New DAO

This is a guide to creating of a DAO on Ink Finance

Only an identity verified user can create a new DAO. This action can be launched from the DAO List View for a Manager Role.

Basic info - DAO name, governance token, main blockchain

Make sure your DAO has a unique name, and an existing governance token (whose native blockchain becomes your DAO’s main blockchain). If your DAO doesn’t have its own token, you can use QUILL tokens as your governance token, and make Avalanche your DAO’s main blockchain.

Governance - staking pool, sub-DAOs, and badge

Only stakers of your DAO's governance tokens are allowed to participate in governance (proposing, managing, and voting). The DAO creator must either choose an existing staking pool, or create a new one with sufficient emission rewards to support it.

If you want to create a new staking pool, make sure you top up enough emission tokens in your connected wallet, as the Ink Finance webapp will extract them. If you are creating a sub DAO of a large ecosystem, you can negotiate with the upper level DAO to create your own staking incentive. However, it is neither required nor typical. To have your sub DAO's own identity and integrity, you only need to create your own Badge and use your upper level DAO's staking pool - don't forget your sub DAO is still under the meta token's banner.

Badge not only identifies your smaller sub community members, it also effectively protects your sub DAO from "whales" in the meta ecosystem. Badges are typically earned or granted as rewards only relevant in your sub DAO, therefore, someone who merely holds large stake of your meta token cannot participate in the voting in your sub DAO.

The Voting Power

The DAO creator needs to specify the minimum total votes and the minimum voting wallets in public voting. These parameters are default values and can be overwritten when your DAO's Proposing Managers make actual Proposals. Votes are counted on the basis of a voter's staked positions of the governance token, when there is no badge requirement. If badge is required, the DAO can specify how to balance the voting power between the staking position and the badge numbers. Currently, Ink Finance only treats badge as an entrance to the voting process, and only counts effective votes based on staked governance tokens.