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DAO Governance Overview

🏛️ Decentralized Spiritual Governance​

The Psanctuary DAO represents a new paradigm in spiritual organization—combining ancient wisdom with modern blockchain technology to create a truly decentralized, community-governed institution.

🎯 Core Principles​

1. Distributed Authority​

Power flows through circles of responsibility, not top-down hierarchies.

2. Earned Participation​

Governance rights must be earned through active engagement, not just purchased.

3. Transparent Decision-Making​

All proposals, votes, and treasury movements are recorded on-chain for complete transparency.

4. Holacratic Structure​

Inspired by holacracy, we organize into autonomous circles with clear domains.

5. Spiritual Integration​

Governance serves the sacred mission of healing, community, and spiritual growth.

🔄 The Holacracy Model​

Traditional organizations have hierarchies. We have circles:

graph TD
    A[Psanctuary DAO] --> B[Core Circle]
    A --> C[Development Circle]
    A --> D[Community Circle]
    A --> E[Spiritual Circle]
    
    B --> B1[Strategic Vision]
    B --> B2[Treasury Management]
    B --> B3[Partnership Approval]
    
    C --> C1[Smart Contract Development]
    C --> C2[Frontend Development]
    C --> C3[Infrastructure]
    
    D --> D1[Outreach & Education]
    D --> D2[Member Support]
    D --> D3[Content Creation]
    
    E --> E1[Ceremonial Practices]
    E --> E2[Spiritual Integration]
    E --> E3[Sacred Offerings]

Core Circle​

Domain: Strategic direction and treasury stewardship

Responsibilities:

  • Long-term vision and roadmap
  • Major treasury allocations
  • Partnership approvals
  • Cross-circle coordination

Membership: Elected by MDAO holders

Development Circle​

Domain: Technical implementation and innovation

Responsibilities:

  • Smart contract development
  • Frontend/backend development
  • Infrastructure management
  • Security audits

Membership: Technical contributors with proven track record

Community Circle​

Domain: Outreach, education, and member support

Responsibilities:

  • Community engagement
  • Educational content
  • Member onboarding
  • Social media management

Membership: Active community members

Spiritual Circle​

Domain: Ceremonial practices and sacred integration

Responsibilities:

  • Ceremonial design and facilitation
  • Spiritual education
  • Integration support
  • Sacred space maintenance

Membership: Experienced practitioners and spiritual leaders

🗳️ Voting Mechanics​

MDAO Token: One Token, One Vote​

// Governance parameters
const PROPOSAL_THRESHOLD = 1000; // MDAO required to create proposal
const QUORUM = 100000; // 10% of total supply
const VOTING_PERIOD = 7 * 24 * 60 * 60; // 7 days
const EXECUTION_DELAY = 2 * 24 * 60 * 60; // 2 days (timelock)

Proposal Lifecycle​

  1. Creation - Stake 1000 MDAO to create proposal
  2. Discussion - 3-day discussion period
  3. Voting - 7-day voting period
  4. Quorum Check - Must reach 10% participation
  5. Timelock - 2-day delay before execution
  6. Execution - Proposal automatically executes if passed

Proposal Types​

Treasury Proposals​

Allocate funds from the DAO treasury for:

  • Development grants
  • Marketing campaigns
  • Partnership investments
  • Community initiatives

Parameter Proposals​

Adjust system parameters:

  • Fee structures
  • Token emission rates
  • Staking rewards
  • Governance thresholds

Upgrade Proposals​

Modify smart contracts:

  • Bug fixes
  • Feature additions
  • Security improvements
  • Protocol upgrades

Partnership Proposals​

Approve strategic partnerships:

  • Integration with other protocols
  • Collaboration agreements
  • Joint ventures
  • Sponsorships

💎 Earning MDAO​

Unlike traditional governance tokens, MDAO must be earned through participation:

1. Staking PSILO​

Lock PSILO tokens to earn MDAO over time:

