Please describe your proposed solution.
Firstly I'd like to thank you very much for reading our proposal, and if this is the 100th or one thousandth proposal you have read thank you for your tenacity!
Charles Hoskinson has stated that Cardano Community Hubs are the best way to build adoption and to connect Cardano to the needs of the world - we TOTALLY agree, here is a short video where Charles Hoskinson outlines his vision:
<https://youtu.be/43iWvbKkIfY?t=22>We are going to launch ourselves as the Cardano Community Hubs DAO "CCH DAO" with the aim of increasing our effectiveness at establishing Hubs around the world, this was one of the objectives stated in our Fund 7 & 8 roadmaps.
We will record all of the steps in detail (and using <u>multilingual</u> multimedia) and share them as an open-source guide to create DAOs, we will also be working with other proposers to develop special DAO creation tools, we will also encourage our Cardano Hubs to become DAOs to support themselves financially for the long term so they can relieve the demands on Project Catalyst Funding (giving others a chance).
We will be incorporating all of our work and developped projects into CCH DAO, by the very nature of the DAO business model we will put the control of how we build the number of Cardano Community Hubs in the hands of the community:
This will be our CCH DAO Ecosystem
We are also in contact with others planning to educate and create tools or DAO creation to collaborate to the maximum (more on this below).
Click the Image below to read our initial White Paper
(Final Contents to be voted on)
CCH DAO Treasury
Our focus is the building of Cardano Community Hubs Worldwide, to fund this <u>70% of all "HUBS" Token Sales will go to our Treasury</u> - The Treasury will specifically focus on provide funding to build and run Cardano Hubs around the world. This will take the pressure off of Project Catalyst funding & provide a dedicated funding option controled by the community.
We will be employing the latest voting and governance options, this will include quadratic and "rolling" voting methods. We are also discussing collaborations with other stakeholders, developers and toolmakers who will help to make this a great success.
What is a DAO?
Initially, for anyone who is unfamiliar with the acronym “D.A.O.”, it stands for a “Decentralised Autonomous Organisation”, this means that the administration of the organisation is controlled purely by code on the blockchain, or otherwise known as a smart contract, the creativity for the organisation is provided by the human beings involved who propose ideas to the DAO so that the entire community can then vote on whether they want the proposal to be implemented or not.
"The Way" or "The Path"
NOTE: In Chinese the word “DAO” means: a way or a path. Confucians used the word
to explain the way human beings ought to behave in society in an ethical or moral way.
PHASE 4 of our Cardano Community Hubs Catalyst proposals
We propose to provide solutions to this challenge as a natural progression of our previous funded activities in the Project Catalyst experiment. We will create the CCH DAO and record our journey for all to learn from.
How we perceive the problem we are solving;
We want to help the increased adoption of the DAO model on the cardano BLOCKCHAIN, we will also document our journey in creating our CCH DAO and presenting it As a Cardano DAO development kit (cDDK) making it as easy as possible to follow.
Our reasons for approaching it in the way that we have;
We believe the most powerful way to educate, and guide is to lead by example, we want to help demystify the process of creating a decentralised autonomous organisation by demonstrating how it can be done.
The Stakeholders our project will engage;
As our primary objective has been to increase the number of Cardano Community Hubs around the world and to have those hubs become financially independent, we will focus our efforts on encouraging new and existing Cardano Hubs to adopt the DAO model as part of their monetisation and efforts to become self-sustainable.
How our project will be implemented;
In addition to our own research about DAO creation we have also reached out to other proposers and community members with similar interests.
Reaching Out & Collaborating
In particular we are at the beginning stages of agreeing a collaboration between ourselves and Logan Panchot & Justin Schreiner of Clear Contracts: <https://clearcontracts.io/>. Who also have complimentary proposals and joint venture agreements with companies such as MLABS (Haskell, Rust, Blockchain and AI consultancy): <https://mlabs.city/> and F10 Incubator & Accelerator: <https://www.f10.global/>
<u>Other “Clear Contracts” Proposals that align with our objectives.</u>
DAO smart contract templetizaiton
<https://cardano.ideascale.com/c/idea/382086>
No code, audited Smart Contracts
<https://cardano.ideascale.com/c/idea/382311>
Clarity DAO Incubator
<https://cardano.ideascale.com/c/idea/396524>
Clarity DAO Incubator
<https://cardano.ideascale.com/c/idea/414261>
Clarity DAO Infrastructure
<https://cardano.ideascale.com/c/idea/414257>
We will continue to reach out to build more collaborations within the Cardano Community to create the best possible results.
What we will produce;
We will create ourselves as the “CCH DAO” and we will record our journey to create a cDDK (Cardano DAO Development Kit) in coordination with <u>other experts in this area</u>.
Our expected outcomes;
We hope and expect that leading by example will motivate all corners of the Cardano community to employ the DAO Governance models to increase the number of transactions and create self-sustainable projects and businesses build specifically on the Cardano Blockchain.
Please describe how your proposed solution will address the Challenge that you have submitted it in.
Our Reasoning:
We believe that the best way to develop the structures and tools required to support the launching of multiple DAOs on the Cardano blockchain will be to find the solutions while building our own DAO so that we can experiment, and everyone will see the results in real time.
We are lucky because there are many examples of DAOs launched in the past on other Blockchains, we can build the DAOs of the future using the good and bad examples to learn from, and the superior Cardano, IOHK & Emurgo development technology.
