No. 08 of 15The mechanism
Who decides
Holders vote, and each added vote costs more than the one before.
- “a vote of one unit may accordingly cost one token, and a vote of two units may cost four tokens.”
- Claim 10 makes the cost “a square of the number of votes cast”.
- A proposal passes on a quorum with more yes votes than no. When it passes, the tokens locked on the yes side are consumed and the no side’s refunded; when it fails, both sides are refunded.
- The fund pays out only if its balance “would remain at or above a reserve floor”.
Holders vote on changes. Each added vote on a ballot costs more than the one before, which, in the specification’s words, “may reduce a marginal influence gained by a single token holder”.
| Votes | Tokens | Scale | Basis |
|---|---|---|---|
| 1 | 1 | Specification | |
| 2 | 4 | Specification | |
| 3 | 9 | Claim 10 | |
| 4 | 16 | Claim 10 | |
| 5 | 25 | Claim 10 | |
| 10 | 100 | Claim 10 |
“the nonlinear function is equal to a square of the number of votes cast in the vote; the governance subsystem is configured to determine that the proposal has passed responsive to a participation rate meeting or exceeding a governance quorum and a total number of yes votes exceeding a total number of no votes; and”
“As an illustrative, non-limiting example, a vote of one unit may accordingly cost one token, and a vote of two units may cost four tokens.”
“Determining a token cost as a nonlinear function of a number of votes cast may reduce a marginal influence gained by a single token holder casting an increasing number of votes on a recorded proposal.”
Claim 10 · Specification, description of FIG. 6
When a proposal passes
“the nonlinear function is equal to a square of the number of votes cast in the vote; the governance subsystem is configured to determine that the proposal has passed responsive to a participation rate meeting or exceeding a governance quorum and a total number of yes votes exceeding a total number of no votes; and”
Claim 10
What happens to the tokens
“consume a locked token amount corresponding to votes cast on a side of the proposal matching an outcome of the proposal, responsive to the proposal passing, and”
“refund a locked token amount corresponding to votes cast on an opposing side of the proposal.”
“DAO governance module 300 may refund a locked token amount corresponding to a vote cast on each side of a rejected proposal.”
Claim 10 · Specification, description of FIG. 6
The fund keeps a floor
“determine, for a proposed disbursement from the treasury, whether a balance of the treasury after the proposed disbursement would remain at or above a reserve floor, and”
“the reserve floor is calculated from an average disbursement from the treasury over a trailing plurality of ledger intervals, and”
Claims 11 and 12
The sources in fullevery quotation on this page, where it stands
“the nonlinear function is equal to a square of the number of votes cast in the vote; the governance subsystem is configured to determine that the proposal has passed responsive to a participation rate meeting or exceeding a governance quorum and a total number of yes votes exceeding a total number of no votes; and”
VP2.0 · Claim 10
“As an illustrative, non-limiting example, a vote of one unit may accordingly cost one token, and a vote of two units may cost four tokens.”
VP2.0 specification
“consume a locked token amount corresponding to votes cast on a side of the proposal matching an outcome of the proposal, responsive to the proposal passing, and”
VP2.0 · Claim 10
“refund a locked token amount corresponding to votes cast on an opposing side of the proposal.”
VP2.0 · Claim 10
“DAO governance module 300 may refund a locked token amount corresponding to a vote cast on each side of a rejected proposal.”
VP2.0 specification
“determine, for a proposed disbursement from the treasury, whether a balance of the treasury after the proposed disbursement would remain at or above a reserve floor, and”
VP2.0 · Claim 11
“Determining a token cost as a nonlinear function of a number of votes cast may reduce a marginal influence gained by a single token holder casting an increasing number of votes on a recorded proposal.”
VP2.0 specification
“the reserve floor is calculated from an average disbursement from the treasury over a trailing plurality of ledger intervals, and”
VP2.0 · Claim 12