Abax DAO constitution

Governance
1

Hey, I would like to present a draft of the Abax DAO constitution. Please share your opinions :slight_smile:

Abax DAO Constitution

Version 0.0.1

Preamble

We, the members of Abax DAO, in pursuit of a decentralized and transparent governance system, establish this constitution to guide and govern the deployment, management, and continuous improvement of the Abax Lending Protocol. With the mission of creating an inclusive and efficient decentralized financial ecosystem, we unite under the banner of Abax DAO to contribute to the advancement of the blockchain industry.

Values and Principles

  1. Decentralization: We believe in the power of decentralized technologies and strive to foster an ecosystem that is independent of central authority, ensuring open participation and collective decision-making.
  2. Transparency: We commit to maintaining a high standard of openness and transparency in all our operations, providing our community with clear insights into the inner workings of Abax DAO.
  3. Community-Driven Development: We recognize that our community is the foundation of Abax DAO’s success. We value diverse perspectives and encourage active participation from all members in shaping the future of the protocol.
  4. Security: We prioritize the security and integrity of the Abax Lending Protocol. Implementing robust security measures and conducting regular audits, we endeavor to safeguard the assets and interests of our users.
  5. Innovation: We embrace a culture of continuous improvement, striving to foster innovation and embrace emerging technologies to enhance the Abax Lending Protocol’s capabilities.

Jurisdiction

To ensure compliance and legal clarity, Abax DAO operates under the legal DAO Wrapper registered in Estonia, functioning under the EU jurisdiction.

Technology

The ABAX membership token is a PSP22 smart contract. The Abax Governance is a set of smart contracts. All of the smart contracts are (will be) deployed on the Aleph Zero blockchain.

Membership and Governance

Abax DAO welcomes all individuals and entities who hold ABAX tokens as members of the community. Members through staking Abax tokens access voting rights to actively participate in the governance system.

Article I: Name and Purpose

Name

The name of this decentralized autonomous organization shall be Abax DAO.

Purpose

Mission

Abax DAO’s mission is to deploy, manage, and continuously improve the Abax Lending Protocol, fostering a decentralized financial ecosystem that empowers users with efficient lending and borrowing services.

Objectives

  1. To create a secure, transparent, and decentralized lending platform that provides equal access to financial opportunities for all participants.

  2. To promote innovation within the decentralized finance (DeFi) space, continually exploring and implementing new features and functionalities to enhance the Abax Lending Protocol.

  3. To foster a strong and engaged community of users, developers, and stakeholders who actively participate in the governance and decision-making processes of Abax DAO.

  4. To ensure the security and integrity of the Abax Lending Protocol, adhering to best practices and conducting regular audits to protect user assets and interests.

  5. To establish partnerships and collaborations with other DeFi projects, blockchain communities, and relevant stakeholders to drive the growth and adoption of the Abax Lending Protocol.

Article II: DAO smart contract system

Section 1: ABAX Membership Token

  1. ABAX Membership Token is a PSP22 with access control upgradable smart contract. It will be (is) deployed on Aleph Zero Network.

  2. The parameters of ABAX Membership Token are managed by accounts with PARAMETER_ADMIN role.

  3. The code of ABAX Membership Token is managed by accounts with CODE_ADMIN role.

  4. For an account to be eligible to receive ABAX Membership Token, the account must agree with everything stated in these documents by signing the appropriate message.

  5. There are exceptions from 4. specified in ABAX Membership Token exception_list, which should only include other DeFi smart contracts or CEX accounts.

  6. The exception_list is managed by EXCEPTION_ADMIN.

Section 2: Abax Voting Rights Token

  1. ABAX Voting Rights Token is a PSP22 with access control smart contract. It will be (is) deployed on Aleph Zero Network.

