Quorum
5 % of the circulating supply (750 million). The purpose of this quorum is to ensure that the only measures that pass have adequate voter participation.
Background
Why REI Network need DAO?
DAO is a kind of spontaneous governance method by the community. Since 2019, DAOs with different functions have gradually emerged. Today, DAO is constantly exploring its utility and value in the realization of diversified purposes, multi-scenario applications, and ecosystems.
DAO is the basic entry and interpretation in the Web 3.0 era, and it is also a concrete scene of a decentralized and discrete governance model based on blockchain. The era of Web 3.0 is not only a necessary step for REI Network to transform itself as a technology carrier, but also as a social experiment in the crypto world itself needs to take a step forward.
Why can REI Network implement DAO?
The REI Network originated from the community construction of GXChain. It has been an important part of the public chain ecosystem since the establishment of GXChain, and it is also one of the largest and most active blockchain communities in the world. It includes core protocol developers, crypto-economic researchers, cypherpunks, node operators, $REI holders, application developers, and community users. With the continuous precipitation and development over the years, the total coverage of the population has reached hundreds of thousands of people.
-
The REI Network community currently covers more than 20 countries around the world, and the international community includes areas that are extremely popular in the crypto economy, such as South Korea, India, Spain, Russia, Africa, Europe, and Southeast Asian countries. In addition, the REI Network community also covers the aggregation community including the REI super node ecosystem, which is also one of the most active blockchain enthusiasts in the crypto world.
-
The REI Network community has rich user portraits, super nodes, partners, ecosystem projects, and endogenous community KOLs. At the same time, carrying the origin of REI Network community governance, GXChain will continue to build a larger and more differentiated crypto community in the future, deepening the consensus of REI Network and inspiring strong community governance and ecosystem construction ability. The above objective conditions give us reason to believe that the conditions for realizing DAO autonomy on an EVM-compatible public chain with a broad community base and vitality are ripe, and the era of REI DAO has come.
What can DAO bring to REI Network?
Let the community vote on how to deploy their funds to support builders and developers for their own development. Community orientation inspires collective intelligence and empowers DAO to make decentralized decision-making capabilities that may outperform a single decision-maker.
DAO is a form of management organization with specific implementation methods for promoting community development. Compared with the community autonomy and proposal mechanism in the GXChain era, DAO is a more standardized, decentralized, and diversified management form, which can not only objectively and effectively reflect the actual needs of the community, but also the implementation plan that is compatible with the opinions of various sectors.
Contents of the proposal
1.Management content of REI DAO:
1.1 REIcosystem & Marketing
As mentioned in “#Governance Proposal: From GXChain 2.0 to REI Network”, the unlocked part of the team is upgraded to an “Ecosystem Grants”. The team took out all the unlocked 25 million $GXC (250 million $REI) as Ecosystem Grants, and the specific distribution is as follows
- 50 million
$REIfor marketing - 150 million
$REIis used to incentivize developers and the ecosystem. - 50 million
$REIfor node rewards
In the above three parts, REIcosystem & Marketing will involve the marketing promotion of the team and the cost of ecosystem construction, including but not limited to the following parts
-
Grants distribution: Grants are designed to support projects built on the REI Network to promote the improvement of the REI Network ecosystem. REI Network will specifically evaluate Grants based on the project’s influence, development prospects, team experience, and ecosystem relevance to decide the quantity of distribution.
-
Market promotion: For the ever-changing REI Network, it is necessary to maintain a high degree of industry acumen at all times. In the market and cooperation, transaction activity, team building, and content creation, the market recognition and global popularity of REI Network will be comprehensively promoted. Value return and other aspects ensure an efficient value transfer model.
-
Developer incentives: At the developer level, more incentives from community developers need to be given to promote their output, including the development of tool products, technical improvements, positive feedback, etc.
Apart from the specific payment method, which needs to be realized by REI DAO, all the expenses for marketing, operation, and ecosystem development are managed and spent in the way of DAO, and the distribution of node rewards is a linear process.
1.2 Advantage orientation of DAO governance
Governance based on REI DAO will bring the following changes:
-
Comprehensive and transparent community management.The management method of REI DAO is all-around and transparent. Under the management of DAO, the expenditure of Marketing grants and REIcosystem / dev-grants will be carried out on a daily basis under the supervision and management of the community. For details of the process, please refer to “3. REI DAO Operation Mechanism”.
-
Distributed opinion collection mode.The proposal submission process is different from the previous node governance method and the management method of the proposal proposed by the council. Under DAO governance, as long as a certain amount of $REI holding qualifications are met, a governance proposal can be put forward, so governance demands expression under these conditions will become flattered and distributed. On this basis, community opinions about future directions including protocol deployment, grants distribution, market budget allocation, and evolution route from REI DAO can be more efficiently and directly proposed in the form of “proposals”.
-
Realization of REI Network governance value.Decentralized governance through DAO encourages open participation in the ecosystem development of the REI Network. By holding governance tokens, participants not only have the opportunity to share the rewards associated with the marketization of REI Network, but also have the incentive to define where the system will go, and the economic and social impact it will have.
