CryptoCitizen Governance: Phased Rollout Plan

:sunrise: Overview

BRT holders approved a proposal to change the Bright Moments governance token from an ERC-20 to an ERC-721 token. As part of that conversion, the DAO needs a new governance model that allows 10,000 CryptoCitizens to collectively manage the organization and operations of the DAO.

:raised_back_of_hand: Context

  • Bright Moments governance was originally denominated as an ERC-20 token called BRT.
  • BRT was used to vote on several off-chain governance proposals using Snapshot.
  • The CryptoCitizen community has used Mirror’s token race feature to conduct off-chain voting for CryptoNewYorker nominations using ERC-721 tokens.
    • We’ve experienced issues with vote buying, specifically in situations where there is a financial incentive to do so (e.g. CryptoNewYorker nominations).
  • Many of the core operating team’s day-to-day decisions are fuzzy or not well suited to a formal voting mechanism (e.g. what venue should we choose / what vendors to contract with).
  • Bright Moments is legally represented by a Wyoming LLC. There is also an operating company based in New York that is used to fund fiat expenses (e.g. rent).
  • At time of writing, Bright Moments has a burn rate of ~200 ETH / month due to ongoing operational expenses (e.g. lease, salaries, insurance).

:warning: Constraints

  • The voting system must support an ERC-721 governance token.
  • Our CryptoCitizen NFTs are distributed across two smart contracts which need to function within a united governance mechanism:
    • Art Blocks: 0xa7d8d9ef8d8ce8992df33d8b8cf4aebabd5bd270
    • CryptoCitizens: 0xbdde08bd57e5c9fd563ee7ac61618cb2ecdc0ce0
  • CryptoCitizens are constituted of many cities (and soon to be countries!), each of which will have distinct values and opinions about what to prioritize.
  • Bright Moments needs to be able to operate internationally, including setting up off-chain structures that enable the operating team to act on behalf of the DAO (e.g. signing a lease).
  • Our use of the PBAB contract includes a 10% royalty fee to Art Blocks on all primary sales.

:thought_balloon: Assumptions

  • There will only ever be 10,000 CryptoCitizens.
  • CryptoCitizens are represented by an ERC-721 token.
  • All CryptoCitizens have an equal vote in DAO level decisions (i.e. 1 Citizen = 1 Vote).
  • CryptoCitizens are split across two contracts with distinct Ethereum addresses and token ranges.
  • CryptoCitizens prefer a gasless off-chain voting mechanism over an on-chain voting mechanism for most types of votes (e.g. Snapshot over Governor).
  • brightmoments.eth is the primary multi-sig for the DAO and currently has a 3 of 7 signer policy.
  • CryptoCitizens will be minted over the course of 10 cities between 2021-2023, after which point there will not be additional cities added with full Citizenship rights.
  • CryptoCitizens are willing to meaningfully engage with the governance of the DAO.

:building_construction: Proposal

Bright Moments will implement a phased governance rollout with distinct goals.

:one: | Phase 1: CryptoCitizen Voting (January 2022)

Goal: :ballot_box: Give CryptoCitizens voting rights relating to aspects of DAO operations and governance
Key Results:

  1. Launch a community forum that supports threaded long-form discussion
  2. Develop and document a process that allows community feedback to be formalized into proposals
  3. Build and deploy an ERC-721 compatible voting system |

Goal: :world_map: Align CryptoCitizen community around a shared goal and roadmap
Key Results:

  1. Draft and ratify CryptoCitizen constitution
  2. Develop a governance page on the marketing website that describes the function and purpose of the DAO
  3. Publish a blog post describing the mission statement and roadmap

:two:| Phase 2: DAO Governance & Operating Structure (Q1 2022)

Goal: :handshake: Ensure continuity of governance

  1. Define roles and responsibilities of core positions
  2. Elect 7 core multi-sig signers
  3. Define term limits for signers

