Updated DAO Charter


#1

The following is an updated post from the PXKT Airdrop spec worked on by @Patrick727, @luis, @Tracie and myself. I have left specific airdrop numbers in the proposal blank, as they have not been finalized. The goal is to airdrop enough tokens that will provide a minimum for Proof of Stake when we reach mainnet.

Some key finalized changes in the numbers include:

  • Reducing the DAO percentage from 200 million tokens to 100 million. The leftovers will go the company to sell when token is live.
  • Founder vesting changed from pre-mainnet allocations to only receiving tokens when Pocket Network, Inc. launches full mainnet.

All feedback is welcome.

Pocket Network “DAO”

Charter(Draft V.2)

Introduction:

The goal of the Pocket Network is to grow into a decentralized & trustless relay network that supports any blockchain by connecting applications to their infrastructure of choice through an easy-to-use Plugin/SDK system.

The first release of the Pocket Core M.V.P will begin as a “Decentralized Trusted” network and move into a “Decentralized Trustless” network by Testnet release, Q4 2019.

In order to continually develop the protocol and products for the Pocket Network, the team has decided to launch a simple Decentralized Autonomous Organization with the same method, beginning with trusted participants and moving into a more open governance process.

To stimulate that process Pocket will be Airdropping PXKT tokens. More details below.

This document serves as the basis of operations for the DAO, the below sections will outline how we intend to govern the DAO pre-mainnet (defined as the “Limited Participation Period” or “LPP”) and outline considerations that will need to be settled post-mainnet, 2020.

Mission:

The mission of the DAO members is to identify, create, and vote on proposals for the enhancement of Pocket Network’s developer experience. The three major developers we intend to service are.

  1. Blockchain developers
  2. Node/Infrastructure operators
  3. DApp developers

Objectives:

The DAO will achieve this mission during the LPP through 4 primary functions.

  1. To create, approve or deny proposals to enhancement of the Pocket Network codebase.
  2. To approve or deny proposals for “Verified Nodes” for the Pocket Core M.V.P
  3. To draft, approve or deny proposals for “Quality applications/teams” for the Pocket Core M.V.P.
  4. To draft, approve or deny proposals for improvements to the Developer Experience.

Definitions:

DAO - an acronym that stands for “Decentralized Autonomous Organization” where members of the DAO can actively participate in governance operations related to improvement of the ecosystem.

DAO Member - anyone who has been approved to vote on proposals in the DAO.

Verified Node - In order to participate in the Pocket Core M.V.P throughout 2019, an individual must be qualified by the DAO members as capable, ready and willing to support the network infrastructure by running and testing Pocket Nodes. Once the application is approved, the individual will then be deemed a “Verified Node”

Verified Developer - In order to participate in the Pocket Core M.V.P before mainnet release and individual must be qualified by the DAO members as capable, ready and willing to contribute to the network ecosystem development through testing applications using Pocket tools. Once and application is approved, the individual will be deemed “Verified Developer”

Quality Application/Team - In line with the Verified Nodes requirements, in order to receive grants from the DAO to use for deploying and testing an impactful application using the Pocket Network, an individual/team must be able to demonstrate that they in fact, have an application, users and/or user adoption strategy that can be supported by the Pocket network. If there is no code in existence, then the team must demonstrate their capabilities and intentions through a more stringent manual qualification process.

Pocket Core M.V.P - The Pocket Core M.V.P is the first implementation of the Pocket Core client, it will begin as a “decentralized trusted” network and move towards a “decentralized trustless” network upon Pocket Testnet release. Users will be able to run nodes, and test applications on the Pocket Core M.V.P. The Pocket Core M.V.P will not contain a blockchain layer, but incentives will be experimented with in a way that will simulate the economics of the live Pocket Network through the distribution of PXKT token.

PXKT - Is an Ethereum based ERC20 token that will be used for governance of the DAO as well as simulations for network incentives. Upon Pocket Mainnet release, PXKT will be redeemable for POKT, the live network cryptocurrency.

