Idle Governance system is a DAO that pursues different key activities to ensure proper maintenance and evolution of the protocol in the years to come. The Governance is in charge of the business, tech, legal, and administrative areas, which usually in real-world companies are represented by departments.
A company's mission is generally to reach new markets, increase revenues, reward contributors and stakers, and avoid cash burnout.
In the current DAO implementations, roles are not defined from the beginning. Token holders are supposed to vote on several categories of polls (e.g., technical, governance, budgeting).
However, as reported in the SoV-reign model paper:
“Given the amorphous nature of the organizational structure of a DAO, varied participation will occur and most members will tend towards relatively passive participation. DAOs tend to be driven by a handful of key members with a larger community providing relevant input. Certainly, we recognize the interesting value generated by community feedback and potential benefits derived from a globally distributed group of actors.”
We can indeed expect that almost the majority of the initial supporters will tend towards passive participation. This is fine, but it’s essential to identify key members and reward them with a remuneration proportional to their effort and outcomes. These individuals can conduct several activities in different areas, benefiting from expertise and feedback from a large community base.
An essential approach for the successful execution of a DAO is the organization of the team members, divided according to their skills.
The Long-Term Vision
We believe that IDLE token holders (the Governance) might represent the topDAO, an entity able to allocate economic resources to subDAOs (Leagues) and set up/revoke mandates.
SubDAOs could be defined as divisions focused on a restricted area of expertise. Rather than leaving every IDLE token holder with the burden of voting on all the aspects of the protocol, each subDAO takes care of the daily maintenance of the related tasks and budget.
The decisions in subDAOs are mainly taken via Governance Forum, and each body manages its funds through a MultiSig wallet. Through on-chain mandates, the Governance would be able to assign/revoke the budget to the subDAO at any time. A mandate is a set of permissions for executing specified activities over a defined period and aims to create a specific outcome.
Missing milestones or the expected deliverables would bring the topDAO to re-evaluate the specific subDAO and eventually stop financing it. This approach splits risks & opportunities, allowing active members to take care of new business lines or scheduled DAO activities and get a reward for that.
The composition of DAOs/Leagues is designed to evolve based on Idle protocol and its community's needs and opportunities.
With the above structure, Idle DAO will evolve into a coordination mechanism of nested DAOs.
Through a series of bonded multi-sigs, Leagues would be entitled to reward full-time participants in each organizational unit, avoiding burn-out and ensuring appropriately skilled teams are best positioned for success.
Coordination and peer-recognition tools are crucial to unlocking the potential of global P2P networks. Thinking very carefully about asynchronous communications vs. synchronous communications tools, peer review mechanisms, and coordination tools is a critical design decision. Idle Governance has iteratively been adopting this approach for community IIPs’ deployment, and the outcomes are initiatives like Pilot League, Aave V2 wrapper review, B2B Affiliate program, and Grant Framework.
With fully-operational Leagues, Idle Governance can promote this symbiotic relationship between builders retention and community participation. Leagues could be seen as an ecosystem asset, similar to the Smart Treasury or Tranches strategies, whose impact will be represented by the sum of each division’s collective contributions.
We look forward to the community’s feedback on this proposed structure and will be keen to answer any questions in our forum.