CreditDAO is decentralized autonomous organization, mainly responsible for facilitating decision process within the CreditBit Community.
With absence of central authority or a omnipotent group of developers or owners, the decision process within CreditBit Community must be moderated through distributed mechanism. CreditDAO is a platform, realized and deployed with a Smart Contract, that enables each owner of CreditBit Tokens to contribute in this process. Prerequisite for voting is Proof of Trust, voluntary lock of part or whole balance of owned CRB Tokens. This way voters show their trust in the Token and the Community, before they participate in the voting process.
The core idea is to give a community a decentralized power to decide about all important issues in fair and safe manner.
Second aim of CreditDAO that was established after the migration to CreditBit Token (15th March, 2017), is to enable raising funds for development and promotional purposes. CreditDAO is a subproject of Credit 2.0 that also aims to provide development and sources to establish this organization.
Voting is a general expression for participating in decentralized consensus process.
Technically, a voting mechanism is written in a Smart Contract, that contains transparent rules and conditions to execute an action or to grant some permission or privilege. In practice these voting Smart Contracts represent either elections or proposals. Purpose of an elections is to make a consensus about which addresses will gain elevated DAO Trust Levels (TLs), that includes privileged rights for a predefined time period. These Trust Levels are transparent (visible to a public) and a same Trust Level can be assigned to the same address multiple times.
Purpose of voting for proposals is to create a consensus on variable questions regarding development, Credit 2.0 project, CreditBit token, Community, Funds, Features etc. The result of voting for a proposal is a single pool option that has most support among voters. Election Smart Contracts will be issued initially from the Creator address and will define the Trust Levels repetitive election process till cancellation. Proposals will be issued on demand from other addresses with suitable DAO Trust Levels and underlying rights. Voting for a candidate on the election or for a proposal will be executed through a digital wallet. Voting decision can be changed till the voting/election day, when all votes are registered and the result is calculated.
As the CreditBit token is build on top of Ethereum Blockchain and voting mechanism is realized with a Smart Contract, each vote costs a small amount of “gas”, that is Ethereum. For that reason, each voter will have to sacrifice this gas to exercise his/hers right to vote. Voting quorum and timeframe In order for voting to be valid, a minimum quorum of addresses, that cumulatively own at least 20% of all tokens in existence, must submit their vote. There is no need that all tokens in their possession must be locked - quorum is calculated independently of the state of tokens. All votings must last for at least a 14 days period, to enable all token owners to submit their vote.
Each address has the right to vote proportionally to the amount of donated or locked coins (PoT) from that address. Each address has the right to be elected, respectively to gain Trust Level and underlying rights.
Each vote will be assigned with weight, proportional to the amount of locked coins (PoT). In other words, to gain a right to vote, an owner of a address has to lock some of his/hers tokens. Several votes can be executed with same locked amount of tokens.
Right to vote can also be obtained by donating tokens to CreditBit Funds. With donating, each address gains Right to vote, votes from donating bear twice as high weight as with ordinary locking. There are some limitation to the right to be elected, that cannot be enforced by technology. Trust Levels must be distributed among several persons to prevent concentration of power. Elections Elections will be triggered each half-year. In preparation, all candidates can run for an election and choose to disclose their identity through CreditIdentity or remain anonymous, distincted only by public address.
Candidates can also express their devotion to Community with locking some of their tokens. An election list of all candidates will be collected and locked one month (31 days) before the election day. All addresses owners with Right to vote will be able to vote for one or several candidates, spreading support equivalently among them.
Trust Levels are decentralized versions of decision boards.
DAO HAS 3 TRUST LEVELS:
Executive Board (EB) is the Trust Level with highest powers and privileges. It consists of 5 addresses with different owners, who disclose some of their CreditBit Whitepaper creditbit.org - 17 - identity. EB has regular meetings, they can establish new votings and execute some Smart contracts.
Elected Commons (EC) is an entity of 30 elected addresses, that have a power to elect EB, prepare proposals for voting and tasks for Development Support Fund.
Voters are all addresses with a Right to vote.
Executive Board (EB) candidates must disclose their Identity to ensure that all 5 addresses belong to different persons. Elected Commons (EC) candidates are not obliged to disclose their identity, but we support the idea that each candidate should show a great deal of Trust and support to the Community, either with posting on forum, giving innovative and feasible suggestions, promoting token on Crypto Conferences etc.
EB and EC mandate lasts for 6 months. Election process is automatically triggered and announced 1 month before the expiry (candidacy procedure).
EB have regular meetings, conclusions are public and posted on the media. It approves decisions with minimum 3 of 5 (approving) votes for the proposal. Main task of EB is to create proposals and trigger a voting process. It also manages Development Support Fund and represent CreditBit to the public and media. It is expected for members of EB to actively participate in a process of development as Product Owners, giving developers clear view on priorities of developing.
EC is a think tank of our Community. It produces new ideas, prepare draft proposals, drive marketing and promoting activities, review and test new applications etc. Each 14 days they appoint a Facilitator, an EC member who moderates and guides activities. Members work in groups on the projects, that are assigned to them from EB. They also manage Promotional Fund.
All tokens donated to all three funds are initially in a locked state, DAO Fund Tokens are locked permanently. Only yields from CreditBOND process can be used for the fund purpose.
Development Fund is fully managed by the development team's representative at his/hers own discretion. Funds must be spent for development only. Frequent reports from Dev team will reveal the functionalities and apps under development.
DAO Fund consists of a Community Development Fund and Promo Fund.
Community Development Fund is managed by EB, each transaction must be approved by at least 3 EB members. Purpose of spending is in their own discretion, but regular reports must show reasons and the nature of spending.