Airdrop - Tokens will be released to qualified individuals through a PXKT Airdrop mechanism. After your application is accepted by the DAO managers, your Ethereum address will be whitelisted and you will receive PXKT at the beginning of the Airdrop period. The DAO managers will notify you of the Airdrop through the email address that you designated on the qualification form.

DAO Managers - The DAO Managers are voting members for the DAO tasked with day-to-day operations and communications for the DAO.

Onboarding Rounds - Because the DAO will be limited participation before the mainnet release, we will onboard new members in a series of onboarding rounds. The rounds are highlighted in the onboarding section of this document.

LPP - Acronym for Limited Participation Period, where the DAO will be managed through a more rigorous process. This period will last until mainnet release Q1 2020. B

Consideration Period - a 3 week period by which proposals will be made in the forum, discussed and iterated on, at any time a proposal can be submitted to the DAO for voting, but votes will only be counted during the voting period.

Voting Period - a 1 week period by which no new proposals can be submitted to the DAO, and only proposals included in that Consideration Period can be voting on. Proposals that were not approved in previous Voting Periods can be resubmitted in later Voting Periods

Ecosystem Grant - an approved proposal to the DAO that allocates funds to accomplish Objective 1 & 2. Which result in the enhancement to the Pocket Network developer experience.

DAO creation

The creation of the DAO will enable future Validator Nodes and Developers to participate in the governance of the PXKT token. The DAO will be given 10% of all created tokens. Verified Nodes and Verified Developers are whitelisted Ethereum addresses with a vote in the DAO. Verified nodes and developers will have awarded ___ PXKT tokens, locked until mainnet release.

At initial launch, there will be 3 Pocket Network Nodes, each representing an interest of the DAO. Through a careful vetting process, the Pocket Network Nodes will distribute its voting power to new participants. These Verified Nodes will be on a public directory along with the services they provide and blockchains they support. All new Verified Nodes must go through the same vetting process. Verified Developers will need to follow a similar process.

Qualification Process:

The first step to participate in the DAO is to become a registered participant in the PocketCore M.V.P released. There are two mechanisms to do so, an Internal process, and the DAO via a proposal submission.

Internal Pocket Inc, Vetting Process

The Pocket team may choose to airdrop and add new participants to the DAO through an internal process. Any funds airdropped will come from the company, outside of purview of the DAO. This is a mechanism put in place during the LPP to ensure Ecosystem development while the DAO governance is still developing.

DAO Proposal Process

There are two types of proposals for the DAO:

  1. Proposal for an Airdrop
  2. Proposal for an ecosystem grant

If you wish to submit a proposal to the DAO, follow these guidelines and template.

We strongly suggest that you discuss your proposal with the community and DAO managers prior to submission for best likelihood of voting going through.

After the voting period has taken place and you’re application has been approved, your Ethereum address will be whitelisted and you will be invited into the DAO.

Airdrop vs. DAO

The Airdrop of PXKT will be used as a mechanism for early usage of the Pocket Core M.V.P along with voting on the DAO. The goal of the Airdrop is to get the token in the hands of individuals and teams that will actually use the Core M.V.P, Testnet and Mainnet, contributing to the development alongside our team. We want people along for the ride!

You do not need to be an approved DAO contributor to receive a PXKT Airdrop.

Proposals to the DAO

You do not need to be a DAO contributor to submit a proposal for voting in the DAO. Your odds of having a proposal passed increase significantly if DAO contributors have seen and debated it on the forum.

Before a proposal is submitted to the DAO we recommend that you start with an outline of the proposal as a thread within the DAO category of research.pokt.network, using this template.

In fact, engaging productively in the discourse is one of the best ways to become a DAO contributor in subsequent onboarding rounds. Conversely, being annoying and spammy in discourse is one of the best ways to get ignored or banned or have nobody take you seriously, ever.

