<h1>
<a name="delegated-voting-procedure-how-we-govern-1" href="#delegated-voting-procedure-how-we-govern-1"></a>Delegated Voting Procedure : How We Govern</h1>
<p><em>Authors: Samantha Marin, with help and feedback from Alex Clay, Ivan Fartunov, Jessica Smith, and Mario Laul.</em></p>
<p>This is a procedural document that outlines a possible delegated voting plan for the AN DAO. This document is not intended to replace the charter, but build a basis for large scale decision making in the DAO following the treasury transfer.</p>
<h2>
<a name="who-are-we-2" href="#who-are-we-2"></a>Who are we?</h2>
<p>We are the Aragon Network DAO, a DAO that builds products for the next generation of DAOs. We’re a product DAO that ships industry-leading, open-source, blockchain-enabled technology.</p>
<ul>
<li>DAO Members: ANT holders.</li>
<li>DAO Contributors: Any ANT holder who is part of a guild, subDAO, or working group in the AN DAO. DAO Contributors may have governance rights in their respective guild/subDAO/working group.</li>
<li>DAO Core Contributors: Any ANT holder part of a guild/subDAO/working group who works in a full-time capacity for the AN DAO and/or is in a leadership position. DAO Core Contributors may have governance rights that go beyond their fellow contributors, such as veto power or more votes.</li>
<li>Delegates: Individuals who vote on matters for the entire DAO, using tokens that have been delegated to them. Delegates don’t have automatic special power in guilds/subDAOs/working groups. If they are a core contributor in Aragon, they must state conflicts of interest on proposals that directly impact them, and can choose to abstain from votes in which they have those conflicts.</li>
</ul>
<h2>
<a name="how-do-we-vote-3" href="#how-do-we-vote-3"></a>How do we vote?</h2>
<p>In this structure, the Aragon Network DAO will use delegated voting to ratify decisions. ANT holders can delegate their ANT tokens to one or more delegates. There is no token allocation cap to be a delegate, but there is a cap in order to be <em>paid</em> to be a delegate.</p>
<p>Each on-chain vote will be live for 7 days, with a 3 day timelock following the results.</p>
<h3>
<a name="how-do-we-select-delegates-4" href="#how-do-we-select-delegates-4"></a>How do we select delegates?</h3>
<p>The 11 <em>paid</em> delegates will be chosen every 12 months by an ANT vote, where ANT holders allocate certain percentages of their tokens to the various delegates. The 11 prospective delegates who receive the most percentage of the ANT votes will become the paid delegates for the following 12 months.</p>
<p>The two aspects of the application process are the written application and the community AMAs (sync or async).</p>
<p>Delegates can run again after their previous 12-month term, and token holders may choose to delegate to the same person as before.</p>
<p>Delegates can be either individuals or small groups/organizations.</p>
<ul>
<li>Written application: These statements will be stored in a public repository. Please be short and concise.
<ul>
<li>ETH address</li>
<li>ENS name, so delegators can easily identify you</li>
<li>Discord username</li>
<li>Twitter handle</li>
<li>Reasons for wanting to be a delegate</li>
<li>Web3 interests (choose 5 or fewer)
<ul>
<li>Accessibility, Bridges, Cryptography, DAOs, Data and analytics, DeFi, Developer tools, Economics, Events, Environment, Gaming, Governance, Identity, Infrastructure, Legal, Messaging, Music, NFTs, Oracles, Privacy, Security, Self-management, Social impact, Visual art, Wallets, Writing, Zero knowledge.</li>
</ul>
</li>
<li>Qualifications and experience</li>
<li>Technical experience</li>
<li>In your words, what is Aragon?</li>
</ul>
</li>
<li>Community AMA: Delegates will need to answer community questions, whether in written format or a video AMA.
