Optim Governance | ODAO

Embracing Cardano’s power, we, the Optim community, unite to form the Optim Decentralized Autonomous Organization (ODAO). Our collective journey is focused on enriching our community experience, distributing decision making, and paving the path to financial accessibility. In this article we dive into details of Optim DAO, its structure, governance procedures, current and future aims, and everything that will transform our vision of a decentralized future into reality.

Introduction

Born out of our steadfast belief in Cardano and DeFi, the Optim Protocol and Optim DAO stand as a testament to our vision. We endeavor to create spaces where financial liberty, independence, and cooperative camaraderie merge to form a harmonious community.

At the core of Optim DAO, we uphold these indispensable principles to realize our ambitious goals:

1. Transparency: In our world, clarity reigns supreme. All actions and information shared within our community echo this principle of utmost transparency.
2. Immutability and Audibility: Our steps are etched in stone, unchangeable and auditable. Every action we take stands up to the scrutiny of public accountability.
3. Open Forum: We nurture an open dialogue where every voice, every idea matters and is heard. Our commitment is to turn the collective community will into fruitful actions.

Optim DAO is more than just robust; it’s a decentralized, accountable, and transparent community within the Cardano network. Our charter is to be a hub where every community member can find their voice, flourish, and harness the advantages of Cardano.

During the DAO initialization phase over the remainder of 2023, the Optim DAO will function in similar ways to existing DAOs in the Cardano ecosystem; all token holders under a singular role, with equal accessibility to getting involved and impacting the future of the organization.

While this format is more than enough to kick start a self governing body, we believe that a more structured approach in the future will not only increase the health and longevity of the organization, but also motivate members to participate and engage within branches that best suit their skills and interests.

At launch, Optim Bond Tokens will serve as the initial governance asset until the public release of the official $OPTIM token in the near future. In 2024 we aim to transition to OPTIM 80/20 LP token voting.

Initial DAO Structure

This section offers an overview of the initial Optim ODAO structure as well as a guide for any community member(s) introducing a proposal for voting to the ODAO community.

At a high level, Optim governance consists of two distinct phases:

1) Temperature Check which are off-chain, in-progress, and up for discussion and refinement
2) Formal governance proposals that are posted off-chain, but go through the formal governance process of on-chain snapshot and cryptographically verifiable credentials and voting

Temperature Check

The Temperature Check allows community members to share a proposed idea and gather early community responses. Based on community brainstorming and discussions, the proposers refine their ideas, culminating in a proposal for member voting.

To create a Temperature Check:

1. Post a general question in the Forum’s Temp Check category. Share the link and proposal summary in the Optim governance channel in Discord.
2. After refining the ideas from community discussions, create a poll in the “Temp Check Polls” category using the “Build A Poll” feature. Include references, a summary, and links to prior discussions. This poll might be binary or multiple choice but it must include a “No” / “Make no change” option.
3. Engage your networks, social media, and Optim DAO Members to garner support and discuss the proposal. Be responsive to questions and focus on our DAO’s philosophy and mission. Do note that disagreements indicate healthy democratic functioning.

The majority-voted option wins. If “Yes” passes, proceed to Step 2 with a formal Governance Proposal. If “Yes” doesn’t win and members want to submit a revised proposal, repeat Step 1, titling revised posts with ‘v2, v3, etc.’

Formal Governance Proposal

Once sufficiently supported in the Temperature Check round, an idea transitions into a Formal Proposal for member voting. Its content should mirror the successful Temperature Check, presenting only “Yes” and “No” options.

Proposal creators must deposit 500 OPTIM tokens to create a formal on-chain governance proposal, upon which the tokens are held under Optim’s custody. Please note that in case the proposal isn’t successful, the deposited OPTIM is then sent to the DAO Treasury.

Proposal Voting

After submission, a proposal queues for voting, adhering to the submission order. The “On-chain Proposals” forum category serves as the discussion platform till voting ends. Governance dashboard features the available proposals for voting, detailing past and pending proposals’ history and timelines.

Voting involves the delegation of staked OPTIM tokens. Cast votes are unchangeable and non-retractable. Post-voting, the delegated OPTIM gets released.