  2. The parameters of ABAX Voting Rights Token are managed by accounts with PARAMETER_ADMIN role.

  3. The code of ABAX Voting Rights Token is managed by accounts with CODE_ADMIN role.

  4. An account may obtain ABAX Voting Rights Token balance by staking ABAX Membership Token.

  5. ABAX Voting Rights Token specifies the terms of staking in its code.

Section 3: Abax Governor

  1. Abax Governor will be (is) an access control smart contract deployed on Aleph Zero Network.

  2. The parameters of ABAX Governor are managed by accounts with PARAMETER_ADMIN role.

  3. The code of ABAX Governor is managed by accounts with CODE_ADMIN role.

  4. Abax Governor allows any account with appropriate balance of ABAX Voting Rights Token to make Proposal.

  5. Proposal is a vector of messages submitted to be sent by Abax Governor.

  6. Each Proposal is put to the vote, with votes being Abax Voting Rights Token balances.

  7. Abax Governor specifies rules of voting and the requirements to accept and reject a Proposal.

  8. If Proposal is accepted then it is sent as a message by the Abax Governor.

  9. If Proposal is rejected then it is not sent as a message by the Abax Governor.

  10. Abax Governor is a ROLE_ADMIN of access control of every smart contract in the ABAX DAO smart contract system, including itself.

Section 4: Abax Optimistic Governor

  1. Abax Optimistic Governor will be (is) an access control smart contract deployed on Aleph Zero Network.

  2. The parameters of ABAX Optimistic Governor are managed by accounts with PARAMETER_ADMIN role.

  3. The code of ABAX Optimistic Governor is managed by accounts with CODE_ADMIN role.

  4. Abax Optimistic Governor allows any account with PROPOSAL_ADMIN role to make Optimistic Proposal.

  5. The only PROPOSAL_ADMIN should be an external multi-signature account controlled by the members of the Abax DAO Wrapper.

  6. Optimistic Proposal is a vector of messages submitted to be sent by ABAX Optimistic Governor.

  7. Optimistic Proposal may be vetoed by accounts with Abax Voting Rights Token balances.

  8. Abax Optimistic Governor specifies rules of the veto.

Section 5: Abax Treasury

  1. Abax Treasury will be (is) an access control smart contract deployed on Aleph Zero Network.

  2. The parameters of ABAX Treasury are managed by accounts with PARAMETER_ADMIN role.

  3. The code of ABAX Treasury is managed by accounts with CODE_ADMIN role.

  4. ABAX Treasury stores Abax DAO funds.

  5. Transfer of funds from ABAX Treasury may be initiated by an account with the SPENDER_ADMIN role.

  6. Once the transfer is initiated it is accepted and sent, or rejected by an account with a CONTROLLER role.

  7. The only accounts with SPENDER_ADMIN role should be ABAX Governor and ABAX Optimistic Governor.

  8. The only account with the CONTROLLER_ROLE should be an external multi-signature account controlled by the members of the Abax DAO Wrapper.

Article III: Membership

Section 1: Members

  1. Any individual or entity in the control of an account that has a non-zero ABAX Membership Token balance is a member of Abax DAO unless the account is specified in the ABAX Membership Token exception_list.

  2. Any individual or entity in the control of an account that has a non-zero ABAX Voting Rights Token balance is a member of Abax DAO.

Section 2: Rights and Responsibilities

Subsection 2.1: Voting Power

  1. Member voting power shall be proportional to the balance of Abax Voting Rights Token of accounts under his control.

Subsection 2.2: Participation

  1. Members with voting power may participate in the decision-making processes of Abax DAO by making Proposals.

  2. Members with voting power are obligated to vote on the Proposals.

  3. Members can engage in discussions, forums, and community channels to share ideas, provide feedback, and contribute to the development and improvement of the Abax Lending Protocol.

Subsection 2.3: Compliance with the Constitution

Members are obligated to adhere to the principles, values, and rules outlined in this constitution while engaging in activities within Abax DAO.

