Alphaping DAO Constitution
Alphaping DAO's Constitution outlines rules and procedures, some of which are enforced directly by smart contracts on the blockchain, while others are not. All rules hold equal weight and are binding. Actions can be either on-chain, directly executed by the DAO's governance smart contracts on the blockchain, or off-chain, carried out through alternative means.
Additionally, the Constitution includes "recommended guidelines" that, although non-binding, are strongly encouraged as best practices for governance.
The document also details the process for amending the Constitution and establishes the governance framework for both Alphaping DAO and any possible future Foundation of the DAO.
Definitions
AIP: Alphaping Improvement Proposal
Business Units: A Business Unit is one of the following departments; Infrastructure, Software Development, Investments & Charity.
DAO Treasury: All $ALPDAO tokens held in a governance smart contract governed directly by the Alphaping DAO and/or the Managing Councils of The DAO via on-chain voting mechanisms.
Votable Tokens: All $ALPDAO tokens in circulation, excluding any tokens held by The DAO or potential affiliated Foundation and any unclaimed airdrops
Section 1: Business Units "Ownership"
This Constitution lays out the rules for decision-making within the Alphaping DAO for approving and governing Alphaping DAO-supported Business Units. While Alphaping DAO can approve new Business Units, each new Business Unit needs its own approval, known as an AIP (Alphaping Improvement Proposal). Only one new Business Unit can be approved per AIP. Business Units approved by the Alphaping DAO can be managed using the $ALPDAO token and this Constitution, making them Governed Business Units. Business Units approved but not managed by the $ALPDAO token are considered Non-Governed Business Units.
With the creation of the $ALPDAO token and the establishment of Alphaping DAO, ownership rights for the Business Units have been granted to both Alphaping DAO and the Managing Council of The Alphaping DAO.
Section 2: Alphaping DAO Proposals and Voting Procedures
This section outlines the rules and procedures for proposing, voting on, and implementing Alphaping Improvement Proposals (AIPs) using the $ALPDAO token. All AIPs must comply with applicable laws, including sanctions-related regulations.
Phase 1: Temperature Check (1 week) (Optional but Recommended)
The AIP is introduced on the public forum and discussed for one week.
The AIP should be accompanied by a Snapshot poll or another method chosen through the governance process. This poll can only be initiated by an address holding at least 0.1% of the Votable Tokens.
The Snapshot poll lasts one week and requires a simple majority for approval, with no minimum participation threshold.
A failed temperature check indicates that the AIP should not proceed to the voting phase. If an AIP fails the temperature check or hasn't undergone one, voters are advised to consider voting against it.
Phase 2: Formal AIP & Call for Voting (3 days)
The AIP is submitted through governance contracts on Alphaping's primary chain, with a user interface accessible via Tally.
The AIP proposer must hold an address delegated with at least 100,000 Votable Tokens.
After three days, a snapshot of the voter distribution is taken to begin the voting period, allowing time for discussions and vote gathering beforehand.
Each AIP must be categorized as Constitutional or non-Constitutional.
A Constitutional AIP is one that:
Process: Modifies the text or procedures of this Alphaping DAO Constitution.
New Business Unit Approval: Authorizes a new Business Unit as approved by the Alphaping DAO. This includes both Governed Business Units and Non-Governed Business Units.
A Non-Constitutional AIP is one that:
Funding: Proposals for funds (external investments or expansion of existing assets) or grants and suggestions on how to allocate resources from the DAO Treasury.
Informational: Offers general advice or information to the community without introducing a new feature, update or direction change.
Budget: Proposal to set or amend freely available budgets for each business unit, which does not require voting approval.
Settings Adjustments: Proposal to modify specific settings of products or services within a business unit.
Alphaping DAO members are encouraged to vote against any AIP that is inaccurately categorized.
As a guideline, an AIP should contain:
Abstract: A brief summary of the AIP in two or three sentences.
Type: Is it a constitutional or non-constitutional AIP
Impact Area: If the AIP succeeds, which area will it impact: The DAO or which specific business units
Motivation: A rationale explaining why the Alphaping DAO community should adopt the AIP.
Rationale: An overview detailing how the AIP aligns with Alphaping DAO's mission and core values.
Key Terms (optional): Definitions for terms unique to the proposal, unfamiliar to the Alphaping DAO community, or specific to the industry.
Specifications: A comprehensive outline of the platforms and technologies involved.