<ul>
<li>Here, the community members will ask the prospective delegates questions. This will help ANT holders determine where to delegate their tokens.</li>
<li>The documents and/or session recordings will be made public.</li>
</ul>
</li>
</ul>
<p>There will be a two-week application period, where prospective delegates can submit their applications. The vote will begin two weeks before the previous delegate period expires, and will end one week before the period expires. On the expiration date of the previous delegation period, all tokens will be returned to the original holders, who can then choose to re-delegate to the next round of delegates.</p>
<p>Timeline example:</p>
<p>March 1 (day 1): Delegate application period opens.</p>
<p>March 2-13 (days 2-13): Written applications and AMAs are held.</p>
<p>March 14 (day 14): Delegate application period closes at midnight UTC.</p>
<p>March 15 (day 15): Delegate vote is held—ANT holders use the written applications and AMAs in their decision making process.</p>
<p>March 22 (day 22): Delegate vote concludes. 11 paid delegates are selected.</p>
<p>12 month term begins March 22.</p>
<h3>
<a name="rules-governing-delegates-5" href="#rules-governing-delegates-5"></a>Rules governing delegates:</h3>
<ul>
<li>Token Minimum: All paid delegates must have at least 0.1% of the total circulating ANT share to be able to vote.</li>
<li>Token Maximum: No delegate may receive more than 3% of the total circulating ANT share. Delegates must close off to additional delegation once they reach the 3% threshold. Any delegate who goes beyond 3% will receive a one-week warning. If they still have 3%+ after that week, their wallet will be barred from voting.</li>
<li>Term Limit: Paid delegates have a 12 month term limit. Once their limit is reached, tokens will be returned to holders, who will need to re-delegate. Token holders can re-delegate to the same delegate if they choose. Delegates must announce one month before their term limit expires or personal resignation, so token holders can re-delegate.</li>
<li>Compensation: Delegates will be modestly compensated a base rate of 3,000 USDC per month <em>(flag for the community, should it be more to attract more technically proficient delegates?)</em>. All delegates will be compensated the same, no matter the number of tokens delegated to them.
<ul>
<li>The only way to raise delegate compensation is with a 1-of-1 vote from the DAO members, not a token-weighted vote where delegates control votes.</li>
<li>In addition to the 3,000 USDC, delegates are compensated on a sliding scale based on the percentage of tokens allocated to them.The structure could look something like this:
<ul>
<li>0.10% to 0.30% = an additional 750 USDC per month</li>
<li>0.31% to 0.50% = an additional 1,000 USDC per month</li>
<li>0.51% to 0.70% = an additional 1,250 USDC per month</li>
<li>0.71% to 0.90% = an additional 1,500 USDC per month</li>
<li>0.91% to 1.20% = an additional 1,750 USDC per month</li>
<li>1.21% to 2.20% = and additional 2,000 USDC per month</li>
<li>2.21% to 2.99% = an additional 2,250 USDC per month</li>
</ul>
</li>
<li>The minimum a delegate earns monthly is 3,000 USDC. The maximum is 5,250 USDC.</li>
<li>Delegate payment is income. Do your own research as to how your jurisdiction taxes income.</li>
</ul>
</li>
<li>Signaling: Delegates must post on Twitter, Discord, or Forum how they plan to vote 48 hours before the on-chain vote begins. This allows delegators to move their tokens if they do not agree with the voting stance. The Snapshot vote (described below) is also an important part of the signaling process.</li>
<li>Strikes: Delegates will be subject to a “three strike” system. Strikes include missing on-chain votes and voting differently than their signal. If they reach three strikes, their wallet will be barred from voting. Discourse and Snapshot signaling votes are highly encouraged, but will not be punished if missed.</li>
</ul>
<h3>
<a name="delegates-should-6" href="#delegates-should-6"></a>Delegates should….</h3>
<ul>
<li>Vote in the way they feel best benefits the Aragon Network as a whole, not a small group.</li>
<li>Operate “open by default,” meaning they share their ideas and opinions with the greater ecosystem.</li>
<li>Make an announcement one month prior to stepping down (if mid-term) or if they don’t plan to run for the next term limit. This allows ample time for new delegates to prepare statements.</li>
<li>Put forth their own proposals and ideas for the DAO, and shepherd them through completion.</li>
<li>Check on workstreams to have full transparency of how those workstreams are running.</li>