DAO managers will work with the community using decentralized decision making tools and process’ to reach a degree of confidence that the sentiment of the community has been understood and before the voting period begins.

A proposal submitted to the DAO will be a yes/no vote, so you will want to make the proposal very clear and actionable.

Voting on the DAO

Dao.pokt.network will be an instance of AragonOS for the purpose of yes/no voting on proposals.

In order to submit a proposal to the DAO, a contributor will have to burn ____ PXKT. So make it count!

Voting will take place at the beginning of each month for a 5 day period. DAO contributors will be reminded via email and private chat communications.

The voting will start as 1 contributor 1 vote during the LPP, and we will explore alternatives post-mainnet.

Once a proposal is accepted, the Pocket Network Inc. reserves the right to take as much time needed to execute on the proposal. Most concise proposals such as development bounties should execute with funds made available within 1 week.

Participation in the DAO

Upon approval to participate in the DAO for the LPP you will receive ____ PXKT locked until mainnet release, and only usable for proposing and voting

But, every time a DAO participant does not vote on the proposals for that voting period, their account will be burned ____ PXKT per vote.

If a participants locked PXKT hits 0 they will be removed from the DAO and replaced by the next qualified participant in subsequent onboarding round.

The Pocket Team by power of the DAO managers reserves the right to remove any DAO participants and revoke their locked PXKT amount in the LPP. This is a fail-safe for unknown maliciousness.

Every participant in the DAO is not required to submit a proposal to the DAO.

Onboarding Rounds and Objectives

Goal: 120 Verified DAO contributors.

Round Length Participants Goals
1 4 Weeks 10 1. Qualifications for Verified Nodes 2. Approve next round Applicants 3. DAO Charter updates 4. Define Roles & Responsibilities. 5. Approve or Deny Open Proposals
2 4 Weeks 20 1. Approve next round Applicants 2. Approve or Deny open proposals
3 4 Weeks 40 1. Approve next round of Applicants 2. Approve or Deny open proposals
4 4 Weeks 60 1. Approve next round Applicants 2. Approve or deny open proposals 3. Begin Charter V.2 updates for 2020
5 4 Weeks 80 1. Approve next round of Applicants 2. Approve or deny open proposals 3. Charter V.2 continued
6 4 Weeks 100 1. Approve next round of applicants 2. Approve or deny open proposals 3. Revise V.2 Charter 4. Mainnet preparation
7 4 Weeks 120 1. Approve or deny open proposals 2. Revise V.2 Charter 3. Mainnet preparation

Token Details

The PXKT token will have all ERC20 standard functions, including the burn() function for the DAO.

Network: Ethereum

Total Supply: 1,000,000,000

  • 400,000,000 for founders (90% Vested 3 years from mainnet launch with 10% vested on mainnet launch)
  • 279,550,000 for company and flexibility for future issuance
  • 100,000,000 for the DAO (DAO will handle the Airdrop payouts)
  • 150,000,000 for early employees and contributors (Vested from employment and contribution date)
  • 70,450,000 for early seed investors in the Pocket Network

All tokens will be in corresponding smart contracts with proper vesting and distribution based on legal agreements with founders, early seed investors, employees and contributors.

DAO contract

The Pocket Network Inc, team will have permanent ownership of the DAO contract and reserve the right for any updates to the contract. This includes adjustment to the locked amounts, new voting functions, new additions other than Verified Nodes (Verified Developers), etc.

Due to the experimental nature of this DAO, at launch Pocket Network Inc.’s Verified Node Ethereum address will have the right to remove (but not add) new Verified Nodes into the registry. Should the DAO move forward successfully, the expectation is that function to remove Verified Nodes will be canceled in time.

We will use the AragonOS set of smart contracts for all major functions as seen here 1. This will significantly decrease development time and allows us to use tested and proven code.


PXKT Airdrop spec