DigixDAO Badges

In the DigixDAO’s crowdsale, DigixDAO Badges were given to some people depending on how much they contributed. The total supply and balance of the Badges can be checked at this link: https://etherscan.io/address/0x54bda709fed875224eae569bb6817d96ef7ed9ad#readContract

DigixDAO Badge Holders’ role in DigixDAO governance

As a DigixDao Badge holder, one can lock up their DigixDao Badge(s) in a quarter and become a badge holding participant. As a badge holding participant, one can:

Endorse pre-proposals (or preliminary ideas of proposals), making them eligible for Draft Voting .

. Vote during the Draft Voting phase. Badge holding participants will receive badge quarter points for voting during this phase. These badge quarter points is just a special kind of quarter points that is used to record badge holding participants ’ draft voting activity. Note that only badge holding participants can vote during Draft Voting phase

phase. will receive for voting during this phase. These is just a special kind of that is used to record ’ draft voting activity. Note that only can vote during phase Lock DGDs and do all the other activities just like a normal DGD holder (create proposals, vote during Voting Phase and Interim Voting Phase)

Rewards for badge holding participants’ activities

Aside from the rewards received for their activities as a normal participant, badge holding participants will receive additional DGX rewards based on their activities as a Badge holding participant. These rewards will be taken from a pool of a fixed percentage (like 5%) of the collected DGX fees for that quarter.

The badge holding participants’ rewards will be allocated proportionally to a metric called Rewardable Badge Balance. This is how the Rewardable Badge Balance is calculated:

Calculate the Base Balance

If Badge Quarter Point is greater than Minimal Badge Participation Point,

2. “Buff” the Base Balance based on excess Badge Quarter Points and Reputation Points

Note that this is similar to the way Rewardable DGD Balance is calculated. As such, the effects will be similar:

If a badge holding participant A does not do any draft voting, A will not get any rewards from the badge holder rewards pool. Note that if A also locks some DGDs and do some voting as a normal participant , A will still get the rewards for that as a participant .

A does not do any draft voting, A will not get any rewards from the badge holder rewards pool. Note that if A also locks some DGDs and do some voting as a normal , A will still get the rewards for that as a . If a badge holding participant B participates less than a fixed Minimal Badge Participation Point, his Rewardable Badge Balance will be substantially less than his number of Badges.

B participates less than a fixed Minimal Badge Participation Point, his Rewardable Badge Balance will be substantially less than his number of Badges. If a badge holding participant C participates more than the Minimal Badge Participation Point, his Rewardable Badge Balance will be more than his number of Badges, but only to a small extent.

Governance Contract Development

The ETA for open-sourcing the codes for the first iteration of DigixDao governance contracts is still 22nd of June. By then, we would hope to have the following ready:

DigixDAO contract codes

A basic set of tests for DigixDAO contract codes

A non-technical full overview of how everything works in DigixDAO governance.

A technical overview of how the DigixDAO contracts are organized.

After open-sourcing, the contracts would be open for community feedback and contribution (especially for more thorough testing).

Note: this set of contracts is meant to be a first iteration that would run for a few quarters, managing only a fraction of the funds from the DigixDAO crowdsale. After observing how it works in the first few quarters, we would tentatively adjust the governance model accordingly and deploy another more mature set of contracts DigixDAO 2.0 that would replace the first set of contracts DigixDAO 1.0. All the existing funds, points and on-going proposals would be ported from DigixDAO 1.0 to DigixDAO 2.0.

DigixDAO Website Development

In parallel with the contract development, we have also begun work on the DigixDAO Website, where DigixDAO stakeholders could participate in governance activities such as proposal creation, commentary and voting.

This is a teaser view of the website’s UI that is currently being worked on (note that it is still subject to change):

DigixDAO FAQ

Q1. Why do we need Badge Quarter Point and the separate pool of rewards for badge holders’ activities? Why don’t we just award Badge holders the normal Quarter Point when they do their Draft Voting?

Ans. If we just award badge holders Quarter Points for their Draft Voting, all the badge holders might just vote “No” for all the proposals, so that no proposals will be open to everyone’s voting and no one else but them will get Quarter Points. In this case, the DGX rewards will only be divided among the badge holding participants. The fixed pool of rewards for badge holders’ activities ensure that no matter what their decisions are, the badge holders will only get in total a fixed amount of DGX rewards.

Q2. Why do we not give Badge Quarter Points for endorsing proposals?

Ans. If we do so, the badge holding participants might just endorse everything that they see, since that has a positive upside and almost zero downside.