<li>Take their job seriously, putting time into reading and understanding each proposal.</li>
<li>Call upon subject matter experts if they need help understanding the proposal.</li>
<li>Represent the Aragon ecosystem, both in our internal channels and externally, such as through conferences, Twitter, articles, podcasts, and more.</li>
<li>Operate with professionalism.</li>
</ul>
<h3>
<a name="delegates-should-not-7" href="#delegates-should-not-7"></a>Delegates should not……</h3>
<ul>
<li>Exceed their 12-month term limit without a re-delegation period.</li>
<li>Exceed the 3% maximum token threshold.</li>
<li>Bribe delegators for votes.</li>
<li>Collude with other delegates for malicious reasons.</li>
<li>Actively campaign for tokens.</li>
<li>Raise their compensation via a delegated vote. Rather, that must be done via 1-1 voting.</li>
</ul>
<h2>
<a name="how-do-we-prepare-and-pass-proposals-8" href="#how-do-we-prepare-and-pass-proposals-8"></a>How do we prepare and pass proposals?</h2>
<p>Proposals, or Aragon Governance Proposals (AGPs), are fully-formed ideas that are ready for the DAO’s feedback. Proposals are polished, thoughtful, concise, and free of jargon.</p>
<h3>
<a name="proposals-include-9" href="#proposals-include-9"></a>Proposals include:</h3>
<ul>
<li>Title: clear and concise, not vague or confusing.</li>
<li>Short description: think of this as a TLDR or abstract.</li>
<li>Longer description: the meat of the proposal. Include the scope of the project here, too.</li>
<li>Technical specification (if necessary): for proposals that include code or necessary legal jargon, add those in here. Think of this as the “expert deep dive.” Most proposals won’t need this—it should all be in the longer description.</li>
<li>Metrics or Key Performance Indicators: if the proposal passes and you begin working on it, what metrics or KPIs will you use to show progress?</li>
<li>Team description: who will be working on and shepherding this project? Describe them and their relevant experience.</li>
<li>Next steps if passed: describe what your first few weeks will look like if this proposal passes.</li>
</ul>
<p>All proposals should be aligned with Aragon’s manifesto and its mission, vision, and values.</p>
<h3>
<a name="three-step-proposal-passing-process-10" href="#three-step-proposal-passing-process-10"></a>Three-step proposal passing process:</h3>
<ol>
<li>Proposal is posted to Discourse for 1-person-1-vote signaling, with a poll with the following options: “Yes, move to Snapshot” and “No.” Discourse quorum and pass rates are still being determined—up for debate on the forum.</li>
</ol>
<ul>
<li>Discussion and voting period: Minimum 7 days, maximum 14. The proposer is responsible for moving the proposal to Snapshot and not letting proposals linger on Discourse for more than 14 days.<br />
*The proposer may post a second draft of the proposal, if comments warrant it. The draft should be live for 7-14 days with a poll.</li>
</ul>
<ol>
<li>Proposal is posted to Snapshot for token-weighted signaling. Snapshot quorum and pass rates are still being determined and up for debate on the forum.</li>
</ol>
<ul>
<li>Voting period: 7 days.</li>
<li>The proposer must go to the original Forum post on Discourse, edit their post with “This post moved to Snapshot on [DATE]” or “This post did not pass and was deprecated on [DATE].” This is so external parties can see what happened to proposals.</li>
</ul>
<ol>
<li>Proposal is posted to the chosen voting platform for token-weighted, on-chain confirmation. On-chain vote quorum and pass rates are still up for debate.</li>
</ol>
<p>Once the proposal has passed the on-chain vote, it is up to the proposer to shepherd and ship the idea. The proposer may gather a team to assist them, but they must be responsible for executing the proposal.</p>
<h2>
<a name="how-do-we-fork-11" href="#how-do-we-fork-11"></a>How do we fork?</h2>
<p>Any ANT holder can fork the Aragon Network DAO at any time. To fork the DAO, an ANT holder may post a proposal to Discourse outlining their planned fork of the DAO. This proposal does not need to be voted on, because the proposer may simply create their own fork by themselves. The fork proposal is simply a way to signal to other interested parties that a fork is occurring.</p>
<h3>
<a name="a-forked-dao-12" href="#a-forked-dao-12"></a>A forked DAO….</h3>
<ul>
<li>Has its own token, separate from ANT.</li>
<li>Operates in a separate Discord, Discourse, Snapshot, and voting platform.</li>
<li>Exists because of irreparable differences between the original DAO and the forked version.</li>
</ul>
<h2>