// Staking rewards formula
MDAO_per_day = (PSILO_staked / total_PSILO_staked) * daily_MDAO_emission

Emission Schedule:

  • Year 1: 100,000 MDAO
  • Year 2: 75,000 MDAO
  • Year 3: 50,000 MDAO
  • Year 4+: 25,000 MDAO annually

2. Active Voting​

Earn bonus MDAO for consistent voting participation:

// Voting rewards
if (votes_cast_this_month >= 5) {
  bonus_MDAO = 10;
}

3. Proposal Creation​

Earn MDAO when our proposals pass:

// Proposal rewards
if (proposal_passed && proposal_executed) {
  creator_reward = 100 MDAO;
}

4. Contribution Rewards​

Community-approved work earns MDAO:

  • Code contributions
  • Documentation
  • Design work
  • Community support
  • Educational content

5. Liquidity Mining​

Provide ETHO/PSD liquidity to earn MDAO:

// LP staking rewards
MDAO_per_day = (LP_tokens_staked / total_LP_staked) * LP_MDAO_emission

🔐 Security & Safety​

Timelock Contract​

All governance actions have a 2-day delay before execution, allowing the community to:

  • Review the exact code that will execute
  • Detect malicious proposals
  • Emergency cancel if needed

Multi-Sig Guardian​

A 5-of-9 multi-sig can veto proposals in emergency situations:

  • Critical security vulnerabilities
  • Malicious proposals
  • Smart contract bugs

Guardian Members:

  • 3 Core Circle members
  • 2 Development Circle members
  • 2 Community Circle members
  • 2 Spiritual Circle members

Proposal Validation​

All proposals must pass validation checks:

  • Proper formatting
  • Valid smart contract calls
  • Reasonable parameter ranges
  • No malicious code patterns

📊 Treasury Management​

Treasury Composition​

The DAO treasury holds:

  • 30% of PSILO - 3,000,000 tokens
  • 30% of MDAO - 300,000 tokens
  • ETH from crowdsale - Fundraising proceeds
  • LP tokens - ETHO/PSD liquidity positions
  • NFT holdings - Rare SHROOM NFTs

Allocation Strategy​

pie title Treasury Allocation
    "Development" : 40
    "Marketing" : 20
    "Operations" : 15
    "Grants" : 15
    "Reserve" : 10

Spending Limits​

To prevent treasury depletion:

  • Monthly limit: 5% of treasury
  • Single proposal limit: 2% of treasury
  • Emergency reserve: 20% untouchable

🌟 Governance Best Practices​

For Proposal Creators​

  1. Research thoroughly - Understand the issue deeply
  2. Engage the community - Discuss before proposing
  3. Write clearly - Make the proposal easy to understand
  4. Provide context - Explain why this matters
  5. Include details - Specify exact implementation

For Voters​

  1. Read proposals carefully - Don't just vote based on titles
  2. Participate in discussion - Ask questions, share concerns
  3. Vote consistently - Build our voting track record
  4. Think long-term - Consider future implications
  5. Stay informed - Follow DAO announcements

For Circle Members​

  1. Respect autonomy - Let circles manage their domains
  2. Communicate clearly - Share updates regularly
  3. Collaborate actively - Work across circles
  4. Document decisions - Keep transparent records
  5. Serve the mission - Always prioritize the sacred purpose

🚀 Future Enhancements​

Quadratic Voting​

Exploring quadratic voting to balance whale influence:

// Quadratic voting formula
voting_power = sqrt(MDAO_balance)

Delegation​

Allow MDAO holders to delegate voting power to trusted representatives.

Reputation System​

Non-transferable reputation tokens that track contribution history.

Conviction Voting​

Time-weighted voting where longer commitment = more influence.

Futarchy​

Prediction markets to guide decision-making based on expected outcomes.

📚 Learn More​

"In the circle, all voices are heard. In the DAO, all votes are counted. In the spirit, all are one." 🍄✨