2.How the REI DAO is implemented
2.1 Multisig wallet: security and openness
The team uses the Genosis multisig wallet to ensure the centralization and transparency of the DAO. The above-mentioned funds will be implemented through the technical implementation of multi-signature wallets to realize the specific expenditure of funds under the jurisdiction of DAO. By using the Genosis multisig wallet, there will be multiple people jointly managing the funds and will satisfy both security and decentralization features.
2.2 75% principle:
The use of funds requires a multi-sig wallet, which is suitable for the decision-making scenario of the muti-people or institution. REI Network decided to use the multisig wallet management to implement distributed management of the overall capital flow. It minimizes the risk of asset loss when a single private key is lost, and the use of this part of the funds must be approved by 3/4 of the following four addresses to take effect.
The specific addresses with administrative rights are as follows;
-
0x302…9e6D
-
0x8cD…E092
-
0xA12…FFe2
-
0x524…4782
3.How REI DAO works
i. Community proposals generate votes:
Required qualifications: REI Network governance 50,000 $REI, or collects an equal number of proposal support.
ii. Proposals produced by the Council members:
a. REI DAO Council
- The Council is a community-based organization specially established to promote the prosperity of on-chain governance. In this organization, in order to more efficiently promote the actual governance utility of DAO, the first batch of REI DAO Council members will be invited by the team and will be generated within 10 working days.
b.Proposal power of Council members
-
Council members can directly put forward proposals
-
The first step in participating in governance is to initiate any discussion that benefits the REI network and build influence in the community to get more people to agree with your proposal. Then get in touch with Council members to discuss your proposal on the Community Call and Twitter Spaces. After making a formal proposal, it will be upgraded to the on-chain voting session.
iii. Proposal language
- We try to keep the discussion of the content of the proposal in English. While we welcome discussions on REI Network development in other languages, such as Korean, French, Chinese, Spanish, etc. (eg, in REI Forum), English is currently preferred due to the consistency of discussion.
3.2 Types of proposals
3.2.1 REI Network operating mechanism proposal
E.g:
-
Modify the dynamic parameters of the blockchain, such as block size, block interval, and other smart contract creation and call rates, and modify the dynamic parameters of the blockchain, such as block size, block interval, etc.;
-
The block reward of trust nodes, the number of trust nodes and the number of active council members, etc.;
-
Transfer, issuance of assets, and various transaction fees;
-
Smart contract creation and call rates, etc.
-
Adjustment at the strategic level of REI Network: change the project name, adjust the technical structure, adjust the roadmap, etc.
3.2.2 Fund application proposals
-
Including ecosystem construction, team building, developer incentives, REI Network marketing, public welfare donations, etc.
-
Applying for proposals with different amounts will involve different voting approval rates and voting durations.
3.3 Proposal voting process
3.3.1 Voting duration:
Once the proposed proposal meets the above requirements, the REI DAO begins a 7-day voting period. Ongoing discussions are conducted in the REI DAO Forum. If the proposal is successfully passed, there will be a two-day lock period before the proposal code is executed, and then the relevant proposal content will be finally executed.
3.3.2 Turnout requirements:
i. In order to get the vote passed, it is generally required that at least a certain amount of $REI (2%-10%) must vote in favor. The purpose of this quorum is to ensure sufficient legitimacy and actual participation;
ii. If the following situations are involved, the minimum approval rate needs to be increased to 10%
-
The content of the proposal involves the evolution of the major strategic level of the project: for example: changing the project name, adjusting the technical structure, splitting tokens, significantly adjusting the evolution route of the roadmap, etc.
-
The total amount of REI tokens requested to be used must be more than 5‰ of the total number of tokens
iii. Initial principle: The content mentioned in this part is the initial setting of the on-chain governance section, and the specific setting of this part is also within the scope of the operating mechanism proposal.
Principles of Proposal Implementation
- Orderly execution of proposals:
When multiple on-chain proposals or tasks need to be executed, the executor should take into account the enthusiasm of REI Network development and the limited timeliness of the proposal execution content to execute or approve the corresponding funds
- Not against the fundamental interests of REI Network:
All on-chain proposals should be for the purpose of actively promoting the development of REI Network. Under this premise, all proposals will be considered invalid if there is the malicious use of corresponding funds or any part that is not related to the development of REI Network.
- Force Majeure:
In the process of proposal, voting, and implementation, if force majeure factors arise in the location of the participants, such as war, natural disaster, political control, etc., the proposal link should be postponed or carried out on another day as the case may be.
- Do not violate local laws and public order and good customs:
In the use of REI Network funds, it should abide by local laws and the public order and social ethics of the place of use, so as to avoid unnecessary conflicts and brand losses.
- Security mechanisms implemented by REI DAO:
a. The governance security mechanism mitigates or eliminates the adverse impact of harmful proposals on the REI network or the REI DAO community by setting a time delay before the proposal is formally implemented.
b. Before new code is deployed to REI Network, there is a 24-hour publicity period, during which all community members can review the code to confirm the security of REI Network. If the code is reviewed and deemed to have any adverse effect on REI Network, the deployment will be canceled immediately.