Hello, community,
We would like to share the drafts of each proposal following the discussions we had at the DCL DAO: Regenesis Summit in Lisbon. These drafts are being released at the same time as the poll to kickstart the governance process, which is now open for voting.
Our goal is to gather feedback and ensure that everyone has a clear understanding of the plan as it develops. We encourage you to share your thoughts during the voting period of the poll, as your input is crucial in shaping the future of the DAO.
Title
Proposal for Establishing a Council for Decentraland DAO
Summary
Establish a Council for Decentraland DAO to oversee the Executive Arm, approve annual strategies and budgets, and ensure alignment with the DAO’s mission. Council members will be elected by VP holders and hold the Executive Arm accountable.
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. To reduce voter fatigue, DAO members should vote less on more important stuff. 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.
- Voter Fatigue: This system contributes to voter fatigue, discouraging active participation.
- No Strategic Accountability: 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.
- 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 will be initiated, giving VP holders the chance to block any decision that is misaligned with the DAO’s mission or goals. If no quorum is reached, the Council’s decisions will move forward as planned.
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.
