Dear Community,
this is our penultimate announcement on CreditBit token features before the migration. After completing todays topic, we are going to post news on development progress, publish a guide for the migration process and description of initial voting on Funds and Minting. This initial voting will be very important and we encourage all current owners of coins to enter the migration in the first round, as participation in initial voting will be only available at that occasion.
We have the last major topic to cover - CreditBit Decentralized Autonomous Organization (CreditDAO) and some of its features. This is still an idea, there might be some corrections just before the implementation. Final corrections will be included in Credit 2.0 Whitepaper, release date is planned on 1st March, 2017.
DAO (Part I.)VotingVoting 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 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 timeframeIn 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.
Right to vote, Right to be electedEach address have the right to vote proportionally to the amount of donated or locked coins (PoT) from that address.
Each address have 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.
ElectionsElections 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 (TL)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 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.
This is the end of first part of DAO description. Please comment, tweet and post on that topic, let us know what is your opinion. Do you see DAO as a useful form of reaching a consensus or unnecessary feature? Do you see any fundamental mistakes in our way of thinking? Please, tell us, how much you care about this idea, we would really want to hear your voice, participation is the key to success.
In anticipation of your feedback…
Dev team
