The Top-down DAO Building Blocks

When a wide range of bespoke assets and financial products are involved, common sense tells us that no generic organization or group of people can govern them well. Any attempt to organize specially focused financial DAOs under a generic framework is likely to expose itself to abuse and misuse.

INK devised a top-town management approach. When any DAO bootstraps it starts with one Proposing Committee, which, through proposing and voting, introduces other specially purposed committees (or boards) with their own managers and duties.

All managers are required to be identity verified, with a wide range of alternatives provided by Ink Finance to suit the DAO’s integrity needs, ranging from social media verification to biometric verification (by 3rd party infrastructure such as Humanode Protocol).

These Committees and Managers will perform governance tasks following the next level of procedures. Typically, some managers within one Committee can make internal proposals, such as that a Treasury Officer can set up a batch of one-time payments, or that an Investment Manager can to change a key allocation parameter of a fund. Then another group of managers will review these requests and perform signing or approving. All activities are performed on-chain transparently and lead to on-chain execution.

Each Committee has the capability of managing its own financial resources, which are all handled by the INK UCV’s custodian and controlling smart contracts, which themselves are woven into the governance framework by following the public level and internal level procedures.

The following illustrate the typical setup of a community-driven investment DAO: