Substantially edited on 09.07.19 @ 12.50 CEST
The Nest DAO: application process and governance settings
An Association Track AGP will be created out of this document and the feedback provided.
Until now AA has had the responsibility to decide on Nest grants allocation. On the path to a fully sovereign and autonomous network, the Aragon Association will increasingly delegate strategic decisions to the Aragon community. In the Nest DAO, members of Flock teams, Nest teams and the broader community will take part in grant allocation decisions.
The process detailed below is designed for this purpose. In this new version the Aragon Association steps back in a more coordination and advice oriented role.
The Nest DAO
- Members of the Nest DAO have a non-transferable membership token enabling them to vote
- Nest funds are determined by AGPs and held in the Nest DAO
- Grantees are paid through the Nest DAO (payments can be one-off, issued over milestones, or streamed using the Payroll app)
- Nest DAO members also form an Aragon Working Group where they can communicate
Membership for the Nest DAO
- Be the member of a Flock team, Nest team, or a community member
- Being able to demonstrate expertise and skill that will add value to grant selection decisions
- Members of the Nest DAO have to vote on each proposal. If a member is not voting and cannot justify why, he or she will be offboarded
- A justification may be that the member thinks he or she doesn’t have meaningful expertise in the area of the grant being judged
Application for membership
- Flock and Nest teams can appoint team members to the Nest DAO
- In order to do that, they need to submit a short application explaining why it makes sense for the given team member(s) to participate in the Nest DAO. Especially, applications should justify what type of expertise and skills a team member will contribute to the Nest DAO
- Example of expertises: knowledge of Aragon user needs, knowledge on the broader crypto ecosystem and technologies, technical ability to review Nest applicant’s PoC and Github repos, deep knowledge of a given part of the Aragon stack…
- Members of the broader community can also apply provided they can identify themselves and provide a similar justification
- For the first membership round, the Aragon Association will be in charge of accepting/rejecting applications. After that, Nest DAO members will manage membership autonomously
- Once applications have been processed by the Aragon Association, accepted applicants will have to submit an identity verification proof using Keybase to receive their membership token
- If some member is not actively participating in votes, he or she may be offboarded. The Aragon Association may burn its membership token
Governance settings and permissions
The Nest DAO and its members should be as autonomous as possible in the allocation of Nest grants. The Aragon Association might keep onwership on sensitive settings such as creating permissions, burning tokens if considered necessary.
Any member of the Nest DAO can create votes, either to select grantees or issue a payment. As the DAO will be dealing with large sums of money, members may want to let the Aragon Association in charge of creating money transfer votes.
Non-members should be able to create votes too. This is because outsiders should be able to ask for a vote on their RFF without going through the approval of a given Nest DAO members or the AA (see forcing request for funding below).
- The DAO will have a council of members voting on proposals and issuing grants. This council will also approve and reject application of new members to the Nest DAO.
- The Aragon Association may keep centralized ownership over a few sensitive roles (creating permissions, creating transfers, burning/revoking tokens)
- Outsiders should also be able to create some kind of vote to attract the attention of Nest DAO members and signal their intentions
- 1-person, 1-vote
- Super majority support: 66%
- High quorum: 51%
- Vote duration period: 15 days
- Voting app 1: voting app that can be used by anyone
- Although this votes would not trigger actions, this can be useful for proposers who want to force the RFF to signal their intentions
- Voting app 2: voting app that can be used by membership-token holders
- Actions have to be voted by DAO members through voting app 2
Token manager settings
- Aragon association mints the first set of tokens then hands out to voting app 2
- Aragon Association keeps ownership over revoking, burning tokens
- The Aragon Association is in charge of creating permissions
Application for a Nest grant - what’s new?
In Nest “V1”
- Create an issue with proposal idea asking for feedback
- AA provides feedback whether if idea is worth pursuing
-Provided that proposal idea is approved by AA-
- Team can submit a request for funding
- AA provides feedback and approves most of the time, sometimes not
Who is involved in grant allocation?
- Nest Manager and Executive Director at AA are selecting grants
- They gather feedback and opinions from Flock team members, including those directly impacted by the proposal
In Nest “V2”
- issue with proposal idea asking for feedback for a minimum of 30 days unless it has authorization from AA to move on
- AA coordiantes with Flock teams to provide feedback if necessary
- AA encourages/discourages to submit a request for funding
-Provided that proposal idea is encouraged by AA-
- Applicant team submits a request for funding
-If proposal idea is discouraged by AA-
- Team can still choose to go for a request for funding and trigger a vote in the Nest DAO
-In any case, if request for funding is approved by Nest DAO-
- Applicant team has to submit a verified Ethereum address, for example using Keybase’s signature system
- A payment vote to the provided address is triggered by AA
Summing up: who is involved in grant allocation?
- In Nest V2, AA doesn’t have the ability to strictly reject proposals
- In Nest V2, AA has the role to provide the right feedback to challenge and shape up proposals, and coordinate to gather opinions if necessary
- AA encourages/discourages Nest applicants to submit their proposal to the Nest DAO
- AA issues a note to Nest DAO members, explaining as objectively as possible what the proposal is
- In Nest V2, the Nest program goes one step further to a more decentralized making on the strategic decisions that are Nest grants by harnessing collective decision making to vote on applicants
Clarification of new concepts
- Application time: Proposals have to be submitted a minimum of 30 days before requesting for funding
- Forcing request for funding: Provided it has respected the application time of 30 days a team can decide not to listen to AA and force request for funding to access the Nest DAO voting round
- AA’s recommandations to applicants: AA can encourage or discourage applicants to submit a request for funding, issuing recommandations: higly discourage, discourage, encourage, highly encourage
- AA’s voting note: AA has the ability to disclose a public note assessing the pros and cons of a given request for funding
Zooming on AA’s notes
AA’s notes consist in a short note to the address of Nest DAO members. Notes are public. The content is a short summary and analysis of the proposal written by the AA.
No longer than 500 words:
- Summary of the proposal according to AA
- How it seats in the Aragon Landscape
- Subjective opinion supported by clear rationale
Feedback and opinions are welcome. The settings proposed above can be discussed and adjusted up until the implementation of the Nest DAO.