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DAO Governance

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Overview​

The DIG Network will transition to community-controlled governance when Chia's DAO primitives reach production readiness. This transforms validator management from self-governance to a DAO-employed service provider model.

Architecture​

DIG Token Holders
├── Vote on validator employment
├── Control network parameters
├── Receive Handle fee dividends
└── Stake for enhanced voting power
    │
    ▼
DAO Smart Contract
├── Controls validator multisig
├── Collects Handle registration fees
├── Executes hiring/firing decisions
└── Distributes dividends
    │
    ▼
Validator Operations
├── DAO-hired service providers
├── Performance-based contracts
└── Community oversight

Validator Management​

Hiring Process​

  • Application: Validators submit proposals with performance commitments and DIG bonds
  • Evaluation: 14-day community review period
  • Voting: 7-day token holder vote (15% participation required)
  • Execution: Automated smart contract implementation

Performance Management​

metrics = {
    'validation_accuracy': (target=0.995),
    'uptime': (target=0.999),
    'response_time': (target=30s),
    'reputation': community_score
}

Token Economics​

Revenue Distribution​

handle_fee_allocation = {
    'storage_rewards': 'TBD%',    # To storage providers
    'validator_comp': 'TBD%',     # To validators
    'dao_treasury': 'TBD%',       # To DAO (→ dividends)
    'development': 'TBD%'         # To protocol dev
}

Voting Power​

  • Quadratic voting: √tokens = voting power
  • Stake duration bonuses: Longer stakes = more power
  • 15% minimum participation
  • 67% approval threshold

Anti-Centralization​

Safeguards​

  • Quadratic voting reduces whale influence
  • Geographic validator diversity requirements
  • Merit-based validator competition
  • Public performance monitoring

Transition Plan​

  1. Phase 1: DAO contract development
  2. Phase 2: Smart contract deployment and multisig migration
  3. Phase 3: Full community governance with automatic dividends

Summary​

The DAO governance model enables true community ownership where token holders manage validators, control network parameters, and receive dividend payments from Handle registration fees through automated smart contracts.