Steps to Implement: Detailed procedures for executing the AIP, including associated costs, manpower, and other necessary resources. AIPs involving third-party transactions, such as grants, should also include relevant legal documentation and procedures.
Timeline: Relevant timeframes, including start dates, milestones, and completion dates.
Overall Cost: The total estimated cost of implementing the AIP.
Additional Sections: The AIP author can incorporate additional sections into the template to fully convey the AIP's intentions, specifics, and implications.
For resubmitted AIPs, it's recommended to include:
A link to the initial AIP.
Reasons for the initial rejection.
Modifications made and justification for reconsideration.
Any additional sections necessary to clarify the changes and implications of the resubmitted AIP.
- Phase 3: Alphaping DAO members vote on AIP (14 days)
The vote will be conducted on the DAO's official voting platform on Tally.
Alphaping DAO members can vote directly on-chain for a submitted AIP using the $ALPDAO token they hold.
An AIP is considered passed if it meets the following two conditions:
For a Non-Constitutional AIP:
More votable Tokens vote "in favor" than "against"
At least 3% of all votable Tokens vote either "in favor" or "abstain".
For a Constitutional AIP:
More Votable Tokens vote "in favor" than "against"
At least 5% of all votable Tokens vote either "in favor" or "abstain".
If the AIP is approved:
A Non-Constitutional AIP, continue with Phase 4 and then Phase 7
A Constitutional AIP, continue with Phase 4, Phase 5, Phase 6 and Phase 7
If the AIP is not approved, it ends at Phase 3.
- Phase 6: 2nd Waiting Period (3 days)
After the results of the AIP vote have been publicly announced, another 3-day waiting period occurs. This gives users who weren't following the vote closely and who might have objected to the AIP time to initiate withdrawal of their funds or take other actions to protect their own interests.
The typical time span for a complete AIP voting cycle is:
Non-Constitutional AIP: 27days
Constitutional AIP: 30days
Section 3: Managing Council
The Managing Council is a group of 9 members who control a multi-signature wallet. This wallet has the authority to carry out specific actions, both in emergencies and regular situations. The powers of the Managing Council are granted by the Alphaping DAO. Their main job is to uphold the rules set out in the Alphaping DAO Constitution and managing their respective Business Units.
By submitting, approving, and implementing a Constitutional AIP, the Alphaping DAO can change the Managing Council's powers or even remove the Managing Council altogether.
Emergency Actions:
The Managing Council is authorized to quickly implement software updates, Business Units amendments or other necessary steps in response to a security or economical crisis, should one arise. This rapid response is referred to as an "Emergency Action." To carry out an Emergency Action, at least 6 out of the 9 Managing Council members must give their approval.
The Managing Council is expected to use this authority only in genuine security emergencies. For example, if a significant security vulnerability is discovered that could seriously compromise the security, privacy, or accessibility of any Business Unit overseen by the Alphaping DAO.
After executing an Emergency Action, the Managing Council must issue a comprehensive report detailing the actions taken and the reasons behind them. This report will be provided after the immediate threat has been resolved.
The Alphaping DAO has the ability to modify or revoke the Managing Council's power to execute Emergency Actions by approving and implementing a Constitutional AIP.
Non-Emergency Actions:
The Managing Council can also authorize regular business units update, software updates, maintenance tasks, and adjustments to various settings when there's no immediate security threat. These routine actions are called "Non-Emergency Actions." To proceed with a Non-Emergency Action, at least 4 out of the 9 Managing Council members must agree.
Once approved by the Managing Council, a Non-Emergency Action skips the initial phases of the AIP process and directly enters the later phases. This allows for a built-in delay before the action is implemented. The Managing Council can also decide to add extra waiting time before the action takes effect.
The Alphaping DAO has the authority to limit or remove the Managing Council's ability to carry out Non-Emergency Actions by approving and implementing a Constitutional AIP.
Section 4: Managing Council Election
The Managing Council consists of 9 members.
The inaugural Managing Council election is set to commence on 15th Mai 2024 or at the earliest available opportunity. The election will initiate once an on-chain election mechanism, endorsed and implemented by the Alphaping DAO, is in place.
The selected date for the first election will serve as the reference point for all subsequent elections. Each election is slated to start six months after the conclusion of the previous one and will refresh its respective group of 9 members.
All Managing Council members are anticipated to fulfill their term until the election concludes and the new members of the Managing Council are inaugurated.
