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As a decentralized autonomous organization, the KAP DAO seeks to achieve full user ownership of the ecosystem.
Tokenholders may submit and vote on DAO proposals to guide future development.
The DAO recognizes that heavy decentralization generally goes hand-in-hand with slow decision making. To this end, the DAO has implemented a two-tier voting system: on-chain and off-chain votes. The types of decisions made in each, loosely, correspond to the scale of perceived economic impact. On-chain votes are slower and change macroscale parameters that impact token emissions, valuations, or governance rights. Off-chain votes are fast and change microscale parameters. This two-tier system gives the robust benefits of true on-chain voting for major decisions and retains speed for more minor decisions, while always involving the community.
Only staked KAP tokens are valid for on-chain voting.
There is a holding minimum (0.65%) of tokens required to submit a proposal for an on-chain vote. On-chain votes are immutable interactions with a voting smart contract that dictate the outcome of a proposed transaction.
These votes are carried on on the main network (Layer 1, Ethereum) and can be expensive to participate in, depending upon gas fees. The benefit of these votes is that they are extremely difficult to manipulate, and so are reserved for the most important DAO decisions.
All KAP tokens, as well as player participation NFTs, count for off-chain votes.
Any member may create a proposal for an off-chain vote. Off-chain votes are gasless voting mechanisms (like Snapshot) that accept input from every tokenholder without any gas commitment. These could include, but are not limited to:
- Partnerships with games
- Deploying assets for marketing, investment, or operational purposes
- Community management decisions
These votes are a good way to arrive at a community consensus prior to a large on-chain vote, or to take a temperature check before the DAO's Foundation performs some private transaction.
All tokenholders are highly encouraged to vote. It is our core belief that we are much stronger together as a community, and that the collective ideas should always lead.
The DAO also maintains a Governance Council, who are three duly elected entities or community members that assist the DAO in:
- Distilling general forum discussion into actionable product direction proposals
- Sourcing and managing strategic investment proposals aligned with development
- Approving exceptional operating expenses related to the DAO's product development
The Governance Councilmembers each are entrusted with one key to a multi-sig Gnosis Safe in which they may be called upon to vote on transactions. These transactions are shepherded by the Kapital Foundation and its director(s). The Kapital Foundation formally owns all assets inside of the DAO's ecosystem.
The Governance Councilmembers must be ratified each 12-week period. In the case of a failed vote or a missed proposal, Governance Councilmembers will continue to serve until a new successful vote is performed, or they have resigned.
The DAO may from time to time form Acquisition Councils. The Acquisition Council (AC) is a group of five DAO members nominated to be the controllers of a multi-sig wallet for some period of time. That multi-sig wallet will be used to place private transactions on behalf of the DAO. The DAO may, of its own organic choosing, opt to disburse funds to that AC-controlled multi-sig on a per-deal basis, or, conversely, may opt to give the AC more discretion in its acquisitions and disburse larger amounts all at once so that the AC has "dry powder" to deploy on a more rapid basis.
At minimum, three out of five signers must be present to perform transactions using the multi-sig wallets. The intention is that these wallets will organize partnership deals with key strategics. In this way, the DAO AC multi-sig controllers act only as agents of the DAO, and should never personally receive compensation for their position or performance while entrusted with this duty. Instead, these members should ideally be individuals who already have a large staked interest in the DAO's native tokens, and thus have great incentive to see the DAO prosper in concert.
The DAO AC participants are nominated via off-chain vote on Snapshot. Each AC will persist for one epoch before a new vote is held to replace them. Council members may be voted in during successive AC epochs if the body of the DAO sees fit to do so. An epoch is arbitrarily defined as eight weeks at the inception of the DAO, but this may be changed by the body of the DAO at anytime, since, ultimately, the DAO must make an on-chain governance vote to disburse funding to an AC multi-sig of their choosing.