Hey friends, what a time to build a piece of the future of finance together.
Let’s get the ball rolling on defining a framework for the DAO’s operation.
This draft is the first step to codifying standard operating procedures for processes like governance and community management.
This draft describes our mission and attempts to make operating principles digestible. With it defined, we can make it easier for a decentralized community to coalesce and build together.
Once the community has provided feedback, a final version should be drafted and ratified via a vote on snapshot.
An important thing to note is that the final constitution is editable with follow-on proposals.
I’m sure there will be amendments, discussion, and growth.
A timeline for next steps follows:
- Forum discussion of a week.
- A poll in the forum will be opened for 3 days.
If the poll has more than 10 participants, and more than 50% decide to move to a formal proposal, a formal proposal will be written.
- The proposal will be voted on in Snapshot, if more than 4% of the vlCXD holders participate, and more than 50% of participants vote yes, the constitution will be ratified.
Create and maintain index protocols useful for building portfolios, such as the Convex Index.
Tokenomics is what turns a product into a protocol. Without healthy tokenomics, a DeFi product will struggle to gain traction and struggle to decentralize. Design should start with tokenomics.
We evaluate decisions by considering the best interest of protocol participants (ie. users, downstream protocols, and DAO contributors).
Own the work
We expect decision making at every level. When tasks aren’t fully formed, we make decisions on how to execute and fill in the gaps.
Work with Urgency
Time is the most valuable resource we have. We must diligently prioritize our tasks to capitalize our use of time and act on a bias for action
Look for answers that are outside of the box, and prepare us for today and the future
Take action when we see behaviors that aren’t aligned with our operating principles
The DAO uses a two entity structure similar to the framework defined by David Kerr (Principal, Cowrie LLC) and Miles Jennings (General Counsel, Crypto, Andreessen Horowitz).[^1]
The DAO will receive income from the protocol, with a portion of the yield earned going into the treasury. The treasury will fund the development and day to day operation of the protocol.
DAO members can signal a desire to make changes to the protocol via governance voting.
- Regimeless entity
- Operated by a 2 of 6 protocol multisig
- Wrapped by a Foundation entity
- Operated by a 2 of 6 treasury multisig
The following roles and responsibilities outline who participants in the DAO and what their actions are:
- Member: A person who has been onboarded to the Cortex DAO community.
- Contributor: A person/entity actively contributing to Cortex DAO.
- Core Contributor: A person/entity with decision making authority.
- Voter: A person/entity with the ability to vote on governance proposals using locked CXD tokens.
- Administrator: A person/entity with access to the Administrator Multisig(s).
Actions within the DAO are completed via two processes, direct governance and representative governance.
Direct governance is the result of passing governance proposals by DAO contributors. Decisions resulting from direct governance are submitted via governance proposals to the community, once passed, are actioned by the Administrator using the protocol multisig:
Contributors → Governance Proposal → Administrator → Protocol Multisig
Representative governance includes the responsibilities and charter of action given to Working Groups or the Administrator.
Governance proposals must follow the following process and timeline.
Formal forum discussion
Temp check post on forum w/polling
Temp check must reach 50% to result in a governance proposal
At least 10 community members must be in favor of the proposal
Polling must be open for a minimum of 72 Hours
Vote via Snapshot
Quorum format: 4% of locked CXD
Greater than 50% must be in favor of the proposal
Voting must be open for a minimum of 72 Hours
Link to Snapshot: https://snapshot.org/#/cortexdao.eth
Formal submission to working groups for implementation
Submitted to the working group’s task management system, ie. github, trello
Format to be determined by individual working groups
|Core||The core working groups is responsible for:
1) Product development
2) DAO development
3) Day to day product operations
|Convex Index Construction||This working group is responsible for:
1) Analysis of assets
2) Creation of governance proposals related to the addition of assets to the Cortex DAO
3) Basket selection
4) Weight setting
|Tokenomics||This working group is responsible for:
1) Setting fees for yield aggregation
2) Tokenomic feature development
3) Creation of governance proposals related to the expansion of Cortex DAO tokenomics
|Growth||This working group is responsible for:
1) Content marketing
2) Impression mining
3) Project ambassadors
4) Community controlled grant program
5) Community Moderation
The code of conduct for the DAO will be stored in github in the following file: