Reputation Proposal Mechanism

In the Ichimoku Kinko Hyo DAO, the investment strategy discussion and voting process are designed to be transparent, democratic, and fair. This structure ensures that every decision regarding DAO investments is driven by the collective opinion of the community, free from undue influence by large token holders.

Proposal submission

Any member with a reputation in the DAO can submit an investment proposal for discussion. Proposals can cover a wide range of investment opportunities, such as investing in cryptocurrencies, DeFi projects, or other emerging assets. After submitting a proposal, the proposer needs to stake a certain amount of $IKH tokens to show their commitment and confidence in the proposal.

Proposal staking threshold

Once a proposal has been submitted, it is considered valid if the proposer's staked $IKH tokens plus the amount staked by the community approvers reaches a pre-set threshold. This ensures that only serious and well-thought-out proposals can proceed to the next stage. Once the threshold is reached, the proposal will officially enter the voting stage, allowing DAO members to participate in the decision-making process.

Voting participation

The voting phase is open to all members of the DAO with a reputation. Voting rights are based solely on each member's reputation, not the number of staked $IKH tokens. This approach prevents large token holders from exerting a disproportionate influence on decisions and ensures a fairer and more balanced voting process. Members vote for or against the proposal, with each vote weighted according to the member's reputation rating.

Proposal outcome – staking threshold

If one side (the “yes” or “no” camp) reaches the required staking threshold, and the other side fails to stake the required amount within the specified time, the proposal will be automatically approved or rejected without further voting. This mechanism ensures that proposals will not be blocked by a small number of members who are not firmly committed or who do not actively participate in discussions.

Voting and decision-making

If both sides have staked the required amount of tokens, the proposal will enter the formal voting stage. All members with a reputation can vote. The proposal will be implemented according to the decision if the majority wins.

• Winning party: If the “yes” side wins, all tokens staked by both sides will be returned. The tokens staked by the “no” side will be partially transferred to the DAO community treasury, a small part will be distributed as a reward to the supporters of the “yes” side and all voters who participated in the voting, and the rest will be returned to the original account. This is intended to encourage participation and provide funding support for future plans.

• Losing side: If the “no” side wins, the process is reversed. Some of the tokens staked by the “yes” side are transferred to the community treasury, some are distributed to the “no” voters, and the rest are returned to the “yes” side.

• Tie votes: If there is a tie, some of the tokens staked by both sides are injected into the community treasury, and the rest are returned to the stakers.

Transparency and rewards

Transparency is key in this process. All staked amounts, voting results and reward distributions are visible to all DAO members, ensuring that members can see the reasoning behind each decision. The system incentivizes active participation, thoughtful contributions and fair decision-making by rewarding members for their participation in the process, whether they are in the majority or minority, while funding the DAO community fund.