The details of the governance and snapshot system mechanics built by Sundae Labs will be outlined in our Gitbook governance section. Anyone interested can understand how the on and off chain components are fused and the ways on-chain voting power is cryptographically verifiable and immutable.

Successful Execution Delay

Post-approval, a proposal enters the “Execution Delay” phase preceding its execution.

NOTES:

a.) Moderators assist during proposal formation and submission. Persistence in presenting inappropriate proposals may lead to forum access restriction.

b.) A Temperature Check can be withdrawn as needed; Formal Proposals cannot be retracted post-submission.

Tricameral System: The Future of ODAO Governance

As Optim continues to grow in 2024 and beyond with new products and primitives, we aim to innovate and improve the ODAO to match our upward trajectory. Protocol innovation and expansion will require a DAO that is equally robust and efficient. With this in mind, we’ll be transitioning the ODAO to a tricameral system. The summary provided below is a high level overview meant to give the community an idea of the direction the ODAO is headed. As we progress towards this goal we’ll further detail, amend, and refine the tricameral system with the community before ratification.

ODAO, in the future, will operate on a unique and powerful governance model, a tricameral system. While more common in evolved governance systems of nations, there are few DAO implementations. At its core, this system comprises two essential components: DAO Council Members, DAO Citizens, and the DAO Court.

• DAO Council Members: Steering the Ship

At the helm of ODAO’s governance are the DAO Council Members, a group of 13 individuals entrusted with the responsibility of directing the growth and sustainability of Optim DAO and its associated products. They also manage the treasury, making strategic decisions to optimize resource allocation.

What sets this council apart is its dynamic nature. During our preliminary tests of this model four initial members have already taken their seats. However, the power to propose and enact changes lies in the hands of the entire council, with decisions requiring more than 50% approval. Token allocation for these council members is a blend of individual and collective shares, encouraging active participation and collaboration.

• DAO Citizens: The Heartbeat of ODAO

DAO Citizens form the progressive community within ODAO, wielding considerable influence through their proposal veto power. These members have the opportunity for upward mobility within the organization, securing contracts and advancing through ranks. The ability to form agreements with the council and other stakeholders empowers citizens to shape the future of Optim DAO.

ODAO’s structure ensures that each OPTIM token holder becomes a citizen, with proportional representation based on their holdings. The power of the citizens extends to the ability to forcefully remove or install council members through an 80% majority vote, promoting a truly democratic environment.

• DAO Court: The Arbiters of Fairness

The Court exists to ensure that the ecosystem as a whole is aligned with the rest of the ODAO. As an observer of order, an impartial creator and executioner of law they are to ensure that the dealings are just and the members treated fairly. This role will be filled by prominent and trusted members of the community and a well defined mediation process will be established at inception to ensure all conflicts are resolved in a positive and inclusive manner.

In order to better align the long term incentives of token holders, the Tricameral System will also transition power into the hands of $OPTIM 80/20 DEX pool LP tokens in 2024. This innovative dynamic will ensure that the liquidity providers in the ecosystem, who inherently provide the greatest support for the project, are accordingly rewarded with the most governance power.

Information Sources.

These resources provide vital information about Optim DAO and its proposals:

1. https://optim.finance/
   Optim’s primary site, hosting details about its features, functionalities, and underlying principles.
2. https://optim-finance.gitbook.io/
   The resource for detailed information about the Optim protocol, governance, and other information related to products and protocol functionality.
3. https://twitter.com/OptimFi
   The official source of all announcements, news & updates.
4. https://discord.gg/VZ329q7x69
   The prime communication platform for Optim community, open discussions about the protocol, larger DeFi/RealFi community and fostering community learning.
5. URL coming soon (the Forum)
   This forum lets users engage with the Optim community on various topics. You’ll find records of members’ earlier votes on proposals here.
   Fueling Innovation

Optim’s governance structure, driven by community participation, forms a sustainable and adaptable framework that allows for the continuous evolution and improvement of the protocol. It places the decision-making power directly in the hands of those who are most vested in Optim’s success.

Optim DAO is not just a DAO; it’s a movement, a call to action, and a move towards a better, more decentralized future. Join us on this incredible journey, and together, we’ll redefine the future of decentralized governance.

Stay tuned for more updates!