SubDAOs

Instead of electing a multi-sig of core team members, or random stakeholders to act as a safe-guard to our DAO, we will be pushing the multi-sig signers to different branches or departments of our decentralized organization. These key holders are community-elected leaders of different departments that can climb up the ranks of the DAO and build reputation through contributions and participation in their subject of interest. For example, a venture-strategist named “Alice” who over time has made successful decisions regarding portfolio and treasury diversification, and earned a reputation through a growing balance of delegated votes, can now run for election of the lead for the Open DeFi Venture Strategist department, essentially being paid, issued a multisig signer key, given a budget, and a team of other venture strategists doing what he just did to climb up the ranks.

Across our whole organization, this is happening with every aspect of our DAO, a team and leader for yield-farming, operations, research and grants, etc.. Once a leader, such as Alice, is elected by the community to lead a team, they are added to the payroll (paid in the asset of their choice from the treasury, with a salary decided by the payroll department) and is now in charge of managing proposals, implementing, and providing expertise regarding that component of our DAO. Alice is assigned a multi-sig signer key and along with the other experts from every other department, act as the final safe-guard for every decision that our DAO makes. With this model, we are now able to effectively streamline decisions and offer a new modular architecture that keeps all committees of our DAO aligned, funded, and focused.

To some, this may seem like a more centralized solution to governance whereas in all reality it is quite the opposite. With this model:

  • Multi-sig signers are shifted from core-team members to expert community members who have proven their expertise through participation, something any community member can do.

  • As a community member, you have full teams ready to help get your proposal ready and passed. If you are opinionated on the vaults we support, throwing it on a forum or discord chat with no direct contact won’t get you far. Come straight to the yield farming team with your idea and get it to market faster.

  • Every department has an even say. We recognize our Ethereum and Polygon community trumps the early L1 communities we are trying to develop. By giving, for example, our Solana or Moonbeam instance its own leader and department, we can grow the ecosystem significantly quicker and let all ecosystems participate in a fair and distributed manner.

  • If you want to have a say in everything, you still can. This model is simply proposing a more modular approach to our DAO that improves efficiency. You can still see, govern, and participate in all decisions like any other DAO if you choose to.

  • Fair compensation for community members contributing to this DAO. If we were to launch using current governance mechanisms, it would be similar to launching a unicorn FinTech organization created and maintained by a bunch of Fiverr workers. In order to make this the largest treasury of assets in DeFi and incubate DeFi goliaths, we need employees. This model allows us as a community to discover talent, and properly incentivize those interested in working for our DAO.

On launch, we will have a 6/9 multi-sig council hosted on Gnosis SafeSnap, as defined by the Operations department, each team leader will be allocated a salary and budget that they can then work with to make their department as streamlined and productive as possible.