DAO
We believe that we will reach a balanced and active community after 50,000 members and/or Soulbound token issuance with Yotta21 stakeholders.
The purpose of not voting at the begining by the DAO is to prevent the possibility of voting manipulation. For instance: If there is a total of 100 Soulbound token memberships and it is designed to be voted, it is possible for 51 people to come together maliciously and manipulate the DAO.
Therefore, for the proposal to be successful, more than 25,000 affirmative votes must be cast. Afterwards, whichever preference is dominant will be automatically applied by smart contracts.
- Communities can lose focus when common uses have different purposes and points of profitability. If the profit point is the same for everyone, joint efforts will make sense. DAO treasure is the common profit point of all stakeholders in Yotta21.
- Control is done by Soulbound token holders, Otta token-based governance and planning are carried out and team needs are met by workgroups.
We made the principles published by Elinor Ostroms applicable on-chain
8 principles for managing joint property by Elinor Ostroms
Define open group boundaries.
Match the rules governing the use of common goods with the needs and conditions.
Ensure that those affected by the rules can participate in changing the rules.
Ensure that the rule-making rights of community members are respected by external authorities.
Develop a system run by community members to monitor members' behavior.
Use gradual sanctions for those who break the rules.
Provide accessible, low-cost tools for conflict resolution.
Establish responsibilities to manage common resource in nested layers from the lowest level to the interconnected system.
Delegation and Management
Delegation authorization ensures that the voting rights obtained from the tokens are transferred to the requested representative address. Soulbound token-based management will be given the control authority of the management proposals based on the Otta token. This way, we will be able to implement auditing in DAO with dual mechanism management.
- Delegation right provides equality of participation in management.
Any wallet or contract address can gain delegation power from the Yotta21 community without hosting Soulbound tokens or Otta tokens.
Soulbound token and Otta token holders can delegate.
Delegation power is proportional to the token..
- 1 Soulbound token = 1 Delegation power
- 1 Otta token = 1 Delegation power
Delegation can be withdrawn at any time.
Sustainability
Decentralization of activities is necessary for the sustainability of decentralized organizations.
To prevent DAO manipulation, DAO should not be started unless the 50,000 member limit and dual mechanism token management is enforced.
Core team-based models that fail to create the Nakamoto Effect have a central point.
There are thresholds for proposal creation and positive voting. Specified thresholds can be changed by the DAO.
DAO can update or upgrade itself by voting decision.
Functions that can be changed with the DAO offerings
- Working groups can be replaced by DAO proposal.
- Decide to charge projects between 0%-1% to initiate crowdfunding.
Small number of decisions taken with the management reduces the possibility of manipulation of decisions.
Our criticisms of DAOs 1.0 models
Token rights reserved for venture capitalists and team are at a level that can affect voting. If they hold a strong position in management proposals, community participants find the decentralization of decisions less or less than the impact of their participation in voting.
The fact that the token rights obtained by the team are at a level that can guide the proposals and voting. These makes the decisions and development dependent on the core team.
Managing or changing interchangeable functions in smart contracts with decisions made outside the blockchain has a negative impact on decentralization..
Complex and non-simple models require more management. Therefor, we believe that we have brought Yotta21 simplicity rather than complexity.