We must remember that all Cardano DAO (cDAO) governance tokens are tier one tokens, unlike the tokens of Etherium, for example, as complex individual smart contracts are not necessary (because the Cardano Blockchain provides a lot of the code natively), the tokens are as fundamentally strong as ₳DA, that means there is less chance of faulty code and potential exploits that can be used by hackers.
Since the very beginning of our proposals to build Cardano Community Hubs we have always stated that we would like to hand over control to the community of our activities under a DAO framework.
Happily, we have the operational abilities, software skills and availability of the necessary team members to provide multiple solutions to this challenge.
"Our approach in reaching out to all interested parties in the DAO operating model will ensure we reach the highest levels in DAO community collaboration, DAO creation, DAO operation and DAO governance."
Our History & Addressing Challenges
Over the last 4 Funds the community has changed the challenges, which means the priorities perceived to be of the highest need for Cardano.
Project Catalyst has changed a great deal since "FUND 1" (We have only been involved since FUND 6), each Fund has brought new ways of doing things and new guidance on submitting proposals and running projects - seems to all be for the good making Project Catalyst more sophisticated at every stage.
You will see at the beginning we submitted 23 Insights & 23 Proposals (Fund 6, 7, 8 & 9) built upon them, you can open a full list below - at the launch of each fund we have sought to address the community's "Challenges" while remaining true to our original ideas, incorporating them in activities required by the Cardano Community through challenges set.
This iteration is stated as a desirable quality by the Project Catalyst team, and also IOHK, "Taking initiative" has been requested by all including Charles Hoskinson, saying "Show me what you've got!", each fund we try to do just that.
Where we have received Project Catalyst funding it has helped move forward in the knowledge the Cardano Community are with us, in many cases where funding has not been available, but we feel we can add value, we have self-funded proposals to move them to a position where the community can make a judgment based in the evidence before them, we have called this "Show don't Tell" - we will continue to do this.
Click the image to view the spreadsheet
What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?
As with a lot of blockchain based technologies the establishment and use of a DAO framework is often misunderstood and therefore feared. We cannot know the future or what will happen in each country, we can never-the-less be alert and remain agile to respond to whatever comes up.
This does not mean that the decentralised autonomous organisation is doomed. What it does mean is that there needs to be some forward thinking and in-built flexibility required to be prepared for the challenges ahead, below we have outlined several key areas that will need to be addressed and I'm sure that there will be more headings as we go forward:
Slow Decision Making
As a DAO is operated by allowing every member of the DAO to vote on all or most matters this can make progress cumbersome. There are there are various ways we can counteract this including having special committees or having voting delegated to individuals or specialised groups where the decision-making process can be quickened.
Majority Control
There is also the possibility, where the voting is tied to the number of tokens owned, that large owners would effectively be able to run the DAO in a centralised fashion.
This is the opposite to our objective! Therefore, we are looking at other ways to vote, such as one person one vote and quadratic voting. Of course large holders may feel that they have a lot more to lose than smaller holders so we will probably need to have several tiers of voting, or different sections, that relate to different parts of the operation of the DAO.
There will be certain matters that have a fundamental effect on the value of the DAO where large holders perhaps should have a bigger say in the decision-making process, on the other hand there will be day to day operational matters that simply need a decision by the community, such as marketing for example, where the fundamentals of the DAO are not being affected and everyone should have an equal vote.
Immutable code
All code on the blockchain is immutable, meaning it cannot be changed once it has been lodged, this could lead two roadblocks down the line as matters evolve. Therefore a process involving voting will need to be employed in the code to allow subsequent code to be added and referenced by the foundation code, allowing the DAO to operate under new unknown circumstances.
Code Flaws
In the past there have been DAOs that have failed (The DAO) because the code had not been properly written and audited, allowing hackers to exploit fundamental errors. The answer to this is to learn from the past and identify where open exploits may be and also to have a rigorous auditing of the smart contract before it is employed on the blockchain.
Opensource
As you may know the blockchain and all the code on it is totally open source, this means that potential hackers can read it, research, test and launch attacks on the code, the comments in the previous section apply here also.
Responsibility & Liability
There has been some discussion in America and elsewhere that a DAO, due to its decentralised ownership, is difficult for other entities to identify who would be responsible in the case of damage to another party and where the liability would stand.
There are various options that may need to be employed in the future, this is not the case at the moment, such as using or adopting similar structures to existing partnership corporations or not for profit charities. (See the next section under ownership).
Ownership
Similar to the above comments identifying ownership can be difficult, particularly as via the tokenisation certain individuals may have a level of anonymity. This is not a problem when all is running well but of course if there is ever any claims against the operation or governments decide that they want to try and tax profits for example some type of structure recognised universally may need to be adopted or incorporated, these include Limited Liability Company (LLC), Blockchain-Based LLC or Not-For-Profit/Limited By Guarantee companies.
Regulation
As mentioned above there is no way to know how the future will play out in relation to the regulation of block chain and digital currencies, we simply must monitor everything that is going on and be prepared to take whatever action is required to comply with governmental involvement in our organisations.
National Differences
Another variable will be the approach taken by individual sovereign States and governments towards our technologies, once again we can only stay vigilant and act with best practice in mind to be prepared for legislation or regulation that may be imposed in the future.