Community building and governance
3air aims to be fully decentralized with time. With blockchain maturing we see refined on and off-chain voting systems coupled with on-chain execution, proving that even projects at the largest scale can become effectively decentralized and we fully believe this is the future of organizational structures.
There are many on and off-chain governance solutions available for EVM compatible chains like Aragon, DAOStack, Colony, Compound Governance and others. One of the most popular, and fully integradable with Skale is Snapshot. 3air may use Snapshot for it’s community engagement in platform governance and possibly connect it with Gnosis Safe for immediate on-chain execution when possible. Gnosis Safe is a trusted and popular platform for managing digital assets on Ethereum. Direct integration with Skale is on their road map and should be available soon (Safe, 2021).
The community pool would be our way into decentralizing 3air. 3air could regularly provide funds to the community pool. The pool may be funded with a fraction of the fees collected from the platform transactions as described in the chapter about token buybacks. The pool may be managed through a Gnosis Safe multisig account, coupled with direct on-chain execution of voting results from Snapshot.
The aim of the community pool is to incentivize the community in participating in the decentralization of 3air, and to help develop the local social communities with funding projects that have development potential and are beneficial to the whole community.
Consequently, we hope to provide even more equality to developing regions and make their lives better. With a strong enough, engaging community, we can start progressing towards full decentralization of 3air.
The 3air community might at first have certain degree of influence over the allocation of funds within the community pool but may gain additional power with time and 3air token decentralization.
The community funds usage may be subject to voting or other opinion-gathering mechanisms and could potentially be used for burning tokens and funding proposed projects if it is beneficial for the development and adoption of the 3air platform. At first 3air could impose certain limits on the community decision-making power. Those limits are outlined in the chapter on token burning. With time the community might potentially receive greater power on making decisions about funding and proposal. Until then, 3air may propose the projects that can be voted upon, to prevent misuse of governance power. Also, a specified percentage of the pool, which may be around 25%, or even more, could be used for funding projects.
A 3air selected board will receive and evaluate projects requesting funding. It will be to the board’s sole discretion on the project choice. The project choice needs to be guided by the notion of helping grow the local society, infrastructure, and businesses with heavy tendency to the ESG narrative. Any selected project should not be in direct violation of 3air’s vision, policies, and narratives.
Selected projects would have the chance to present themselves to the community to win their votes. A date would be set for voting and projects would receive funding in accordance with their acquired votes and other decision-making mechanisms. A quadratic funding model may be applied as discussed by Vitalik Buterin. (Buterin, Vitalik Buterin, 2019)
Voting may be done through the Snapshot platform where a voting strategy (Snapshot, 2022) will be selected, 3air deems most fair.
If a token holder does not want to vote himself, he may be able to delegate his voting power to another user. Experts and leaders will arise within the community that could gain more power with their engagement. Such individuals could receive delegations from the general community.
Up to 10% of the community funds could potentially be set aside to incentivize users to vote if needed. These funds may be sent to all the wallets that have participated in voting in the amount that represents the tokens they used to vote. This could be done automatically through on-chain management service Gnosis Safe.
The amount of tokens set aside for voters can be adjusted if it becomes unreasonable or unfair. The reward must be enough to incentivize participation, but it needs not to take away funds from the end goal that the funds are intended for. It needs to be made clear that voting is a right and obligation to help a greater cause.
The same process may be used to vote about token burning, if applicable.
Governance is a major part of the 3air platform and a major token use case. We believe it will help us build a great community, incentivize token holding and help a wider token adoption and decentralization.
Figure 15 3air governance system
Usually we think about individuals on-chain voting power being equal to his token holdings. That may be considered fair, but it comes with its flaws and inequities as also pointed out by Vitalik Buterin (Buterin, vitalik.ca, 2021). The problems can arise from small groups of wealthy participants (“whales”) that can overrule the opinion of the majority of individuals. Per token voting empowers con holders and their interest at the expense or other parts of the community. The interest of “price-go-up” from speculative holders without any intrinsic protocol interest may therefore take precedence to other important parts of the community for instance funding projects for the general good of the society. There is also the issue in conflict of interest due to users also holding governance tokens of other project that may be influenced by the decision in question.
So, as we can see not everything in decentralized governance is perfect and new systems and voting strategies are being developed. Delegation is considered as being capable of solving some of the issues, as smaller holders could delegate their voting power to community leaders they trust, and they would not need to personally judge each decision. Of course, vote buying may become an issue in such models.
At 3air we are therefore following new development in the space of decentralized governance (DeGov). We believe that reputation-based voting may be the future of DeGov combined with Quadratic voting. One such attempt is the Orange protocol (protocol, 2021). Orange protocol generates reputation reports for users and couples them with their DIDs. This can then be used with a Quadratic formula pondering the token holdings. In such a system, more engaging users will have more voting power that strictly passive token holders that usually represent the speculative investor. There are exiting times ahead in DeGov.