Standard DAO Governance

Summary

DAO Members will be able to participate in creating proposals, voting on proposals, and voting on mandates which could affect the Standard project in a considerable way. Rules for participation in certain decisions will be determined by the leadership and made transparent through a Community Agreement. Community involvement will vary depending on the proposal type and a risk assessment. DAO members participation in the governance system is crucial to keeping Standard a relevant and successful collaborative enterprise.

Two-Level Governance Structure

Standard DAO is made up of two governance levels to reflect these goals and priorities. These levels are a Protocol Governance level (for SDA Equity holders), and an Economy Governance Level (for non-equity holders). Members may hold both asset classes in order to access both governance rights or simply choose one.

This model enables growth and adoption by opening product access to a wider range of customers without interest or time for DAO or protocol governance, while also opening the door for members to become progressively involved in the DAO over time. It also has the benefit of strengthening the SDA token and the Standard Treasury by making SDA non-dilutive. It does this by enabling a large economic community beyond SDA holders, and tapping into a wide range of initiative, experience and skills of economy participants.

1. Protocol Governance Level (SDA Equity Holders)

Equity holders who hold the SDA token determine protocol level and DAO-level decisions. Equity token holders obtain SDA through either swapping assets for tokens through the treasury or purchasing SDA off the open market.

Governance over the protocol will be rolled out in a later phase. Core Protocol governance decisions will be conducted on a weighted ‘one person - one vote’ basis. The vision around protocol governance is that SDA token holders will have a single transferable vote, which they will be able to choose to delegate to a representative or use themselves. The governance system will be designed to optimize security, transparency, and ultimately to benefit the protocol and all of its users.

Governance (Gov) Points

Governance (Gov) Points will weight votes according to certain metrics that incentivize actions to support the ecosystem. Gov Points will be unlocked for SDA holders when they stake their SDA tokens. These points are able to be allocated to specific validators within the Standard Validation Network based on their choosing.

Gov points will be calculated based on the amount of SDA staked x the length of time SDA is staked (further explained in the Staking section.) More funds and time staked gives an SDA holder greater say in the direction of the protocol. This is recognition of the value long-term stable holders and stakers have on the economy and their deeper connection to the outcome of decisions. For example, a user who holds 1 SDA and stakes for 5 years will receive the same amount of Gov points as a user who holds 5 SDA and stakes for 1 year.

Protocol Governance Token Distribution

Full details of distribution of Governance tokens will be issued at the time of the protocol and SDA token launch.

2. Economy Governance Level (Non-equity participants)

Governance of particular ‘economies’ and ‘products’ within the Standard Economy Ecosystem will be open to non-equity holders in the Standard protocol. Although Non-equity holders do not have Standard protocol level governance rights, they do access full governance rights over the particular product economy. The governance terms of each product or economy will vary from product to product, and will be clearly stated at the time of product purchase, and purchasers will opt-in by agreeing to these terms. This means protocol users do not need to hold SDA, but can simply access governance decisions related to specific products in the ecosystem. This system ensures that the SDA token is not diluted, while enabling Standard to incubate new decentralized economies and products with decentralized self-governing communities built around them.

For example, anyone who joins an Engaged Social Network will receive governance rights over that particular community and any assets held collectively by the community.

A similar governance mechanism will exist for every Standard Economy vertical that Standard launches within the ecosystem.

Non-equity Governance Token Distribution

Full details of the distribution of Non-equity Governance tokens will be issued at the time of the protocol and SDA token launch.