<a name="how-do-we-try-new-governance-models-13" href="#how-do-we-try-new-governance-models-13"></a>How do we try new governance models?</h2>
<p>All governance experiments must be run in a small group prior to putting forward a proposal to the DAO. No governance experiment will be used on the wider DAO level in an untested state. Guilds and subDAOs should write their own governance charters and use that as a testing ground for new methods, then take those learnings to the larger DAO. An example of a guild running its own governance experiment and sharing it with the larger DAO: <a href="https://forum.bankless.community/t/writers-guild-governance-document/2869">Writers Guild of BanklessDAO</a>.</p>
<p>Once a governance model has been proved in a small group, that group may propose trying the model on the DAO-wide scale. Metrics and data on how the governance model went are necessary to include in the proposal, and members of that group should be able to speak on how the model can be used at a wider scale.</p>
<p>What do you think of this procedure? I’d love to hear feedback in the comments and the poll below.</p>
<p>Leave a signalling vote here, so I know where to take this draft next:</p>
<div><div><ul><li> <span>Yes with no edits/minor edits</span></li><li> <span>Yes with heavy edits</span></li><li> <span>No, another structure entirely</span></li></ul></div><div><div><div><span>12</span><span>voters</span></div></div><ul></ul></div><div><span>Vote now!</span><span>Results</span></div></div>

Delegated Voting Procedure: How We Govern 
  Delegated Voting Procedure : How We Govern 
  Authors: Samantha Marin

Delegated Voting Procedure: How We Govern

<p>Hi everyone! We discussed how to get funding in the new Aragon DAO in today’s Friday Social. Here are the key takeaways:</p>
<ul>
<li>Teams should have proposals ready by December 23rd.</li>
<li>Anyone can become a delegate. People seeking delegation should announce their intention in the Aragon DAO section of the forum.</li>
<li>The funding process will function similar to how it does currently. We will still have a strategy and OKRs. The primary difference is that ANT holders via delegates will be allocating funding rather than the committee.</li>
</ul>
<p>These are all guidelines, which are simply standards to increase clarity, coordination, and collaboration amongst teams. There is no social layer enforcement.</p>
<h2>
<a name="timeline-1" href="#timeline-1"></a>Timeline</h2>
<p><strong>December 23, 2022:</strong> the last day to submit your team’s funding proposal on the Aragon DAO forum. Teams can post on the forum earlier and make adjustments as they receive feedback.</p>
<p><strong>January 7, 2023:</strong> Voting on proposals begins and first treasury transfer begins.</p>
<p><strong>Up to February 28, 2023:</strong> Teams can re-submit their proposals any time in this period if they didn’t get funding passed in round 1.</p>
<h2>
<a name="terminology-2" href="#terminology-2"></a>Terminology</h2>
<p><strong>Strategy</strong> - The overall direction for the DAO. This is proposed and/or endorsed by delegates/large ANT holders. There can be multiple strategies published on Github and endorsed by different delegates. <a href="https://github.com/aragon/strategy-governance-hyperstructure/blob/v1.0.0/strategy-governance-hyperstructure.md">Link to hyperstructure strategy. <span>5</span></a></p>
<p><strong>Objective</strong> - Clear, attainable, actionable pieces of the strategy that teams can apply for funding to solve or work on.</p>
<p><strong>KR: Key Result</strong> - Measurable results that stem from objectives and create a clearer direction for teams on what they should be aiming to achieve with their proposals.</p>
<p>Teams set their own OKRs that map back to the higher-level DAO strategy.</p>
<h2>
<a name="suggested-proposal-template-3" href="#suggested-proposal-template-3"></a>Suggested Proposal Template</h2>
<ul>
<li>Title</li>
<li>Short description/TLDR</li>
<li>Strategic alignment: how will your team advance the strategy?</li>
<li>Funding request</li>
<li>Longer description and technical specifications</li>
<li>Team OKRs</li>
<li>Team description</li>
<li>Risks and dependencies: if you could fail to meet your OKRs because of dependencies on another team, describe the possible risks.</li>
</ul>
<h2>
<a name="okrs-4" href="#okrs-4"></a>OKRs</h2>
<p>New OKRs will be set at the November offsite. Teams can work with Ops Guild to craft their proposals and prepare for the Dec 23rd deadline. The OKRs will likely be an extension of what we’ve already set.</p>
<h2>
<a name="delegates-5" href="#delegates-5"></a>Delegates</h2>
