Pledge Value and Badge
The default voting rights are derived from voters' staked positions of the governance token. DAOs can balance this pure economic power with Badges representing other contribution values.
Typically, a DAO's staking contract has different lockup terms, each with its own weight. The weight of a term determines the reward premium (above the one day staking) a depositor can earn. The default term is 1-Day.
The weight of a term not only determines a staker's premium in earning rewards, but also the relative importance in governance. A user is required to prove this importance (when managing or voting) by pledging the staked positions. A user's pledge value for a particular term is defined as:
pledge value = number of staked tokens * weight of the term
All staked tokens with different terms will be summed up to produce the total Pledge Value of one user.
A Manager of a DAO is required to pledge a minimum amount of staked tokens to stay in the management. These pledges are locked and can only be released until the manager is removed from duty.
A public voter must pledge a certain number of staked tokens to cast votes on a proposal. The bigger the Pledge Value, the more effective the vote will be. These pledges are locked and can only be released until the expiration of the proposals being voted.
When a DAO is created, the minimum pledges required for a Manager, the minimum total number of public votes, and the minimum number of voting wallets can be specified by the DAO creator. In the Quick Starter mode, they are set by the INK Web App, which can later be changed via the Changing Governance Rules.
Specify governance rules
How to incorporate contribution value into Badges
While "having skin in the game" is crucial to a DAO's governance integrity, many DAOs put community value ahead of pure economic power. Such DAOs can require their voters to hold the DAOs' Badge in voting. In these DAOs, voters typically must earn the badges (as opposed to purchase them). Note that after the badge holders enter the voting, the effectiveness of voting must still be measured in lieu of the Pledge Value. The specific relationship between the two is customizable.
For DAOs that emphasize NFT or other content creation, the Badge serves as a normalizer to give various User Generated Contents (UGC) uniformity. This, obviously, exceeds the scope of any generic governance framework, and can only be left for the Community Managers and the participating Members to decide. These decisions can be effectively proposed and voted by the members of the community. The key realization is that such a process is guaranteed by Ink Finance to be transparent and democratic.
Last modified 2mo ago