Goal: :fist: Empower local cities to independently operate

  1. Establish SubDAOs for local cities
  2. Develop SubDAO funding plan
  3. Elect or appoint SubDAO representatives to manage local operations

Goal: :earth_africa: Enable Bright Moments to effectively execute it’s two year roadmap to mint 10k CryptoCitizens globally

  1. Establish legal framework and corporate governance

:thinking: Open Questions

:thinking: Q: Should our voting be primarily on-chain or off-chain? Should there be situations where one type of voting system is used over another?
A: The majority of our proposals will likely be “social” proposals, meaning that they take place off-chain and are enforced by a responsible group of humans, rather than programatically. ENS has a helpful breakdown of their proposal types here.

:thinking: Q: Should we incorporate delegated voting? If so, should there be limits on the number of delegate votes an individual can receive?
A: Delegated voting costs gas to setup, so we should wait until we have a sufficient incentive to ask our users to delegate (e.g. an airdrop to claim).

:thinking: Q: Where do we want to have conversations? What types of discussions should happen in Discord vrs. Discourse vrs. IRL?
A: Discourse will be used for proposals, feedback, and long-form discussion. Discord is used for general chatter and support.

:thinking: Q: Who should be able to put forward proposals? Under what conditions should a proposal be accepted?

:thinking: Q: What should the minimum quorum be for voting? Should this change over time?

:thinking: Q: Should amendments to the Constitution have a higher bar for approval than basic proposals?

:thinking: Q: Should cities have individual sovereignty? If so, what types of decisions should be made at the city level vrs. the DAO level?

:thinking: Q: What types of decisions need to be made via proposal vrs. independently executed by the Bright Moments operating team?

:thinking: Q: What is the right corporate & legal structure to support the operations of the DAO?

:crystal_ball: Future Work

  • SubDAOs
  • Election system

:notebook: References

Reading:

Existing documentation:

Off-chain governance examples:

On-chain governance examples:

Governance tools:

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After discussing this both IRL and online, I am marking this proposal as approved. Phase 1 is scheduled to end on 1/24 with the CryptoCitizen vote and selection of City #5.

Here are the current answers to the Open Questions posed in the original post:

:white_check_mark: Q: Should our voting be primarily on-chain or off-chain? Should there be situations where one type of voting system is used over another?
A: The majority of our proposals will likely be “social” proposals, meaning that they take place off-chain and are enforced by a responsible group of humans, rather than programatically. ENS has a helpful breakdown of their proposal types here.
:white_check_mark: Q: Should we incorporate delegated voting? If so, should there be limits on the number of delegate votes an individual can receive?
A: Delegated voting costs gas to setup, so we should wait until we have a sufficient incentive to ask our users to delegate (e.g. an airdrop to claim).
:white_check_mark: Q: Where do we want to have conversations? What types of discussions should happen in Discord vrs. Discourse vrs. IRL?
A: Discourse will be used for proposals, feedback, and long-form discussion. Discord is used for general chatter and support.
:white_check_mark: Q: Who should be able to put forward proposals? Under what conditions should a proposal be accepted?
A: During phase 1, only signers on the multi-sig will be able to put forward proposals. During phase 2 the CryptoCitizen community will determine what roles are entitled to launch proposals.
:white_check_mark: Q: What should the minimum quorum be for voting? Should this change over time?
A: 1%
:white_check_mark: Q: Should amendments to the Constitution have a higher bar for approval than basic proposals?
A: Yes, 2/3rds as opposed to 50%.
:white_check_mark: Q: Should cities have individual sovereignty? If so, what types of decisions should be made at the city level vrs. the DAO level?
A: To be determined during Phase 2.
:white_check_mark: Q: What types of decisions need to be made via proposal vrs. independently executed by the Bright Moments operating team?
A: During Phase 1, the Bright Moments operating team is to be given authority to act on behalf of the DAO until a governance structure is put in place.
:white_check_mark: Q: What is the right corporate & legal structure to support the operations of the DAO?
A: To be explored during February and March, culminating in a recommendation to the DAO.

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