Understanding Motions and Simple Decisions in Fairdrive DAO

In Fairdrive DAO, ensuring a dynamic and responsive governance system is key to our operations. This is where Motions and Simple Decisions come into play, both integral to our decision-making process, embracing the principles of the Lazy Consensus model for efficiency and fairness.

Motions in Fairdrive DAO

Motions are the backbone of Fairdrive DAO's governance, enabling us to execute actions seamlessly on the blockchain without a third-party intermediary. These actions could range from allocating funds for projects, compensating contributors, to more complex decisions requiring collective agreement.

How Motions Work:

1. Creation: Any DAO member can initiate a Motion, proposing actions like fund allocation or team creation. This democratic approach ensures every voice can instigate change or propose advancements.

2. Staking: Following creation, members back their stance on a Motion by staking Fairdrive’s native tokens (DRIVE) towards either approval (Yay) or rejection (Nay). The amount one can stake is directly tied to their reputation within the DAO, ensuring those with a vested interest and contribution history have proportional influence.

3. Outcome Determination:

   • If the Yay side reaches the minimum stake without opposition, the Motion passes and is automatically executed.
   • Conversely, if the Nay achieves minimum staking, the Motion fails.
   • If neither side meets the minimum, the Motion is void, with stakes returned.
   • In instances where both sides are actively staked, the Motion progresses to a vote.

4. Voting and Reveal: Voting is reputation-weighted and encrypted to maintain integrity and fairness. Following the voting period, a reveal phase counts the votes, determining the Motion’s outcome.

Example:

Imagine a Motion to fund a new encryption feature on Fairdrive. Alice and Bob, with significant reputations, stake for Yay, while Charlie objects with a Nay stake. If Yay stakes surpass Nay and meet the minimum requirement, the project gets greenlit without further ado, showcasing the streamlined process in action.

Simple Decisions in Fairdrive DAO

For decisions not executable via blockchain or requiring nuanced debate, Fairdrive DAO employs Simple Decisions. This mechanism allows posing any Yes/No question to the community, backed by the same rigorous, reputation-weighted governance model.

Process Overview:

• A proposal is raised with a clear rationale.
• Members stake their DRIVE tokens to back their viewpoint.
• Absent objections, the proposal passes after a set period.
• Objections trigger a reputation-weighted vote, deciding the proposal's fate.

Rewards and Penalties

Participation in Motions and Simple Decisions isn't just a civic duty but also comes with incentives. Voters are rewarded for their engagement, with rewards distributed proportionally to their reputation contribution to the winning side. This system encourages active participation while also compensating members for their governance efforts.

Conversely, staking on the losing side carries a penalty, deducted from the stake to fund voter rewards. This penalty is scaled based on the vote's closeness, ensuring fairness and discouraging frivolous objections.

Practical Example:

In a Motion to adopt a new marketing strategy, stakeholders from various teams contribute their tokens and votes. Successful execution not only advances Fairdrive DAO's goals but also rewards those who participated, fostering a culture of active and rewarded governance.

Through Motions and Simple Decisions, Fairdrive DAO champions a governance model that is both efficient and equitable, encouraging broad participation and ensuring that decisions reflect the collective will and contributions of its members.