Ink Finance Guide v2

DAO Token & Badge

Ink Finance's allows DAOs to balances the voting power between financial stakeholders and community contributors.
Example: 'COOL' DAO's badge is COOL, governance token is QUILL
While the "stake-to-govern" method establishes that everyone in a DAO must "have skin in the game" and raises barrier against Sybil attacks, Ink Finance also provides effective means of resisting whale attacks.
A sub DAO of a large ecosystem can set up a Badge of its own, and require that only holders of this badge can vote on its affairs. Such badges are usually earned or assigned, instead of bought.
This puts community value ahead of pure financial power. In the simplest scenario, a voter must hold at least one badge of the DAO to enter voting.
DAO creators can create or import badges when setting up DAOs
The effective power of the voting can be set by the DAO as a combination of the pledged stake and the number of badges earned.
If a DAO is created with Badge, the creator needs to send the badges to the community members so that they can vote in this DAO.
Though badges can be sent manually like any fungible token, it is not encouraged. Instead, the DAO creator should deposit the minted badges into the DAO's Treasury Vault, and use INK's payment management facility to distribute them transparently.