The Bitcredit DAO

Why a DAO?

Bitcredit is built to operate without centralised control. It is a perpetual, independent, decentralised autonomous organisation (DAO), governed by its members. For long-term sustainability, a reward system incentivises member contributions, such as code, content, education, and introductions. These contributions secure the DAO's long-term existence. 

What is the Bitcredit DAO?

The Bitcredit DAO rewards need no permissioned fiat bank accounts, Contributors receive the Special Guarantee Asset of Bitcredit, called e-IOU. In due course, it will come as an RGB token when the neccessary capabilites are supported. Until then it is a BRC-20 token on Bitcoin mainchain, 

The DAO is governed by its members and needs no permission from any nation state government. 

1. 1. Contribution proposals

As a reward for approved contributions, contributors share the newly issued e-IOUs, every quarter. There is no central entity that issues e-IOUs, existing Bitcredit holders vote on an open voting platform for BRC-20 tokens, Votico → 

1. 2. Strategy proposals

The members of the Bitcredit DAO, the e-IOU holders, decide on strategic matters and policy. Before voting, strategic proposals are deliberated on a open platform for structured debates, called Kialo →

Un-governance

Bitcredit operates on the 'un-governance' principle. The project uses methods and systems for finding high quality strategic decisions in an efficient manner but subsequent adherence is voluntary. Nobody can be forced to act on these , anyway, because the Bitcredit Protocol is free open source software, its code is in the public domain. Anybody can fork it, just like Bitcoin. 

Participation is open, starting from the project's public GitHub. Anyone can submit a proposal for strategy, as well as for technical or other contributions. A novel method called statistically-representative voting ensures efficient participation in decision making and better decision quality compared to traditional mass voting. (1) 

Appropriately powered random samples of token holders vote privately in relation to token ownership, The largest voter in the random set is limited to a 20% vote share. 

e-IOU rewards follow a structured process, as follows:

1. Entry: Anyone can submit a proposal via the project's public Kanban on GitHub → 

2. Triage:  If three e-IOU holders second the proposal in the comments, it can go to a vote. 

3. Setup: A token holder creates call for votes on the Bitcredit section of Votico →

4. Sampling: Votico automatically selects a random sample of e-IOU holders for the vote.

5. Voting: Any member can debate on Votico before the sampled voters cast their vote. Voting is blinded. (2, 3)

6. Release: The e-IOU rewards for approved proposals are released from the DAO reserve via a multi-signature. (4)

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1. If everybody must vote, only large holders would participate. Therefore, the DAO ask a sample which gives a confidence level of 90% for a 15% interval.  
2. Votes are weighted by a voter's token holdings and capped at 20% per participant. 
3. Due to the confidence interval, a 65% supermajority is required for approval.
4. The 8-of-15 signers rotate quarterly, and are randomly selected. The supporters of the proposal of the quarterly signer reward qualify for random selection.