Governance + Rarities
Governance is hard. I would be straight up lying if I said it was an easy thing to tackle. After much consideration as a team, we are confident that we have found the best approach. Here are some words on governance:
The first question that must be answered is on-chain vs off-chain governance. On-chain meaning holders would have opportunity to participate using the blockchain as a public record. Off-chain meaning the opposite. Voting on-chain typically involves the issuance of a token. We have spoken previously in past Mediums and in our whitepaper about token issuance. To keep it short, issuing a token is something we do not have plans for in the immediate time. Tokens create more problems than solutions in our eyes. Liquidity, tokenomics, and listings are all major hurdles that must be conquered in order to pull it off correctly. Issuing a token is not something completely off the table down the road. If issuing a token is in the best interest of our users, then we will reconsider it. As a team, we remain committed to our users and supporters’ best interests.
The next question to be answered is how to approach representation. On-chain voting is typically proportional to your holdings. For instance, if you owned 5 Cyber Drops, then you would receive 5 governance votes. Owning 7 Cyber Drops= 7 governance votes. You get the point. Representation this way is done to reward large holders and whales of projects. The question you have to ask is “Is this fair?”
I would say this is a pretty common occurrence in many DeFi projects today. The “team” or “founders” own a large share of the total supply giving them a large share of the governance rights in return. This is a problem. Say for instance a governance proposal involving a removal of a “founder/team member” could be swayed based on that said founder/team member’s vote.
Above is a proposal for the removal of the director of the ENS Foundation. Brantly, the current director of the ENS foundation, voted against his own removal in the proposal. His vote of 363k ENS was just barely enough for him to keep his role as director. Without his vote, he would be removed. So, I ask again. Is proportional representation fair when the “team” has voting rights as well?
In my opinion which is same as the view we share as a team, NO. That is why we chose an equal representation system. Each holder will get the same voting rights as the next holder. 1 Cyber Drop=1 vote. 7 Cyber Drops=1 vote. This is not to completely gatekeep “whales” or large holders away from the Jupiverse. We have another mechanism to reward those holders. This will be discussed in a future Medium.
TLDR; We have came to the consensus that an off-chain, equal representation voting system is the best approach. Holders will have to verify their wallets in order to receive governance rights. This is the best path without sacrificing security for utility.
We wanted to wrap this up with some thoughts about rarities. We talked about rarities in our Whitepaper , but we will expand. We do not have rarities and have no future plans of incorporating rarities into Cyber Drops. It’s important to remember the values and reasons behind founding Cyber Drops. We did not create Cyber Drops as a “flipping project”. Most importantly, we want to give everyone equal access to the Jupiverse.
We want the same Day 1 minters to be with us to the end. Those early supporters will be able to think back on all the obstacles we have overcame. As much as possible, we want to prevent foreigners who do not believe in the mission of the Jupiverse. They do not have the best interest of the project at mind and will completely disrupt the community as a pure “for-profit” push.
About Cyber Drops DAO
Cyber Drops DAO is the industry leader in decentralized algorithmic trading. We are a community driven DAO built on Ethereum. The future is a decentralized, autonomous, and transparent world. Together, we are working to build the Jupiverse.
Links:
📚White paper: https://tinyurl.com/yrv5k5w2
💼 Discord: discord.gg/cyberdrops
🪶 Twitter: https://www.twitter.com/CyberDropsDAO