<p>Becoming a delegate is permissionless—you just need to state that you’re interested in receiving ANT delegation so ANT holders know to delegate to your address.</p>
<p>Potential roles of delegates:</p>
<ul>
<li>Endorse strategy</li>
<li>Review DAO-wide objectives</li>
<li>Allocate funding by voting</li>
</ul>
<p>Delegates can negotiate directly with token holders for payment or put forward funding proposals to the Aragon DAO to be paid for their work.</p>
<p>Being a delegate is probably not a full-time job—it would be a role on top of your existing one. As the DAO changes, the roles of delegates may change, but that will be up to ANT holders.</p>
<p>Next week we will discuss the on-chain deployment.</p>
<p>Add questions to this specific framework in the comments below. Thank you!</p>

Overview of Guidelines: How to get funding Hi everyone! We discussed how to get funding

Overview of Guidelines: How to get funding

<p>Hey everyone, this is Sam from the Comms team! Thank you to everyone who has been participating in stakeholder consultations and Friday Socials for the new delegated voting DAO.</p>
<p>I’ll be jumping on here to post key info from the most recent Friday Social until we get this DAO live </p>
<p>As a reminder, here’s our Friday Social schedule:</p>
<p><strong>October 28:</strong> Overview<br />
<strong>November 4:</strong> Rules<br />
<strong>November 11:</strong> Guidelines<br />
<strong>November 18:</strong> Practices</p>
<p>This forum post is an overview of the October 28 session, where we discussed the <a href="https://blog.aragon.org/introducing-aragon-dao-governance/">Aragon DAO Approach to Governance. <span>3</span></a></p>
<p>Everything you need to know about the three-tiered approach to Aragon DAO governance is in these bullet points:</p>
<ul>
<li>
<strong>Rules</strong> enforced by the on-chain deployment and applicable laws, which will establish the default governance model of the organization. (Think: voting parameters, legal wrapper, and anything hard-coded.)</li>
<li>
<strong>Guidelines</strong> indirectly enforced by voting at the token holder and delegate level, which will establish the operational standards of the organization. (Think: proposal process/structures, funding flows, and processes that are important for the DAO to function but aren’t hard-coded.)</li>
<li>
<strong>Practices</strong> reinforced by the culture within and between teams, which will shape our ways of working and coordinating. (Think: guild meeting styles, workplace rituals, and things that we can experiment on in the social layer.)</li>
</ul>
<p>Okay, you got it! That’s the TLDR.</p>
<p>If you want more details, keep reading (this was also published on our <a href="https://blog.aragon.org/introducing-aragon-dao-governance/">blog <span>3</span></a>, <a href="https://twitter.com/AragonProject/status/1585317940659773441?s=20&amp;t=hY5qoTyoXYL2F5SvIsua5Q">Twitter <span>1</span></a>, and <a href="https://theeagleweekly.substack.com/p/21-october-2022-introducing-the-aragon">The Eagle</a>, so you’ve likely already read this. If this is new, let’s keep going…)</p>
<h2>
<a name="rules-default-governance-settings-enforced-by-code-and-law-1" href="#rules-default-governance-settings-enforced-by-code-and-law-1"></a>Rules: default governance settings enforced by code and law</h2>
<p>The technical design of the deployment will form the default governance model and settings of the Aragon DAO. Due to Aragon’s established position, we are constrained by prioritizing the security of the organization’s assets and mitigating risk. The default governance model will be minimal so we can foster experimentation and discovery in the social layer.</p>
<p>The default governance model of the DAO will be captured by the Charter. <strong>The Charter will be a plain English translation of the technical functionality and default settings, with the potential addition of legal rights and responsibilities, that together form the enforceable Rules of the organization.</strong></p>
<p>Some elements of the DAO may also be protected by a legal wrapper. Legal wrappers may subject stakeholders to additional rules towards each other and towards the local laws of a jurisdiction. We will continuously work with expert counsel to identify the best available options to protect ecosystem participants.</p>
<p>Since the default governance model prioritizes security, it will be more difficult to amend. The Rules are intended to be the baseline upon which we can rely on, and guidelines and practices are more open for iteration.</p>
<h2>
