need DAO consensus). The DAO has a power to replace the leader if they feel it's necessary. This allows for more flexibility and less gas consumption, making the voting process more efficient and cost-effective.
Advantages of Elected Leadership:
Objectivity Over Bias: An elected leader, ideally one who was chosen because of their expertise and commitment, is a guardian of objectivity. They base their decisions on the project's best interests, which keeps personal preferences from getting in the way.
Addressing Knowledge Gaps: By electing a leader, the DAO makes sure that people with the right set of skills are in charge of certain areas of the project, since no member of the community can possibly be an expert in everything. This approach makes good use of the community's collective brainpower.
Adapting to Changing Circumstances: Even well-intentioned project leaders may need to be more balanced and meet evolving community needs. If the community chooses a leader, they can hold that person accountable and make changes to the leadership when necessary, ensuring project responsiveness and adaptability.
The voting takes place on the ToON DAO platform, which provides the infrastructure for DAO-based decision-making. This progressive and modular approach to decentralization, tailored to each stage of the project, prioritizes transparency and accountability in decision-making, ultimately benefiting the entire project.
Maintainer Role
The effectiveness of the ToON DAO ecosystem hinges on proficient project management and decision-making facilitated by the project leader, known as the Maintainer.
A Maintainer is an elected DAO leader, who bears responsibility for suggesting smart contract upgrades, proposing donation options, promoting tokens, and ecosystem development. Importantly, they lack the authority to cause harm and focus on pivotal off-chain duties.
Along with the incentivized work and trust-based on-chain voting mechanism, the Maintainer sets up a fair and transparent governance system. By encouraging participation and open dialogue, the Maintainer helps the ToON DAO ecosystem grow into a strong community that works together toward common objectives. Further, we outline Maintainer’s responsibilities:
Project Leadership and Decision-Making Authority
The ToON DAO project's Maintainer takes charge and can direct the project's direction. They must use their knowledge to make decisions that will help the project and move it closer to its objectives.
Collaboration and Communication
Maintainers have the opportunity to engage and collaborate effectively with the community. They can share proposals, ideas, and progress with community members through various communication channels like Discord, Telegram, and other platforms. This open dialogue fosters inclusivity and facilitates valuable input from the community.
Who Could Be a Maintainer?
The role of Maintainer in the ToON DAO ecosystem is not confined solely to individuals. The project embraces the possibility of the Maintainer being:
an individual
an organization
a smart contract
This flexibility accommodates diverse leadership styles, expertise, and approaches to project management, promoting innovation, adaptability, and inclusive decision-making for the entire community's benefit. Detailed information on the Maintainer reward system is provided in the Tokenomics section.
How to Impeach the Maintainer?
Any token holder possesses the authority to initiate the impeachment of the current Maintainer and can modify their vote at any time in favor of an alternative leader. The current Maintainer is replaced when they are voted off by a majority vote.
What happens if the community agrees that the current leader needs to be replaced but can't reach a consensus on the new replacement?
In this case, the community can vote for a special address to dismiss the current Maintainer while reserving time for electing a successor. Once another candidate secures more than 50% of the votes, they assume the role of the Maintainer. The minting process will be paused until a new Maintainer is selected.
Who is the Сurrent Maintainer?
The current Maintainer of the ToON DAO is the ToON team. Further information about us and our strategy can be found here.
Decision-Making Mechanism
Token Weighted Voting Power
To ensure that decisions are fair and balanced, our DAO uses token-weighted voting power. Token holders possess authority based on how many tokens they own, fostering a democratic governance structure that aligns with the community's interests.
Validation of Proposals
The Maintainer's on-chain activities are limited to proposing actions and configuring wallets for maintaining and distributing bounty tokens. The actions encompass:
upgrading smart contracts
distributing charity funds
Any proposal for an upgrade or distribution made by the Maintainer is subject to a 2-week delay.
During the 2-week period, the community can form an opposition if 10% of the voters favor an alternative leader. In such cases, the proposal encounters an additional 16-day delay.
If over 10% more voters join the opposition during this extended period, the delay continues to escalate, reaching up to 180 days, unless the Maintainer is impeached.
After 180 days, the proposal is automatically approved if Maintainer still has over 50% support.
Although the Maintainer may make other decisions within their authority, the community retains the prerogative to replace them at any time.
Charity Distribution Process
When the Maintainer presents the charity options, the token community engages in off-chain negotiations to deliberate and discuss the proposed charitable causes. This approach ensures inclusivity in decision-making and reflects the community's collective voice.
Following the off-chain negotiations and discussions, the Maintainer compiles the findings and preferences of the community to formulate an on-chain distribution proposal. This proposal outlines the chosen charity and the allocation from the charity fund to support the cause.
Token holders vote to approve the allocation of funds for the designated charity project picked on the previous stage of off-chain discussion.
If the off-chain vote outcome aligns with the on-chain proposal, the charity funds are disbursed to the designated charitable organization.
However, if the off-chain vote diverges from the on-chain proposal, the community can block the allocation and initiate the election of a new Maintainer. This process ensures that the community retains control over resource allocation and that the chosen charity initiative genuinely reflects the collective interests and values of the token holders.
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