by 0x511a22cdd2c4ee8357bb02df2578037ffe8a4d8d (ginoct)
Linked Draft Proposal
Proposal for Establishing a Council for Decentraland DAO
Summary
Establish a Council for the DAO to oversee the Executive Arm, approve annual strategies and budgets, and ensure alignment with the DAO’s mission. VP holders (The community) will elect council members and hold the Executive Arm accountable via them.
Abstract
The current governance model of the Decentraland DAO requires VP holders to vote on every proposal, leading to slow processes, lack of accountability, and misalignment with strategic goals. DAO members should vote less on more important stuff to reduce voter fatigue. To professionalize operations, the DAO needs to delegate operational oversight to an Executive Arm. However, for this to function effectively, and be held accountable for its actions, the DAO must first establish a Council of Representatives responsible for hiring, guiding, and, if necessary, replacing the Director of the Executive Arm.
The Council will also oversee the approval of the Executive Arm’s annual strategy and budget, ensuring alignment with the DAO’s mission. Council members will be elected and dismissed through VP voting, ensuring community control while enabling more efficient and professional governance.
Motivation
Currently, the Decentraland DAO expects all VP holders to vote on every proposal, which presents several issues:
- Inefficiency: The process is slow and cumbersome, delaying critical decisions.
- Lack of Expertise: Many voters lack the necessary context or skills to make informed decisions, leading to suboptimal outcomes.
- Time-Consuming: Requiring the full attention of voters on non-critical matters is inefficient and unsustainable. Creates voter fatigue and discourages active participation.
- No Strategic Direction: There is no clear mechanism to ensure alignment with long-term strategic goals.
- Diffuse Responsibility: With everyone voting on everything, accountability is diluted, making it difficult to hold anyone responsible for poor performance or missed opportunities.
Specification
Council Composition:
- The Council will consist of 5 doxxed members who are subject matter experts in areas such as strategic management, finance, creativity, and technology.
- Members should have a deep understanding of Decentraland’s technology, audience, and stakeholders.
- Provide representation across different sectors, including the Foundation, MANA/LAND holders, the developer and creators communities, and Decentraland citizens.
Election and Dismissal Process:
- Council members will be elected through an open call and VP voting. Currently, a hiring proposal requires a minimum of 6 million VP and a one-month voting period.
- Members can be fired via VP voting through a firing proposal, also requiring 6 million VP and a one-month voting period. Additional options such as ongoing VP backing for Council members could be explored in the Governance proposal.
- In the event of a Council member’s resignation, the Council must initiate a new open call to fill the position within the following month.
Compensation:
- Council members will be compensated 1,000 USD per month payable in MANA for their responsibilities and commitment.
Responsibilities of the Council:
- Hire the Executive Director: The Council will be responsible for hiring, guiding, and, if necessary, replacing the Director of the Executive Arm.
- Approval of Strategy and Budget: The Council will review, approve, and publish the Annual Strategy Plan and Budget proposed by the Executive Director.
- Treasury Management: The Council will approve and publish the Treasury Management Strategy to ensure long-term financial sustainability.
- Formal Oversight: The Council will hold formal meetings every three months with the Executive Director to review progress, and members must be available for individual meetings with the Director as needed.
- Publishing Reports: The Council will publish regular reports on the status of operations and the treasury, outlining the contributions and decisions made by each member.
Veto Power:
Once the Council approves and publishes the Annual Strategy and Treasury Management Strategy, a veto governance proposal can be initiated within a two-week period of the decision publication date, giving VP holders the chance to block any decision that is misaligned with the DAO’s mission or goals.
Impacts
Best-Case Scenario:
The formation of a Council leads to efficient, strategic guidance within the DAO. By focusing VP holder voting on the election and removal of the council with veto power on important decisions, the DAO reduces voter fatigue while accelerating critical decisions. This setup allows the Council to bring focus and alignment to the DAO’s initiatives, enabling the Executive Arm to act more decisively to support long-term goals and push impactful community projects forward. The Council’s regular reporting and direct accountability to VP holders build community trust and transparency, reducing concerns about centralization.
Possible Scenario:
The Council achieves partial success by reducing voting burdens on VP holders and introducing some guidance on what should be executed while improving the communication between different ecosystem actors. However, some VP holders may feel disengaged due to the shift away from direct voting on operational issues, while others appreciate voting on fewer but more substantial matters. Initial challenges with Council governance, such as defining rules and internal frameworks, could lead to minor inefficiencies but would likely improve as the Council gains experience and community feedback is incorporated. Though progress may be slower than ideal, the structure ultimately provides a degree of alignment and improved transparency, balancing new efficiencies with a learning curve as the Council adapts to its responsibilities.
Worst-Case Scenario:
In a worst-case scenario, the Council’s formation unintentionally causes community members to feel distanced from governance, viewing the shift as overly centralized despite Council accountability measures. If the Council faces internal disagreements or lacks a clear decision-making framework, it could mirror the inefficiencies it was designed to resolve, leading to stagnation or conflicts and not pushing the Executive Arm forward. Without effective communication and transparent reporting, VP holders may lose trust in the Council, resulting in a decline in active participation and a potential long-term drain on community cohesion and resources.
Implementation Pathways
1. Open Call for Council Candidates
The first step is to initiate an open call for Council candidates, allowing any interested members to submit applications on the DAO forum. An application form template will be provided to ensure a consistent and transparent application process. During this phase, candidates will not be required to reveal their identities (doxing), which will only be necessary if they are elected. The application window will remain open for two weeks, allowing ample time for candidates to express their interest.
2. Creation of Hiring Proposals by the DAO Committee
After the application period closes, the DAO Committee will review submissions and create formal hiring proposals for each candidate. These proposals will be published simultaneously on the DAO governance platform for community voting. VP holders will vote to select Council members, with candidates receiving the most VP moving forward, provided they meet eligibility rules. For example, if three out of five most-voted candidates are Decentraland Foundation employees, only the top two will be selected and the third one will be discarded, leaving the seat to the next voted candidate.
3. Initial Council Assembly and Framework Definition
Within one week of Council selection, members will convene to establish initial work guidelines, frameworks, and internal rules. This process will include setting up reporting practices, defining on-chain oversight mechanisms, and internal governance rules. These guidelines will provide a foundation for Council operations and ensure transparent communication with the community from the outset.
4. Drafting Strategic Guidelines and Overseeing Executive Arm Formation
Within 60 days of its formation, the Council will present a draft of strategic guidelines to the community, outlining the DAO’s potential focus areas. Also, if the proposal for creating an Executive Arm passes, the Council will initiate a recruitment process to hire an Executive Director and build the team, adhering to the DAO’s principles of transparency and accountability. These guidelines will serve as a roadmap for the Council and Executive Arm, ensuring alignment with the community’s vision and enabling feedback before formalizing the strategy.
Conclusion
Establishing a Council for the Decentraland DAO is a critical step toward professionalizing the DAO’s governance and improving operational efficiency. By delegating the responsibility of hiring and overseeing the Executive Arm, approving strategic plans, and managing the treasury, the Council will ensure that Decentraland’s operations are aligned with its long-term mission and vision. This proposal seeks to address the inefficiencies of the current system, reduce voter fatigue, and bring accountability to the DAO’s operations while maintaining community control through VP voting mechanisms.