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Fairdrive DAO Governance Framework Overview

mmohorko edited this page Mar 5, 2024 · 2 revisions

Governance Overview

Fairdrive DAO is built on a foundation of decentralization, with the aim of nurturing a community-driven environment where collaborative decision-making is paramount. Our governance model is crafted to ensure transparency, fairness, and efficiency in all operations, directly supporting our core objectives: fostering community participation, upholding decentralization, and efficiently managing resources.

Reputation-Based Governance Model

Central to our governance approach is a reputation-based system, implemented via the Colony platform. This system departs from traditional token-based governance models, which equate voting power with token possession. Instead, Fairdrive DAO values contributions and active engagement, with governance power signified by Reputation. This non-transferable attribute quantifies a member's influence within the DAO, reflecting their commitment and contributions.

Earning and Decay of Reputation:

  • Earning: Members gain Reputation through task completion and contributions towards the DAO's goals. This ensures that those actively contributing have a significant voice in governance.

  • Distribution: Reputation is acquired within specific Teams, with a proportion also allocated at the Root level to guarantee comprehensive representation in DAO-wide decisions.

  • Decay: To emphasize the value of ongoing contributions, Reputation decays over time, promoting sustained community engagement.

Governance Mechanisms:

  • Lazy Consensus: This model streamlines decision-making by allowing proposals to proceed unless objections are raised, thereby reducing the need for formal votes on each decision.

  • Motions and Simple Decisions: Explicit community approvals are sought via Motions, which are reputation-weighted, covering a broad spectrum of DAO activities. Simple Decisions cater to governance on proposals that cannot be automated, following a reputation-weighted protocol.

Role and Use of DRIVE Tokens

DRIVE tokens (ERC20) are integral to the governance structure of Fairdrive DAO, designed exclusively for governance activities and decision-making. These tokens are not for trading on exchanges, emphasizing their role in facilitating meaningful participation within the DAO rather than financial speculation.

  • Governance Participation: Utilizing DRIVE tokens for staking in motions and disputes underscores the commitment of members to the DAO's governance, enhancing the significance of each decision.

  • Compensation and Reputation Earning: Compensation for task completion is awarded in DAI tokens to separate financial compensation from governance involvement. For every completed task or project, members receive an equivalent amount of DRIVE tokens alongside DAI. This dual compensation model ensures members are rewarded for their work while also gaining governance power, maintaining a clear distinction between financial earnings and contribution-based governance influence.

  • Non-Tradability: The deliberate choice to keep DRIVE tokens non-tradable and off exchanges reinforces their dedicated use in governance. This ensures that influence within Fairdrive DAO is accrued through active engagement and contributions, rather than financial investment, safeguarding the DAO's governance integrity.