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Constitution of the ƒxyz Network

“In a sea of order, seeking knowledge, fairness, efficiency.”

In our pursuit of justice, knowledge, and innovation, we establish this Constitution to govern the operations and ethos of the ƒxyz Network through holacracy-based distributed governance.

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Article I: Fundamental Principles

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Section 1: Core Values

The ƒxyz Network shall be governed by the principles of transparency, fairness, inclusivity, and innovative progress, implemented through self-organizing role-based structures.

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Section 2: Network Sovereignty

The ƒxyz Network shall operate as a sovereign entity, where governance is distributed among roles and circles according to both the Holacracy Constitution v5.0 and the mechanisms described herein.

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Section 3: Individual Rights

All participants in the ƒxyz Network are entitled to:

• Access to network services without undue discrimination
• Privacy protections as implemented in network protocols
• Fair representation in governance processes through role participation
• Protection from arbitrary actions through objection mechanisms
• Clear role definitions and accountabilities

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Article II: Holacracy-Based Governance Structure

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Section 1: Governance Mechanisms

The ƒxyz Network shall be governed through a hybrid combination of:

• Holacracy circles and roles: Self-organizing teams with distributed authority
• On-chain DAO voting: Token-based governance for major network decisions
• Tactical and governance meetings: Regular operational and structural evolution processes
• Proposal and objection integration: Structured decision-making processes
• Community deliberation forums: Open discussion and tension sensing

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Section 2: Role-Based Authority

Authority within the ƒxyz Network flows through defined roles, not individuals:

• Purpose: Each role exists to express a specific capacity or achieve defined goals
• Domains: Roles have exclusive control over defined assets, processes, or functions
• Accountabilities: Ongoing activities that roles commit to managing and enacting
• Policies: Special rules that grant or constrain authority within the role

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Section 3: Circles and Sub-Circles

The ƒxyz Network is organized into circles that group related roles:

• Anchor Circle: The highest-level circle containing the overall network purpose
• Sub-Circles: Specialized areas like Technology, Community, Markets, and Governance
• Circle Leads: Roles responsible for circle objectives and resource allocation
• Rep Links: Representatives ensuring sub-circle perspectives reach super-circles

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Section 4: Proposal Process and Integration

Network evolution follows holacracy’s Integrative Decision-Making Process:

1. Tension Sensing: Identifying gaps between current and potential state
2. Proposal Formation: Creating specific changes to address tensions
3. Clarifying Questions: Understanding the proposal and underlying tension
4. Reaction Round: Sharing perspectives without discussion
5. Objection Round: Identifying reasons the proposal might cause harm
6. Integration: Amending proposals to resolve valid objections

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Section 5: DAO Integration

Token-based governance enhances role-based authority through:

• Governance tokens: ƒ(xyz) tokens providing voting rights for major network decisions
• Role enhancements: Token stakes can increase role authority for specific accountabilities
• Treasury management: Multi-signature controls governed by both roles and token votes
• Cross-chain coordination: Token voting enables governance across multiple blockchain networks

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Article III: Economic and Network Principles

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Section 1: Value Creation and Distribution

The ƒxyz Network shall foster an ecosystem that:

• Rewards role-based contributions and value creation
• Distributes economic benefits according to role performance and token stakes
• Prevents excessive centralization through distributed role authority
• Promotes sustainable growth through evolutionary tension processing

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Section 2: Incentive Alignment

Economic incentives shall align with holacracy principles:

• Role-based rewards: Performance incentives tied to role accountabilities
• Circle objectives: Collective incentives for circle-level goal achievement
• Network health: Long-term token incentives for overall ecosystem growth
• Contribution recognition: Both operational excellence and governance participation

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Section 3: Network Governance Economics

• Governance token distribution: Fair initial allocation and ongoing earning mechanisms
• Role staking: Optional token stakes to enhance role authority
• Circle budgets: Resource allocation through role-based budget authority
• Treasury governance: Collective management of network resources

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Article IV: Technical and Operational Sovereignty

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Section 1: Open Standards and Interoperability

The ƒxyz Network shall prioritize:

• Open-source governance protocols and role definitions
• Interoperability with other holacracy implementations
• Technical accessibility through clear interfaces and documentation
• Graph-based visualization of organizational structure

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Section 2: Security and Privacy

Network security and privacy shall be paramount:

• Confidential transactions: ElGamal encryption protecting financial privacy
• Role-based access controls: Information access limited by role domains
• Multi-signature security: Critical operations require multiple role holders
• Privacy-preserving governance: Zero-knowledge proofs for sensitive decisions

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Section 3: Resilience and Evolution

The network shall be designed for:

• Technical resilience: Distributed infrastructure and redundant systems
• Governance resilience: Multiple decision-making pathways and objection integration
• Evolutionary adaptation: Continuous organizational structure evolution
• Community resilience: Inclusive participation and conflict resolution mechanisms

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Article V: Amendment and Evolution

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Section 1: Constitutional Amendments

This Constitution may be amended through:

• Holacracy governance process: Following proposal and objection integration
• DAO supermajority vote: Token-based voting for fundamental changes
• Community ratification: Broad stakeholder consensus for major amendments

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Section 2: Living Document Principle

This Constitution serves as a living document that evolves alongside:

• Network growth: Scaling governance structures as the network expands
• Technical development: Adapting to new blockchain and governance technologies
• Community needs: Responding to stakeholder feedback and emerging requirements
• Holacracy evolution: Incorporating improvements to the holacracy framework

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Ratification and Implementation

This Constitution is established by the founding members of the ƒxyz Network and ratified by the initial community of stakeholders. It integrates the proven holacracy framework with innovative DAO mechanisms to create a unique hybrid governance model.

The Constitution becomes effective upon:

1. Community ratification: Approval by initial stakeholder consensus
2. Role structure implementation: Deployment of initial circles and roles
3. Token distribution: Initial governance token allocation
4. Technical deployment: Smart contract and governance infrastructure launch

Adopted on the ƒxyz Network - January 2025

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References:

• Holacracy Constitution v5.0
• ƒxyz Network Roles
• Holacracy-DAO Integration