Solid World Litepaper
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Governance Tokenomics
Governance
Voting Power
We believe that governance participants should be value-aligned with the protocol. Governance should always prioritize the long-term health of the protocol.
Because of this - Solid World DAO's governance model follows the veCRV approach. This means that our governance tokens can be locked up in exchange for voting power. The longer the lock-up period, the more voting power is rewarded on a linear basis.
As an example - if a token holder locks up their governance tokens for 4 years, they will have twice as much voting power as a token holder who locks up the same amount of governance tokens for 2 years.
Inflation
We believe value-aligned participants should be rewarded. Governance power should accumulate in the hands of values-aligned participants.
Solid World DAO's governance token will have an inflation rate that is distributed on a weekly basis based on voting power. Specifics of exact numbers when it comes to inflation are TBD. The governance token has a maximum supply at which inflation will stop completely.
Participation
DAO votes are required to manage council members, add new narrow-banded pools, make quality criteria adjustments, introduce new registries to the infrastructure, update pool acceptance criteria and utilize the main treasury among other things.
All proposals must pass a temperature check in the Governance Forum prior to being put up for a full vote. If the proposal passes the temperature check - a core member will post a proposal for a DAO vote on Snapshot. Governance is based on voting power as outlined in Voting Power
Delegation
We understand that not all values-aligned participants want to actively participate in governance and might have a trustworthy 3rd party to whom they wish to delegate their voting power. We intend to implement delegation functionality so this use case could be covered.
The Council
There are some functions of the DAO which can not reasonably be handled by making all information public and having the DAO vote on it. Part of the job of the council will be approving project tokenizations. There are likely more cases. The DAO will elect a set number of council members to act in their best interests in these matters.
Fee Revenue
There are many sources of fees in the infrastructure. These fees are important to guarantee protocol sustainability. All fees are routed through a contract that first exchanges the fees for the governance token. These tokens are then split between DAO Main Treasury and Operational Budget Treasury based on a parameter set by the DAO.
DAO Main Treasury
The DAO main treasury will hold all of the liquidity that is initially provided by the protocol. This will include both liquidity for the DAO Governance token as well as any Commodity Pools that the protocol will launch with. Assets in this treasury can only be utilized by an agreement between core contributor multisig holders and a DAO Snapshot vote.
Initially, the fee allocation directed to the main treasury will automatically be used to deploy more governance token liquidity.
Operational Budget Treasury
The DAO operational budget treasury is a core contributor controlled multisig used for paying contributors, tooling, marketing, and any other expenses that Solid World DAO will require to keep the protocol healthy, relevant, and well ... operational.
Commodity Pool Treasuries
All commodity tokens possess their own treasuries containing the underlying assets backing the pool. The DAO has no direct control over these treasuries and they are fully managed by code. Underlying assets may not be arbitrarily removed or entered into commodity pool treasuries.
Last modified 22d ago