Update on DigixDAO Badge holders and the introduction of Moderators

There has been a lot of discussion, both internally in the Digix team as well as among the community, about the roles of DigixDao Badge holders in DigixDAO governance. One thing that we could agree is that we need a second class of decision makers, which from now on we will use the term “moderators”. After taking into account everyone’s opinion, we had come up with 3 general directions that we could take:

DGD Badge holders are the only moderators of DigixDAO Moderators include the DGD Badge holders as well as any DGD holders who has accumulated more than a certain threshold of Reputation Point The status of moderator is purely based on Reputation Point. DGD Badge holders can redeem a Badge to be bootstrapped with exactly enough Reputation Point to be a moderator. Therefore, anyone can gain or lose their moderator status eventually, depending on how much they contribute to DigixDAO.

We have decided to go with option C, as it makes sure that in the long term moderators are the most active contributors to DigixDAO. On top of that, we will also require moderators to lock up at least a minimum amount of DGDs.

As for DGD Badge holders, these are some details on the redemption of the Badges for Reputation Points:

Only 1 DigixDAO Badge can be redeemed per Ethereum address. This is to prevent a case where multiple Badges can be redeemed by the same address, making the Reputation Point of the address so big that it can remain as a moderator for a long time without contributing to DigixDAO governance. Users holding multiple badges may decide to sell the other badges, or redeem them from another address. (Note that Reputation in DigixDAO is non-transferable) Please note that along with the initial boost of reputation (by redeeming the badge), Badge holders would also need to lock up the required minimum amount of DGD for moderators to become one.

As mentioned in the previous update, there is still a separate rewards pool of k% for the moderators. There are multiple reasons for this mechanism:

Moderators are doing extra works in filtering out the lower quality proposals, and they are by definition the most active supporters of the DAO by having a high Reputation (At the start, the only way to bootstrap this Reputation is through the DigixDAO Badges, which do represent early support for the project).

are doing extra works in filtering out the lower quality proposals, and they are by definition the most active supporters of the DAO by having a high Reputation (At the start, the only way to bootstrap this Reputation is through the DigixDAO Badges, which do represent early support for the project). If we do not incentivize moderators through a separate pool, they can game the system by denying all proposals and eat up all the DGX rewards flowing in to the DAO every quarter, since they are the only ones with Quarter Points.

As for the value of k%, it will be collectively decided by DGD holders through a carbon vote, which will be described in the next section

Carbon Voting

There are two important parameters of DigixDAO governance model that would be put to a carbon style voting by all DGD holders:

The portion of DGX rewards allocated for the moderators, to be chosen from the range of 0–5% Minimum amount of DGDs required to be locked to be eligible as a moderator, to be chosen from a range of 0–1000 DGDs

The details of the voting are as follow:

Each DGD holder chooses a number from 0.0 to 5.0 and a number from 0 to 1000 for the two parameters.

DGD holders only need to send a transaction with those two numbers from their address (that has their DGDs)

Each DGD holder’s voting power is proportionally to his/her DGD balance

The voting schedule and further details will be announced later.

DigixDAO 1.0 Governance model paper

We have written a paper on how everything works in DigixDAO 1.0 governance model. There are some details that have been changed since the last governance updates. The paper can be found here

Open-sourcing of DigixDAO 1.0 contracts

We have open-sourced the DigixDAO smart contracts here. Most of the mechanisms have already been implemented. However, there has only been minimal testing and some bugs are to be expected. We welcome contributions from our community in the form of creating issues or pull requests.

The architecture of our contracts and all the necessary setup/test steps have been explained in the README file. We highly encourage all those willing to contribute, to go through the above resources.

Do head over to our Discord channel, #dgdao-governance, for more real-time discussion!