DAO - Hemis-Blockchain/Hemis GitHub Wiki

The DAO

DAO is an abbreviation for Decentralized Autonomous Organization. Our version of the DAO was first implemented by DASH. The core concept is that a portion of monthly block rewards is reserved for initiatives that support the project, theoretically making development self-funded.

For more reading on the theory behind the DAO I would like to refer you to PIVX and DASH. A lot has been written on the subject and Hemis essentially uses the same system as its predecessors.

Why a DAO?

From day 1, the Hemis team has always felt strongly that ultimate power should lie with the network, and not with the development team or any other party. And from day 1, we have taken steps to ensure this would be the case. We gave our tokens away rather than selling them, and actively pursued majority community ownership. We had full control over the project for the first year, but only to ensure the network would be healthy and could grow.

Activation of the DAO is another step in relinquising this control. The development team will no longer be in control of development funding. You will be in control.

We will obviously still be around and we'll try our best at continued development. But if we want funding for this, the network gets the final say.

How does it work?

Anyone on the network can submit a funding proposal. This can be done either through the GUI wallet or through the command line, for a fee of 25 HMS. These proposals are then voted on by the Gamemasters in the network. Proposals that pass the vote will be funded.

Because we don't want proposals to pass off of just 1 vote there is a quorum in place. A proposal will need a net Yes vote of 10%. This means that a proposal will only pass if the difference between no and yes votes is greater than 10% of all Gamemasters on the network. With 1000 Gamemasters on the network a proposal will only pass if the difference between no and yes votes is at least 100. Ergo: with 1000 Gamemasters, a proposal that has 90 votes in favour and 0 against will not pass. A proposal that has 130 votes in favour and 20 against will pass.

If there are more proposals passing than there is funds available, proposals with the most votes will take priority.

Payout happens once a month with a so-called 'superblock'. This 'superblock' mints all the tokens for the accepted proposals and pays them out.

How much funds is available?

Hemis reserves 10% of all block rewards for the DAO. This means that the block rewards will be as following post DAO launch:

Staking rewards: 40% = 2.14 per block
Gamemaster rewards: 50% = 2.675 per block
DAO budget: 10% = 0.535 per block

This puts the total monthly DAO budget at around 23k HMS every month. The superblock creates tokens for proposals up to this maximum. If there are not enough proposals to fill the budget, tokens will not be created and there is no 'carry-over' to the next cycle.

How do I create a proposal?

We made submitting proposals easy by allowing it to be done through the GUI wallet. A guide on making proposals can be found here. A guide on how to vote can be found here.