<a name="guidelines-operational-standards-on-the-social-layer-enforced-by-voting-2" href="#guidelines-operational-standards-on-the-social-layer-enforced-by-voting-2"></a>Guidelines: operational standards on the social layer enforced by voting</h2>
<p><strong>Due to the lean nature of the initial deployment, we have flexibility to extend the governance model and operationalize governance processes within the social layer.</strong> Everyone in the ecosystem benefits from clear standards and expectations. Working with guidelines gives us both clarity to better coordinate and flexibility for our governance to evolve.</p>
<p>Guidelines should be introduced by operating workstreams, endorsed by delegates, and ultimately enforced by ANT Holders in votes.</p>
<p>The guidelines should originate within the teams managing the DAO’s operations. Guidelines should support organizational effectiveness, coordination amongst workstreams, and the ability to sustainably deliver value. <strong>We want to avoid creating a stagnant bureaucracy, bound to arbitrary standards that are counterproductive for contributors and unimpactful for the organization.</strong></p>
<p>Although guidelines are not directly enforceable by code, they are indirectly enforceable through the votes of ANT Holders and delegates. The guidelines should be openly endorsed by delegates to encourage transparency and accountability. This can be done informally via communications channels such as <a href="https://forum.aragon.org/c/aragon-dao/83">the Forum</a> or formally through voting on signaling proposals.</p>
<p>This indirect enforcement mechanism encourages flexible discovery of our operating model without binding contributors to prescriptive technicalities. Guidelines may also incentivize coordination amongst workstreams and ultimately make the organization more effective as a whole. For example, adhering to guidelines during the proposal process might increase the likelihood of the proposal passing.</p>
<p>Since delegates will be enforcing the guidelines via their voting power, they should align with the expectations of the ANT Holders they represent. <strong>Delegates are accountable to ANT Holders and will need to answer to the operating model they uphold.</strong> ANT Holders should delegate their vote to professionals they trust to direct strategic execution. They can always undelegate their vote if delegates fall short of their expectations—this is how delegates are held accountable.</p>
<h2>
<a name="practices-innovation-within-guilds-reinforced-by-working-culture-and-spread-like-wildfire-3" href="#practices-innovation-within-guilds-reinforced-by-working-culture-and-spread-like-wildfire-3"></a>Practices: innovation within guilds reinforced by working culture and spread like wildfire</h2>
<p><strong>Guilds are free to experiment and innovate with the way they work, outside the boundaries of the guidelines voted in by delegates.</strong></p>
<p>It is within and between Guilds that innovative practices, rituals, and culture should emerge. They are the cutting edge of the organization, driving the mission from the inside and outside. This is how we move fast <em>without</em> breaking things—by experimenting in smaller groups and sharing what works.</p>
<p><strong>Guilds should have as much agency as possible to conduct their work and deliver impact in the way they see fit.</strong> Contributors are held accountable by their own team members when they work hard to solve problems together. Trust is ritualized through day-to-day practice, workflows, and having shared understanding of a team’s way of working. <strong>The transition into Aragon DAO should be a continuation of the agency and autonomy that guilds currently have to determine how work is done within their team and how they coordinate with others.</strong></p>
<p>Introducing new practices in a small group setting is less costly. Adopting new practices should organically evolve within the working culture, through informal coordination across the organization.</p>
<p><strong>As the Aragon DAO matures, the most successful practices can become Guidelines.</strong> If a practice is identified by operating workstreams, ANT holders, or delegates as essential to the organization’s performance and worth standardizing, it can be informally enforced as a guideline.</p>
<p>See you all this Friday for our discussion on Rules. For any questions on this specific framework, drop them here and I’ll answer. Thank you!</p>
<p>— Sam</p>

Delegated Voting Procedure: How We Govern

Overview of Guidelines: How to get funding

Overview of Rules, Guidelines, and Practices

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