DAO Integration in ƒxyz Network

The ƒxyz Network implements a hybrid governance model that combines the operational efficiency of holacracy with the democratic legitimacy of DAO token-based voting. Rather than operating as separate systems, our DAO mechanisms enhance and complement holacracy structures.

Hybrid Governance Overview

Our governance operates on two integrated layers:

Holacracy Layer (Operational)

• Role-based authority: Fast operational decisions through defined roles
• Rapid iteration: No token voting overhead for routine operations
• Clear accountability: Specific roles with defined purposes and domains
• Tension-driven evolution: Organizational structure evolves based on feedback

DAO Layer (Constitutional)

• Token-based voting: Major decisions require community consensus via ƒ(xyz) tokens
• Treasury management: Community controls network resources and funding
• Constitutional changes: Fundamental governance modifications need supermajority
• Network-wide decisions: Changes affecting all participants require DAO approval

Integration Mechanisms

1. Enhanced Role Authority

Roles can be enhanced with token staking to increase decision-making authority:

Base Role Authority + Token Stake = Enhanced Role Authority

Example: A DeFi Product Manager with 10,000 ƒ(xyz) tokens staked can approve both product features (base role) and treasury expenditures up to $50,000 (enhanced authority).

2. DAO-Validated Proposals

Major holacracy proposals trigger DAO voting for validation:

• Constitutional changes to holacracy structure
• New circle creation affecting network resources
• Major role authority modifications
• Treasury allocation decisions

3. Token-Weighted Objections

Traditional holacracy objections can be enhanced with token backing for increased weight in resolution processes.

Governance Rights

ƒ(xyz) token holders have:

• Proposal submission and voting rights
• Role nomination and appointment powers
• Treasury and budget approval authority
• Protocol upgrade decision making
• Veto power over certain holacracy decisions

Development Status

Our hybrid governance implementation progresses through phases:

1. Foundation ✅ - Basic token infrastructure and governance framework
2. Hybrid Integration 🔄 - Connecting holacracy with on-chain mechanisms
3. Automation 📋 - Smart contract execution of approved proposals
4. Cross-Chain 🔬 - Multi-chain governance coordination

Learn More

• Holacracy Overview: Understanding role-based governance
• Integration Details: Technical implementation of hybrid model
• DAO Interface: Participate in token-based governance
• Constitution: Our governance framework

This hybrid approach leverages the best of both worlds: holacracy's operational efficiency with DAO's democratic legitimacy and transparency.