#81 Sustainable governance model

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opened 1 year ago by i3_relativism · 0 comments

Has promissed here is my propousal for this project to make it financially sustainable.

#ABOUT - GVRN

###INTRODUCTION

"Funding is the main problem in Software/Hardware development", RMS.

Sustainable governance model by the means of a cryptotoken economy, rewarding contributors for their commits.

The governance protocol intends to be implemented as a model based in the DAO (Decentralized Autonomous Organization). The basic theasis is to make a inclosed economic system, were donations, reveneu, company contributions as well as all development expenses go through a token system. And only after such, it will be exchanged back to FIAT currency (using Bisq dex). By doing this you will increase the project sustainability and economic independence, by the means of increasing token value, by consequence raising the overall project real value, given in return the ability to pay for further development or reward commits contributed in the past, this renders unnecessary the need for external investment, and the existence of a financial institution or even a foundation.

###PROBLEM Many FOSS (FreeOpenSourceSoftware) or OH (OpenHardware) projects face problems on what relates to economic funding, given the ideals it defends arent compatible either with the traditional c-corp business model, or the datamining model, were such issues are even more felt especially on what relates to user privacy.

###PROPOUSAL DAOs is the idea to create a token economy were members can contribute and participate, and at the same time creating a self sustaining system to support and increase further development through commits token rewards. The problem with such economy is that it needs to be setup in such architecture that makes valorisation possible, with the increase of user-base, members, devs, donations, etc, without the need for exterior intervention, in the form of fiat backed investement, in other words, current real world capital.

Why hardware projects are the perfect fit for such system? One of the downfalls of token-economies and the reason why it isnt implemented in software projects. Is because a determinate project might have a considerable amount of members, but a lot of them are not economic participants on such system, making for a slow token valorization, but in the hardware world is quite the opposite, most members would participate in such economy given that most of them are costumers of the hardware. Creating high enough market circulation in terms of transactions to increase the value of such project, also this doesnt mean the donation scheme cannot be integrated, but at least is not the reliant on the previous and it doesnt become center of such economy.

###BENEFITS If well implemented such codebase can make a project self-sustaining, only relying on its own infrastructure without the need for exterior support, including ability to pay for technical work needed, like development, manufacturing, support, RandD, etc.

###REFERENCES Many already developed codebases could be used to implement such system including but not exclusively BisqDAO (decentralized cryptocurrencie exchange), Signal dev-reward system, gitcoin, aragon/OpenLaw systems.

#####DISCLAIMER Although this word (DAO) has been used before as hype in the cryptocurrency camp,especialy in a lot of nonsensical articles (so is adviced totake it on with a grain of salt), the original idea has a lot of value. Would appreciate any refutations to this propousal, as well as any improvements xor edits to this post so such system can be well implemented and refined to work well. Cheers.

#####LICENSING Redistribute and/or modify this article under the terms of: the Creative Commons Attribution-ShareAlike 4.0 International License as published by Creative Commons; either version 4.0, or (at your option) any later version.

Has promissed here is my propousal for this project to make it financially sustainable. #ABOUT - GVRN ###INTRODUCTION "Funding is the main problem in Software/Hardware development", RMS. **Sustainable governance model** by the means of a cryptotoken economy, rewarding contributors for their commits. The governance protocol intends to be implemented as a model based in the DAO (Decentralized Autonomous Organization). The basic theasis is to make a inclosed economic system, were donations, reveneu, company contributions as well as all development expenses go through a token system. And only after such, it will be exchanged back to FIAT currency (using Bisq dex). By doing this you will increase the project sustainability and economic independence, by the means of increasing token value, by consequence raising the overall project real value, given in return the ability to pay for further development or reward commits contributed in the past, this renders unnecessary the need for external investment, and the existence of a financial institution or even a foundation. ###PROBLEM Many FOSS (FreeOpenSourceSoftware) or OH (OpenHardware) projects face problems on what relates to economic funding, given the ideals it defends arent compatible either with the traditional c-corp business model, or the datamining model, were such issues are even more felt especially on what relates to user privacy. ###PROPOUSAL DAOs is the idea to create a token economy were members can contribute and participate, and at the same time creating a self sustaining system to support and increase further development through commits token rewards. The problem with such economy is that it needs to be setup in such architecture that makes valorisation possible, with the increase of user-base, members, devs, donations, etc, without the need for exterior intervention, in the form of fiat backed investement, in other words, current real world capital. Why hardware projects are the perfect fit for such system? One of the downfalls of token-economies and the reason why it isnt implemented in software projects. Is because a determinate project might have a considerable amount of members, but a lot of them are not economic participants on such system, making for a slow token valorization, but in the hardware world is quite the opposite, most members would participate in such economy given that most of them are costumers of the hardware. Creating high enough market circulation in terms of transactions to increase the value of such project, also this doesnt mean the donation scheme cannot be integrated, but at least is not the reliant on the previous and it doesnt become center of such economy. ###BENEFITS If well implemented such codebase can make a project self-sustaining, only relying on its own infrastructure without the need for exterior support, including ability to pay for technical work needed, like development, manufacturing, support, RandD, etc. ###REFERENCES Many already developed codebases could be used to implement such system including but not exclusively BisqDAO (decentralized cryptocurrencie exchange), Signal dev-reward system, gitcoin, aragon/OpenLaw systems. #####DISCLAIMER Although this word (DAO) has been used before as hype in the cryptocurrency camp,especialy in a lot of nonsensical articles (so is adviced totake it on with a grain of salt), the original idea has a lot of value. Would appreciate any refutations to this propousal, as well as any improvements xor edits to this post so such system can be well implemented and refined to work well. Cheers. #####LICENSING Redistribute and/or modify this article under the terms of: the **Creative Commons Attribution-ShareAlike 4.0 International License** as published by Creative Commons; either version 4.0, or (at your option) any later version.
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