Article IV: Governance

Section 1: Decision-Making Process

  1. The governance system of Abax DAO is built on DAO smart contract system.

  2. All the decisions are made through DAO smart contract system.

Section 2: Voting Mechanism

  1. The voting mechanisms are specified in the code of the smart contracts in DAO smart contract system.

Section 3: Amendment Process

  1. Changes to this constitution may be proposed through the DAO smart contract system.

Article V: DAO Legal Wrapper

Section 1: DAO Legal Wrapper

  1. The DAO Legal Wrapper of Abax DAO shall function as a non-profit association/foundation registered under the legal jurisdiction of Estonia.

  2. The DAO Legal Wrapper is tasked with representing Abax DAO in legal matters, including making legal deals and contracts on behalf of the DAO.

Section 2: Wrapper Board

  1. The Wrapper Board shall serve as the leadership body of Abax DAO, overseeing the strategic direction and decision-making processes.

  2. The Wrapper Board shall consist of 3 to 5 members, specialists with expertise in the fields of web3, IT, blockchain, law, and finance, chosen through the on-chain governance mechanism.

  3. The members of the Wrapper Board are chosen and removed by messages sent by Abax Governor and Abax Optimistic Governor.

  4. The Wrapper Board shall act in the best interests of Abax DAO, ensuring that decisions align with the DAO’s mission, values, and the welfare of its community.

  5. The Wrapper Board shall be responsible for:

    • Setting and implementing the long-term vision and goals of Abax DAO.
    • Approving major upgrades, changes, or improvements to the Abax Lending Protocol proposed by members.
    • Overseeing the allocation and management of funds and resources to support the development and operations of Abax DAO.
    • Providing advice and guidance to the DAO members on the direction of development and changes based on the common interest of the DAO members.
    • Maintaining transparency and reporting on the activities and financial status of Abax DAO to its community.

  6. The Wrapper Board members shall not use their positions for personal gain or act in any way that conflicts with the interests of Abax DAO and its community.

  7. The Wrapper Board shall operate in a decentralized and transparent manner, encouraging community involvement and open discussions.

  8. The Wrapper Board shall exercise its powers within the scope of this constitution and the rules established by the governance smart contracts.

  9. The Wrapper Board shall respect the decisions made through the on-chain governance process and implement proposals that receive sufficient votes from the community.

  10. The Wrapper Board shall not have the authority to modify this constitution unilaterally. Constitutional changes must follow the procedure outlined in Article III.

Section 3: DAO Legal Wrapper External Account

  1. DAO Legal Wrapper should control multi-signature external accounts that AccountIds(addresses) are public to the Abax DAO community.

  2. The accounts taking part in multi-signature should be controlled by Wrapper Board or other entrusted legal 3rd parties.

Section 4: Funds Management

  1. The funds in the DAO Wrapper External Account shall be used for specific purposes as directed by the DAO through on-chain governance messages.

  2. The purposes for which the funds in the DAO Wrapper External Account may be spent include but are not limited to:

    • Development of the Abax DAO system and the Abax Lending Protocol.
    • Funding educational initiatives related to Abax DAO, Abax Lending Protocol, and web3 technologies in general.

  3. Exchanging funds from the DAO Wrapper External Account to FIAT currency may be done by the needs of the DAO, provided it serves the approved purposes.

Section 5: Transparency and Reporting

  1. Regular financial reports and updates on the balance of funds in Abax Treasury and in the control of DAO Wrapper shall be made accessible to the DAO community.

  2. The Wrapper Board shall be responsible for providing transparent and detailed reports on the usage of funds from the DAO Wrapper External Account.

  3. Reports shall be made available through a public and easily accessible medium, such as the DAO’s official website/social media/ communicators.

Section 6: Compliance with Regulations

  1. Abax DAO Wrapper shall comply with all relevant Estonian regulations and legal requirements concerning the management, allocation, and usage of funds.

  2. The DAO Treasury and the DAO Wrapper External Account shall not be used for any activities that could be deemed illegal or unethical under Estonian law.