Governance

Initially, the project will start with a centralized governance model and will be managed by the founders. After 50 successful auctions, DAO mechanisms will be implemented: proposals, voting and discussion. Those mechanisms will be implemented via the Space organization on the Snapshot site or similar service. In future we might switch to a more advanced service.

General decisions on the project, as well as investment proposals, can be put to vote. The voting and management mechanism itself can be altered by the DAO members.

Token weighted voting mechanism based on WAO tokens will be used for making decisions.

The vote is considered successful if at least 20% of the tokens in circulation participated (when voting for the prolongation of the fund, at least 50% of the tokens in circulation must vote). The results of a vote are executed in accordance with the following criteria:

• Less than 50% of the participating tokens voted for the proposal: the proposal is rejected.

• 50.01% to 80% voted for the proposal: the proposal is submitted to an additional vote by the founders of the project.

• More than 80% of the participating tokens voted for the proposal: the proposal is executed by the founders.

Proposals should not contradict the policy of the fund, and should also undergo internal scoring.

The founders have the right to veto the results of a DAO vote once during a calendar year (no more than 5 times in 5 years, unless the fund is extended). In case of a veto, the same proposal cannot then be put to vote for the next 2 years. The “veto" mechanism cannot be put to a DAO vote.

Treasury is managed by the founders using multisig signatures. All of the founders use hardware wallets with a passphrase. At the initial stage of the project we will use the Gnosis Safe service. If possible, all transactions should be carried out through the project's Treasury contract. It is allowed to use funds on personal wallets or centralized exchanges if it is necessary to buy some rare asset or an asset on a new blockchain. It is allowed to temporarily store up to 10% of the total value of the Treasury on a centralized exchange and 25% of the total value on personal wallets outside the safe (this is possible only if the safe cannot be used).