Consortium — Past, Present and the Future
What is Consortium?
It is possible to use technology to govern common resources for large communities. To facilitate better commons-based intelligence and decision-making, DAO/DAC technology needs to address the following aspects of collective governance:
Consortium is a voting protocol that addresses those aspects of collective governance by enabling communities to access token-weighted voting system.
Consortium provides a method to aggregate community’s ideas and opinions that are:
Trustworthy —signals provided only by community’s token holders, and stored on a public blockchain.
Incentive based —signal providers are rewarded with GOVRN tokens.
Accurate — signals's strength calculated utilizing Quadratic Voting principles.
The aim is to incentivize communities to be part in their organization’s development. Being part by provision of valuable information (signals) that could be used to:
- create new products and services or provide feedback to the existing ones
- provide reactions to the recent news and formulate community’s general sentiment
- formulate new worker proposals for the workers or multisigs for custodians (in case of a DAC)
- keep custodians and workers continuously in check (in case of a DAC)
Such signals are invaluable for social organizations, since that information could be utilized continuously in general decision-making by all the stakeholders.
Quick recap of Consortium dApp — Phase 1
The aim of the first phase was market validation, token distribution and community building. 22 EOS mainnet communities, utilizing their tokens, were enabled to participate in an on-chain referendum. Referendum asked whether on-chain voting is of interest to them. Each unique vote was rewarded with GOVRN tokens.
- Phase 1 lasted 2 months (08.03.2020–08.05.2020)
- 1137 accounts participated in voting
- 6709 unique votes
- 101 396 540.2280 GOVRN issued via voting
Most active community was Vigor Protocol’s, shout-out to Vigorians!
After seeing active participation and receiving positive feedback from members of various communities, market was validated to proceed and build the next phase.
Launch of Consortium dApp — Phase 2
on the EOS mainnet on 14.10.2020
Second phase is similarly aimed at communities residing on EOS mainnet.
Any community on the mainnet is now able to have their own voting systems by utilizing their existing tokens.
First two communities included in the second phase are EOS mainnet and Vigor Protocol.
By using EOS and VIG tokens, community members are now able to create polls (up to five answer options) and vote in them.
Second phase has following important features:
- GOVRN token distribution/rewards through voting and poll creation, favoring early participants.
- Staking of GOVRN tokens — the more staked to a certain community the higher the rewards for voting and poll creation that community receives.
- Voting based on Quadratic Voting principles:
a) daily limit on voting power
b) votes that get recorded on-chain are actually the square root of the tokens voted with.
In a nutshell, QV enables to produce more accurate signals, as the voters are more diligent in choosing in which polls to vote in (daily limit) and the voting power of the whales is reduced (square root of the tokens voted with).
Under the hood
We are using DAPP network created by LiquidApps to facilitate some of our actions. More specifically two services, cron and oracle.
- Oracle is used to validate the token holdings of voters and poll creators. On Kylin testnet, we were able to make up to 5 oracle requests in one action, meaning that in case you are member of EOS community your EOS (voting power) could be read from your account balance, CPU, NET and REX. Multiple oracle request within an action could also enable, if necessary, to aggregate the token balances from liquidity pools of different DEFI applications. After continuous testing on the mainnet we were able to achieve stable results only with one request per action. As such, for starters token balances for each community are read only from one table. We will continue working with LiquidApps and DSPs (Malta Block and EOSUSA) to add more oracle requests into the actions on the mainnet to reflect the signalling power of each user more accurately.
- Cron is used to calculate and distribute the Poll rewards, also to delete the expired polls and other voting data.
Tokenomics
Current circulation: 101 396 540.2280 GOVRN
The distribution in the second phase will last until total circulation of GOVRN tokens reaches 350m.
User is eligible to get 3 Vote rewards per day (24h) for each casted vote.
Approximate first Vote reward 20k GOVRN.
Largest rewards go to the creators of popular polls. In order to receive the Poll reward, total number of tokens used (to vote) in a poll has to be equal or higher than the Poll reward threshold.
Poll reward threshold = 0.2 * Most popular poll of your community.
Approximate first Poll reward 500k GOVRN.
Each time additional 25m GOVRN tokens get issued, poll and vote rewards are halved.
There is cost to create polls, which starts with 25k GOVRN and also is subject to halving.
95% from 350m GOVRN will be distributed to voters and poll creators, 5% will be divided between DAC fund / current developers / DAC providers.
The market capitalization projections and specifics of the tokenomics could be found in the following spreadsheet.
What’s next?
- On-board any EOS community that would like to have their own voting system. Let us know in our Telegram group or on Twitter if you'd like to have your community added.
- Launch of Consortium DAC. Hand over control of the voting protocol and the funds to the GOVRN token holders. Either utilizing eosDAC’s DACfactory or Daclify.
- New types of signal provisioning.
For example:
a) creation of polls without answer options. Feature for any member of community to add answers to any of the existing polls.
b) ability to create departments/branches within DACs, each with their own feed/board where problems could be defined and prioritised, where proposals could be made and selected.
4.
Phase 3
On-board any community that has tokens on any public blockchain and would like use them to facilitate collective governance.
Proxying of tokens for signalling and subsequent division of the inflation rewards between proxy and the principal (liquid democracy).
Link digital identities to accounts to mitigate double-voting.
Stable GOVRN inflation 3%-5% yearly, to continue providing rewards for the users participating in the collective governance of their communities, and to self-sustain Consortium DAC.
