DAO Governance Functionality

The INSP token not only possesses inherent utilities but also serves as a traditional governance token. It grants management power to the community of stakeholders, aligning the interests of users and the organization. Our token economics aim to have as many liquid tokens as possible to bootstrap the decentralized nature of the protocol while allowing the current core team to establish the organization's fundamental pillars.

Governance power driven by the INSP token revolves around three core community propositions:

  1. Core decisions: Proposals concerning management positions, treasury grants, token economics, and new protocols.

  2. Process decisions: Proposals for changes to processes or implementations, such as procedures, guidelines, and improvements to existing tools or the platform environment (without profound changes).

  3. Informational decisions: Proposals regarding general guidelines or information for the community.

While core decisions will be unavailable during the first year, process and informational decisions will be enabled as soon as possible. To allow community input in core decisions from the start, we will establish the Inspect Committee, which will act as a prominent advisory and sounding board from the beginning. The INSPECT token will be used to (a) submit proposals and (b) cast votes on pending proposals as follows:

Submitting a Proposal

Proposals are initially published on the Research forum for community feedback. Proposals undergo improvements and objections, advancing to the voting process if welcomed and feedback is incorporated. Submitting a proposal requires locking up a predefined number of tokens (depending on the proposal's level) to discourage malicious or useless submissions. Proposals classified as "useless" or "malicious" trigger a penalty mechanism before releasing locked tokens, while denied or approved proposals incur minimal processing fees.

Casting Votes

Proposals enter the voting phase once submitted and amended. Depending on the proposal's level and subject matter, one of the following voting mechanisms will be applied:

  1. "One-vote-mechanism" for all qualifying token holders, requiring a predetermined amount of INSP tokens to prevent malicious voting by small holders or bots.

  2. "Quadratic voting" for more accurate preference expression, leading to more efficient and effective decision-making with improved representation of minority opinions and reduced influence of wealthy participants.

  3. "Regular voting," where one token equals one vote. Decisions will be made with either (i) regular majority or (ii) a qualified majority, depending on the subject.

Participants must delegate their INSP token balance to an address (either their own or someone else's) to vote. Voting participation is based on the delegated amount of INSPECT tokens registered to a specific address.

Diverse rules aim to create an open-ended DAO, in which the community's impact is visible from the start, eventually transferring full control of the organization to members in a controlled and orderly manner.

Inspect Committee and Inspector Roles - INSP Token Relationship

To ensure community participation while building the Inspect ecosystem's foundation, we aim to establish an advisory council, the "Inspect Committee," with the right to be involved in C-level decisions through advisory votes. Members joining the committee must lock up a certain amount of INSP tokens in a dedicated staking pool, demonstrating their commitment to the Inspect Foundation's mission and values.

Assigning a Committee Role requires a community vote using a "one-vote-mechanism" for all qualifying token holders. A vote will be launched and open for a predetermined amount of time, allowing all interested token holders sufficient time to cast their votes. Once the voting process is completed, the assignee will be requested to fund the dedicated staking contract to officially claim their seat on the Inspect Committee. This funding can also be achieved through our delegator system, where other community members pledge INSP tokens to a specific person for them to join the committee.

The committee's role will gradually evolve as the groundwork is completed, providing them with greater influence over the direction of the Inspect Foundation through binding resolutions and advice.

We will also introduce Inspector roles, which have a more public-facing role and are granted a visible tag on their social profiles. Inspectors will promote the project and serve as an accessible point of contact for those interested in learning more about the Inspect Foundation. In return, they receive fair remuneration. Inspectors will be provided with guidelines on interacting with the broader crypto community, and a penalty mechanism will be installed, ranging from minor to more severe offenses. Any offense will trigger various penalties or, if necessary, lead to the removal of the Inspector. To properly impose these guidelines, Inspectors will be appointed after receiving advice from the Inspect Committee and will be required to fund a staking contract with a predetermined amount of INSP tokens. Penalties will be applied based on this base allocation.

The role of Inspector is fluid and public-facing, promoting the presence of the Inspect Foundation in the space. They will maintain direct contact with the Inspect Committee and are tasked with not only promoting the platform but actively gathering community feedback. Inspectors may submit proposals to the Committee, either individually or as a group, and will be rewarded if those proposals are implemented. Such rewards will be structured as a top-up of the Inspector's base remuneration.

In conclusion, the INSP token serves as the backbone of the governance system, empowering the community and promoting a decentralized decision-making process. Through the establishment of the Inspect Committee and Inspector roles, we aim to foster a strong, committed community that actively participates in shaping the future of the Inspect Foundation.

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