The CuBitDAO™
The CuBitDAOTM is a decentralized autonomous organization (DAO) consisting of people like you, people who own CuBitTM.
The CuBitDAOTM is member-owned and operates without centralized leadership.
While some DAOs are managed by a computer program operating on a blockchain (on-chain), others are run manually by the members (off-chain).
The CuBitDAOTM is a hybrid DAO, meaning some portions of its operations are directly controlled on-chain through smart contracts, other aspects of the DAO are carried out off-chain by people. The CuBitDAOTM Operating Agreement identifies what is done on-chain and what occurs off-chain.
When you acquire CuBitTM you become a member (Member) of the CuBitDAOTM (DAO. It’s as easy as that.
Members of the DAO collectively control the supply of CuBitTM. Members select the fund administrator (Administrator) and set the goals for the DAO.
The figure below is a simplified version of the purposes of the DAO.
Below are extracts from the operating agreement for the DAO.
ARTICLE V
RIGHTS OF MEMBERS
Section 5.01 Overview. Members have Ordinary Voting Rights and, depending on how much CuBit they hold and their desire for individual involvement, they may also have Advisement Rights. In addition to the rights of Members, Founding Members have rights to the Founder’s Share of each Minting of CuBit.
Section 5.02 Ordinary Voting Rights. All Members holding enough CuBit to meet the Voter Threshold Amount (see Schedule B) for at least enough calendar days to meet the Voter Threshold Time (see Schedule B) have the right to vote on all DAO proposals.
Section 5.03 Advisement Rights. Each Member holding enough CuBit to meet or exceed the Advisory Token Threshold as specified in Schedule B is entitled to one Advisory Token, allowing the Member to join and vote on an Advisory Committee.
- Each Advisory Committee must have at least one representative of the Asset Administrator who shall have a vote regardless of the amount of CuBit the representative holds.
- Advisory Committee resolutions and votes are not binding on the DAO or the Administrator.
Section 5.04 Future Rights. As the business of the DAO develops, other rights will be assigned as future Member rights as appropriate in this Operating Agreement.
Section 5.05 Membership Cancellation. After the Pre-Launch period, a Member has the right to relinquish membership, in whole or in part, at any time. Membership is relinquished by transferring the entire holdings of CuBit to another Person or Persons who qualifies to be a Member, or by exchanging their CuBit with the DAO.
Section 5.06 Transferability of CuBit. CuBit is a fungible, digital receipt currency conforming to the protocols identified in Schedule B. As such, it may be transferred in whole or in part to an ERC-20 compliant Digital Wallet. Rights and responsibilities associated with CuBit transfer whenever the recipient is qualified to be a Member. If a qualified Member is subsequently disqualified from Membership due to changes in AML/KYC regulations, all voting rights are suspended until that CuBit is once again held in a Digital Wallet that is able to pass the AML/KYC requirements.
ARTICLE VI.
VOTING AND GOVERNANCE
Section 6.01 Voting Rights. Each Member holding enough CuBit to meet the Voter Threshold Amount (see Schedule B) is entitled to one vote per proposal for all CuBit held in their Digital Wallet which they have held at least as long as the Voter Threshold Time stipulated in Schedule B prior to the commencement of the voting period.
Section 6.02 Voting Process. General voting on DAO proposals will occur using an on-chain voting system such as snapshot.org or similar.
Section 6.03 Voting Quorum. A simple majority (50%+) is required for a quorum.
Section 6.04 Public Transparency. Although only DAO Members have the right to comment and vote, the Public has the right to view any proposal or issue in the appropriate forum once it has been prepared for a vote. Furthermore, establishment of a transparent, source-controlled online system is a prerequisite to the DAO being considered sufficiently decentralized. Thus, all governance proposals, discussions and voting decisions must be transparent and shared with open, publicly accessible platforms or conference calls. Email is not transparent and must not be used for any official discussion.
Section 6.05 Meeting Minutes. All meetings will be recorded with minutes and posted to the online repository, sent out by the appointed Facilitator or Administrator.
Section 6.06 Voting Proposals. Proposals for a general vote of the DAO should be placed into the appropriate forum where they can be read and discussed prior to being presented at the monthly meeting. Proposals must be documented in the designated online system seven (7) calendar days prior to the monthly meeting. Major proposals made during a meeting must be moved online for public transparency with the vote occurring at the following meeting.
Section 6.07 Proposal Limitations. Proposals for general voting of the DAO Members must fall into one of the categories below:
- Accept (or Reject) Outside Audit Results (annually or semi-annually)
- Change the DAO Outside Auditor (annually or semi-annually)
- Change the Minting Authorization (as needed)
- Change the Burn Authorization (as needed)
- Change the Coin Cap (as needed)
- Change the Tax Rate (as needed)
- Change the Tax Collector (as needed)
- Change the Tax Purpose (as needed)
- Change the DAO Administrator (as needed)
- Extra-ordinary Circumstances as defined in Schedule B.