The subsequent timeline outlines the process for an election commencing at time T:
Candidate Declaration (T to T+7 days): Any Alphaping DAO member can announce their candidacy for the Managing Council.
Nominee Voting (T+7 to T+14 days): Each Alphaping DAO member or delegate can vote for their selected contender. Each token can support one contender. If there are more than six contenders, each eligible contender needs endorsements that account for at least 0.2% of all votable $ALPDAO Tokens.
Compliance Period (T+14 to T+28 days): All candidates will collaborate with the Alphaping DAO and complete the compliance procedure. The Alphaping DAO is responsible for disqualifying candidates who don't meet compliance standards. If fewer than four contenders have the necessary endorsements of 0.2% of all votable $ALPDAO Tokens, outgoing Managing Council members may become candidates (randomly chosen) until there are four contenders.
Member Voting (T+28 to T+49 days): Each Alphaping DAO member or delegate can vote for any declared candidate. Each token can be cast for one candidate.
At T+49 days: The procedure to replace the Managing Council cohort with the candidates garnering the highest votes will begin. The on-chain governance smart contracts will manage the installation, which might take several days for the new Managing Council members to be inaugurated.
The Alphaping DAO designates 14 days for the Compliance process, which should occur between the Nominee voting and Member voting phases. The Alphaping DAO retains the flexibility to update its compliance protocols for each new election cycle. This adaptation is essential to ensure alignment with relevant regulations. Moreover, the Alphaping DAO reserves the right to introduce new guidelines and procedures for the off-chain aspects of the Managing Council election. The Alphaping DAO is committed to facilitating an organized, equitable, and transparent election process.
In line with best practices to uphold the independence of our Managing Council, it's essential to avoid disproportionate representation from any single organization. Specifically, no more than three candidates affiliated with a single entity or consortium should be elected to the Managing Council. This measure ensures that no single entity or group can dominate or potentially block a Managing Council decision.
Additionally, candidates with conflicts of interest that could hinder their ability to act in the best interests of Alphaping DAO and/or Governed Business Units should not be elected to the Managing Council. Such conflicts might include, but are not limited to, associations with direct competitors of Alphaping, documented histories of project exploitation, and other relevant affiliations.
The Alphaping DAO can approve and implement a Constitutional AIP to modify the rules for future Managing Council elections, but the AIP process cannot be used to interfere with an ongoing election.
Managing Council members can only be removed before the end of their terms under two circumstances:
At least 10% of all $ALPDAO tokens have voted either "in favor" of removal or "abstain", and a minimum of 5/9 (83.33%) of all votes cast are "in favor" of removal; or
At least 6 Managing Council members vote in favor of removal.
Seats of Managing Council members who have been removed before their terms end will remain vacant until the next election when those seats are due for appointment. However, if at least 6 Managing Council members vote to replace the vacant seat before the next election, it will be open for appointment in the upcoming election. A removed member cannot be reappointed by the Managing Council and can only return through the regular election voting process.
Section 5: Alphaping DAO Community Values
The core values guiding Alphaping DAO, Governed Business Units, technology, and community should encompass:
Aligned with Ethereum: Alphaping DAO operates within the Ethereum ecosystem, considering itself an integral part of the Ethereum community. While Alphaping DAO makes independent decisions and pursues unique objectives, it maintains a close alignment with Ethereum, viewing itself as an engaged and positive contributor to the broader Ethereum community.
Sustainability: Alphaping DAO aims for long-term viability in its development and operations. Choices regarding technology, economics, and resource allocation prioritize the sustained growth and prosperity of the Alphaping DAO, technology, and community over short-term gains.
Security-Focused: Alphaping DAO prioritizes system security, emphasizing the importance of maintaining a safe environment when contemplating any software alterations.
Inclusivity:
Socially Inclusive: The Alphaping DAO community should be inclusive and welcoming to all individuals looking to engage constructively. Embracing differences in knowledge, resources, geography, language, and life experiences enriches the community's collective learning and growth.
Technically Inclusive: Participation in the Alphaping DAO should be accessible to everyone, including those with standard computer setups, enabling broader community involvement.
User-Centric: Alphaping's DAO ecosystem should prioritize the well-being and benefits of all users, aiming to enhance user experiences across the platform.
Neutral and Transparent: Alphaping's DAO governance remains impartial, fostering an environment of open innovation, incentives and user autonomy.
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